BOULDER, Colo., May 18, 2004 (PRIMEZONE) -- CapSource Financial, Inc. (OTCBB:CPSO) announced that its consolidated net sales for the first quarter ended March 31, 2004, were $1,326,116 compared with $768,625 for the same period last year, an increase of 72.5%. Trailer sales, one component of total sales, increased by 107.8%. As working capital was directed toward increasing trailer sales, the equipment lease/rental portfolio was reduced resulting in a 14.8% decline in lease/rental income, the other component of total sales.
Fred Boethling, President and CEO noted that, "The improved sales results in the first quarter reflect our decision to focus resources on developing our sales and marketing operations in Mexico City. We opened a new sales facility with the goal of improving market awareness of our products and our ability to respond to customer needs even more rapidly."
Boethling also noted that, "Our gross margins (sales less the cost of sales) increased by 22% compared to this period last year and this, when combined with the increase in sales, makes us confident we are on the proper course with our Mexican trailer sales operations."
On May 17, 2004, CapSource announced it had leased a location in Monterrey, Mexico from which RESALTA, its truck trailer sales subsidiary, will serve northeast Mexico. Monterrey is Mexico's industrial center, major transportation hub and home to over 200 trucking fleets. Monterrey accounts for about 25 percent of Mexico's total manufacturing base.
For the first quarter of 2004, CapSource realized a net loss of $306,965, or $0.03 per share compared with $420,568, or $0.05 per share for the same period last year. The decrease in the net loss was due to the increase in sales and gross margins coupled with a decrease in interest expense.
About CapSource Financial, Inc.
CapSource Financial, Inc. was incorporated in 1996 to take advantage of the 1994 North American Free Trade Agreement (NAFTA) and the increased economic activity that NAFTA triggered when the world's largest free trade area was created by linking 406 million people in Mexico, the U.S. and Canada producing more than $11 trillion worth of goods and services or about one-third of the world's total GDP. After ten years, NAFTA has been a huge success. Mexico is now the United States' second largest trading partner. Total trade among the three NAFTA countries has grown to $1.7 billion in goods crossing the borders each day. U.S. trade with Mexico has increased nearly 500 percent -- from $48 billion to $239 billion since the passage of NAFTA. The vast majority of this trade moves by truck.
In addition to its RESALTA subsidiary, CapSource owns and manages a lease/rental fleet of over-the-road truck trailers and related equipment through its REMEX subsidiary, also based in Mexico City. CapSource's common stock trades on the electronic bulletin board under the symbol CPSO.
For Additional Information Contact: CapSource: Fred Boethling at (888) 574-6744 or CEOcast: Ken Sgro (212) 732-4300; Visit the company's website: www.capsource-financial.com