Excelsior-Henderson Motorcycle Co Announces Q3 1998 Results
17 November 1998
Excelsior-Henderson Motorcycle Manufacturing Company Announces Third Quarter 1998 Results BELLE PLAINE, Minn., Nov. 17 -- Excelsior-Henderson
Motorcycle Manufacturing Company today announced financial
results for the third quarter and nine months ended October 3, 1998.
"The third quarter of 1998 was exciting as we achieved a number of
important objectives in our plan," stated Dan and Dave Hanlon, Co-Founders and
Co-CEO's. "Preparation continues as we near production of the first Super X
motorcycle," added the Hanlons.
The Company reported a net loss for the third quarter of 1998 of
$7,481,261 or $.57 per share compared to a net loss of $1,462,720 or $.13 per
share for the third quarter of 1997. The Company reported a net loss for the
first nine months of 1998 of $15,776,118 or $1.21 per share compared to a net
loss of $3,543,902 or $.45 per share for the first nine months of 1997.
Excelsior-Henderson is a development-stage company and has recorded no revenue
for the third quarter or the first nine months of 1998 or 1997.
The third quarter of 1998 began with more than 4,000 shareholders and
enthusiasts in attendance at the first Annual Excelsior-Henderson Shareholders
Meeting and Bikers Bar-B-Que in July and the unveiling of the production
intent 1999 Super X at the Sturgis Rally and Races during August. In
addition, the Company closed on two additional financing projects ... a
$6.1 million Industrial Development Revenue Bond and a $10 million private
placement of Series B Convertible Preferred Stock.
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 quarters ended April
4, July 4, 1998, and October 3, 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)
Balance Sheets
January 3, October 3,
1998 1998
ASSETS
CURRENT ASSETS:
Cash and short-term investments $24,249,191 $10,001,762
Other current assets 113,497 248,001
Total current assets 24,362,688 10,249,763
PROPERTY AND EQUIPMENT, net 13,353,897 25,376,676
RESTRICTED CASH 7,275,569 11,347,250
DEPOSITS 2,670,675 --
OTHER ASSETS, net 522,638 752,256
$48,185,467 $47,725,945
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES $3,258,636 $3,304,784
LONG-TERM DEBT, less current maturities 13,738,615 19,626,589
STOCKHOLDERS'EQUITY:
Invested capital $41,196,735 $50,579,209
Deficit accumulated during the
development stage (10,008,519) (25,784,637)
Total stockholders' equity 31,188,216 24,794,572
$48,185,467 $47,725,945
Statements of Operations
Three Months Ended Nine Months Ended
October 3, Sept. 30, October 3, Sept. 30,
1998 1997 1998 1997
PREOPERATING EXPENSES:
Research and
development $4,303,645 $620,633 $8,466,250 $1,533,326
Marketing 1,697,788 628,624 3,286,564 1,291,571
General and
administrative 1,249,357 505,633 3,732,824 1,171,227
Total preoperating
expenses 7,250,790 1,754,890 15,485,638 3,996,124
INTEREST INCOME
(EXPENSE), net (230,471) 292,170 (290,480) 452,222
NET LOSS $(7,481,261) $(1,462,720) $(15,776,118) $(3,543,902)
NET LOSS PER SHARE $(.57) $(0.13) $(1.21) $(0.45)
WEIGHTED AVERAGE
SHARES OUTSTANDING 13,062,586 11,341,095 13,041,653 7,812,986
