Bikers Dream Inc. Announces Record 1998 Revenue and Results
16 April 1999
Bikers Dream Inc. Announces Record 1998 Revenue and Results of Operations for the year ended Dec. 31, 1998RIVERSIDE, Calif.--April 15, 1999--Bikers Dream Inc. Thursday announced record revenues for the year ended Dec. 31, 1998.
Revenue increased 86% to $27.7 million from $14.9 million in 1997. The dramatic increase was due primarily to the increased manufacturing operations of the company's Ultra Cycles division.
The company reported a net loss of $3.8 million ($(0.92) per share) in 1998, a decrease of 27.5% compared with a net loss of $5.1 million ($(2.54) per share) in 1997. Gross profit increased 210% to $2 million from $629 thousand in 1997. The factors relating to the net loss for 1998 are described in the company's 10KSB for the year ended Dec. 31, 1998.
Herm Rosenman, Bikers' chairman and chief executive officer, commented, "Despite the loss in 1998, the company is now well positioned to capitalize on the growing demand for American heavyweight cruisers. We now have, for the first time, a full line of quality bikes to offer. In addition, we have nearly quadrupled our dealer base during 1998, more than tripled our production capacity and have positioned the company as the leader in the styling and as the premier supplier of quality-built, valued priced heavyweight cruiser motorcycles. The factors that contributed to past financial results now appear to be behind us."
Bikers Dream is a manufacturer, distributor and retailer of quality-built American heavyweight cruiser motorcycles. Corporate headquarters and manufacturing operations are located in Riverside.
Certain matters discussed herein are "forward-looking" statements intended to qualify for the safe harbors from liability in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to certain risks and uncertainties, which could cause actual results to differ materially from those anticipated as of the date hereof. Specific factors that might cause such a difference might include, but not be limited to, those referenced by the company's 10KSB for the year ended Dec. 31, 1998. The forward-looking statements contained herein are only made as of the date hereof and the company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
1998 1997 Revenue $ 27,734,620 $ 14,924,987 Cost of Goods Sold 25,783,689 14,296,108 Gross Profits 1,950,931 628,879 SG&A 5,361,152 4,584,294 Depreciation & Amortization 542,461 461,786 Total Expenses 5,903,613 5,046,080 Operating Income (loss) (3,952,682) (4,417,201) Other Income (expense) Interest Expense (576,156) (592,076) Reacquisition of Series B Preferred stock 730,000 -- Other expense, Net 3,707 (107,707) Total Other Income 157,551 (699,783) Net Income before Taxes (3,795,131) (5,116,984) Taxes 800 800 Net Income (3,795,931) (5,117,784) EPS $ (0.92) $ (2.54) Diluted Shares 4,125,309 2,018,075