Carroll Shelby International Announces Audited
October 28, 2010 11:22 AM Eastern Daylight Time
LOS ANGELES--(EON: Enhanced Online News)--Carroll Shelby International, Inc., (Pink Sheets: CSBI)
announced today the results of its 2008 and 2009 fiscal years. The audited results show that the company earned
$1,067,688 on revenues of $72,334,813 or $.03 per fully diluted share or $.07 per basic share, for the year ended
Dec. 31, 2008, and lost $3,608,877 on revenues of $33,047,033 or $.24 per fully diluted share or $.24 per basic
share, for the year ended Dec. 31, 2009.
Carroll Shelby, founder of Carroll Shelby International, said, “Over the past several months, we completed the audit
for 2007, 2008 and 2009. We’ve made these financials available to shareholders and financial partners, like Wells
Fargo, where we were recently successful in renewing our line of credit. We’ve changed our business’s direction due
to the recession. A car company has to do more than just build cars these days. Performance modifications, parts
and accessories are necessary components for our future success.”
Full year 2008 and 2009 highlights include the following:
l Sales were steady at just over $72,000,000 for the same twelve month period ending 2007
l Net cash used in operating activities for the 12 months ended Dec. 31, 2008 and 2009 was $12,724,065 and
$2,866,460 respectively. The decrease was primarily driven by increase in accounts receivable, inventories
and a drop in deposit liabilities on customer cars in 2008. The 2009 operating cash deficit closely reflected the
normal operating losses of the company.
l The company’s Shelby Automobiles division (now Shelby American) introduced a Shelby GT500KR retail
program with Ford Motor Company and continued its Shelby GT retail program, shipping over 1,000 and
1,413 new Shelby GTs and Shelby GT500KR automobiles respectively in fiscal year ending 2008. Shelby
finished its last run of Shelby GT500KR in 2009, with 334 vehicles produced in Q1-2009.
l The Company purchased a proven and successful enthusiast website and automobile club business that
operates under the name “Team Shelby.” This club oversees the Mid America Ford and Shelby Meet event
produced by Mid America Promotions.
l Revenues decreased 64% from just over $72,000,000 to over $33,000,000 for the same 12 month period
ending Dec. 31, 2008, as the company went from high volume pre-title builds to fulfilling its slower, yet higher
margin post-title builds like the 2007-2011 Shelby GT500 Super Snake and new Shelby GT350.
l In December 2009, the company’s Shelby American division began development of the post-title Shelby
GT350 package for the 2011 Ford Mustang.
l On January 15, 2010, Shelby American purchased the outstanding 50% of its parts business from Drake
Automotive Group, formerly known as Scott Drake Enterprises. Shelby American now operates this business
entirely from its manufacturing facilities in Las Vegas.
l In Q2 of 2010, Shelby American opened a new performance Speed Shop in Las Vegas to tune and modify
all makes and models of performance vehicles.
“Though the automotive industry is in one of the worst recessions in history, Shelby continued investing in product
and brand development, ensuring it had the funds necessary to operate in this tough business environment,” stated
Joe Conway, president of Carroll Shelby International. “The completion of all of our financials will give Shelby
shareholders an understanding of the management decisions and plans for the future.”
Shelby released the results of 2007 in May of this year. CSI, like thousands of other small market cap companies,
had elected to be de-listed due to the enormous costs incurred by Sarbanes-Oxley rules in 2005. The company
moved to the Pink Quote, an electronic quotation system operated by Pink OTC Markets that displays quotes from
broker-dealers for over-the-counter securities in 2005. However, in 2010 the company voluntarily chose to audit
and report every fiscal year.
“Though revenues dropped, we maintained discipline to minimize the impact of this downturn,” added Shelby CFO
Keith Belair. “We quickly retooled the company to adapt to the changing times and our financials demonstrate
Shelby’s ability to stay focused without sacrificing quality or customer service. We executed two key components of
our diversification plan: we bought back our growing parts business and started the Shelby American Speed Shop.”
“In 2009, we began transitioning Shelby American from the production of pre-title cars to focus instead on building
post-title packages like the Shelby GT500 Super Snake and new Shelby GT350,” said Shelby American president
John Luft. “Taking complete ownership of the fast-growing Shelby Performance Parts business and creating a
Shelby American Speed Shop led to a restructuring of our team and operations. This resulted in a 40% reduction in
overhead expenses that should ensure the future of the Shelby brand and deliver long term shareholder value.”
The results were audited over the past several months by J.H. Cohn LLP. The accounting firm also completed audits
of the 2007 fiscal year. These audited financials will be posted on Carroll Shelby International’s website soon after
this release. A dedicated page for shareholders is currently in process.
About Shelby American, Inc.
Shelby American manufactures high performance vehicles and offers parts under the lineage of automotive
manufacturing icon and entrepreneur Carroll Shelby. The company is involved in vehicle manufacturing, design and
engineering projects under a license agreement with Carroll Shelby Licensing Inc. For more information, call (702)
942-7325 or visit www.shelbyamerican.com.
Shelby American is a subsidiary of Carroll Shelby International, Inc. Carroll Shelby founded his licensing company in
1988, and Carroll Shelby Licensing, Inc. is the exclusive holder of Shelby’s trademarks and vehicle design rights for
all automotive products, which include some of the world’s most famous muscle cars and high-performance vehicles,
including the car that brought home to the U.S. its first and only FIA World Manufacturers Championship in 1965,
the famous Shelby Cobra Daytona Coupe. It also licenses Shelby-branded apparel, accessories and collectibles for
all things automotive. For additional information, call (310) 914-1843, fax (310) 538-8189, write Carroll Shelby
Licensing, 19021 S Figueroa St., Gardena, CA, 90248 or visit www.carrollshelby.com, www.shelbylicensing.com
Safe Harbor Statement
The statements contained in this press release that are not purely historical, including statements regarding the
Company’s expectations, hopes, beliefs, intentions, or strategies regarding the future, are forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. Actual results may differ materially from those expected because of various
known and unknown risks and uncertainties, including, but not limited to, the continuing effects of the U.S. recession
and global credit environment, other changes in general economic and industry conditions, the award or loss of
significant client assignments, timing of contracts, recruiting and new business solicitation efforts, currency
fluctuations, and other factors affecting the financial health of our clients. These and other risks are described in the
Company’s most recent annual report on Form 10-K and subsequent reports filed with or furnished to the U.S.
Securities and Exchange Commission. The forward-looking statements included in this press release are based on
information available to the Company on the date hereof, and the Company assumes no obligation to update any
such forward-looking statements.
for Carroll Shelby International, Inc.
Scott Black, 214-520-3430