Coach Industries Group - CIGI - Reports Third 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. ): * 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 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. Base of Clients for SCI (Scalable Coherent Interface) An IEEE standard for a high-speed bus that uses wire or fiber-optic cable. It can transfer data up to 1GBytes/sec. (hardware) SCI - 1. Scalable Coherent Interface. 2. UART. 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 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 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 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 ($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 pony express, in U.S. history, relay mail service. At its inception in Apr., 1860, the pony express operated between St. Joseph, Mo., the western end of a telegraph line, and Sacramento, Calif. . The U.S. Postal service The U.S. Postal Service (USPS) processes and delivers mail to individuals and businesses within the United States. The service seeks to improve its performance through the development of efficient mail-handling systems and operates its own planning and engineering programs. 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 Vehicles built by the Chrysler Corporation are cars bearing the name "Chrysler" rather than one of their subsidiary companies (Dodge, Jeep, and Plymouth for examples). Most Chryslers have been luxury cars, with the exception of their 1970s European models which were developed by . 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 (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . The manufacturing segment delivered improvement in revenues, gross margin, and the reduction in 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. , 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 Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. 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 (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 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 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 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. [TABLE OMITTED] [TABLE OMITTED] |
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