Coach Industries Group - CIGI - Reports Second Quarter 2006 Financial Results.COOPER CITY, Fla. -- Coach Industries Group, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :CIGI CIGI Computer Image Generator Interface CIGI Career Information Guidance India CIGI Coach Industries Group Inc. ): --First Quarter Revenues Increase 32% to $85 Million --Guidance of $75 to $78 million in revenue for the Second Quarter of 2006 Exceeded by 10% --Six Month Revenue Increase of 35% to $160 Million --Independent Contractor contractor n. 1) a person or entity that enters into a contract. 2) commonly, a person or entity that agrees to construct a building or to provide or install specialized portions of the construction. Base of Clients grows from 5800 to over 7800 Coach Industries Group, Inc. ("Coach") (OTCBB:CIGI), which offers an array of financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. to commercial fleet operators, including vehicle financing and specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. insurance products, today reported financial results for the second quarter ended June June: see month. 30, 2006. Revenues for the second quarter of 2006 reached $85 million versus $63 million for the same period in 2005, an increase of 32%. Net loss for the quarter ended June 30, 2006 was $(1.2 million) or $(0.04) per share fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. compared to $225,000 net income or $0.01 per share basic and $0.02 per share fully diluted for the same period of 2005. Earnings (loss) before interest, taxes, depreciation and amortization EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become for the three months ended June 30, 2006 and 2005 was $(859,000) and $611,000. Revenues for the six months ended June 30, 2006 reached $160 million versus $121 million for the same period in 2005, an increase of 35%. Net loss for the six months ended June 30, 2006 was $(1.6 million) or $(0.05) per share fully diluted compared to $(52,000) or $(0.00) per share fully diluted for the same period of 2005. EBITDA for the six months ended June 30, 2006 and 2005 was $(872,000) and $699,000. Operations at Corporate Development Services continue to lead increases in the number of Independent Contractors A person who contracts to do work for another person according to his or her own processes and methods; the contractor is not subject to another's control except for what is specified in a mutually binding agreement for a specific job. supported from 5,800 drivers at June 30, 2005 to over 7,800 drivers at June 30, 2006, resulting in Net Income for the segment of $293,000 and $552,000 for the three and six months ended June 30, 2006 compared to $168,000 and $336,000 for the same periods of 2005. "We are thrilled thrill v. thrilled, thrill·ing, thrills v.tr. 1. To cause to feel a sudden intense sensation; excite greatly. 2. To give great pleasure to; delight. See Synonyms at enrapture. with the growth in our driver base and the opportunity to support that driver base with our risk sharing agreement that we entered into with Dallas Dallas, city (1990 pop. 1,006,877), seat of Dallas co., N Tex., on the Trinity River near the junction of its three forks; inc. 1871. The second largest Texas city, after Houston, and the eighth largest U.S. National Insurance and HighPoint Highpoint can refer to:
American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. Lefebvre Lefebvre is a common French surname. It is also spelled Lefèvre, LeFebvre, LeFèvre, and is used in the related forms Lefeuvre, Favre, Faure, Favret, Favrette or Dufaure. . The manufacturing segment reported a Net Loss of $(38,000) and $(102,000) for the three and six months ended June 30, 2006 compared to net income of $377,000 and $574,000 for the same periods in 2005. The Manufacturing segment reported a Net Loss of $1.2 million for the full year, ending December December: see month. 31, 2005. The second quarter is typically the strongest quarter for limousine sales. "The manufacturing segment is poised for profitability. Today the plant has 22 deposits with an average deposit of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 10% of the purchase price compared to 10 at June 30, 2006. The marketplace has embraced the Springfield Springfield. 