BEIJING, June 2, 2009 (GLOBE NEWSWIRE) -- AutoChina International Limited ("AutoChina" or the "Company") (formerly Spring Creek Acquisition Corp.) (OTCBB:SCRQF) (OTCBB:SCRWF) (OTCBB:SCRUF), a leading one-stop commercial vehicle financing and passenger automobile sales company in China, today announced the audited financial results for the year ended December 31, 2008 for the Company's recently acquired operating subsidiary, AutoChina Group, Inc., on a stand-alone basis, without adjustment, prior to its acquisition by the Company on April 9, 2009, which was accounted for as a reverse merger (see attached tables).
Also attached is unaudited pro forma condensed combined financial information as of and for the year ended December 31, 2008, giving effect to the business combination noted above (see attached tables). The unaudited pro forma condensed combined financial information has been prepared assuming that the business combination had occurred (i) at January 1, 2008 for the pro forma condensed combined statement of operations and (ii) at December 31, 2008 for the pro forma condensed combined balance sheet. The unaudited pro forma condensed combined financial information is provided for illustrative purposes only, and is not necessarily indicative of the historical financial position that would have been achieved had the business combination been consummated as of December 31, 2008, or the historical results of operations had the business combination been achieved on January 1, 2008. Additional information with respect to the business combination is contained in the Company's recent filings with the United States Securities and Exchange Commission, which can be accessed online without charge at www.sec.gov.
About AutoChina International Limited:
AutoChina International Limited, f/k/a Spring Creek Acquisition Corp. (OTCBB:SCRQF) (OTCBB:SCRWF) (OTCBB:SCRUF), is a leading one-stop commercial and consumer auto sales and financing company in China. AutoChina's operating subsidiary was founded in 2005 by nationally recognized Chairman and CEO, Yong Hui Li, AutoChina operates in two primary business segments: commercial vehicle sales and financing (truck leasing) and sales of branded passenger automobiles through its nationally recognized dealer network in China.
Safe Harbor Statement:
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about the Company. Forward-looking statements are statements that are not historical facts. Such forward-looking statements, based upon the current beliefs and expectations of the Company's management, are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. The following factors, among others, could cause actual results to meaningfully differ from those set forth in the forward-looking statements:
* Continued compliance with government regulations; * Changing legislation or regulatory environments; * Requirements or changes affecting the businesses in which the Company is engaged; * Industry trends, including factors affecting supply and demand; * Labor and personnel relations; * Credit risks affecting the Company's revenue and profitability; * Changes in the automobile industry; * The Company's ability to effectively manage its growth, including implementing effective controls and procedures and attracting and retaining key management and personnel; * Changing interpretations of generally accepted accounting principles; * General economic conditions; and * Other relevant risks detailed in the Company's filings with the Securities and Exchange Commission.
The information set forth herein should be read in light of such risks. The Company does not assume any obligation to update the information contained in this press release.
AUTOCHINA GROUP INC
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share and per share data)
Years Ended December 31,
-----------------------------------
2008 2007 2006
--------- --------- ---------
Net Sales:
New automobiles $ 365,916 $ 270,508 $ 145,960
Commercial vehicles 34,059 -- --
Parts and services 40,218 24,003 6,682
Insurance service, net 392 154 54
--------- --------- ---------
Total sales 440,585 294,665 152,696
--------- --------- ---------
Cost of sales:
New automobiles 351,037 258,610 139,437
Commercial vehicles 31,970 -- --
Parts and services 31,665 18,571 5,209
--------- --------- ---------
Total cost of sales 414,672 277,181 144,646
--------- --------- ---------
Gross profit 25,913 17,484 8,050
--------- --------- ---------
Operating expenses:
Selling and marketing 6,692 3,944 2,439
General and administrative 7,506 5,402 2,444
Other income, net (836) (355) (97)
--------- --------- ---------
Total operating expenses 13,362 8,991 4,786
--------- --------- ---------
Income from operations 12,551 8,493 3,264
--------- --------- ---------
Finance income (expenses) :
Floor plan interest expense (1,020) (601) (255)
Other interest expense (1,785) (1,510) (468)
Interest income 2,799 288 125
--------- --------- ---------
Total finance expenses, net $ (6) $ (1,823) $ (598)
--------- --------- ---------
Equity in (loss) earnings of
unconsolidated subsidiaries $ (40) $ 139 $ 417
Minority interests (1,309) (1,260) (283)
--------- --------- ---------
