Coach Industries Group - CIGI - Reports Record 2005 Second Quarter Financial Results
COOPER CITY, Fla.--Aug. 1, 20056, 2005--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 June 30, 2005.Company Highlights for the second quarter and six months include:
-- Second Quarter Fully Diluted Earnings Per Share $0.02
-- Second Quarter Revenues Increase to $62.7 Million from $4.9 Million
-- Second Quarter Net Income of $225,653 versus a loss of $(464,394)
-- Second Quarter EBITDA of $614,159 versus loss of $(384,375), an improvement of $998,534
-- Six months revenues increase to $120.8 Million from $9.1 Million
-- Six months net loss decreases to $(52,652) versus loss of $(1,042,652)
The Company reported second quarter revenues of $62.7 million versus $4.9 million in Q2 of 2004, an increase of 1180%. The increase reflects the successful consolidation and integration of the four acquisitions in 2004. Gross profit increased to $1.2 million from $552,288 a year ago.
EBITDA had a positive contribution of $614,159 for the quarter versus a loss of $(384,375) in Q2 of 2004, an improvement of $998,534. Net income for the quarter was $225,653 or $0.02 per share fully diluted versus a loss of $(464,394) or $(0.07) per share fully diluted in Q2 of 2004, an improvement of $690,047.
Six months revenues were $120.8 million for the period ending June 30, 2005, versus $9.1 million for the same period of 2004, an increase of 1227%. The increase reflects the successful consolidation and integration of the four acquisitions in 2004. Gross profit increased to $3.0 million from $1.5 million for the same six month period a year ago. CIGI's EBITDA has increased to $698,375 for the six months versus a loss of $(897,213) for the same period of 2004, an improvement of $1.6 million. Net income (loss) for the first six months was $(52,652) or $(0.00) per share fully diluted versus a loss of $(1.0 million) or $(0.13) per share fully diluted in Q2 of 2004, an improvement of $990,000.
Francis O'Donnell, Chairman and Chief Executive Officer of Coach commented, "Coach delivered our first profitable quarter while managing yet another dramatic increase in quarter over quarter comparable growth. We had an excellent second quarter operationally and we believe we have the ability to generate greater cash flow and profitability through the remainder of 2005. We are still absorbing costs associated with the acquisitions and growth initiatives of 2004, but we feel we have turned the corner for profitability. We achieved profitability as anticipated and our EBITDA position continues to grow. CIGI is poised for greater results for the second half of 2005. We have focused on additional strategic initiative to improve margins while maximizing our core businesses."
Conference Call Reminder
The conference call will take place at 11:00 a.m. Eastern, on Tuesday, August 16, 2005. Anyone interested in participating should call 800-865-4435 if calling within the United States or 973-935-2404 if calling internationally, approximately 5 to 10 minutes prior to 11.00 a.m. There will be a playback available until August 23, 2005. To listen to the playback, please call 877-519-4471 if calling within the United States or 973-341-3080 if calling internationally. Please use pass code 6363776 for the replay.
The call is being webcast by ViaVid Broadcasting and can be accessed at Coach's website at http://www.cigi.cc. The webcast may also be accessed at ViaVid's website at http://www.viavid.net. The webcast can be accessed through November 31, 2005 on either site. To access the webcast, you will need to have the Windows Media Player on your desktop. For the free download of the Media Player, please visit: http://www.microsoft.com/windows/windowsmedia/en/download/default.asp
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.
Safe Harbor Statement
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The Statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the Company's filings with the Securities and Exchange Commission.
