A.C.L.N. Limited Announces Record First Quarter Results
30 May 2000
A.C.L.N. Limited Announces Record First Quarter Results
LIMASSOL, CYPRUS--May 30, 2000--Percent
Free cash increases 91.5 percent since year-end
After Tax Margins Improve From 21.3 Percent to 30.6 Percent
A.C.L.N. Limited , today announced its financial results of operations for the three months ended March 31, 2000. Results are being reported on a pre 5 for 4 stock split basis.
Sales for the three months ended March 31, 2000 increased by $8,911,572, or 45.2 percent, to $28,625,292 compared with $19,713,720 for the three months ended March 31, 1999.
Net income increased by $4,546,075, or 108.3 percent, to $8,745,340 for the three months ended March 31, 2000 from $4,199,265 for the three months ended March 31, 1999.
Earnings per share increased by $0.48, or 94.1 percent, to $0.99 for the three months ended March 31, 2000, compared with $0.51 for the three months ended March 31, 1999.
On March 31, 2000, the company had $80,471,694 of cash on its balance sheet, or $9.11 of cash per share.
First quarter results were effected by a strategic repositioning that may affect operations going forward. A shift in operations toward prepaid freight shipments away from the historical freight collect model has had a positive effect on the free cash ratio. Free cash increased by 91.5 percent since year-end. Free cash as a percentage of total cash has improved from 18 percent to 33.2 percent, an improvement of 15.2 percent over the fourth quarter of 1999. This shift has resulted in a reduction of total number of cars shipped for the quarter. The reduction of volume has been principally in North Africa.
In February, the company formed a division to trade automobiles. Revenues from automobile trading are offsetting the reduction in shipping volume as the company transitions to a more traditional billing structure. The company bought 2,400 automobiles for resale this quarter. All purchases are for buyers in North and West Africa that have placed non-refundable deposits with the company's agents. Automobiles are paid for in full when delivered.
"We are pleased with our first quarter results. Our market niche in the shipping business combined with the strength of our balance sheet has provided new opportunities for ACLN. The transition to a traditional prepaid freight model should continue to improve our cash flow and financial position. We are encouraged by the results of our newly formed automobile trading division. ACLN has been serving many of its markets for over 20 years and is benefiting from growing consumer demand for personal automobiles. Our combined financial strength and long term relationships are providing new and exciting growth opportunities," said Aldo Labiad, President and CEO.
Joseph Bisschops, Chairman of the Board added, "Our shift toward a prepaid freight model and the development of related businesses is a result of our rapid growth in assets since becoming a public company. We hope that by increasing the proportion of free cash we will increase shareholder value by improving the perceived quality of our assets."
A.C.L.N. Limited is a shipping and marine logistics company that provides and arranges for the shipment of personal automobiles and light trucks from four ports in Northern Europe and three ports in the U.S. sold by independent auto dealers to purchasers who live in North and West Africa and the Middle East. The company also provides for related customs-clearance and stevedoring services.
This news release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on the current expectations of management and are subject to a number of risk factors and uncertainties that could cause actual results for performance of the company to differ materially from those described herein.
A.C.L.N. Limited
Selected Financial Data
Three Months Ended
March 31,
2000 1999
Sales $ 28,625,292 $ 19,713,720
Cost of sales 18,420,822 14,462,668
Gross profit 10,204,470 5,251,052
Selling, general and
administrative expenses 989,516 834,882
Income from operations 9,383,879 4,407,170
Other income (expense):
Income before income
taxes 9,383,879 4,407,170
Income taxes 469,614 207,905
Net income 8,745,340 4,199,265
Foreign currency
translation adjustments 4,002 (43,759)
Comprehensive income $ 8,749,342 $ 4,155,506
Net income per share (basic) $ 0.99 $ 0.51
Weighted average shares
outstanding (basic) 8,832,692 8,200,000
Balance Sheet as of March 31, 2000
March 31, 2000
Assets
Current assets:
Cash and cash equivalents $ 26,710,064
Cash restricted as to withdrawal 53,761,630
Accounts receivable 23,771,537
Deferred expenses 71,542
Furniture and fittings 5,222
Deposits 5,428
$104,325,423
Liabilities and Shareholders' Equity
Current Liabilities:
Accounts payable and accruals $ 15,803,497
Amounts due to related parties 34,527
Income taxes payable 3,422,711
19,260,735
Shareholders' equity:
Ordinary shares, stated value of C(pound) 0,01
each, 8,832,692 shares issued and
outstanding 170,112
Paid-in capital 20,763,972
Retained earnings 64,065,749
Accumulated other comprehensive
income 64,855
Total shareholders' equity 84,064,688
$104,325,423