BOULDER, Colo., Aug. 11, 2005 (PRIMEZONE) -- CapSource Financial, Inc.(OTCBB:CPSO) announced today that its consolidated total revenue for the second quarter ended June 30, 2005 was $6,061,022, compared with $1,401,955 for the same period last year, an increase of 332.3 percent. Total revenue is made up of two components: trailer sales/service revenues, which grew in the second quarter of 2005 by $4,696,888, an increase of 381.0 percent over the same period of 2004; and lease/rental income, which declined by $37,821, a reduction of 22.4 percent compared to the same period last year. Fred Boethling, President and CEO said, "Trailer sales growth was driven by our continued emphasis on expanding our trailer sales volume in Mexico."
For the six months ended June 30, 2005, our consolidated total revenue increased 238.6 percent to $9,236,540, compared to $2,728,071 in the same period last year. This increase was a result of increased trailer sales, partially offset by reduced lease/rental income. According to Boethling, "Our performance in the first half of 2005 gives us a good base from which to have excellent full-year results."
Gross profit consists of total revenue less cost of sales and operating leases. For the second quarter ended June 30, 2005, gross profit increased 116.7 percent to $357,820 compared to $165,116 for the same period last year. This increase in gross profit was due, in part, to the increase in trailer sales, partially offset by pricing pressures on trailer sales during 2005, as well as the impact of the decline in lease/rental income.
For the six months ended June 30, 2005, gross profit increased 74.2 percent to $605,022 compared to $347,299 for the same period last year. This improvement resulted from the increase in trailer sales, partially offset by pricing pressures on trailer sales during 2005, as well as the impact of the decline in lease/rental sales.
Operating loss consists of total revenue less cost of sales and operating leases and selling, general and administrative expenses. We recognized an operating loss of $200,803 in the second quarter ended June 30, 2005, compared to $329,987 for the same period last year. This operating loss improvement of $129,184 resulted from the growth in trailer sales and gross profit, partially offset by the increase in selling, general and administrative expense. Randolph Pentel, Chairman and largest shareholder of the company said, "I'm very encouraged by our first-half results, our long-term strategy and business plan is beginning to show the results we anticipated."
About CapSource Financial, Inc.
CapSource Financial, Inc. was incorporated in 1996 to take advantage of the 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. Mexico is now the United States' second largest trading partner with an average of $650 million in goods crossing the border 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.
CapSource owns and manages a lease/rental fleet of over-the-road truck trailers and related equipment through its REMEX subsidiary. RESALTA has an exclusive relationship with Hyundai to sell Hyundai trailers in Mexico. Both REMEX and RESALTA are based in Mexico City. CapSource's common stock trades on the electronic bulletin board under the symbol CPSO.