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Tire Recycler Leads Business Sector, Revenue up 13%

Tire Recycler Leads Business Sector, Revenue up 13%

Published 08-25-04

Submitted by AXcess News

Lynnfield, MA - AXcess News (www.axcessnews.com) released a story describing how national tire recycler, GreenMan Technologies, Inc. (AMEX: GRN), topped its sector competitors, Casella Waste Systems Inc (NASDAQ: CWST) and North American Technologies Group Inc (NASDAQ: NATK) Friday, after reporting a 13% jump in revenue for the 3rd quarter.

GreenMan's shares were reeling after a series of financial woes struck the Lynnfield-based tire recycler last year, beginning with its bank being shut down by the FDIC over mortgage loan problems, leaving it with no line of credit, to a fire in its Georgia tire recycling plant that crippled operations in that area of the country. The company had just completed a string of acquisitions when the bank failure and fire hit.

In July, GreenMan reported that New York-based Laurus Fund financed a $5 million convertible revolving line of credit and a $4 million term loan.

Within a few weeks of the $9 million financing the company announced the acquisition of American Tire Disposal, Inc. Terms of the deal were not disclosed, but GreenMan Tech did say that it would add $1 million to its sales and strengthen its foothold in the southern California market.

The company reported revenue of $8.1 million for the quarter, a 13% increase over the same period last year. Gross margins improved as a result of a 17% increase in inbound tires and a 15% increase in end product sales.

Chuck Coppa, GreenMan's Chief Financial Officer said that results were the affects of better operating management before the financing had taken place and pointed out that the company's Georgia plant was still not in operations when that period ended.

Earlier this month, GreenMan had been featured in "Environmental Sector Weighs in, Green Stocks on the Rise", a series of articles tracking small and micro cap stocks after their larger peers had reported results. Amongst the micro cap stocks, photochemical recycler, Itronics, Inc. (OTCBB: ITRO) was also featured. The article also covered Veolia Environnement (NYSE: VE), Casella Waste (NASDAQ: CWST), Tetra Tech (NASDAQ: TTEK) and Allied Waste (NYSE: AW).

That Feature story focused on a host of environmental stocks covered in a report released by The Wall Street Transcript in which Charles Schwab Capital Markets and Trading President, Linda Coy, commented on that sector and some of the stocks being covered.

GreenMan appears back on track and may be planning to once again acquire more tire recycling operations in consideration of its newly found financier, Laurus Fund.

The last quarter of this year and first quarter 2005 prove to be interesting if trying to gauge were the company's results will lie. The company had stated that it was still bleeding over $500,000 in extraordinary expense related to transporting tires in the southeast until its Georgia facilities were back in operation, but gave no indication as to when that facility would be in full swing.

This is an excerpt from the complete story. To read the complete story, go to AXcess News: www.axcessnews.com.

About AXcess News:
Dubbed the "Yahoo! of small cap business news" by Gordon Borrell, one of America's leading media and research gurus, AXcess News is fast becoming a known commodity for both the serious investor and people in general looking for informed articles and insightful columns. www.axcessnews.com

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