Executive Summary

Amerityre reported Q4 FY2016 net revenues of $0.916M and net income of ~$29K (before preferred dividends), marking a second consecutive profitable quarter despite ongoing agricultural market headwinds .
Revenue declined 25.0% year over year and 2.1% sequentially, while gross margin improved to ~35.7% (vs. ~32.4% YoY and ~34.0% QoQ) on cost control and lower cost of revenues .
Management emphasized disciplined cost containment, product focus on higher-margin segments, and new product introductions (e.g., scissor-lift polyurethane elastomer tire), supporting margin resiliency amid softer demand .
No formal guidance or Wall Street consensus estimates were available; thus, no beat/miss analysis versus estimates can be provided (S&P Global consensus unavailable) .

What Went Well and What Went Wrong

What Went Well

Second consecutive profitable quarter, achieved through cost discipline and a focus on competitive advantages across target markets: “another milestone for Amerityre” .
Gross margin improved QoQ and YoY in Q4 FY2016 (~35.7% vs. ~34.0% in Q3 and ~32.4% in Q4 FY2015), reflecting reduced cost of revenues and operational efficiencies .
Strategic product development: reintroduced forklift tire formulation in Q3 FY2016 and developed a new polyurethane elastomer scissor-lift tire in Q4 FY2016, broadening industrial tire offerings .

What Went Wrong

Top-line pressure persisted: Q4 FY2016 revenue decreased 25.0% YoY and 2.1% sequentially, driven primarily by weakness in agricultural end markets .
Net income declined YoY and QoQ in Q4 FY2016 (~$29K vs. ~$39K a year ago and ~$35K in Q3), reflecting lower sales despite cost controls .
Full-year FY2016 revenue contracted 21.1% to $3.781M, with net loss of ~$243K for the year, underscoring a challenging macro backdrop and limited operating leverage at current scale .

Financial Results

Income Statement Comparison (Quarterly)

Metric (USD Thousands)	Q4 2015	Q3 2016	Q4 2016
Net Revenues	$1,222	$936	$916
Cost of Revenues	$826	$618	$589
Gross Profit	$396	$318	$327
Gross Margin %	32.4% (396/1222)	34.0% (318/936)	35.7% (327/916)
Research & Development	$45	$57	$56
Sales & Marketing	$130	$54	$66
General & Administrative	$182	$172	$176
Net Income	$39	$35	$29
Preferred Stock Dividend	$25	$25	$25
Net Income Attributable to Common Shareholders	$14	$10	$4

Notes: EPS figures were not disclosed in the Q3/Q4 press releases; Q2 10-Q showed per-share losses earlier in the year but is not directly comparable to profitable Q3/Q4 quarters .

Year-over-Year and Quarter-over-Quarter Changes (Q4 FY2016)

Change Metric	YoY vs Q4 FY2015	QoQ vs Q3 FY2016
Net Revenues	-25.0%	-2.1% (916 vs. 936)
Gross Profit	-17.4%	+2.8% (327 vs. 318)
Net Income	-25.6%	-17.1% (29 vs. 35)
Gross Margin %	+330 bps (35.7% vs. 32.4%)	+170 bps (35.7% vs. 34.0%)

Segment Mix (FY2016)

Segment	FY2016 Revenue Mix
Closed-cell polyurethane foam tires	53%
Polyurethane elastomer industrial tires	1%
Agricultural tires	46%

Balance Sheet Snapshot (FY2016 vs FY2015)

Metric (USD Thousands)	FY2015	FY2016
Cash	$456	$267
Total Current Assets	$1,465	$1,279
Total Assets	$2,175	$1,878
Total Current Liabilities	$452	$375
Total Liabilities	$506	$484
Stockholders’ Equity	$1,669	$1,394

Cash Flow (FY2016 vs FY2015)

Metric (USD Thousands)	FY2015	FY2016
Net Cash Used in Operating Activities	$(118)	$(74)
Net Cash Used in Investing Activities	$(52)	$(8)
Net Cash Used in Financing Activities	$(103)	$(106)
Net Decrease in Cash and Equivalents	$(273)	$(188)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY2017/Q1	n/a	n/a	No formal guidance provided
Margins	FY2017/Q1	n/a	n/a	No formal guidance provided
OpEx	FY2017/Q1	n/a	n/a	No formal guidance provided
Tax rate	FY2017/Q1	n/a	n/a	No formal guidance provided
Dividends (Preferred)	Ongoing	n/a	Continued $25K per quarter	Maintained

Note: The company did not issue quantitative guidance in the Q3/Q4 FY2016 press releases or filings reviewed .

