JAMAICA, N.Y., Nov. 14, 2006 (PRIMEZONE) -- Pacific CMA, (AMEX:PAM), a global freight forwarding/logistics services company delivering goods primarily through the air and sea gateways of Asia and the United States, today announced its financial results for the third quarter and nine months ended September 30, 2006. The 2005 results have been restated to reflect reclassification of expenses related to the Company's Series A convertible redeemable preferred stock, per SFAS no. 150. Therefore, expenses that had been recorded in other income (expense) in past filings have been reclassified under "Increase in the net loss attributable to common stockholders," following Net income (loss) in the statement of operations.
Revenue for the three months ended September 30, 2006 was a record $45.1 million compared to $33.9 million for the prior year, an increase of 33 percent. Net income was $493,000 compared with $432,000 for the same period last year.
Total revenue for the nine months ended September 30, 2006 increased approximately 27% over the same period last year from $88.6 million to $112.8 million. The continuation of organic growth for AGI, Careship International, Airgate, Paradigm and the inclusion of WCL's results were the primary factors in the revenue increase. Alfred Lam, Pacific CMA's Chairman and CEO, said that as stated in past quarters, significant increases in commissions, foreign travel, rent and salaries have been required this year to continue the Company's upward momentum in capturing new markets and customers. Consequently, the net income before accretion of Series A Preferred stock was $493,479 compared with $1,046,441 for the prior year. Net income (loss) attributable to common shareholders was ($1.1 million) or ($0.04) per share, compared with $171,616 or $0.01 per share for 2005.
Mr. Lam said, "We are making significant progress in developing new markets that will strongly position Pacific CMA for future growth."
Pacific CMA's President, Scott Turner, commented, "Each division of the Company showing revenue improvement during this period reflects the success of our long-term strategy -- organic growth while continuing to deliver products faster and more cost efficiently than our competitors."
It was also noted that on March 31, 2006, the Company entered into a Stock Purchase Agreement with HTL Logistics Limited, a Cayman Island corporation ("HTL"), pursuant to which the Company had agreed to acquire seventy percent (70%) of the outstanding shares of capital stock of HTL. The Company deposited $750,000 with HTL to be applied to the purchase price at the closing of the transaction. On November 8, 2006, both parties decided to cancel this transaction and HTL agreed to return the deposit.
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, based in Hong Kong, is focused 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: http://www.pacificcma.com.
Forward-Looking Statements
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.