China Auto Logistics Reports 2017 First Quarter Results
Investor Conference Call Scheduled for Tuesday, May 16th at 8:00am ET
(firmenpresse) - TIANJIN, CHINA -- (Marketwired) -- 05/15/17 -- China Auto Logistics Inc. (the "Company" or "CALI") (NASDAQ: CALI), a top seller in China of luxury imported automobiles and a leading provider of auto-related services, today announced results for its first quarter ended March 31, 2017.
In the 2017 first quarter, the Company incurred a net loss attributable to shareholders from continuing operations of $(135,246) or $(0.03) per share. This compared with a somewhat higher loss in the same quarter last year of $(187,522) or $(0.05) per share and a total loss attributable to shareholders in the 2016 first quarter of $(1,060,917) or $(0.21)) per share. The latter figures include a loss from operations that were discontinued during 2016 and are not included in 2017 results.
In what is typically the Company's slowest quarter, net revenues of approximately $111 million in the 2017 first quarter were approximately 19% lower than in the first quarter of 2016 when stronger than anticipated sales were spurred largely by customer response to a rapid devaluation of the Chinese currency.
Commenting on the quarter, Mr. Tong Shiping, Chairman and CEO of the Company, stated: "Despite a still relatively slower economy, increased competition, and increased government taxation on some luxury items, I believe we have continued to stabilize our business and are prepared to capitalize on any future overall improvements in the Chinese economy." He added, "While auto sales were down compared with unusually strong first quarter results in 2016, they nevertheless remained approximately 27% higher than in the first quarter of 2015. Also, we continue to be the sole one-stop provider of Financing Services to auto dealers in Tianjin, and this remains a base for our leadership, as does our much stronger financial position following the decision to sell our Zhonghe operations last year."
During the first quarter of 2017 the Company sold 1,104 automobiles compared with 1,304 in the same period in 2016, while the average unit selling price in the 2017 first quarter was $99,000 compared with $104,000 in the first quarter of 2016. Typically, due to the Chinese New Year holidays, the first quarter is the Company's slowest quarter of the year. In 2016, however, as has been detailed in prior reports, the devaluations of the Chinese Renminbi ("RMB") in that year and in 2015, contributed to a strong boost in sales in the second half of 2015 and the first quarter of 2016, as auto dealer customers decided to build their inventories in anticipation of higher prices based on the currency devaluations.
In the 2017 first quarter the Company also was affected by a new 10% sales tax on all autos selling for more than approximately $190,000. This was announced in December of 2016 and had an immediate impact on the Company's sales of higher end cars, which also tend to have the highest profit margins. Consequently, the Company experienced a decline in the quarter in its gross margin, which slipped to 0.17% in this period, compared with 0.29% in the same period a year earlier. The top three brands sold by the Company -- Land Rover, Mercedes Benz and Toyota -- accounted for 73% of net auto sales in the first quarter, down from 79% in the prior year first quarter.
With slightly higher year over net operating income of $402,996 in the 2017 first quarter, bolstered by a recovery from a reserve for uncollected accounts, Financing Services continued to be the biggest contributor to the Company's income from operations in the period. Nevertheless, continuing intense competition which reduced customers and customer transactions - - as reflected in particular in lower revenues, reduced fee income and reduced profit margins - - impacted results in the quarter. Revenues, which consist of both fee income and interest income, declined 39.54% to $737,932 in the 2017 quarter from $1,220,602 in the same quarter last year. Fee income was reduced to $272,892 in the 2017 first quarter, from $543,735 in the year earlier period. Gross margin in the 2017 first quarter remained relatively high at 36.98%, but was down from 44.55% in the first quarter last year. As of March 31, 2017, the Company had an aggregate amount of credit lines of $134 million, of which approximately $94 million was available for use in Financing Services
"Over the near term, we do not expect to see any significant improvements in our gross margins in auto sales, if the new 'super luxury' tax remains a factor in our sales mix," Mr. Tong stated. "However," he added, "we have built up our inventory in the first quarter in anticipation of an improving outlook for auto sales. We think an improving economy will contribute to this, as well as benefits we anticipate from the Parallel Import Scheme that is being implemented in Tianjin and other key cities, which we believe provides us with some great long term advantages competing with official authorized automobile dealers."
"At the same time," Mr. Tong said, "we continue to study potential opportunities to expand into new higher margin services such as internet sales."
The Company will discuss 2017 first quarter results during a live conference call and webcast on Tuesday, May 16, 2017 at 8:00am ET.
To participate in the call, interested participants should call 1-877-723-9502 when calling within the United States or 1-?719-325-4842 when calling internationally. Please ask for the Conference ID: 2619356. There will be a playback available until 05/23/17. To listen to the playback, please call 1-844-512-2921 when calling within the United States or 1-412-317-6671 when calling internationally. Use the Replay Pin Number: 2619356.
This call is being webcast by ViaVid Broadcasting and can be accessed by clicking on this link at ViaVid's website at .
China Auto Logistics Inc. is one of China's top sellers of imported luxury vehicles. It also provides a variety of "one stop" automobile related services such as short term dealer financing.
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. We do not undertake any obligation to publicly update these forward-looking statements, whether as a result of new information, future events or otherwise.
Ken Donenfeld
DGI Investor Relations Inc.
Tel: 212-425-5700
Fax: 646-381-9727
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Datum: 15.05.2017 - 11:30 Uhr
Sprache: Deutsch
News-ID 543114
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TIANJIN, CHINA
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Cars
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