Earnings Call Themes & Trends

No Q4 FY2016 earnings call transcript was found; themes are drawn from Q2 10-Q and Q3/Q4 press releases.

Topic	Previous Mentions (Q2 FY2016)	Previous Mentions (Q3 FY2016)	Current Period (Q4 FY2016)	Trend
Agricultural market weakness	Noted downturn in farm commodity prices; delayed pivot tire purchases	Profitable quarter despite challenging environment; sales below plan	“Challenging business environment… particularly the agricultural market”	Persistent headwind
Cost discipline	Freight policy changes yielding savings; OpEx management	Leaner and focused organization; cost control contributed to profit	Continued cost control emphasis	Improving margin resilience
Product development (industrial)	Forklift tire formulation redevelopment slated for H2 FY2016	Reintroduced new forklift tire formulation	New scissor-lift elastomer tire introduced	Expanding portfolio
Supply chain/regulation	Raw materials sourcing impacted by regulatory changes; supplier substitutions	—	—	Stabilizing via supplier workarounds
Liquidity and financing	Exploring lines of credit, factoring; limited capex plans	—	—	Cautious capital posture

Management Commentary

“Our recent fiscal 4th quarter is our second consecutive profitable quarter, another milestone for Amerityre as it continues to establish itself as a manufacturer of premium closed cell foam and elastomer tires.” — CEO Michael F. Sullivan .
“We continue to push forward with the development and sale of higher margin products, while remaining vigilant in controlling our costs.” — CEO Michael F. Sullivan (Q3 press release) .
Product portfolio updates: forklift tire formulation reintroduced in Q3 FY2016; scissor-lift polyurethane elastomer tire developed in Q4 FY2016 .
Segment focus: closed-cell foam tires (53% of FY2016 revenue), agricultural tires (46%), elastomer industrial tires (1%) .

Q&A Highlights

No Q4 FY2016 earnings call transcript available; no Q&A highlights could be sourced [ListDocuments returned none for earnings-call-transcript].

Estimates Context

Wall Street consensus (S&P Global) for EPS and revenue was unavailable for Q4 FY2016, Q3 FY2016, and FY2016; therefore, no comparison to estimates can be provided (S&P Global data not retrievable) .

Key Takeaways for Investors

Margin resilience amid revenue pressure: gross margin improved QoQ and YoY in Q4 (to ~35.7%), supported by lower cost of revenues and cost controls, even as revenue declined; focus on margin-preserving product mix appears effective .
Agriculture remains the swing factor: continued weakness and deferred purchases in pivot tire demand likely to weigh on near-term revenue trajectory; monitor crop price trends and farm capex sentiment .
Product development is broadening addressable markets: industrial elastomer tires (forklift, scissor lift) represent incremental opportunities; commercialization pace and customer adoption will be key .
Liquidity conservatism persists: reduced cash YoY and cautious capex plans underscore the need for disciplined working capital and potential use of factoring or credit lines to smooth cash flows .
Estimate-driven trading setup is limited: lack of formal guidance and consensus coverage reduces “beat/miss” catalysts; stock narrative likely driven by execution on margin improvement, product uptake, and agriculture recovery .
Watch cost initiatives (e.g., freight policy changes) and OpEx trend for sustained profitability at current scale; Q3/Q4 profitability was achieved through lean operations .
Full-year contraction highlights scale sensitivity: FY2016 revenue down 21.1% and net loss of ~$243K; path to sustainable profitability likely requires incremental revenue from new products and stabilization in agriculture .

AMERITYRE CORP (AMTY)·Q4 2016 Earnings Summary