1 City (1990 pop. 105,227), state capital and seat of Sangamon co., central Ill., on the Sangamon River; settled 1818, inc. as a city 1840. brand as reliable and dependable stretch limousines. During the second half of 2005 and early 2006, the facility spent a lot of time and strengthened the quality of our product and we are seeing those results today. Our warranty An assurance, promise, or guaranty by one party that a particular statement of fact is true and may be relied upon by the other party. Warranties are used in a variety of commercial situations. In many instances a business may voluntarily make a warranty. charges have reduced by seventy percent of what they were prior year; the marketplace has renewed re·new v. re·newed, re·new·ing, re·news v.tr. 1. To make new or as if new again; restore: renewed the antique chair. 2. confidence in the brand. We have stepped up our marketing efforts and focused on direct sales channels as well. We have also reduced overhead per vehicle for the three month period from $9,000 in 2005 to $4,700 in 2006," stated Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. , Mark Khandjian. The financial services segment reported a net loss of $76,000 and $137,000 for the three and six months ended June 30, 2006 compared to net income of $26,000 and $68,000 for the same periods in 2005. Overhead costs overhead costs see fixed costs. associated with the Daily Rental business for 2006 were $73,000 and $166,000 for the three and six months ended June 30, 2006. Effective June 1st, those expenses were eliminated. Lease production for the three and six months ended June 30, 2006 were $1.9 million and $2.5 compared to $.5 million and $3.0 million for the same periods in 2005. The financial services segment is directly impacted by operations of the manufacturing and independent contractor segments. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. at the parent increased for the three and six months ended June 30, 2006 $1.4 million and $1.9 million compared to $186,000 and $1.0 million for the same periods in 2005. Expenses for the three months ended June 30, 2006 increased by $133,000 for legal expenses, $180,000 for investor relations Investor relations The process by which the corporation communicates with its investors. expenses and $108,000 for amortization of consulting expenses. The net change in the warrant liability valuation resulted in an expense of $45,000 for the three months ended June 30. In addition, the Company recorded an expense associated with the registration of the Company's stock and warrants of $80,000. Similar increases were recorded for the six month period in 2006. "Over the course of 2005 Coach established itself as the premier financial service provider for the commercial fleet industry," stated Steven Ste´ven n. 1. Voice; speech; language. Ye have as merry a steven As any angel hath that is in heaven. - Chaucer. 2. An outcry; a loud call; a clamor. To set steven to make an appointment. H. Rothman Rothman is a surname and may refer to:
"The Coach Executive Management team will continue to take costs out of operations and increase utilization utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be of its personnel in all areas of the organization. We are reorganizing the Company in an attempt to lower our consulting, legal and other expenses that have prevented the Company from showing an EBITDA profit," added Susan SUSAN Smallest Univalue Segment Assimilating Nucleus SUSAN Sub Saharan African Network SUSAN Smart Ultrasonic System for Aircraft NDE Weisman, Chief Financial 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 Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement The statements contained in this release which are not historical facts are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. 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 here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" and disclaims any Coach Industries Group, Inc.'s obligation to provide updates, revisions ReVisions is a 2004 anthology of alternate history short-stories. It is edited by Julie E. Czerneda and Isaac Szpindel. Contents Title Author The Resonance of Light James Alan Gardner Out of China Julie E. 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
June 30, December 31,
2006 2005
(Unaudited)
-------------------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 1,549,671 $ 3,046,069
Restricted cash 247,265 247,196
Collateral account - accident and
occupational insurance program 219,958 -
Accounts receivable, net 3,100,307 1,582,335
Supply inventory 1,240,025 1,363,694
