Positive Cash Flows and Significant Internal Controls in Place.
New York, July 22, 2019 (GLOBE NEWSWIRE) -- DANIELS CORPORATE ADVISORY CO. INC. (DCAC) Sales Revenue in the flip segment of the Payless Truckers subsidiary, - where Class 8 heavy hauling trucks are purchased, refurbished, have electronics added and are then advertised and sold - suffered significantly during the winter months representing our first 2019 Quarter, (December,2018 January and February, 2019.). To maximize the resale potential of the trucks that were available to meet limited demand, trucks were purchased closer to home base at what amounted to higher than expected prices, when needed improvements were added. In most cases there were cost overrides that were only detected when final quarterly accounting was completed for our Audit Firm. Operating Management, with a view toward "perfection" on each Payless Truckers vehicle intended to build "brand recognition" That was accomplished as the produced vehicles sold quickly however it negatively impacted gross and operating margins.
During the second quarter, Revenue doubled to $1.096,375 with cash flows from operations of $221.000. Significant internal controls where instituted. Weekly reviews of all "work in progress" are now done to make the "flip" segment of the business more efficient and to build the leasing segment. Senior Financial Oversight Management is in place now and should assure the expected returns on capital originally projected. Management expects revenues to increase in the flip business and to ramp up in the rent/lease to own segment once financing is in place. To help meet accelerated earnings expectations, management is deferring cash compensation until such time as the Company is sufficiently funded and generating significantly more cash flow.
With the non-cash finance charges to earnings of Daniels ("DCAC") the Parent, taken out of the equation, the Payless Truckers subsidiary generated close to $67,000 EBITDA for the first six months of 2019. Payless had a very strong second quarter generating close to $100,000 in EBITDA.
Arthur D. Viola
Chairman & President
(917) 617 - 5445