JAMAICA, N.Y., May 16, 2006 (PRIMEZONE) -- Pacific CMA, Inc. ("Pacific") (AMEX:PAM), an integrated provider of global freight forwarding/logistics focused on the growing China and Asian trade, today reported its financial results for the first quarter, ended March 31, 2006.
Total revenue for the quarter increased 19% to $30.4 million compared to $25.6 million reported in the first quarter of last year. To sustain the Company's significant growth, general and administrative expenses increased to $4.6 million in the first quarter from $3.6 million in the comparable period of last year. The increased G&A expenses were primarily costs associated with developing new markets (salary and benefits for more than 40 new personnel and consultancy, legal, and other professional fees).
Net loss for the first quarter of 2006 was $501,762, or $(0.02) per diluted share, versus a net income of $62,428, or breakeven per diluted share for the same quarter in 2005. The loss was attributable to a $427,372 non-cash expense for Preferred stock beneficial conversion during the quarter, as well as the aforementioned increases in G&A costs. EBITDA (see Note) for the first quarter was $175,381, $0.01 per diluted share, compared to $472,931, or $0.02 per diluted share recorded in the same period of the prior year.
Alfred Lam, Pacific CMA's Chairman and CEO, stated, "The Company made a significant investment in long-term growth at all levels of our organization, which resulted in a loss for the quarter. This aggressive approach is necessary to ensure continued expansion over the next several quarters. This solid revenue improvement signifies the strength of our position in the global freight forwarding/logistics industry."
Scott Turner, President of Pacific CMA, added, "Our focus on new markets and other expansion opportunities is a strategic initiative that we hope will bring long-term value to our customers and shareholders. With the investment we have made over the past two quarters in new staff and resources now in place, we believe we are well positioned to continue our pace of revenue growth and, in connection therewith, we expect to begin to show improved operating and EBITDA margins in all of our operating divisions."
About Pacific CMA
Pacific CMA is an international, non-asset based supply chain management company, providing air and ocean freight forwarding, contract logistics, and other logistics-related services. The Company's large and diverse global and local customers operate in industries with unique supply chain requirements, such as the apparel and technology industries. Its AGI Logistics (HK) Ltd. operating unit is based in Hong Kong and focuses on integrated logistics, freight forwarding and warehousing services in the Far East region and Mainland China. Its Airgate International operating unit, founded in 1995, is based in New York and primarily handles import air and ocean shipments from the Far East and Southwest Asia to the United States. The newest division, Paradigm Global Logistics, is located in Los Angeles. For more information, please refer to the Company's Web site: www.pacificcma.com.
This press release may contain statements which constitute forward looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995, including statements regarding the intent, belief or current expectations of the Company, its directors, or its officers with respect to the future operating performance of the Company. These forward-looking statements are typically identified by words or phrases such as "believe," "expect," "anticipate," "plan," "estimate," "approximately," "intend," and other similar words and expressions, or future or conditional verbs such as "should," "would," "could," and "may." In addition, the Company may from time to time make such written or oral "forward-looking statements" in filings with the Securities and Exchange Commission (including exhibits thereto), in its reports to shareholders, and in other communications made by or with the approval of the Company. Investors are cautioned that any such forward looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those in the forward looking statements as a result of various factors. Important factors that could cause such differences are described in the Company's periodic filings with the Securities and Exchange Commission.
Note: The Company uses EBITDA (earnings before net interest, income taxes, depreciation and amortization) as part of its overall assessment of financial performance by comparing EBITDA between accounting periods. Pacific CMA believes that EBITDA is used by the financial community as a method of measuring the Company's performance and of evaluating the market value of companies considered to be in similar businesses. EBITDA should not be considered as an alternative to net income or cash provided by operating activities, as defined by accounting principles generally accepted in the United States ("GAAP").