LatAm Autos Limited is pleased to announce its quarterly cash flow statement for the September 2018 quarter.
Company’s balance sheet to $12.1m cash balance as at 30 September 2018 and pro-forma $9.2m after partial redemption of convertible notes
The Company reported its best ever monthly revenues and cash inflows in the September quarter from continuing operations, with total AUD cash inflows from operations during 3Q18 of A$2.8m. In AUD constant currency terms, Mexico and Ecuador’s cash inflows increased by 56% on pcp.
Operational Cash Positive in the Month of September The Company is pleased to announce it achieved operational cash flow breakeven in the month of September, marking an important milestone for the Company. Reaching this goal was largely due to an improvement in the working capital cycle combined with record monthly revenues. The Company has successfully negotiated ongoing favourable payment terms from several suppliers and Motorfy partners.
Reaching operational cash flow neutral or positive on a sustainable full-quarter basis is likely to occur
after the end of the 2018 calendar year. The timing (after the end of the 2018 calendar year) for
reaching operational cash flow neutral or positive on a sustainable full-quarter basis is dependent on
the following key drivers:
Cross Sell Products (Motorfy):
The September quarter saw record revenues for Motorfy on a stand-alone basis. The Company achieved record unit sales 3Q18, which resulted in 27% growth versus the previous quarter.
The Company had a cash position of $12.1m at 30 September 2018 ($9.2m post convertible note
Convertible Note Redemption:
The Company has commenced the process of redeeming outstanding Convertible Notes.
In 2017, the Company issued 10,000,000 Convertible Notes with a face value of $1.00 each, which are held primarily by Directors of the Company. Key terms of the Note are:
The Company has received conversion notices for $0.9m, which means that:
Car transaction marketplace:
Each quarter, LAA is continuing its transformation to a complete vehicle transaction marketplace (VTMP), providing a range of cross sell products to vehicle buyers. Consequently, LAA expects that cross sell revenues will continue to grow both in absolute terms and as a proportion of total group
The month of October has started stronger than any previous month, in terms of loans disbursed, month to date. The Company expects the following key trends to continue:
CEO and Executive Director of LatAm Autos Jorge Mejia commented, “We delighted that our overall cross-sell sales have continued to increase. Our focus is continuing to expand our cross-sell product offering, add more dealers to our platform and increase the take-up of existing dealers of cross-sell products. We look forward to launching a prime credit loan product so that we will be able to offer car loans across the credit quality spectrum including prime credit, near-prime and non-conforming loans.”
SOURCE LatAm Autos Limited
Edited by M. Hunt
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