ATLANTA, GA / ACCESSWIRE / May 24, 2016 / GreenParts International, Inc. (OTC:GNPT) today reported financial results for First Quarter 2016 which ended March 31, 2016. In addition, the company provided an update on its acquisition of URM, as well as the continued negotiation of its Debt Repurchase Program aimed to neutralize convertible debt.
Chief Executive Officer, Asif Balagamwala commented, "While the first quarter 2016 had ongoing industry challenges we were very encouraged internally by the closing of our debt consolidation and cost reduction initiatives. The Company incurred approximately $259k of one time charges related to loan closing cost and requirements. Revenues were down as a direct relation to the commodity prices, however our cost reduction initiatives helped us to double our margins. We are currently negotiating with our note holders to put a temporary freeze and floor price on conversions while we work with a few strategic partners, who's interest would be more aligned with the company and its shareholders, to repurchase balance of debt. If this initiative is successful, all of the securities responsible for dilution will be neutralized."
First Quarter Highlights:
- Company has plenty in cash and cash reserves for future growth and operations
- Year over Year Revenues down but margins were higher during the same period last year
- Excluding the one time items we would have been EBITDA positive
The CEO added, "We are also very pleased to announce that we recently finished our due diligence period for the LOI to acquire a local scrap metal and construction waste company. As expected, we are very satisfied with our findings and encouraged by the synergies that can be unlocked by combining our strengths with the acquisition targets warehousing and Logistics capabilities. We are diligently finalizing the closing documents and the terms of the purchase, and we are structuring a deal that is shareholder friendly, creating value, with very little dilution."
The CEO concluded, "As we have said in the past, we can't control market conditions, and the headwinds in our industry have been strong. However, due to our refinancing and reorganization internally, we have nearly $650k in cash and cash reserves, and feel confident that we are on course to execute on our plans to not only grow organically, but to diversify and acquire accretive operations."
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.
SOURCE: GreenParts International, Inc.