Pacific CMA Reports a 56% Growth in Revenue and a Sixty-Fold Increase in EBITDA
Monday May 16, 9:25 am ET
NEW YORK--(BUSINESS WIRE)--May 16, 2005--Pacific CMA Inc. (AMEX:PAM - News), an integrated provider of global freight forwarding/logistics services, announced today that revenue for the first quarter of 2005 was $25,604,545 compared to $16,454,513 for the same period last year, an increase of 56%. EBITDA was $472,931 or $0.02 per fully diluted share, as compared with $7,600 or $0.00 per fully diluted share for first quarter 2004, a sixty-fold increase.
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"All of our operating units contributed to this outstanding performance," commented Alfred Lam, Chairman. "Based on the increased activity of both air and sea shipments, we are convinced that 2005 will produce a significant upturn in revenue and profit. Our customer retention remains strong, and we are continuing to look for new opportunities that will increase stockholder value."
About Pacific CMA, Inc.
Pacific CMA is an international, non-asset based supply chain management company, providing air and ocean freight forwarding, contract logistics, and other logistics-related services. The Company's large and diverse global and local customers operate in industries with unique supply chain requirements, such as the apparel and technology industries. Its AGI Logistics (HK) Ltd. operating unit is based in Hong Kong and focuses on integrated logistics, freight forwarding, and warehousing services in the Far East region and Mainland China. Its Airgate International operating unit, founded in 1995, is based in New York and primarily handles import air and ocean shipments from the Far East and Southwest Asia to the United States. Our newest division, Paradigm Global logistics, is located in Los Angeles. As of December 31, 2004, Pacific CMA maintained approximately 208 cargo agents located in 92 countries and 203 cities serving major gateways worldwide.
A Note About Forward-Looking Statements
This document contains statements which may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995, such as statements relating to our financial condition, results of operations, plans, objectives, future performance, and business operations. These statements relate to expectations concerning matters that are not historical fact. Accordingly, statements that are based on management's projections, estimates, assumptions, and judgments are forward-looking statements. These forward-looking statements are typically identified by words or phrases such as "believe," "expect," "anticipate," "plan," "estimate," "approximately," "intend," and other similar words and expressions, or future or conditional verbs such as "should," "would," "could," and "may." In addition, the Company may from time to time make such written or oral "forward-looking statements" in filings with the Securities and Exchange Commission (including exhibits thereto), in its reports to stockholders, and in other communications made by or with the approval of the Company.
These forward-looking statements are based largely on our current expectations, assumptions, plans, estimates, judgments, and projections about our business and our industry, and they involve inherent risks and uncertainties. Although we believe that these forward-looking statements are based upon reasonable estimates and assumptions, we can give no assurance that our expectations will in fact occur or that our estimates or assumptions will be correct, and we caution that actual results may differ materially and adversely from those in the forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties, contingencies, and other factors that could cause our or our industry's actual results, level of activity, performance, or achievement to differ materially from those discussed in or implied by any forward-looking statements made by or on behalf of us and could cause our financial condition, results of operations or cash flows to be materially adversely affected. Accordingly, investors and all others are cautioned not to place undue reliance on such forward-looking statements.
Except for the historical information contained herein, the matters set forth in this release are forward-looking statements that are based on certain assumptions and expectations of future events. These assumptions and expectations are dependent on and subject to certain risks and uncertainties including, but not limited to such factors as market demand, pricing, and risks associated with litigation and insurance coverage, and risks associated with operations outside of the U.S., including the PRC, fluctuating exchange rates, operating in a service industry without contractual relationships with our customers, changing economic conditions such as general economic slowdown and decreased consumer confidence, and other risk factors detailed in Pacific CMA's filings with the SEC (including its Annual Report on Form 10-K and Registration Statements) for a description of some, but not all, risks, uncertainties, and contingencies.
Pacific CMA, Inc.
