Bikers Dream Reports Record Q3 Revenue and Profit Increase
11 November 1998
Bikers Dream Reports Record Third Quarter Revenue and Profit Increase
RIVERSIDE, Calif.--Nov. 11, 1998--Revenues Increased 115%; Net Income $0.14 Per Share
Bikers Dream today reported record third quarter and nine month results for the period ended September 30, 1998.
The Company reported a net profit of $602,655, or $0.14 per share basic, and $0.12 per share diluted, for the third quarter, compared with a net loss of $858,058, or $(0.40) per share basic and diluted, in the third quarter of 1997. Per share data reflects the 1-for-five reverse stock split which became effective February 5, 1998. Revenue for the quarter increased 115 percent to $9,697,176, compared with revenues of $4,517,598 for the third quarter of 1997.
The increase in revenue is primarily due to increased motorcycle shipments which totaled 469 units in the 1998 quarter compared to 183 units in the prior year period.
Net sales for the nine months ended September 30, 1998 increased 87 percent to $22,695,874 from $12,166,515 for the first nine months of 1997. The Company reported net income for the nine months of $162,600, or $0.05 per share basic, and $0.04 per share diluted, compared with a net loss of $3,134,573, or $(1.66) per share basic and diluted, compared with a net loss of $3,134,573, or $(1.66) per share basic and diluted in 1997's nine month period.
Herm Rosenman, President and Chief Executive Officer commented, "We are pleased with the results for the quarter and the nine month period. The results reinforce the success of the strategy we implemented about a year ago."
Mr. Rosenman added, "We will continue to execute our aggressive business plan of increasing production and our dealer base and continue our focus on the profitability of our Bikers Dream Superstores."
Bikers Dream is a manufacturer and distributor of quality-built American heavyweight cruiser motorcycles. Corporate headquarters and manufacturing operations are located in Riverside, California.
(Table to follow)
This press release contains forward-looking statements that involve risks and uncertainties, including but not limited to quarterly fluctuations in results, the management of growth, regulatory changes, and other risks detailed from time to time in the Company's Securities and Exchange Commission filings. Actual results may differ materially from such information set forth herein. In addition, the Company's growth is dependent upon, among other things: continuing high demand for cruiser motorcycles, the Company's ability to compete in a highly competitive market, the Company's ability to increase motorcycle production, the Company's ability to satisfy its substantial additional capital requirements, the Company's ability to hire and retain key employees, and the Company's relationships with its customers and vendors. There can be no assurance that the Company will be successful in addressing any of these risks or that its sales and earnings will grow in the future as a result of these risks or others.
This Release is available on the KCSA Worldwide website at
www.kcsa.com.
Bikers Dream
Financial Highlights
Three Months Ended Nine Months Ended
September 30, September 30,
1998 1997 1998 1997
Revenues $ 9,697,176 $ 4,517,598 $22,695,874 $12,166,515
Gross Profit $ 2,186,570 $ 816,740 $ 4,491,118 $ 1,887,011
Net Profit
(loss) $ 602,655 $ (858,058) $ 162,600 $(3,134,573)
Net Earnings
(loss) Per
Share(a):
Basic $ 0.14 $ (0.40) $ 0.05 $ (1.66)
Diluted $ 0.12 $ (0.40) $ 0.04 $ (1.66)
(a) Per share data reflect 1-for-5 reverse stock split which was
effective February 5, 1998.