Lease receivable - current 1,503,029 1,559,635
Due from affiliates 245,215 -
Accounts receivable - other 172,681 190,681
Prepaid expenses and other current assets 683,793 445,915
------------ ------------
Total current assets 8,961,944 8,435,525
------------ ------------
PROPERTY AND EQUIPMENT, net 2,093,935 2,231,347
INTANGIBLE - CUSTOMER LIST, net 2,230,000 2,290,000
LEASE RECEIVABLES, net 4,903,546 3,443,793
DEFERRED LOAN COSTS, net 384,937 379,313
GOODWILL 6,290,959 6,304,182
------------ ------------
$ 24,865,321 $ 23,084,160
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued expenses $ 2,623,787 $ 1,215,170
Advance payment contract settlement 2,657,374 1,868,000
Insurance loss reserve 405,173
Accrued interest payable 118,155 109,854
Warrant liability 235,507 574,998
Related party payable 25,100 376,246
Current portion lease finance obligation 1,415,881 1,354,167
Current portion of long-term debt 1,799,266 1,465,119
Warranty reserve 120,694 116,392
Customer deposits 44,000 41,000
Accrued wages 108,986 61,019
Note payable - related parties 425,000 650,000
Lines of credit 950,659 894,418
------------ ------------
Total current liabilities 10,929,582 8,726,383
------------ ------------
OTHER LIABILITIES:
Convertible notes payable - long term 5,037,943 5,534,881
Lease financing obligation 4,444,832 3,075,971
Minority interest (76,769) -
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Common stock $0.001 par value; 50,000,000
shares authorized; 29,133,375 and
29,038,214 shares issued and outstanding,
respectively 29,134 29,038
Additional paid-in capital 20,002,966 19,915,720
Restricted stock - unearned compensation (735,431) (938,680)
Accumulated deficit (14,766,936) (13,259,153)
------------ ------------
Total shareholders' equity 4,529,733 5,746,925
------------ ------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 24,865,321 $ 23,084,160
============ ============
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)
----------------------- -------------------------
2006 2005 2006 2005
----------- ----------- ------------ ------------
REVENUES $84,838,101 $62,749,676 $159,915,666 $120,828,511
COST OF GOODS SOLD 83,362,154 61,516,521 157,161,318 117,779,284
----------- ----------- ------------ ------------
GROSS PROFIT 1,475,947 1,233,155 2,754,348 3,049,227
----------- ----------- ------------ ------------
OPERATING EXPENSES:
General and
Administrative 1,773,467 620,588 3,333,037 2,121,256
Research and
development - 106,050 - 106,050
Warrant liability
mark to market 45,549 - (339,491) -
Registration Rights
Expense 80,000 - 80,000 -
Provision (recovery)
for lease losses
and uncollectible
accounts receivable 82,340 (14,169) 69,854 16,899
Amortization of
deferred
compensation 166,585 58,963 246,288 116,413
Sales and marketing 236,779 316,139 402,616 505,200
Rent 77,849 81,965 165,257 154,195
Gain on settlement
related to the
relocation of CTMC
facility - (434,000) - (434,000)
Interest Expense
Associate
with convertible
Note Conversion - 188,000 - 188,000
Interest expense 230,196 83,966 485,839 327,866
----------- ----------- ------------ ------------
Total operating
expenses 2,692,765 1,007,502 4,443,400 3,101,879
----------- ----------- ------------ ------------
Income (loss) before
provision for
income taxes and
minority interest (1,216,818) 225,653 (1,689,052) (52,652)
----------- ----------- ------------ ------------
Minority interest
portion of joint
venture loss (14,086) - (101,269) -
----------- ----------- ------------ ------------
Income (loss) before
income taxes (1,202,732) 225,653 (1,587,783) (52,652)
----------- ----------- ------------ ------------
Income taxes - - - -
----------- ----------- ------------ ------------
NET INCOME (LOSS) $(1,202,732) $ 225,653 $(1,587,783) $ (52,652)
=========== =========== ============ ============
Basic net
Earnings(loss) per
share :
Net loss per share $ (0.04) $ 0.01 $ (0.05) $ (0.00)
=========== =========== ============ ============
Fully diluted net
earnings (loss) per
shares $ (0.04) $ 0.02 $ (0.05) $ (0.00)
=========== =========== ============ ============
Basic weighted
average common
shares outstanding 29,133,000 17,555,354 29,038,000 17, 990,589
=========== =========== ============ ============
Fully diluted
weighted average
shares of common
shares outstanding 29,133,000 22,791,093 29,038,000 17,990,589
=========== =========== ============ ============
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