GreenMan Technologies, Inc. Reports Sixth Consecutive Profitable Quarter; Second Quarter Revenue Increases 21 Percent; Operating Profit Increases 138 Percent
LYNNFIELD, Mass.--May 6, 2002--GreenMan Technologies, Inc. (OTCBB: GMTI) (BSE: GMY) today announced results for its second quarter ended March 31, 2002."We are pleased to report our sixth profitable quarter in a row, especially during a period which is historically our slowest due to seasonal factors" said Bob Davis, president and chief executive officer of GreenMan. Mr. Davis also added "We are extremely encouraged as we enter the strongest half of our fiscal year with three new size reduction facilities (Iowa, Wisconsin and Oklahoma), two new kiln supply relationships in place and our Specialty Waste division starting to perform. In addition, our Georgia and Wisconsin waste wire processing equipment lines are operational and we are realizing both increased product sales and reduced disposal costs."
Three Months ended March 31, 2002 Compared to the Three Months ended March 31, 2001
Net sales for the second quarter ended March 31, 2002 were $5,561,000, an increase of 21 percent as compared to net sales of $4,579,000 for the second quarter ended March 31, 2001. GreenMan processed 5.6 million passenger tire equivalents during the quarter ended March 31, 2002 as compared to 4.8 million passenger tire equivalents during the quarter ended March 31, 2001. The overall quality of revenue (revenue per passenger tire equivalent) improved due to the impact of several tire pile cleanup projects and increased product sales at GreenMan's Georgia operations. The results include the operations of our new subsidiaries formed in connection with the acquisitions of Tennessee Tire Recyclers, Inc. (April 2001); An-Gun, Inc. (January 2002) and GreenMan's interest in our majority owned joint venture, Able Tire of Oklahoma, LLC (February 02).
GreenMan's operating profit for the second quarter ended March 31, 2002 increased 138 percent to $418,000 as compared to an operating profit of $175,000 for the second quarter ended March 31, 2001. The increase is primarily attributable to the continued improvement of GreenMan's southeastern U.S. operations and tire pile cleanup projects in the mid-west.
GreenMan reported net income of $214,000, or $.02 per share, for the second quarter ended March 31, 2002 as compared to net income of $192,000 or $.02 per share for the second quarter ended March 31, 2001. During the quarter ended March 31, 2001, GreenMan recorded other income of $438,000 due to an insurance settlement and an additional casualty loss of $155,000 associated with a litigation settlement related to the August 1998 fire at GreenMan Technologies of Louisiana.
Six Months ended March 31, 2002 Compared to the Six Months ended March 31, 2001
Net sales for the six months ended March 31, 2002 were $11,869,000 an increase of 28 percent, as compared to net sales of $9,269,000 for the six months ended March 31, 2001. The results also include the operations of our new subsidiaries formed in connection with the acquisitions of Tennessee Tire Recyclers, Inc. (April 2001); An-Gun, Inc. (January 2002) and GreenMan's interest in our majority owned joint venture, Able Tire of Oklahoma, LLC (February 02).
GreenMan's operating profit for the six months ended March 31, 2002 increased over 100 percent to $932,000 as compared to $445,000 for the six months ended March 31, 2001. The increase is primarily attributable to the continued improvement of GreenMan's southeastern U.S. operations and tire pile cleanup projects in the mid-west.
During the six months ended March 31, 2001, GreenMan recorded other income of $438,000 due to an insurance settlement and an additional casualty loss of $155,000 associated with a litigation settlement related to the August 1998 fire at GreenMan Technologies of Louisiana.
GreenMan reported net income of $461,000 (or $.03 per share) for the six months ended March 31, 2002 as compared to net income of $204,000 (or $.02 per share) for the six months ended March 31, 2001.
"Safe Harbor" Statement: Under the Private Securities Litigation Reform Act
With the exception of the historical information contained in this news release, the matters described herein contain `forward-looking' statements that involve risk and uncertainties that may individually or collectively impact the matters herein described, including but not limited to product acceptance, economic, competitive, governmental, results of litigation, technological and/or other factors outside the control of the Company, which are detailed from time to time in the Company's SEC reports, including the report on Form 10-KSB for the fiscal year ended September 30, 2001. The Company disclaims any intent or obligation to update these "forward-looking" statements.
Condensed Consolidated Statements of Income
Three Months Ended Six Months Ended
March 31, March 31, March 31, March 31,
2001 2002 2001 2002
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Net sales $4,579,195 $5,560,649 $9,268,741 $11,869,423
Cost of sales 3,625,750 4,217,149 7,217,941 9,083,369
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Gross profit 953,445 1,343,500 2,050,800 2,786,054
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Operating expenses:
Selling, general
and administrative 778,536 925,324 1,605,308 1,854,071
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Total operating
expenses 778,536 925,324 1,605,308 1,854,071
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Operating profit 174,909 418,176 445,492 931,983
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Other (expenses)
income, net 17,267 (209,158) (241,393) (470,423)
Income taxes -- (5,000) -- 700
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Net income $192,176 $214,018 $204,099 $460,860
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Net income per share
- basic $0.01 $0.02 $0.02 $0.03
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Weighted average
shares outstanding 13,348,231 13,993,701 13,348,231 13,817,048
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Condensed Consolidated Balance Sheet Data
September 30, March 31,
2001 2002
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Assets
Current assets $4,916,721 $4,682,748
Property, plant and equipment (net) 7,298,000 8,341,223
Goodwill (net) 2,172,198 2,172,198
Other assets 866,853 1,064,555
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$15,253,772 $16,260,724
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Liabilities and Stockholders' Equity
Current liabilities $5,288,658 $5,352,445
Notes payable, non-current 5,305,460 5,857,275
Capital lease obligations, non-current 1,759,257 2,083,846
Stockholders' equity 2,900,397 2,967,158
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$15,253,772 $16,260,724
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