BOULDER CITY, Nev.Polyurethane tire producer Amerityre Corp. has reported the first profitable quarter in its 18-plus-year history.
The company recorded net income of $39,000, before preferred share dividends, for the quarter ended June 30.
Amerityre CEO Michael Sullivan attributed the milestone result to the firm's focus on higher-margin products and a realignment of its cost structure.
Our fourth quarter results validate the strategic changes implemented by our management team and the execution of this strategy by our entire organization over the last year, he said.
The Boulder City-based producer of closed-cell foam and elastomeric industrial and forklift tires reported sales grew 43.9 percent in the quarter to $1.22 million. Amerityre attributed the revenue gain to higher sales of foam industrial tires and solid tires for agricultural uses.
Amerityre did not elaborate on the specifics of the turnaround, but the balance sheet shows the cost of revenues increased 15.2 percent, yielding a tripling in the gross profit.
The quarterly profit breaks a run of 79 consecutive quarterly losses with a cumulative loss over 18-plus years of $64.8 million.
For the full year, Amerityre reported a net loss of $399,361, including $100,000 in preferred dividend payouts, compared with a fiscal 2014 loss of $1.27 million. Fiscal year sales climbed 11.1 percent to $4.79 million.
Amerityre said it is concentrating on three market segments: closed-cell PU foam tires; elastomer PU forklift tires; and ag tires.
In 2014, the compay introduced a low-cost formulation for its foam tires to compete in the commodity segment of this market and that it continues to seek OE business.