ATLANTA, Aug. 19, 2015 /PRNewswire/ -- GreenParts International (OTC: GNPT), a metal and textile recycling company, with multiple locations in Atlanta, Georgia, has released its second quarter results and statements from its CEO regarding a strategic funding partner and significant growth in operating performance sequentially.
The company's second quarter results reflected benefits from the cost reduction plan that was implemented the previous quarter, which has advanced operating performance. The company reduced expenses progressively by 30% and saw revenues grow by nearly 35%, while gross margins returned closer to the company's historical average. As a result, before interest and depreciation, the company was profitable for the quarter.
"Our commitment to deliver on a broad range of cost savings and production initiatives has helped us improve our performance and endure the steep declines in ferrous metal prices, which still are down 30% from the prior year," said Asif Balgamwala, President and Chief Executive Officer. He added, "We are still recovering from the industry decline which has impaired shipments well into the second quarter and adversely altered our ratio of inventory cost to selling price. Additionally, we assumed new debt to take advantage of the opportunities, not only in cheaper inventory, but, most importantly, to execute on our developing new divisions. We expect the benefits from these efforts, combined with more stable market conditions, to provide further improvements in our operations. News about GreenParts International's continued progress and new endeavors will be forthcoming shortly. In addition, we are very fortunate to have finalized an arrangement with a local investment group to replace that debt before its term at equity valuations above our current market capitalization and will release details as soon, as appropriate. Furthermore, we have retained counsel to assist in the negotiations of our larger creditors, which is a crucial part of our strategic plan to reduce and replace our debt structure."
In closing, the CEO stated, "It has been a very challenging 12 months in our industry, however, we are very focused on furthering the implementation of our strategic plan, focusing on cost reduction and efficiencies gained from joint ventures and acquisitions, as well as, an intense focus on new verticals under the GreenParts International Logo. We are determined to execute and increase shareholder value, as well as ensure longevity for GreenParts International and its employees."
SOURCE GreenParts International