Message #16 From:
Stock News Bot Date: November 16, 2006 09:00:00 AM
CIGI News Coach Industries Group - CIGI - Reports Third Quarter 2006 Financial Results
COOPER CITY, Fla.--(BUSINESS WIRE)--Coach Industries Group, Inc. (OTCBB:CIGI):
Third Quarter Revenues Increase 34% to $87.5 Million
CDS revenue for the Third Quarter of 2006 grows by 36%
Limo Manufacturing increases production by 65%
Independent Contractor Base of Clients for SCI grows from 6200 to
over 8300
CDS provides services for over 270 Courier Companies Nationally
Increase in Lines of Credit to $25 Million from DaimlerChrysler
Loss of $.06 this Quarter as compared to a Loss of $.07 in the
prior year
Coach Industries Group, Inc. (“Coach”)
(OTCBB:CIGI),
which offers an array of financial services to commercial fleet
operators, including vehicle financing and specialty insurance products,
today reported financial results for the third quarter ended September
30, 2006.
Revenues for the third quarter of 2006 reached $87.5 million versus
$65.4 million for the same period in 2005, an increase of 34%. Net loss
for the quarter ended September 30th, 2006 was $(0.06) per share basic
and fully diluted compared to ($0.07) per share for the same period of
2005.
Revenues for the nine months ended September 30, 2006 reached $247
million versus $186 million for the same period in 2005, an increase of
33%. Net loss for the nine months ended September 30, 2006 was $(0.11)
per share fully diluted compared to $(0.08) per share fully diluted for
the same period of 2005.
Revenues and profitability at Corporate Development Services is directly
related to the growth in the number of Independent Contractors supported
by the Company. The drivers supported by the CDS grew from 6,200 drivers
at September 30, 2005 to over 8,300 drivers at September 30, 2006,
resulting in Net Income for the segment of $317,208 and $868,944 for the
three and nine months ended September 30, 2006 compared to $236,969 and
$573,281 for the same periods of 2005. Robert Lefebvre, SCI President,
states, “Independent Contractors have been the
backbone of the expedited, less than 24 hour delivery services since the
days of the Pony Express. The U.S. Postal service contracts with over
17,000 independent contract couriers, as reported by the association
represented by these drivers. We are providing CDS’
hard working independent contractor drivers with insurance and benefit
programs to protect their families. In addition, we have begun providing
them with a competitive lease program for various Chrysler vehicles. We
see the needs of these hardworking individuals and are filling the void.”
“We are more than pleased with the strength,
growth, and stability that the SCI group has delivered for Coach
Industries. They have established themselves as the blueprint for a 3rd
party administration business. We have reported nine consecutive
profitable quarters for this segment of our business model. We challenge
any of our competitors in this arena to match that achievement, and are
proud of the employees at SCI who have continued to do an outstanding
job of protecting and servicing these over 8300 drivers and 270 Courier
Companies,” comments Steven H. Rothman,
Chairman and Interim CEO.
The manufacturing segment delivered improvement in revenues, gross
margin, and the reduction in operating expenses, net of write-downs for
the three months ended September 30, 2006 compared to the same period in
2005. “We have been in a turnaround mode for
the past 3 quarters with steady improvement. The sales team has been
beefed up and we began to market under the Springfield name again. We
are poised for continued strength,” commented
Mark Khandjian, Chief Operating Officer of Coach Industries and
President of Springfield Coach Industries Inc. Stated Mark Khandjian,
"The manufacturing plant recently received an increased in its operating
line of credit that will allow it to expand production and gear up for
the new model year and 2007 selling season. In addition, implementation
of the Company’s daily rental business has
been delayed; however the Company has secured the financing for these
leases from DaimlerChrysler and is working on securing orders for
delivery in late December 2006 or first quarter 2007,”
Khandjian continued.
“Over the course of 2005 Coach established
itself as the premier financial service provider for the commercial
fleet industry,” stated Steven H. Rothman,
Chairman and Interim Chief Executive Officer of Coach. "Our financial
services business units have been the primary focus of our business
model and we intend to continue to build our lease and insurance
portfolios as we simplify the lives of our Commercial Fleet Operators.
In 2006, the Company has accelerated Growth in its revenue through
providing Financial Services and will now also focus on the growth of
its Manufacturing, Leasing, and Daily Rental Segment.”
