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Coach Industries Group, Inc. Completes $7 Million Non-Convertible Debt Financing, Extinguishing Convertible Debenture Nov 2, 2005 11:54:00 AM Copyright Business Wire 2005 COOPER CITY, Fla.--(BUSINESS WIRE)--Nov. 2, 2005--
Coach Industries (OTCBB:CIGI), offering an array of financial services and insurance products to commercial fleet operators, today announced the Company has completed a capital finance restructuring of the Company's outstanding Convertible Debenture by securing a $7 million Non-Convertible Term Note at an interest rate of Prime plus 1.5%.
The term note will provide the company with near-term and long-term benefits, including an improved capital structure, the extinguishment of 5,130,000 common shares registered for resale in the February 2005 Registration Statement approved by the Securities and Exchange Commission, the elimination of any pricing adjustments in the Non-Convertible Term Note and an infusion of approximately $1.3 million of new working capital. The agreement will also provide an annualized improvement to cash-flow of nearly $1.0 million through lower principal and interest payments, and the flexibility to pursue growth without near-term dilution to its shareholders.
"The management of Coach Industries is constantly looking for improvements to our capital structure that facilitate growth and enhance shareholder value. One of our primary financial objectives for 2005 has been to address the uncertainty of new shares being issued through the Convertible Debenture we closed in September 2004," stated Francis J. O'Donnell, President and CEO. "The previous financing was a milestone for Coach Industries, allowing the company to integrate synergistic businesses and demonstrate profitability as we simplify the lives of our Commercial Fleet Operators. However, the convertible nature of the Debenture, along with the pricing adjustment provisions, created a significant barrier for new investors to participate in CIGI. We believe the extremely favorable rate of the new Non-Convertible term note, coupled with the extinguishment of over 5 million shares of registered common stock, representing over twenty percent (20%) of the fully diluted position of the company, fortifies our solid foundation for growth for CIGI and shareholders. The additional cash provided by the transaction will allow us to continue to build our portfolio of financial service offerings."
"Management conducted a thorough review of all financing options available to us for retiring the Debenture, including bank borrowings, high-yield facilities and convertible bonds," commented, Susan Weisman, Chief Financial Officer. "The Company is financially stronger today than one year ago. By successfully demonstrating that the full array of financial services and products are economically attractive to Commercial Fleet Operators, more traditional banking opportunities are now available to Coach. The Company will record a one-time loss of approximately $1.7 million as a result of the refinancing which pales in comparison to the benefits the company and shareholders will reap through the Non-Convertible four (4) year term note at an attractive interest rate of Prime plus 1.5%."
About Coach Industries Group, Inc.
Coach Industries Group, Inc. (OTCBB: CIGI)("Coach"), is a holding company focused on providing financial services and limousine and specialty vehicles to Commercial Fleet Operators.
For more information on the Company please visit Coach's web site located at www.cigi.cc
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.
Source: Coach Industries Group, Inc.
---------------------------------------------- Coach Industries Group Inc. Susan Weisman 954-602-1400 susanw*cigi.cc or Alliance Advisors LLC Alan Sheinwald 914-244-0062 asheinwald*allianceadvisors.net
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Coach Industries Group - CIGI - Reports Record 2005 Second Quarter Financial Results Aug 16, 2005 9:32:00 AM Copyright Business Wire 2005 COOPER CITY, Fla.--(BUSINESS WIRE)--Aug. 16, 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 ----------- ---------- ------------ -----------
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 ============= ============ Source: Coach Industries Group, Inc.
---------------------------------------------- Coach Industries Group Inc. Cooper City Susan Weisman 954-602-1400 susanw*cigi.cc or Investors: Alliance Advisors LLC Alan Sheinwald 914-244-0062 asheinwald*allianceadvisors.net
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