Condensed Consolidated Balance Sheets
March 31, 2005 and December 31, 2004
Assets
(Unaudited)
2005 2004
------------ ------------
Current Assets
Cash and cash equivalents $1,737,418 $1,538,146
Restricted cash 6,291,002 5,088,088
Accounts and notes receivable, net of
allowance for doubtful accounts; 2005
- $304,031; 2004 - $295,144 13,406,477 13,480,831
Other receivables 2,765,056 2,876,398
Deposits and prepaid expenses 550,672 447,809
Current portion of loan receivable 17,600 17,600
Deferred income taxes 57,476 57,476
------------ ------------
Total current assets 24,825,701 23,506,348
------------ ------------
Property and Equipment, net of accumulated
depreciation; 2005 - $790,217; 2004 -
$735,309 657,843 619,753
------------ ------------
Other Assets
Goodwill 2,740,508 2,740,508
Intangible assets, net of accumulated
amortization; 2005 - $1,673,229; 2004
- $1,528,894 1,213,479 1,357,814
Deferred tax asset 1,161,996 952,319
Deferred financing costs on Series A
preferred stock 727,592 786,693
Investment deposit 150,000 1,037,001
Equity investment in affiliates 1,093,959 258,912
Other 30,354 30,994
------------ ------------
7,117,888 7,164,241
------------ ------------
$32,601,432 $31,290,342
============ ============
Liabilities and Stockholders' Equity
Current Liabilities
Notes payable - bank $8,476,514 $6,679,406
Current maturities of capital lease
obligations 56,060 62,537
Accounts payable 8,636,686 9,357,362
Accrued expenses and other 725,404 908,930
Payable-minority shareholder 151,423 79,409
Income taxes payable 219,750 157,741
------------ ------------
Total current liabilities 18,265,837 17,245,385
------------ ------------
Capital Lease Obligations 54,097 64,373
------------ ------------
Series A Preferred Stock, net of discount;
2005 - $712,669; 2004 - $771,401) 4,287,331 4,228,599
------------ ------------
Minority Interest 97,959 92,248
------------ ------------
Stockholders' Equity
Common stock 5,233,978 5,113,412
Warrants outstanding 1,073,653 1,073,653
Additional paid-in capital 1,953,384 1,953,384
Retained earnings 2,823,375 2,760,947
Accumulated other comprehensive income 22,114 24,174
Unearned compensation cost (1,210,296) (1,265,833)
------------ ------------
Total stockholders' equity 9,896,208 9,659,737
------------ ------------
$32,601,432 $31,290,342
============ ============
Pacific CMA, Inc.
Condensed Consolidated Statements of Operations
Three Months Ended March 31, 2005 and 2004
(Unaudited)
2005 2004
------------ ------------
Freight Forwarding Income $25,604,545 $16,454,513
------------ ------------
Operating Expenses
Cost of forwarding (21,508,127) (13,791,615)
General and administrative (3,561,895) (2,584,653)
Depreciation and amortization (222,526) (179,700)
Stock-based compensation cost (101,102) (166,423)
------------ ------------
(25,393,650) (16,722,391)
------------ ------------
Operating Income (Loss) 210,895 (267,878)
------------ ------------
Other Income (Expense)
Interest and other income 35,141 95,778
Interest expense (114,352) (89,527)
Preferred stock dividend and
amortization of deferred financing
costs (137,155) --
Amortization of preferred stock
discount (58,732) --
Equity in income (loss) of affiliates (11,801) --
------------ ------------
(286,899) 6,251
------------ ------------
Loss Before Income Taxes (76,004) (261,627)
Benefit for Income Taxes (144,143) (138,834)
------------ ------------
Income (Loss) Before Minority Interest 68,139 (122,793)
Minority Interest (5,711) --
------------ ------------
Net Income (Loss) $62,428 $(122,793)
============ ============
Basic Earnings Per Share (1) $0.00 $(0.01)
============ ============
Diluted Earnings Per Share (2) $0.00 $(0.01)
============ ============
(1) Based on weighted average basic shares outstanding of 25.2 million
and 25.7 million for the three months ended March 31, 2005 and
2004.
(2) Based on weighted average diluted shares outstanding of 25.4
million and 25.7 million for the three months ended March 31, 2005
and 2004.
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Contact:
Pacific CMA, Inc.
John F. Mazarella, 212-247-0049
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Source: Pacific CMA, Inc.
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