Acacia Automotive Announces Augusta Auction Results
May 12 2009 - 10:00AM
PR Newswire (US)
North Augusta, S.C., May 12 /PRNewswire-FirstCall/ -- Acacia
Automotive, Inc. (Ticker-ACCA) today released recent statistics on
its Augusta Auto Auction unit. The auction reported substantial
growth in unit sales and fee revenues through April 2009 compared
to previous periods, reflecting extreme resilience to recessionary
factors that have negatively impacted most other industries. The
table below provides a snapshot of the auction's recent performance
relative to previous periods: 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. David Bynum
was reminded of the early days with ADT Automotive when he and
Sample knew that every auction went from "Hero to Zero" at the
beginning of each new period. "No matter how well you did in the
previous month, you still had to do it again and again to prove
your worth," said Bynum. "We have that same burden on us today, but
have been able to show positive improvement period after period.
Turning some of those difficulties into opportunities and expanding
the services we provide is a true test of success...especially in a
heavy economic downturn such as we are currently experiencing."
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." About
Acacia Acacia Automotive, Inc. (http://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:
Internet: http://www.acacia.bz/ DATASOURCE: Acacia Automotive, Inc.
CONTACT: Steven L. "Junior" Sample, +1-352-427-6848 Web Site:
http://www.acacia.bz/
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