NEW YORK, April 3, 2006 (PRIMEZONE) -- Pacific CMA Inc. (AMEX:PAM), an integrated provider of global freight forwarding/logistics focused on the growing China and Asian trade, today reported its financial results for the year ended December 31, 2005.
2005 Highlights:
-- Revenues increased 26% to $125.0 million from the prior year -- EBITDA grew 22% to $1.6 million from the prior year
Revenues for 2005 totaled $125.0 million, an increase of 26% compared to $99.6 million for 2004. The Company reported a net loss for 2005 of $357,270 or $0.01 per diluted share compared to net income of $327,527 or $0.01 per diluted share in 2004. The net loss was primarily the result of an increase in non-cash financing costs in the amount of $757,665. EBITDA for the year increased 22% to $1.6 million, or $0.06 per diluted share compared to $1.3 million, or $0.05 per diluted share for 2004.
Operating expenses for 2005 increased significantly due to sharp increases in fuel costs from airlines that the Company was unable to fully pass on to its customers, as well as an increases in general and administrative expenses related to the Company's addition of personnel in key markets during the second half of 2005.
Pacific CMA's Chairman and CEO Alfred Lam stated, "We are pleased to have exceeded our guidance and delivered record revenues for 2005. Our bottom line results were significantly affected, however, by non-cash financing costs, as well as certain increases in operating costs in the second half of the year. We are optimistic that these factors will be mitigated in the future by continued aggressive growth of revenues."
The Company's cash position was positive for the year ended December 31, 2005 and Stockholders Equity increased by $2.8 million to $12.5 million at year-end.
"Our strategic focus remains on organic growth, industry alliances and selective acquisitions," continued Mr. Lam. "Growth will be accomplished through additional market penetration into mainland China, expansion of our sales force by hiring commissioned representatives with established customer bases and concentration on the manufacturing trade in China, Southeast Asia and the Indian subcontinent. We will look for opportunities to establish more relationships with agency partners, which will drive market development and provide coverage around the world without adding to our cost base. We will evaluate acquisition possibilities that fit our corporate culture, enhance service offerings, add new business and enlarge our geographic presence in the ever-expanding global marketplace."
About Pacific CMA
Pacific CMA is an international, 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. The newest division, Paradigm Global Logistics, is located in Los Angeles. For more information, please refer to the Company's Web site: www.pacificcma.com.
This press release may contain statements which constitute 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, including statements regarding the intent, belief or current expectations of the Company, its directors, or its officers with respect to the future operating performance of the Company. 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 shareholders, and in other communications made by or with the approval of the Company. Investors are cautioned that any such forward looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those in the forward looking statements as a result of various factors. Important factors that could cause such differences are described in the Company's periodic filings with the Securities and Exchange Commission.
(1) The Company uses EBITDA (earnings before net interest, income taxes, depreciation and amortization) as part of its overall assessment of financial performance by comparing EBITDA between accounting periods. Pacific CMA believes that EBITDA is used by the financial community as a method of measuring the Company's performance and of evaluating the market value of companies considered to be in similar businesses. EBITDA should not be considered as an alternative to net income or cash provided by operating activities, as defined by accounting principles generally accepted in the United States ("GAAP").