14 Apr, 2016 –
GreenParts International, Inc. (OTC:GNPT) today reported financial results for fiscal year 2015 which ended December 31, 2015.
Chief Executive Officer, Asif Balagamwala commented, “As stated in the past, 2015 was the most challenging year in our history. Similar to the end of 2014, Market conditions were extremely daunting in both metals recycling and steel manufacturing industries, which were both impacted by weak demand and a high level of steel imports. This past year our industry has experienced ferrous metal prices at decade lows (induced a one time inventory write-off) and steel mill utilization rates fell to 60% in December, which was a 6 year low. That coupled with our unfavorable debt structure resulted in losses and a decline-in-revenues.”
During the first quarter the company successfully executed on its previously announced debt consolidation and cost reduction initiatives.
“The closing of our refinance loan in January was crucial to our continued focus on improving our working capital efficiency, which was evident in our first quarter, pre-audited results. We were able to produce better margins, resulting in a gross profit margins of approximately 35% versus the 11% of a year ago comparison, despite quarterly revenues being significantly lower year over year. Our net income from operations will also compare nicely as we should show a modest net income profit before interest and depreciation for first quarter 2016 versus an approximate 400k loss for the same category a year ago.”
Mr. Balagamwala concluded, “While we can’t control market conditions and demand, we have been encouraged lately by the stabilization and even increasing price and demand from our customers. Recent tariffs placed on international companies dumping cheap steel into our market has helped the mills we sell to. We have been down a hard road to identify our inefficiencies, not only with our operation but with our capital. We know our strengths, and now with our debt restructuring and the eventual operating income it will provide, we are laser focused on increasing our productivity organically while expanding our acquisition and diversification commitments. Further updates on our operations progress and acquisitions will be provided. But they are on course.”
Safe Harbor Statement
This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In addition to statements which explicitly describe such risks and uncertainties, readers are urged to consider statements labeled with the terms “believes,” “belief,” “expects,” “intends,” “anticipates,” “will,” or “plans” to be uncertain and forward looking. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the company’s reports and registration statements filed with the Securities and Exchange Commission
Distributed by Press Release Jet
Company Name: Princeton Research
Contact Person: Mike King
Country: United States