TAMG Transnational Group Inc (PK)

Transnational Automotive Group, Inc. (TAUG) (OTCBB: TAMG) today announced financial results for the fiscal year ended February 29, 2008, including a sharp increase in revenue and a reduced net loss. Revenue for fiscal 2008 increased to $8.2 million from $1.0 million in last year. The net loss for fiscal 2008 was reduced to $7.3 million, or $0.16 per share, from a net loss of $8.5 million, or $0.20 per share, last year. TAUG achieved gross profit of $750,000 for fiscal 2008, compared with a loss of $185,000 in the prior year period. Total operating expenses for fiscal 2008 were reduced slightly to $5.4 million from $5.6 million in the prior fiscal year. TAUG, which provides public bus transportation services, began operations in Cameroon in September 2006 with the introduction of LeBus in the capital city of Yaound�, followed by the launch of LeCar in December 2006, which links Cameroon�s two leading commercial and population centers, Yaound� and Douala. In mid December 2007, the company introduced a new six-vehicle LeBus service line in the university district of Yaound�, which already has the city�s highest ridership, transporting approximately 30,000 passengers per day. �We continue to make solid operational progress, as our ridership steadily increases, advancing threefold since operations began, and our presence in Cameroon creates meaningful social and economic change,� said Seid Sadat, TAUG�s chief financial officer, who also is serving as interim chief executive officer. �From a financial perspective, fiscal 2008 was the company�s first full year of operations in Cameroon. It is gratifying that revenues are showing consistent increases, operating expenses decreased somewhat despite significant revenue gains, and our net loss has been reduced. �Based on our successes thus far, the solid relationships we are building with government leaders, and the need in this region for professional transportation services, we believe solid growth opportunities exist, both in Cameroon as well as other sub-Saharan African nations,� Sadat added. About Transnational Automotive Group Founded with the goal to improve millions of lives through its economic and social development projects, TAUG currently employs more than 700 people in Cameroon. TAUG established and currently is operating the country�s government supported mass transportation urban bus system, LeBus, in the capital city of Yaound� and an inter-city, rural bus system, LeCar, between Yaound� and Douala, Cameroon�s two leading commercial and population centers, with plans for several new urban and inter-city route openings. The company has been invited by a number of Sub-Saharan African governments and business communities to undertake operations in transportation and energy-related programs. For more information about TAUG, visit www.transauto-group.com. Forward-Looking Statements This news release contains certain forward-looking statements, which in accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, may involve known and unknown risks, uncertainties and other factors that may cause actual results and performance in future periods to be materially different from that suggested by the forward-looking statements. Such statements include, but are not limited to, solid growth opportunities that exist both in Cameroon and other sub-Saharan African nations. Although management believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, no assurance can be given that actual results will not differ materially from these expectations. From time to time, these risks, uncertainties and other factors are discussed in filings with the U.S. Securities and Exchange Commission. TRANSNATIONAL AUTOMOTIVE GROUP, INC. CONSOLIDATED STATEMENTS OF OPERATIONS � � � For the Years Ended February 29, � February 28, 2008 2007 NET REVENUE Transportation services $ 6,125,171 $ 946,395 Government subsidy 1,648,438 - Other � 391,530 � � 76,191 � Total revenue 8,165,139 1,022,586 � COST OF REVENUE - Transportation services � 7,415,482 � � 1,207,837 � � GROSS PROFIT (LOSS) 749,657 (185,251 ) � OPERATING EXPENSES Sales and marketing 167,134 211,594 General and administrative 4,825,370 5,330,174 Depreciation and amortization 98,074 28,010 Impairment loss on property 315,000 - Foreign currency exchange loss � - � � 22,745 � � TOTAL OPERATING EXPENSES � 5,405,578 � � 5,592,523 � � OPERATING LOSS (4,655,921 ) (5,777,774 ) � OTHER (INCOME) EXPENSE Finance costs from beneficial conversion feature 34,000 1,003,050 Finance costs from issuance of shares 292,000 - Finance costs from issuance of warrants 1,316,654 1,461,296 Loss on extinguishment of debt - 355,240 Loss on accident of buses 76,847 - Interest expense 971,215 445,922 Interest income (32,664 ) - Other income � (9,433 ) � (1,662 ) TOTAL OTHER EXPENSE � 2,648,619 � � 3,263,846 � � Loss before Minority Interest (7,304,540 ) (9,041,620 ) � Minority interest in loss of subsidiary � - � � 530,901 � � NET LOSS (7,304,540 ) (8,510,719 ) � COMPREHENSIVE INCOME (LOSS) Unrealized foreign currency translation gain � 450,997 � � - � COMPREHENSIVE LOSS $ (6,853,543 ) $ (8,510,719 ) � � LOSS PER COMMON SHARE: BASIC & DILUTED $ (0.16 ) $ (0.20 ) � � WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC & DILUTED � 44,573,063 � � 42,877,300 � TRANSNATIONAL AUTOMOTIVE GROUP, INC. CONSOLIDATED BALANCE SHEET � � � February 29, � February 28, 2008 2007 � ASSETS CURRENT ASSETS Cash & cash equivalents $ 578,105 $ - Accounts receivable, net - 55,497 Other receivables, net 665,693 153,748 Prepaid expenses, advances and deposits 315,133 54,135 Inventory, net of reserve for obsolescence 304,978 32,416 Advance deposits on buses � - � � 1,680,957 � Total current assets 1,863,909 1,976,753 � PROPERTY, BUSES & EQUIPMENT, net � 6,300,415 � � 3,233,756 � � TOTAL ASSETS $ 8,164,324 � $ 5,210,509 � � LIABILITIES AND STOCKHOLDERS' DEFICIT CURRENT LIABILITIES Accounts payable and accrued expenses $ 2,424,543 $ 2,123,063 Obligations under capital lease - related party - 765,622 Deferred revenue 338,440 - VAT and custom duty taxes payable to governmental agencies of Cameroon 3,377,287 1,022,370 Due to related parties 831,486 485,854 Notes payable, net of debt discount 110,000 510,000 Notes payable to related party, net of debt discount 2,815,000 825,000 Convertible debentures, net of debt discount - 1,523,789 Related party convertible debentures, net of debt discount - 678,057 Accrued interest (including $385,466 and $49,736 to related to related parties) as of February 29, 2008 and February 28, 2007, respectively) 403,792 � � 146,792 � Total current liabilities 10,300,548 8,080,547 � COMMITMENTS AND CONTINGENCIES � STOCKHOLDERS' DEFICIT Common stock, $.001 par value; 200,000,000 shares authorized; 51,179,036 and 36,557,058 shares issued and outstanding 51,179 36,557 Treasury (400,000 shares owned by subsidiary) (100,000 ) (100,000 ) Additional paid in capital 15,837,786 8,265,051 Accumulated deficit (18,376,186 ) (11,071,646 ) Other comprehensive gain - foreign currency � 450,997 � � - � Total stockholders' deficit � (2,136,224 ) � (2,870,038 ) � TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $ 8,164,324 � $ 5,210,509 