Acacia Automotive Announces Augusta Auction Results
North Augusta, S.C., May 12, 2009 -- Acacia Automotive, Inc. (Ticker-ACCA) today released recent statistics on its Augusta Auto Auction unit.
The auction reported substantial growth in unit sales and fee revenues through April 2009 compared to previous periods, reflecting extreme resilience to recessionary factors that have negatively impacted most other industries.
The Company cited a series of exceptional events that came together in April that helped catapult it to new record monthly revenues. Those included (a) the award of a disposal sale by the U.S. Bankruptcy Court for a failed Toyota dealership's used vehicle inventory, (b) a U.S. Marshal's confiscated vehicle disposal sale under our continuing contract, and (c) disposal of a number of "factory" units for American Suzuki Motor Company. "The auction did an outstanding job in each case," said David Bynum, the Company's Vice President of Operations, "and handled its regular weekly consignments in stride with these additional activities." While these additional activities are not regularly-scheduled events, Acacia's management is experienced in this role, has the full capability to implement these new operations and other expanded offerings, and is seeking to repeat and expand these new strategies.
Acacia's CEO, Steve "Junior" Sample praised the auction's personnel and Bynum for an exemplary performance. "This group has come together and proven that they can set new records-even in the worst of times," said Sample. "This stellar performance also validates our assertions that auto auction destinies are based more on the number of Vehicles in Operation (VIO), also referred to as the 'Car Park', than on auto manufacturers' sales or output or on retail selling volumes. While retail volumes have been down as much as 40% or more in recent months, Augusta Auto Auction has enjoyed considerably higher volumes of sales and revenues compared to the past. During the first five months of 2009, we have already generated 61% of our total 2008 revenues. That is awesome."
The Company was quick to point out that past performance never guarantees future success, and that this economy is far from being out of trouble. David Bynum was reminded of the early days with ADT Automotive when he and Sample knew that every auction went from "Hero to Zero" at the beginning of each new period. "No matter how well you did in the previous month, you still had to do it again and again to prove your worth," said Bynum. "We have that same burden on us today, but have been able to show positive improvement period after period. Turning some of those difficulties into opportunities and expanding the services we provide is a true test of success...especially in a heavy economic downturn such as we are currently experiencing."
Both Sample and Bynum already see an easing of the factors contributing to the economy's current woes, and both expect a marked upturn within the next few months. "David has set our feet on solid ground using his many years of experience and superior management expertise, and we feel that Acacia Automotive is well-positioned to take advantage of the better days that lie ahead," said Sample.
He continued: "Some analysts this morning are even claiming the recession is over. While we are not certain this is true, we do believe that these rapidly-improving economic conditions and a heightened mood in the investment community are signaling for us to return to our plans for expanding the Augusta auction facility and raising the capital to continue our acquisition strategy. Once those plans are re-engaged, we will be back on the road to generating value for our shareholders. It is a very exciting time to be a public company in the auto auction business!"
The Company shelved its fundraising and expansion plans for the past 18 months as the capital markets seized in the face of global economic distress and fear, but now feels that the markets have reached capitulation and are hungry for new opportunities.
"It's a new day and a new ball game out there," said Sample, "and we are ready to stand up to the plate and take our swing at a grand-slam homer. Sometimes you strike out, but sometimes you knock it out of the park! We are ready to suit up and go for it."