American Commerce Solutions, Inc. Reports 77% Revenue Increase
BARTOW, Fla., Oct. 18, 2004 -- American Commerce Solutions, Inc. (BULLETIN BOARD: AACS) today released results of operations for the second quarter ending August 31, 2004 showing an increase in revenue of 77% over the same quarter in 2003.
Daniel L. Hefner, President and Chief Executive Officer of American Commerce Solutions, Inc., stated, "We are pleased to announce that the consolidated net sales of ACS have increased dramatically over the same period in the prior year. Even when adjusted for the Chariot acquisition, the revenue of International Machine and Welding, Inc. was 50% higher than the prior year."
Hefner continued, "We continue to improve each quarter. Revenue growth is a good barometer of that improvement. With acquisitions come many increased costs to integrate that operation into existing programs and plans. Chariot Manufacturing has had tightly controlled sales for the first two quarters. Revenue was within $50 for the first two quarters of being the same. Cost of management, AFG asset acquisition costs, tooling, and travel expense spread over a light revenue base have not been conducive to profitability, but that will come. Steve Smith is meeting his sales forecasts, which show ramped up revenue reflecting production capability and cash availability. As cash is infused, sales orders will be filled more rapidly. Chariot has been enhanced by the addition of the AFG assets. This new revenue source will be felt quickly. The nature of the product mix allows for smaller items to be produced as filler between the more complex trailers, thus better utilizing each labor hour."
According to the recent 10QSB filing, the consolidated financial statements show an increase in revenue and gross profit, while decreasing interest expense, sales, general and administrative expenses and net losses.
Hefner continued, "Although we will never be satisfied with losses, we must also recognize that we have increased revenue, improved cash flow, reduced our losses and continued to build on fundamentals. Additionally, for the six months ended August 31, 2004 debt was reduced by 17%. This follows our stated position from one year ago."
Last year Hefner was quoted as stating the following: "It is our goal to continue the efficiencies that have been started and build the revenues with improved margins. We want to stop talking about 'less losses' and talk about 'profits.' Meanwhile, we will continue to reduce debt, improve cash flow, cut losses and build on solid fundamentals. We owe no less to our employees, our stockholders or ourselves."
American Commerce Solutions, Inc. maintains websites http://www.aacssymbol.com/ and http://www.chariot-trailer.com/ .
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this release that are not historical, are forward-looking statements that are subject to risks and uncertainties that could cause results to differ materially from those expressed in the forward- looking statements, including but not limited to, certain delays and risks detailed from time to time in the company's filings with the Securities and Exchange Commission.