Tables follow
COACH INDUSTRIES GROUP, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
For the Three Months For the Six Months
Ended Ended
June 30, (Unaudited) June 30, (Unaudited)
---------------------- ------------------------
2005 2004 2005 2004
----------- ----------------------- -----------
REVENUES $62,749,676 $4,947,847 $120,828,511 $ 9,131,811
COST OF GOODS SOLD 61,516,521 4,395,559 117,779,284 7,679,874
----------- ---------- ------------ -----------
GROSS PROFIT 1,233,155 552,288 3,049,227 1,451,937
----------- ---------- ------------ -----------
OPERATING EXPENSES:
General and
Administrative 712,469 462,950 2,138,155 888,135
Research and
development - - 106,050 747,665
Amortization of
deferred compensation 58,963 383,917 116,413 383,917
Sales and marketing 316,139 93,328 505,200 281,205
Rent 81,965 43,033 154,195 141,315
Interest expense
associated with
Convertible Note
conversion 188,000 - 188,000 -
Gain on settlement
related to CTMC (434,000) - (434,000) -
Interest expense 83,966 33,454 327,866 52,352
----------- ---------- ------------ -----------
Total operating
expenses 1,007,502 1,016,682 3,101,879 2,494,589
----------- ---------- ------------ -----------
Income (loss) before
provision for income
taxes 225,653 (464,394) (52,652) (1,042,652)
----------- ---------- ------------ -----------
Income taxes - - - -
----------- ---------- ------------ -----------
NET INCOME (LOSS) $ 225,653 $ (464,394)$ (52,652)$(1,042,652)
=========== ========== ============ ===========
Basic
earnings(loss) per
share :
Net earnings (loss)
per share $ 0.01 $ (0.07)$ (0.00)$ (0.13)
=========== ========== ============ ===========
Fully diluted earnings
(loss) per share $ 0.02 $ (0.07)$ (0.00)$ (0.13)
=========== ========== ============ ===========
Basic weighted average
common shares
outstanding 17,755,354 8,185,531 17,990,589 8,185,531
=========== ========== ============ ===========
Fully diluted weighted
average common shares
outstanding 22,791,093 8,185,531 17,990,589 8,185,531
=========== ========== ============ ===========
COACH INDUSTRIES GROUP, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
June 30, December 31,
2005 2004
(Unaudited)
--------------------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 1,003,816 $ 3,545,995
Restricted cash 663,750 500,000
Accounts receivable, net 1,148,319 1,094,196
Supply inventory 1,341,190 1,836,535
Unbilled revenue 1,982,870 298,290
Due from related party 194,648 188,862
Prepaid expenses and other current assets 299,638 247,922
------------- ------------
Total current assets 6,634,231 7,711,800
------------- ------------
PROPERTY AND EQUIPMENT, net 2,059,848 1,968,927
INTANGIBLE - CUSTOMER LIST, net 1,100,000 1,160,000
LEASED RECEIVABLES, net 4,601,019 2,202,788
DEFERRED LOAN COSTS, net 202,045 270,728
GOODWILL 6,220,081 6,207,581
------------- ------------
$ 20,817,224 $ 19,521,824
============= ============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued expenses $ 1,399,143 $ 2,292,355
Accrued interest payable 47,081 90,682
Related party payable 27,450 95,450
Advance payment - contract settlement 1,659,095 294,561
Current portion of long-term debt 2,072,727 1,784,776
Warranty reserve 97,635 148,755
Customer deposits 65,480 233,345
Accrued wages 71,446 427,205
Note payable - related parties 150,000 900,000
Lines of credit 645,706 1,054,909
------------- ------------
Total current liabilities 6,235,763 7,322,038
------------- ------------
OTHER LIABILITIES:
Convertible notes payable- long term 2,709,574 2,592,833
Lease financing obligation 3,837,575 884,851
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Common stock $0.001 par value; 50,000,000
shares authorized; 19,230,716 and
18,982,785 shares issued and outstanding,
respectively 19,231 18,982
Additional paid-in capital 16,844,694 17,159,784
Restricted stock - unearned compensation (874,429) (550,842)
Accumulated deficit (7,955,184) (7,905,822)
Treasury stock, zero and 1,176,471 at June
30, 2005 and December 31, 2004,
respectively shares at cost - -
------------- ------------
Total shareholders' equity 8,034,312 8,722,102
------------- ------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 20,817,224 $ 19,521,824
============= ============