LOS ANGELES, Dec. 14, 2009 (GLOBE NEWSWIRE) -- Cash Technologies, Inc. (Pink Sheets:CTQN) announced today that revenues from its CPI Holdings, LLC dba Champion Parts subsidiary ("Champion") reached $336,974 in the month of November, the highest in the company's history. This generated a gross profit of $133,188 and EBITDA of $50,776. Net income before amortization was $1,411 after one-time expenses of $16,233.75.
In October, Champion added one of the nation's largest auto parts retailers to its customer base, becoming the exclusive supplier of certain fuel system products. The company now supplies four of the top six auto parts retailers in the U.S., providing distribution to approximately 10,000 retail stores from coast to coast.
"Our business has turned the corner and we anticipate sustainable profitability for the first time since acquiring the Champion assets in May 2008," stated Jerry Bragiel, president of CPI Holdings. "Going forward higher revenues will improve our operating margins and allow us to restructure our debt to reduce interest costs. This also permits us to carry out plans to expand our line of automotive products. We intend to begin production of air conditioning compressors and turbochargers in the first half of 2010.
"Champion is in a growth market. The auto parts segment is resistant to downturns in the economy, as drivers opt to keep their current vehicles running rather than buy new ones. The top auto parts retailers have experienced significant same-store sales growth over the past year despite lagging sales in other retail products.
"We are particularly excited about the market for turbochargers, the most important 'green' product in the automotive industry. Turbos provide a list of important benefits, including increased fuel efficiency, reduced toxic emissions and greater power. This permits engines to be made smaller with the same power output, reducing weight, noise and manufacturing costs.
"The turbocharger market exceeded $5 billion in 2008, with more than 20 million units produced, an increase of approximately 15% from 2007 despite the worst new car sales market in 16 years, and is expected to increase by more than 50% within 5 years. Tougher environmental standards, volatile fuel prices and widespread demand for lower-carbon-footprint vehicles have made green products a dynamic sector and continued expansion is likely into the foreseeable future.
"Turbochargers wear out after continued use and must be replaced. Most replacements are available only from auto dealers who get top dollar for parts and labor, creating a demand for aftermarket turbos that we can supply to our retail partners for do-it-yourself (DIY) customers and independent repair shops.
"We will initially produce drop-in replacements for existing turbochargers. Our patented product has better performance specifications than the original (OEM) parts but can be delivered at a very attractive price, allowing retail pricing hundreds of dollars less than dealer prices. We believe that sales of our turbos will benefit greatly from our extensive retail network."
Matters discussed in this release include forward-looking statements within the meaning of the "Safe Harbor" provisions of the PSLRA that involve risks and uncertainties, and actual results may be materially different. Factors that could cause actual results to differ include revenues not reaching expected levels, unexpected competition within the automotive products industry, anticipated improvements in operating costs and net operating margins not being realized, failure to complete expected financing, risks related to management and labor, activity levels in the securities markets and other risk factors disclosed in Cash Tech's reports to the Securities and Exchange Commission, including its Forms 10-QSB and Forms 10-KSB on file with the SEC.