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News Release
For
Immediate Release - May 18, 2004
Company Web Site: www.capsource-financial.com
CapSource
Financial, Inc. Announces First Quarter Sales Up 72.5% Compared with Same
Period Last Year
(Boulder, Colorado)
- CapSource Financial, Inc. announced that its consolidated net sales for
the first quarter ended March 31, 2004, were $1,326,116 compared with $768,625
for the same period last year, an increase of 72.5%. Trailer sales, one
component of total sales, increased by 107.8%. However, as working capital
was directed toward increasing trailer sales, the equipment lease/rental
portfolio was reduced resulting in a 14.8% decline in lease/rental income,
the other component of total sales.
Fred Boethling, President
and CEO noted that "the improved sales results in the first quarter
reflect our decision to focus resources on developing our sales and marketing
operations in Mexico City. We opened a new sales facility with the goal
of improving market awareness of our products and our ability to respond
to customer needs even more rapidly."
Boethling also noted
that "our gross margins (sales less the cost of sales) increased
by 22% compared to this period last year and this, when combined with
the increase in sales, makes us confident we are on the proper course
with our Mexican trailer sales operations."
On May17, 2004, CapSource
announced it had leased a location in Monterrey, Mexico from which RESALTA,
its truck trailer sales subsidiary, will serve northeast Mexico. Monterrey
is Mexico's industrial center, major transportation hub and home to over
200 trucking fleets. Monterrey accounts for about 25 percent of Mexico's
total manufacturing base.
For the first quarter
of 2004, CapSource realized a net loss of $306,965, or $0.03 per share
compared with $420,568, or $0.05 per share for the same period last year.
The decrease in the net loss was due to the increase in sales and gross
margins coupled with a decrease in interest expense.
About CapSource
Financial, Inc.
CapSource Financial, Inc. was incorporated in 1996 to take advantage of
the 1994 North American Free Trade Agreement (NAFTA) and the increased
economic activity that NAFTA triggered when the world's largest free trade
area was created by linking 406 million people in Mexico, the U.S. and
Canada producing more than $11 trillion worth of goods and services or
about one-third of the world's total GDP. After ten years, NAFTA has been
a huge success. Mexico is now the United States' second largest trading
partner. Total trade among the three NAFTA countries has grown to $1.7
billion in goods crossing the borders each day. U.S. trade with Mexico
has increased nearly 500 percent - from $48 billion to $239 billion since
the passage of NAFTA. The vast majority of this trade moves by truck.
In addition to its
RESALTA subsidiary, CapSource owns and manages a lease/rental fleet of
over-the-road truck trailers and related equipment through its REMEX subsidiary,
also based in Mexico City. CapSource's common stock trades on the electronic
bulletin board under the symbol CPSO.
For Additional Information Contact: CapSource: Fred Boethling at (888)
574-6744 or CEOcast: Ken Sgro (212) 732-4300; Visit the company's website:
www.capsource-financial.com
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