Note: As part of the transaction to purchase the Kai Yuan Center office space, AutoChina, through its wholly owned subsidiary AutoChina Group Inc., acquired 100% of the equity of Heat Planet Holdings Limited ("Heat Planet") and its subsidiaries, which was controlled by Mr. Li. Heat Planet's primary asset consists of the 23 floors, or over 60,000 square meters, of newly constructed office space in the Kai Yuan Center building. The acquisition closed on September 11, 2012. As both AutoChina and the acquired companies were under the common control of Mr. Li immediately before and after the merger, the transaction was accounted for as common control merger, and using merger accounting as if the merger had been consummated at the beginning of the earliest period presented, and no gain or loss is recognized. The Company has adjusted its financial statements for the three months ended March 31, 2012, to account for operating results of Heat Planet and its subsidiaries to reflect the merger under common control.
2013 First Quarter
•Revenues for the first quarter ended March 31, 2013, were $71.4 million, compared to $103.1 million in the first quarter of 2012. The decrease in total revenues primarily resulted from lower contributions from commercial vehicle revenues, which was largely due to weaker demand for heavy trucks, a year-over-year decrease in average price per vehicle, and lower contributions from finance revenues, which resulted from a decrease in the total outstanding number of commercial vehicle financing and service contracts in effect. The decrease in total revenues was partially offset by higher insurance income during the period. The Company reported $57.1 million in commercial vehicle revenues, and $14.2 million, or 20.0% of total revenues, in revenues related to finance and insurance.
•Cost of sales during the period totaled $57.0 million, with an average cost per commercial vehicle of $44,900. Gross margin was 20.1% for the three months ended March 31, 2013, from 23.8% for the prior-year period, primarily due the decreased contribution from finance revenues resulting from the decreased effective interest rate on direct financing and sales-type leases.
•Net income in the three months ended March 31, 2013, was $0.4 million, or $0.02 per share based on 23.8 million diluted weighted average shares outstanding, compared to $8.0 million, or $0.34 per share based on 23.6 million diluted weighted average shares outstanding, in the three months ended March 31, 2012. The decrease in net income was primarily the result of increased SG&A expenses related to the growth in number of employees and increased allowance for credit losses, as well as decreased revenue contributions from the commercial vehicle financing business.
•Adjusted EBITDA, which is EBITDA excluding stock-based compensation and accretion of stock repurchase obligation, was $4.2 million for the quarter ended March 31, 2013, compared to $16.2 million in the prior-year quarter.
See "Non-GAAP Financial Measures" below for a description of Adjusted EBITDA.
Balance Sheet Highlights
At March 31, 2013, AutoChina's cash and cash equivalents (not including restricted cash) were $81.4 million, working capital was $108.4 million, total debt was $155.4 million (including due to affiliates and accounts payable, related parties), and stockholders' equity was $230.6 million, compared to $75.8 million, $105.4 million, $170.3 million, and $228.4 million, respectively, at December 31, 2012.
Most Popular Stories
- Bipartisan Budget Deal Gets Key Support in House
- GM to Stop Making Autos in Australia
- Clinton to Keynote Annual Simmons Leadership Conference
- Selena Gomez, Shakira Among Top Hispanic Searches
- It's Primary Time in Texas
- How Bitcoin and Other Cryptocurrencies Work
- Bitcoin Clones Lurch Onto Financial Scene
- How to Survive a Subzero Stranding
- PhD Project Grooms Business Profs
- N.M. Dems Say Nonprofit Helping Martinez Campaign