“The Coach Executive Management team will
continue to take costs out of operations and increase utilization of its
personnel in all areas of the organization. We are continuing a
restructuring of the Company in an attempt to lower our consulting,
legal and other expenses that have prevented the Company from showing an
EBITDA profit,” added Steven H. Rothman,
Chairman and Interim Chief Executive Officer.
About Coach Industries Group, Inc.
Coach Industries Group, Inc. (OTCBB:CIGI)
("Coach"), is a holding company focused on providing financial services
to Commercial Fleet Operators.
Safe Harbor Statement
The statements contained in this release which are not historical facts
are forward-looking statements that are subject to risks and
uncertainties that could cause actual results to differ materially from
those set forth in or implied by forward-looking statements. These risks
and uncertainties include Coach Industries Group, Inc. entry into new
commercial businesses, the risk of obtaining financing, recruiting and
retaining qualified personnel, and other risks described in Coach
Industries Group, Inc.’s Securities and
Exchange Commission filings. The forward looking statements in this
press release speak only as of the date hereof and disclaims any Coach
Industries Group, Inc.’s obligation to
provide updates, revisions or amendments to any forward looking
statement to reflect changes in Coach Industries Group, Inc.’s
expectations or future events.
COACH INDUSTRIES GROUP, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
September 30,
2006
(Unaudited)
December 31, 2005
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
3,059,373
$
3,046,069
Restricted cash
211,054
247,196
Collateral account – accident and
occupational insurance program
834,374
-
Accounts receivable, net
1,838,038
1,582,335
Supply inventory
1,251,987
1,363,694
Lease receivable – current
1,409,352
1,559,635
Due from affiliates
86,815
-
Accounts receivable – other
-
190,681
Prepaid expenses and other current assets
447,552
445,915
Total current assets
9,138,545
8,435,525
PROPERTY AND EQUIPMENT, net
2,011,359
2,231,347
INTANGIBLE – CUSTOMER LIST, net
2,200,000
2,290,000
LEASE RECEIVABLES, net
3,507,255
3,443,793
DEFERRED LOAN COSTS, net
249,775
379,313
GOODWILL
6,300,959
6,304,182
$
23,407,893
$
23,084,160
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued expenses
$
3,145,007
$
1,215,170
Advance payment contract settlement
2,800,381
1,868,000
Insurance loss reserve
913,169
-
Accrued interest payable
186,389
109,854
Warrant liability
295,349
574,998
Registration Rights Liability
200,000
-
Related party payable
25,000
376,246
Current portion lease finance obligation
1,191,404
1,354,167
Current portion of long-term debt
1,953,492
1,465,119
Warranty reserve
130,270
116,392
Customer deposits
41,700
41,000
Accrued wages
116,822
61,019
Note payable – related parties
425,000
650,000
Lines of credit
977,267
894,418
Total current liabilities
12,401,250
8,726,383
OTHER LIABILITIES:
Convertible notes payable- long term
-
5,534,881
Term Note
4,883,717
-
Lease financing obligation
3,345,668
3,075,971
Minority interest
(81,968)
-
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Common stock $0.001 par value; 50,000,000 shares authorized;
28,888,835 and 29,038,214 shares issued and outstanding, respectively
28,890
29,038
Additional paid-in capital
19,617,481
19,915,720
Restricted stock – unearned compensation
(282,425)
(938,680)
Accumulated deficit
(16,504,720)
(13,259,153)
Total shareholders' equity
2,859,226
5,746,925
TOTAL LIABILITIES AND SHAREHOLDERS’
EQUITY
$
23,407,893
$
23,084,160
COACH INDUSTRIES GROUP, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
For the Three Months
Ended
September 30,
(Unaudited)
For the Nine Months
Ended
September 30,
(Unaudited)
2006
2005
2006
2005
REVENUES
$
87,551,816
$
65,430,041
$
246,854,691
$
186,258,552
COST OF GOODS SOLD
85,425,337
64,258,510
242,139,546
182,037,794
GROSS PROFIT
2,126,479
1,171,531
4,715,145
4,220,758
OPERATING EXPENSES:
General and
Administrative
2,550,535
1,533,287
5,737,347
3,654,543
Research and development
-
93,818
-
199,868
Warrant liability mark to market
59,842
-
(279,649)
-
Registration Rights Expense
120,000
-
200,000
-
Write-down of costs associated with unconsummated financing
transactions
116,946
-
116,946
-
Loss on liquidation of lease portfolio
140,958
-
140,958
-
Provision for lease losses and uncollectible accounts receivable
