AutoChina International recently announced its second quarter and six months financial results for the period ended June 30, 2009, posting increases across the board and highlighting its significant achievements in the first half of 2009.
The commercial vehicles sales and leasing company posted second-quarter revenue at $194.2 million, or $0.46 earnings per basic share, up 68.7 percent from $115.1 million, or $.022 earnings per basic share, for the same period of 2008.
The company said second-quarter consumer auto sales contributed to $120.2 million, or 61.9 percent, of total revenues; sales related to commercial vehicle sales and leasing contributed to $61.0 million, or 31.4 percent, of total revenues; and sales related to parts and services contributed to $12.8 million, or 6.6 percent, of total revenues.
AutoChinaâ€™s chairman and CEO Yong Hui Li noted the companyâ€™s recent position as a publicly traded company, as well as its expectations regarding the sale of its automotive dealership business, which is in the process of being sold.
â€œThe first six months of 2009 was a transformational period in AutoChinaâ€™s history, as we became a public company, agreed to sell our passenger auto dealership business, and reported rapid growth of our commercial vehicle sales and leasing business,â€ Hui Li stated in the press release. â€œAlthough we expect to initially generate lower revenues following the sale of the auto dealership business, we believe that the commercial vehicle business model that we have created provides a significant opportunity for growth, and the capital received from our auto-dealership business will allow for our Company to accelerate this process.â€
Hui Li also mentioned the companyâ€™s expansion efforts for operations and individual branches.
â€œWe continue to expand our operations, having grown the total number of branches related to our leasing business from 103 at December 31, 2008 to 142 at August 31, 2009, and we expect to open an additional eight branches by the end of 2009. We believe that we are well-positioned to capitalize on the commercial vehicle expansion in China and to build on our position in this highly fragmented market. We had approximately $21.4 million in cash as of June 30, 2009, which does not incorporate the pending sale of the auto dealership business,â€ he stated.
For the six months ended June 30, 2009, the company reported total sales at $320.3 million, up 47.7 percent from the $216.9 million reported for the first half of 2008.
Sales related to consumer auto sales for the first six months contributed to $225.1 million, or 70.3 percent of revenues; $71.0 million, or 22.1 percent of revenues, came from commercial vehicle sales and leasing; and $24.0 million, or 7.5 percent of revenues, came from sales related to parts and services.
As of June 30, 2009, the company had cash and cash equivalents of $21.4 million, $15.6 million working capital, and stockholdersâ€™ equity of $72.8 million. The company said these numbers do not include the sale of its consumer auto dealership business to Xinjiang Guanghui Industry Investment Group Co., which is currently in the works.