Wednesday, April 29, 2009 | 7:16 p.m.
Amerityre Corp., a small Boulder City company that makes specialty tires, on Wednesday announced the resignation of Chief Executive Gary Benninger as part of a cost-cutting campaign.
The company’s board of directors implemented a management restructuring in which Michael Kapral, the company’s vice president of marketing, was appointed to succeed Benninger as chief executive. Benninger will remain on the board of directors.
"Gary has worked hard to put the company in a position to begin manufacturing and selling solid polyurethane forklift tires," Louis Haynie, chairman of the board, said in a statement. "Now, with Mike taking the reins, we expect his knowledge and experience in the tire and tire product markets will launch those tires successfully."
Kapral joined the company in March 2008. He had been general manager of the Tire Products Division of Carpenter Co., a privately held manufacturer of polyurethane materials and products. Earlier, he was medium truck territory manager for Bridgestone/Firestone in Pennsylvania and Virginia.
"I am confident in the performance of the company’s new solid polyurethane forklift tires and I am very excited to lead the introduction of this product to the marketplace," Kapral said in a statement.
In a filing with the Securities and Exchange Commission, Amerityre said it terminated the employment agreement with Benninger as well as consulting agreements between the company and Richard A. Steinke and Manuel (Manny) Chacon, who have been providing the company with technology development and chemical formulating services, respectively.
"The contract terminations come as a result of the company’s overall cost reduction and restructuring measures," the firm said.
Amerityre last reported financial results for the fourth quarter of 2008, when it lost $994,100 or 4 cents per share vs. a loss in the year-earlier quarter of $1 million or 4 cents per share. Revenue grew from $534,000 to $712,000 in the 2008 quarter.
The company describes its business this way:
"Since our inception in 1995, we have been engaged in the research and development of technologies related to the formulation of polyurethane compounds and the manufacturing process for producing tires constructed of polyurethane. We believe that we have developed unique polyurethane formulations that, when used in tire applications, substantially simplify the production process and allow for the creation of products with superior performance characteristics, including abrasion resistance and load-bearing capabilities, than conventional rubber tires."
Using its polyurethane technologies, Amerityre says tires can be produced that last longer, are less susceptible to failure and offer improved fuel economy.
The sale of polyurethane foam tires to original equipment manufacturers, distributors and retail stores accounts for most of the company's revenue.
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