|By Marketwired .||
|November 14, 2012 07:00 AM EST||
TIANJIN, CHINA -- (Marketwire) -- 11/14/12 -- China Auto Logistics Inc. (the "Company") (NASDAQ: CALI), a top seller in China of luxury imported automobiles, a leading provider of auto-related services and developer and operator of one of China's leading automobile portals and three major auto-related websites, today reported it achieved substantial year over year revenue gains in the three-month and nine-month periods ended September 30, 2012.
- 2012 third quarter revenues grew 78.3% to $170,456,821 led by an 83.4% increase in Automobile Sales revenues to $168,360,743 and a 22% increase in Financing Services sales to $1,491,170.
- Net income attributable to shareholders in the 2012 third quarter was $1,517,549, or $0.41 per share on 3,693,912 diluted shares outstanding (reflecting the Company's recent 1 for 6 reverse split). This compared with net income attributable to shareholders in the prior year period of $2,477,747 or $0.68 per share on 3,661,296 diluted shares outstanding. The decline is primarily attributable to a planned decrease in higher margin web-based advertising revenue which was not offset by gains achieved in the Company's other high margin services businesses, or its lower margin automobile sales.
- In the nine months ended September 30, 2012, revenues grew to $427,950,375, up 41% from the prior year period, led by a 43.2 % year over year increase in Automobile Sales revenues.
- Net income attributable to shareholders in the first nine months of 2012 was $4,748,487or $1.29 per share on 3,693,912 diluted shares outstanding. This compared with $6,841,081 or $2.04 per share a year earlier on 3,351,414 diluted shares outstanding.
Mr. Tong Shiping, CEO and Chairman of the Company, stated, "We believe our growth strategy will have increasingly clear benefits over time. In essence, we are sacrificing our web-based advertising revenue and higher profits it might generate in the near term in order to create the opportunities that develop from being a much bigger company and the clear leader in China in luxury auto sales and auto related services. While focusing on the growth of our luxury auto sales we are also exploring opportunities for higher bottom line growth with new services as well as our existing auto-related services. The sharp jump in Auto Sales revenues in this year's third quarter reflects well on our decision, as does the growth, in particular, of our Financing Services."
The largest contributor in the third quarter to the Company's revenues and profits was its luxury auto sales business. During the quarter the Company sold 2,004 automobiles, up 130% from 871 vehicles in the third quarter of 2011. The average unit price per sale was $84,012 in the 2012 quarter, down from $105,411 per unit in the third quarter last year. The Company continued to price its vehicles very competitively to expand its market share and maintain its leadership position in the industry. The contribution to operating income from Automobile Sales in the 2012 third quarter was $1,124,528 and was $3,777,411 through the first nine months of the year.
Revenues from Financing Services increased 22% year over year in the 2012 third quarter to $1,491,170. In order to provide financing to its customers, on which it earns a service fee, the Company utilizes bank facility lines of credit, provided by some of the leading commercial banks in China. As of September 30, 2012, the Company had approximately $60 million drawn on aggregate lines of approximately $119 million. The contribution to operating income from Financial Services in the quarter was $771,255, up from $426,417 in the same period last year.
As per the Company's strategic decision, the contribution to operating income from web-based advertising services in the 2012 third quarter was reduced to $109,551 from $1,194,991 a year earlier. Other services businesses which contributed to profits in the quarter were Automobile Value Added Services and Auto Mall Management Services.
Mr. Tong commented further, "Looking ahead we remain confident that we will maintain our leadership position in the luxury auto sales industry, with continued anticipated support from our automobile portal and websites which are now established in 50 cities throughout China and we intend to extend to 60 cities. Our aim is to capitalize on this leadership position with an expansion of our current high margin services and the addition of new ones. Underlying our growth strategy is our belief that growth rates for the high-end automobile market in China will continue to exceed those of the mainstream auto market, a view that is shared by several market forecasters."
Conference Call Invitation
The company will discuss 2012 third quarter and nine month results during a live conference call and webcast on Thursday, November 15, at 8:00am ET.
To participate in the call, interested participants should call 1-877-941-8418 when calling within the United States or 1-480-629-9809 when calling internationally. Please ask for the China Auto Logistics 2012 Third Quarter Earnings Conference Call, Conference ID: 4575617. There will be a playback available until 11/22/12. To listen to the playback, please call 1-877-870-5176 when calling within the United States or 1-858-384-5517 when calling internationally. Use the Replay Pin Number: 4575617.
About China Auto Logistics Inc.
China Auto Logistics Inc. is one of China's top sellers of imported luxury vehicles, and also manages China's largest imported auto mall in Tianjin. Additionally, it operates www.cali.com.cn, one of the leading automobile portals in China, as well as three major websites serving China's auto dealers and their customers. The Company also provides a growing variety of "one stop" automobile related services such as short term dealer financing. Additional information about the Company is available at www.chinaautologisticsinc.com.
Information Regarding Forward-Looking Statements
Except for historical information contained herein, the statements in this press release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, product demand, market competition, and risks inherent in our operations. These and other risks are described in our filings with the U.S. Securities and Exchange Commission.
CHINA AUTO LOGISTICS INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) Three Months Ended Nine Months Ended September 30, September 30, -------------------------- -------------------------- 2012 2011 2012 2011 ------------ ------------ ------------ ------------ Net revenue $170,456,821 $ 95,613,591 $427,950,375 $303,998,137 Cost of revenue 167,673,580 91,356,637 418,587,823 291,609,816 ------------ ------------ ------------ ------------ Gross profit 2,783,241 4,256,954 9,362,552 12,388,321 ------------ ------------ ------------ ------------ Operating expenses: Selling and marketing 287,372 364,738 715,762 1,103,381 General and administrative 343,749 519,739 1,583,544 1,869,573 ------------ ------------ ------------ ------------ Total operating expenses 631,121 884,477 2,299,306 2,972,954 ------------ ------------ ------------ ------------ Income from operations 2,152,120 3,372,477 7,063,246 9,415,367 Other income (expenses) Interest income 128,167 15,855 156,839 43,537 Interest expense (154,883) - (381,527) - Loss on disposal of property and equipment (12,719) - (84,793) - Miscellaneous - 22,043 (114) 11,466 ------------ ------------ ------------ ------------ Total other income (expenses) (39,435) 37,898 (309,595) 55,003 ------------ ------------ ------------ ------------ Income before income taxes 2,112,685 3,410,375 6,753,651 9,470,370 Income taxes 591,893 901,453 1,991,566 2,543,573 ------------ ------------ ------------ ------------ Net income 1,520,792 2,508,922 4,762,085 6,926,797 Less: Net income attributable to noncontrolling interests 3,243 31,175 13,598 85,716 ------------ ------------ ------------ ------------ Net income attributable to shareholders of China Auto Logistics Inc. $ 1,517,549 $ 2,477,747 $ 4,748,487 $ 6,841,081 ------------ ------------ ------------ ------------ Earnings per share attributable toshareholders of China Auto Logistics Inc. - basic and diluted $ 0.41 $ 0.68 $ 1.29 $ 2.04 ------------ ------------ ------------ ------------ Weighted average number of common shares outstanding - basic and diluted 3,693,912 3,661,296 3,693,912 3,351,414 ------------ ------------ ------------ ------------
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