China Auto Logistics 2011 Revenues Climbed 75% Over Prior Year Primarily on Strength of Imported Luxury Auto Sales and Continued Growth in Auto-Related Services
Investor Conference Call Scheduled for Tuesday, April 3rd at 8:00am ET
(firmenpresse) - TIANJIN, CHINA -- (Marketwire) -- 03/30/12 -- (the "Company") (NASDAQ: CALI), one of China's leading developers of websites for buyers and sellers of imported and domestic automobiles, a top seller in China of imported luxury cars, and a leading provider of auto-related services, today announced a 75% increase in 2011 revenues as a consequence of the sharp increase in year over year sales of luxury imported automobiles which further confirmed the Company's leadership position in this fast growing Chinese auto industry niche. The Company's higher margin auto-related services businesses also achieved solid growth while helping to build auto sales through the Company's "one-stop" services concept. However, the termination of the VIP fee-based services of Goodcar in the second half of 2011, plus a one-time write off of goodwill and intangible assets for Goodcar of nearly $900,000 temporarily flattened company-wide profit growth. Consequently, while gross profit increased 14.8% in 2011, net income for the year advanced 0.10%.
Net revenues in 2011 grew 75% to $452,149,602, compared with $258,236,252 a year earlier
Automobile Sales contributed approximately $439 million to net revenues (2010: $248 million), followed by Web-based Advertising Services with approximately $6.2 million (2010: $5.96 million), Financing Service with $4.1 million (2010: $2.3 million), Automobile Value Added Services with $1.95 million (2010: $1.16 million) and Auto Mall Management Services with $945,277 (2010: $800,050).
Net income attributable to shareholders in 2011 was $8,032,615, or $0.39 per share, on 20,626,441 weighted average shares outstanding, compared with $8,006,640, or $0.44 per share, on 18,277,723 weighted average shares outstanding.
Operating income in 2011 was $11,377,088 compared with $11,220,632 in the prior year. The largest contributor to 2011 operating income was Auto Sales, with $5,034,537 (2010: $4,262,990), followed by Web-Based Advertising with $4,375,517(2010: $5,097,853). Financing Services contributed $1,888,578 (2010: $1,462,075), Auto Mall Management added $818,026 (2010: $641,756) and Automobile Value Added Services $536,575 (2010: $953,854).
The Company said that throughout 2011, while sales of domestic autos in China were lower than in prior years, the luxury auto market continued to boom. With relationships with dealers in more than 100 cities throughout China, a strong Internet presence, and the ability to offer customers a variety of "one-stop" services such as financing, the Company achieved a 77% year over year sales gain. The Company sold 4,190 autos in 2011, up from 2,778 a year earlier and also saw the average unit price per auto increase over 17% to approximately $105,000 from $89,000 in 2010.
During the year, the Company expanded its aggregate line of credit by more than $100 million, to $179 million, from approximately $51 million in 2010, which permitted the approximately 75% increase in 2011 net revenues from this business year over year. As of March 5, 2012, the Company's credit line was $151 million, and it does not foresee any difficulties in obtaining credit lines on an "as needed" basis going forward, having established excellent relationships with a number of leading Chinese banks.
The Company has remained in a leadership position with its websites serving the full spectrum of China's "auto-living" public, and with established sites covering 35 cities throughout the country. While starting over the past two years with a "first mover" advantage, during 2011 it became evident that this was eroded somewhat by a growing number of competitors with both general and specialized sites which, in turn, created pricing pressure on the models the Company developed. As such, in the third and fourth quarter management took steps to address the situation, in particular, by determining to focus on improving service and pricing for its largest customers, namely, auto dealer subscribers. Management also concluded that the Company's VIP card program on its Goodcar site had reduced profit potential and it was decided to terminate it. Also under review are the Company's previously announced plans to expand to 60 cities. These and other adjustments made lowered revenues of the website sector in the second half of 2011. The Company will adjust its website business strategy based on the market situation in the future and strongly believes that the shutdown of the membership fee base will allow balance in advertising revenues with revenues from web-based services that continue to be developed.
Goodcar was a significant contributor to this segment in 2011, which saw revenues grow approximately 68%. With the decision to terminate VIP cards offered through Goodcar, it was determined there was an impairment loss of goodwill and intangible assets relating to the Goodcar acquisition totaling $893,583, which lowered the contribution to operating income of the Automobile Value Added Services segment by this amount. Going forward, the development of new value added services such as auto insurance, remains a Company priority and, in time, such new online services are expected to become a significant contributor to the Company's bottom line.
This business continued to provide a very healthy contribution to the Company's bottom line in 2011, and, in 2012, management will continue to review additional opportunities in this sector, including a domestic auto mall in Tianjin.
"We are very pleased with the dramatic growth we have achieved this year," stated Mr. Tong Shiping, CEO and Chairman of the Company, "and firmly believe the brief pause in our earnings growth in the second half of 2011 as we adjusted our web strategy has allowed us to reset our clock to resume on a successful path in 2012."
"In particular," he said, "we continue to see our bottom line growth coming primarily from growth in our auto related services, not just advertising, but from a ramping up of such services as auto-insurance where we recently announced cooperative agreements with some of China's leading insurers. When all the pieces are in place, we will be well positioned to succeed given our strong relationships throughout China, and our increasingly well known Internet sites."
He added, "We also continue to envision increasing our business in the domestic auto sector, but will pay careful attention to the timing of our moves. All in all, the outlook for growth in 2012 and future years remains very bright."
The Company will discuss 2011 year end results during a live conference call and webcast on
To participate in the call, interested participants should call 1-877-941-2068 when calling within the United States or 1-480-629-9712 when calling internationally. Please ask for the China Auto Logistics 2011 Year End Earnings Conference Call, Conference ID: 4527628. There will be a playback available until 04/10/12. 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: 4527628.
This call is being webcast by ViaVid Broadcasting and can be accessed by clicking on this link or at ViaVid's website at .
*Note: The attached tables are provided as a convenience and should be read in conjunction with the Company's 10-K filed with U.S. Securities and Exchange Commission.
China Auto Logistics Inc. operates , one of the leading automobile portals for car dealers and consumers of vehicles and auto-related services in China. Additionally, it is one of China's top sellers of luxury imported cars and a leading developer of websites for buyers and sellers of imported and domestic automobiles. These include , China's only site for imported car dealers and consumers; , focused on domestic auto sales, and , a highly popular internet destination for auto drivers attracted by discount cards for a variety of automotive products and services. The Company believes the integration of these wide ranging sites and services in a single portal serving a broad spectrum of China's "auto living" public, as well as the addition of new web-based auto-related services for businesses and consumers, will drive future growth. For additional information visit .
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.
Ken Donenfeld
Tel: 212-425-5700
Fax: 646-381-9727
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Datum: 30.03.2012 - 14:02 Uhr
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