Coach Industries Group - CIGI - Reports Record 2005 First Quarter Financial Results
COOPER CITY, Fla.--May 16, 2005--Coach Industries Group, Inc. (OTCBB:CIGI):-- First Quarter Improvements in Q1 of 2005 Versus Q1 of 2004
-- First Quarter Revenues Increase to $58.1 Million From $4.2 Million
-- EBITDA of $84,216 Versus Loss of $(512,840), an Improvement of $597,056
-- Cash Flow for Operating Activities Increases to $977,149 Versus Loss of $(903,215)
Coach Industries Group, Inc. ("Coach") (OTCBB:CIGI), which offers an array of financial services including insurance products to commercial fleet operators, today reported financial results for the quarter ended March 31, 2005.
First quarter revenues were $58.1 million versus $4.2 million in Q1 of 2004, an increase of 1283%. This reflects the successful consolidation and integration of four acquisitions in 2004. Gross profit increased to $1.8 million from $900,000 a year ago. CIGI enjoyed positive EBITDA of $84,216 in the quarter versus a loss of $(512,840) in Q1 of 2004, an improvement of $597,056. Net loss for the quarter was $(278,305) versus $(578,260) in Q1 of 2004, an improvement of $299,955. Cash Flow from operations approximated $1.0 million for the quarter versus a deficit of $(903,215) in Q1 of 2004, for an astonishing $1.9 million improvement. Cash position was $3.1 million, with $22.3 million in total assets at March 31, 2005.
Francis O'Donnell, Chairman and Chief Executive Officer of Coach commented: "Coach had an excellent first quarter financially, while still operationally absorbing the acquisitions and growth initiatives of 2004. We are delighted to have made over $84,000 of EBITDA, representing our first profitable EBITDA quarter as a public company. CIGI is now well positioned to have a positive net income in our current quarter. CIGI continues to successfully make headway in our strategic initiative to provide fleet operators with vehicles, vehicle financing and various financial services. We believe that our profitability will continue to improve each quarter of 2005."
2005 Forecast
Management expects revenue to increase by 250% to $290 million and EBITDA to reach $2.9 million in 2005. Although management anticipates profitability, there can be no assurances that the Company will achieve profitability in fiscal 2005. This guidance anticipates continued improvement in the profitability from the Company's financial services division, while including consideration for planned increased investment in marketing as well as increased infrastructure to support the Company's anticipated growth.
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About Coach Industries Group, Inc.
Coach Industries Group, Inc. (OTCBB:CIGI) ("Coach"), is a holding company focused on providing financial services and the manufacturing of luxury limousine and specialty vehicles to Commercial Fleet Operators.
Tables follow
COACH INDUSTRIES GROUP, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
For the Three Months
Ended
March 31, (Unaudited)
2005 2004
- -
REVENUES $58,078,835 $4,183,964
COST OF GOODS SOLD 56,262,763 3,284,317
- -
GROSS PROFIT 1,816,072 899,647
- -
OPERATING EXPENSES:
General and Administrative 1,394,628 425,185
Research and development 106,050 747,665
Provision for lease losses 31,068 -
Amortization of deferred compensation 57,450 -
Sales and marketing 189,061 187,877
Rent 72,230 98,282
Interest expense 243,900 18,898
- -
Total operating expenses 2,094,387 1,477,907
- -
Loss before provision for income taxes (278,305) (578,260)
- -
Income taxes - -
- -
NET LOSS $(278,305) $(578,260)
- -
Basic and diluted net (loss) per share :
Net loss per share $(0.01) $(0.07)
- -
Basic and diluted weighted average common
shares outstanding 18,831,272 8,185,531
- -
COACH INDUSTRIES GROUP, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
March 31, December 31,
2005 2004
(Unaudited)
- -
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $3,067,661 $3,545,995
Restricted cash 553,000 500,000
Accounts receivable, net 1,051,332 1,094,196
Supply inventory 1,679,428 1,836,535
Unbilled revenue 1,693,851 298,290
Due from related party 203,901 188,862
Prepaid expenses and other current assets 234,960 247,922
- -
Total current assets 8,484,133 7,711,800
- -
PROPERTY AND EQUIPMENT, net 2,046,531 1,968,927
INTANGIBLE - CUSTOMER LIST, net 1,130,000 1,160,000
LEASED RECEIVABLES, net 4,204,518 2,202,788
DEFERRED LOAN COSTS, net 223,287 270,728
GOODWILL 6,207,581 6,207,581
- -
$22,296,050 $19,521,824
- -
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued expenses $1,476,074 $2,292,355
Advance payment contract settlement 158,335 -
Accrued interest payable 130,683 90,682
Related party payable 60,450 95,450
Advance payment - contract settlement 2,604,884 294,561
Current portion of long-term debt 1,784,776 1,784,776
Warranty reserve 120,347 148,755
Customer deposits 134,900 233,345
Accrued wages 489,697 427,205
Note payable - related parties 200,000 900,000
Lines of credit 644,106 1,054,909
- -
Total current liabilities 7,804,252 7,322,038
- -
OTHER LIABILITIES:
Convertible notes payable - long term 2,550,936 2,592,833
Lease financing obligation 3,464,517 884,851
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Common stock $0.001 par value;
50,000,000 shares authorized;
19,082,785 and 18,982,785 shares
issued and outstanding, respectively 19,082 18,982
Additional paid-in capital 17,231,694 17,159,784
Restricted stock - unearned compensation (590,302) (550,842)
Accumulated deficit (8,184,129) (7,905,822)
Treasury stock, 1,176,471 shares at cost - -
- -
Total shareholders' equity 8,476,345 8,722,102
- -
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $22,296,050 $19,521,824