Bikers Dream Inc. Reports Record Second Quarter Revenue and Profits
16 August 1999
Bikers Dream Inc. Reports Record Second Quarter Revenue and ProfitsMIRA LOMA, Calif.--Aug. 16, 1999--Bikers Dream Inc. Monday announced record revenues and profits for the second quarter of 1999.
Revenues were $9,867,429 for the quarter ended June 30, 1999, compared with $8,121,021 for the comparable quarter in 1998, an increase of 22%. Net income for the quarter ended June 30, 1999 was $233,592, or $0.04 per share, on approximately 5.1 million shares, compared with $207,440 or $0.07 per share, on approximately 2.7 million shares, for the comparable quarter in 1998, an increase in net income of 13%.
Revenues for the six months ended June 30, 1999 were $18,630,157, compared with $13,113,809 in 1998, an increase of 42%. Net income for the six months ended June 30, 1999, was $361,529 or $0.07 per share, on approximately 5.1 million shares, compared with a net loss of $(477,656) or $(0.18) per share, on approximately 2.7 million shares. The increase in net income was 176%. Per share amounts for each of the first quarters and six-month periods exclude the effects of the beneficial conversion feature applicable to the Series C and Series D Convertible Preferred Stock.
Herm Rosenman, Bikers' Chairman and CEO commented, "We are pleased with the results of the second quarter of 1999. Revenues were significantly higher and we achieved record profitability, notwithstanding our move to a new headquarters and manufacturing facility. The move cost us about 150 units of production that could have been shipped during the quarter, as well as direct moving-related costs.
"In addition to our positive operating progress, the Company continues to pursue strategic marketing and distribution relationships such as it has in place with Speedvision, Castrol and Costco."
In addition to announcing the results for the second quarter, management has completed its review of the 1998 fourth quarter unusual inventory adjustment of approximately $2 million. In addition to this review, the Audit Committee of the Company's Board of Directors engaged an independent auditing firm, not associated with the Company or its current independent accountants in any way, to perform certain agreed upon procedures designed to assist in the determination of the causes of the adjustment and to provide management with information regarding strengthening internal controls. Based on the results of these reviews, management has concluded that significant material handling and warranty control weaknesses existed during 1998. Management believes that it has identified and corrected such weaknesses to provide reasonable assurance that its control objectives will be met.
Concurrent with the Company's move to its new headquarters and manufacturing facility during the second quarter, a bonded warehouse was implemented to receive and issue material into production. In addition, the production management function has been reorganized and substantially strengthened and a new material control function has been added. The Company's production control system and related employee training were also significantly upgraded.
Bikers Dream is a manufacturer, distributor and retailer of quality-built American heavyweight cruiser motorcycles. Corporate headquarters and manufacturing operations are located in Mira Loma.
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 filings with the Securities & Exchange Commission. 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.