Acacia Automotive Announces Augusta Auction Results
The auction reported substantial growth in unit sales and fee revenues through
Period Unit Sales Fee Revenues Versus Period April 2009 + 86% + 329% April 2008 Q1 2009 + 20% + 20% Q1 2008 Jan - Apr 2009 + 38% + 92% Jan - Apr 2008
The Company cited a series of exceptional events that came together in April that helped catapult it to new record monthly revenues. Those included (a) the award of a disposal sale by the U.S. Bankruptcy Court for a failed Toyota dealership’s used vehicle inventory, (b) a U.S. Marshal’s confiscated vehicle disposal sale under our continuing contract, and (c) disposal of a number of “factory” units for American Suzuki Motor Company. “The auction did an outstanding job in each case,” said David Bynum, the Company’s Vice President of Operations, “and handled its regular weekly consignments in stride with these additional activities.” While these additional activities are not regularly-scheduled events, Acacia’s management is experienced in this role, has the full capability to implement these new operations and other expanded offerings, and is seeking to repeat and expand these new strategies.
Acacia’s CEO, Steve “Junior” Sample praised the auction’s personnel and Bynum for an exemplary performance. “This group has come together and proven that they can set new records-even in the worst of times,” said Sample. “This stellar performance also validates our assertions that auto auction destinies are based more on the number of Vehicles in Operation (VIO), also referred to as the ‘Car Park’, than on auto manufacturers’ sales or output or on retail selling volumes. While retail volumes have been down as much as 40% or more in recent months, Augusta Auto Auction has enjoyed considerably higher volumes of sales and revenues compared to the past. During the first five months of 2009, we have already generated 61% of our total 2008 revenues. That is awesome.”
The Company was quick to point out that past performance never guarantees future success, and that this economy is far from being out of trouble.
Both Sample and Bynum already see an easing of the factors contributing to the economy’s current woes, and both expect a marked upturn within the next few months. “David has set our feet on solid ground using his many years of experience and superior management expertise, and we feel that Acacia Automotive is well-positioned to take advantage of the better days that lie ahead,” said Sample.
He continued: “Some analysts this morning are even claiming the recession is over. While we are not certain this is true, we do believe that these rapidly-improving economic conditions and a heightened mood in the investment community are signaling for us to return to our plans for expanding the Augusta auction facility and raising the capital to continue our acquisition strategy. Once those plans are re-engaged, we will be back on the road to generating value for our shareholders. It is a very exciting time to be a public company in the auto auction business!”
The Company shelved its fundraising and expansion plans for the past 18 months as the capital markets seized in the face of global economic distress and fear, but now feels that the markets have reached capitulation and are hungry for new opportunities.
“It’s a new day and a new ball game out there,” said Sample, “and we are ready to stand up to the plate and take our swing at a grand-slam homer. Sometimes you strike out, but sometimes you knock it out of the park! We are ready to suit up and go for it.”
Acacia Automotive, Inc. (www.acacia.bz) is America’s newest publicly-traded automotive auction services company, but comes with seasoned veterans in management. Acacia believes there were once three companies in balance that provided the industry’s clients with a solid stance and fair choice. That balance was toppled when one leg was eliminated with the sale and subsequent absorption of ADT Automotive in 2000. Acacia intends to bring back that balance and return a much-needed stabilization to the industry, believing that “competition is a good thing.” Acacia is currently reviewing several acquisition opportunities as it prepares to add its second auction in line with its plans to acquire approximately four additional auctions per year well into the future.
The company is currently reviewing various models for funding its future acquisitions, including the sale of common stock and debt financing opportunities.
This release includes forward-looking statements within the meaning of the Private Litigation Reform Act of 1995. Such statements, including information and statements regarding anticipated financial results, potential success of anticipated acquisitions, business operations, product marketing and potential market opportunities are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected, expressed, or implied by such forward-looking statements. The forward-looking statements in this document are made as of the date of publication hereof and the Company does not undertake to update its forward-looking statements.
Acacia Automotive, Inc. Steven L. "Junior" Sample, CEO Com: 352-427-6848 Fax: 352-502-4783 Email: Investor.Relations@acacia.bz Internet: www.acacia.bz
SOURCE Acacia Automotive, Inc.