SHIJIAZHUANG, CHINA -- (Marketwired) -- 06/14/13 -- AutoChina International Limited ("AutoChina" or the "Company") (OTCBB: AUTCF), China's largest commercial vehicle sales, servicing, leasing, and support network, today reported financial results for the first quarter ended March 31, 2013.
Q1 2013 Financial Highlights (comparisons are year over year)
•Total revenues of $71.4 million, compared to $103.1 million •Gross profit of $14.3 million, compared to $24.5 million •Net income of $0.4 million, compared to $8.0 million •Adjusted EBITDA of $4.2 million, compared to $16.2 million •$5.6 million in cash flow reported for the three months ended March 31, 2013
•1,251 commercial vehicles leased in the first quarter of 2013 •AutoChina maintained its number of financing and service centers at 534 during the first quarter ended March 31, 2013, compared to 512 at March 31, 2012. •Company continued to leverage its financing and service centers to grow its licensed insurance distribution business, increasing insurance revenues by 97.9% year over year to $3.7 million
Operational and Market Review
Mr. Yong Hui Li, Chairman and CEO of AutoChina, stated, "During the 2013 first quarter, AutoChina continued to move forward with expanding and growing its specialty financing business. We were pleased to see quarter-over-quarter growth in the number of leases for new heavy trucks booked during the 2013 first quarter, an encouraging sign that the industry may finally be stabilizing after the significant slowdown of the past couple of years. According to the China Association of Automobile Manufacturers, 168,600 heavy trucks sold in China during the first quarter of 2013, a 17.1% decline over the prior-year quarter but a significant improvement over the 30% decline from the 2011 first quarter to the 2012 first quarter. Though the 2013 outlook for China's heavy truck market is more positive, we will continue to take a methodical and strategic approach to growing our existing heavy-truck leasing business with new service offerings, while continuing to expand and leverage our geographic presence through our leasing and finance center network. During the period, we reported cash flow of $5.6 million as we continued to generate finance and insurance revenue without the corresponding cost of sales associated with the purchase of our heavy trucks. We feel that this operational flexibility allows us to better navigate this difficult market cycle."
Heavy Truck Sales - Lease Update
The Company leased 1,251 commercial vehicles in the first quarter of 2013, compared to 1,725 in the first quarter of 2012. The decrease in commercial vehicle sales, servicing, and leasing was primarily due to a general slowdown in the economy that led to unfavorable investment sentiment for purchasers of commercial vehicles. Additionally, at March 31, 2013, the Company had 13,438 leased vehicles under its sales-type leasing program.
During the quarter ended March 31, 2013, the Company repossessed 250 vehicles whose lessees had defaulted on installment payments, sold 129 of these vehicles, and recorded 17 vehicles as losses. In comparison, there were 149 vehicles repossessed, 113 vehicles sold and 8 loss vehicles recorded in the quarter ended March 31, 2012. The Company adopted a stricter leasing policy in 2012, which caused it to repossess more vehicles for late payment and reject a higher number of new applicants.
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