Income before income taxes 11,196 5,549 2,800
Income tax provision (benefit) 3,009 983 (29)
--------- --------- ---------
Income from continuing operations 8,187 4,566 2,829
(Loss) income from discontinued
operations, net of taxes (144) 209 (87)
--------- --------- ---------
Net income $ 8,043 $ 4,775 $ 2,742
========= ========= =========
Earnings (Loss) Per share - basic
and diluted
Continuing operations $ 8,187 $ 4,566 $ 2,829
Discontinued operations $ (144) $ 209 $ (87)
--------- --------- ---------
Net income $ 8,043 $ 4,775 $ 2,742
========= ========= =========
Weighted average number of common
shares - basic and diluted 1,000 1,000 1,000
========= ========= =========
AUTOCHINA GROUP INC
CONSOLIDATED BALANCE SHEETS
(In thousands of US$, except share data)
December 31,
-------------------
2008 2007
-------- --------
Assets:
Current assets:
Cash and cash equivalents $ 17,406 $ 12,820
Restricted cash 40,824 24,734
Accounts receivable 4,272 2,104
Inventories 37,463 26,910
Deposits for inventories 21,621 21,524
Prepaid expenses and other current assets 5,474 9,396
Due from affiliates -- 5,487
Due from unconsolidated subsidiary 529 --
Current maturities of net investment in sales-
type leases 14,867 --
Deferred income tax assets 1,020 177
Assets of discontinued operations -- 6,755
-------- --------
Total current assets 143,476 109,907
Investment in unconsolidated subsidiaries 229 770
Property, equipment and leasehold improvements,
net 26,907 18,030
Net investment in sales-type leases, net of
current maturities 8,492 --
Net non-current deferred income tax assets -- 6
Goodwill 941 170
-------- --------
Total assets $180,045 $128,883
======== ========
Current liabilities:
Floor plan notes payable - manufacturer
affiliated $ 12,379 $ 10,808
Floor plan notes payable - non - manufacturer
affiliated -- 685
Notes payable 3,921 6,725
Trade notes payable 60,134 35,828
Notes payable, related parties -- 12,538
Accounts payables 19,637 1,324
Other payables and accrued liabilities 5,189 3,101
Due to affiliates 5,894 2,075
Customer deposits 3,224 5,527
Income tax payable 1,674 725
Liabilities of discontinued operations -- 5,281
-------- --------
Total current liabilities 112,052 84,617
-------- --------
Long term debt:
Net deferred income tax liabilities 405 --
-------- --------
Total liabilities 112,457 84,617
-------- --------
Minority interests 6,950 6,461
-------- --------
Shareholders' equity:
Common stock - $0.001 par value, 50,000,000
shares authorized, 1,000 shares issued and
outstanding -- --
Additional paid-in capital 35,921 24,479
Statutory reserves 741 62
Accumulated other comprehensive income 6,185 2,837
Retained earnings 17,791 10,427
-------- --------
Total shareholders' equity 60,638 37,805
-------- --------
Total liabilities and shareholders' equity $180,045 $128,883
======== ========
AutoChina International Limited (formerly Spring Creek
Acquisition Corp.) and AutoChina Group, Inc.
Unaudited Pro Forma Condensed Combined Statement of Operations
Year Ended December 31, 2008
Net sales $ 440,585,000
Cost of sales 414,672,000
-------------
Gross profit 25,913,000
Selling and marketing 6,692,000
General and administrative 9,168,000
Other income, net (836,000)
-------------
Income from operations 10,889,000
Other expense, net (2,019,000)
-------------
Income before income taxes 8,870,000
Income tax provision 2,562,000
-------------
Income from continuing operations 6,308,000
Loss from discontinued operations, net of taxes (144,000)
-------------
Net Income $ 6,164,000
=============
Net income per common share -
Basic $ 0.63
=============
Diluted $ 0.53
=============
Weighted average common shares outstanding -
Basic 9,711,930
=============
Diluted 11,565,253
=============
AutoChina International Limited (formerly Spring Creek
Acquisition Corp.)and AutoChina Group, Inc.
Unaudited Pro Forma Condensed Combined Balance Sheet
December 31, 2008
Assets
Cash and cash equivalents $ 18,188,000
Restricted cash 40,824,000
Restricted cash held in escrow 4,987,000
Accounts receivable 4,272,000
Inventories and deposits for inventories 59,084,000
Other current assets 21,900,000
Investment in unconsolidated subsidiaries 229,000
Property, equipment and leasehold improvements,
net 26,907,000
Net investment in sales-type leases, net of
current maturities 8,492,000
Goodwill 941,000
------------------
Total Assets $185,824,000
==================
Liabilities and Stockholders' Equity
Liabilities
Floor plan notes payable - manufacturer affiliated $ 12,379,000
Trade notes payable 60,134,000
Other notes payable 4,350,000
Accounts payable and accrued liabilities 24,845,000
Share repurchase obligations 7,908,000
Due to affiliates 5,894,000
Other current liabilities 4,898,000
Net deferred income tax liabilities - non-current 405,000
------------------
Total Liabilities 120,813,000
------------------
Minority interests 6,950,000
------------------
Stockholders' Equity
Ordinary shares 11,000
Additional paid-in capital 33,274,000
Statutory reserves 741,000
Retained earnings 17,850,000
Accumulated other comprehensive income 6,185,000
------------------
Total Stockholders' Equity 58,061,000
------------------
Total Liabilities and Stockholders' Equity $185,824,000
==================