Excelsior-Henderson Motorcycle Announces Q2 1998 Results
13 August 1998
Excelsior-Henderson Motorcycle Manufacturing Company Announces Second Quarter 1998 Results BELLE PLAINE, Minn., Aug. 13 -- Excelsior-Henderson
Motorcycle Manufacturing Company today announced financial
results for the second quarter and six months ended July 4, 1998.
The Company reported a net loss for the second quarter of 1998 of
$4,690,112 or $.36 per share compared to a net loss of $1,091,420 or $.19 per
share for the second quarter of 1997. The Company reported a net loss for the
first six months of 1998 of $8,294,857 or $.64 per share compared to a net
loss of $2,081,182 or $.35 per share for the first six months of 1997.
Excelsior-Henderson is a development-stage company and has recorded no revenue
for the second quarter or the first six months of 1998 or 1997.
"During the second quarter of 1998, we continued our progress toward the
introduction of the Super X motorcycle during the fourth quarter of 1998,"
stated Dan and Dave Hanlon, Co-Founders and Co-CEO.
On July 25, 1998 more than 4,000 Excelsior-Henderson shareholders and
enthusiasts attended the first Annual Shareholder Meeting and Bikers Bar-B-
Que...and on August 3, 1998 Excelsior-Henderson unveiled the production intent
Super X to enthusiasts attending the Sturgis Rally and Races in Sturgis, South
Dakota.
"The anticipation and excitement will now grow steadily as we approach the
planned production of Super X serial number 0001 during fourth quarter of
1998," added the Hanlons.
Excelsior-Henderson Motorcycle Manufacturing Company is a development-
stage company which plans to manufacture, market and sell premium heavyweight
American cruisers and touring motorcycles, as well as related parts, apparel
and accessories branded with a name that evokes an authentic American
motorcycling heritage and lifestyle. The Company will distribute its products
through a quality, nationally recognized dealer network. Excelsior-Henderson
is one of only two authentic American motorcycle companies exclusively
committed to the manufacture of motorcycles. Motorcycle production is
scheduled to begin during the fourth quarter of 1998.
Notes Concerning Forward Looking Statements:
This press release contains forward-looking statements regarding the plan
of the Company to produce and sell the first 1999 Super X motorcycles during
the fourth quarter of 1998 that involve risks and uncertainties. The
Company's actual results could differ materially from those anticipated in
these forward-looking statements as a result of the factors set forth below
and the factors described from time to time in the Company's reports on file
with the Securities and Exchange Commission, including but not limited to the
Company's Annual Report on Form 10-K for the fiscal year ended January 3, 1998
and the Company's Quarterly Reports on Form 10-Q for the quarter ended
April 4, 1998 and the quarter ended July 4, 1998.
Factors that may affect the timing of production of the Super X include
problems in acquisition, installation and successful operation of the
motorcycle production equipment, the ability of the Company to locate
competent suppliers or obtain adequate quantities of components and supplies
at reasonable costs, the ability of the Company to obtain working capital
financing as needed, the ability of the Company to hire additional qualified
personnel and the ability of the Company's engineering and manufacturing staff
to design, engineer and produce the Super X. In addition, for the Company to
be successful, its products must be manufactured to meet high quality
standards in production volumes. The transition from prototype to mass
production will involve various risks and uncertainties that may not be
apparent at this time and there can be no assurance that the Company will be
able to successfully react to unanticipated difficulties and commence mass
production in late 1998. In addition, the Company will be required to obtain
certain government approvals and certifications prior to sales of the Super X.
Potential delays and costs that could result from obtaining such approvals
could result in a delay in motorcycle production.
EXCELSIOR-HENDERSON MOTORCYCLE MANUFACTURING COMPANY
(A Development Stage Company)
Condensed Financial Statements
(Unaudited)
January 3, July 4,
Balance Sheets 1998 1998
ASSETS
CURRENT ASSETS:
Cash and short-term investments $24,249,191 $9,590,189
Other current assets 113,497 233,570
Total current assets 24,362,688 9,823,759
PROPERTY AND EQUIPMENT, net 13,353,897 22,119,071
RESTRICTED CASH 7,275,569 7,504,386
DEPOSITS 2,670,675 33,240
OTHER ASSETS, net 522,638 524,559
$48,185,467 $ 40,005,015
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES $3,258,636 $3,572,014
LONG-TERM DEBT,
less current maturities 13,738,615 13,532,158
STOCKHOLDERS' EQUITY:
Invested capital 41,196,735 41,204,219
Deficit accumulated during
the development stage (10,008,519) (18,303,376)
Total stockholders' equity 31,188,216 22,900,843
$48,185,467 $ 40,005,015
Statements of Operations Three Months Ended Six Months Ended
June 30, July 4, June 30, July 4,
1997 1998 1997 1998
PREOPERATING EXPENSES:
Research and
development $435,586 $2,623,477 $912,696 $4,162,605
Marketing 379,575 752,901 662,945 1,588,776
General and
administrative 347,526 1,202,938 665,595 2,483,467
Total preoperating
expenses 1,162,687 4,579,316 2,241,236 8,234,848
INTEREST INCOME
(EXPENSE), net 71,267 (110,796) 160,054 (60,009)
NET LOSS $(1,091,420) $(4,690,112) $(2,081,182) $(8,294,857)
NET LOSS PER SHARE $(0.19) $(0.36) $(0.35) $(0.64)
WEIGHTED AVERAGE
SHARES OUTSTANDING 5,878,231 13,034,553 5,876,242 13,031,187
