Cycle Country Announces Record Profits Again With an After-Tax Profit of $1.174 Million for Year-End 2001
MILFORD, Iowa--Feb. 5, 2002--Cycle Country Accessories Corp. (OTCBB:CYCY), the recognized leader in the development and manufacturing of high quality accessories for the all-terrain vehicle (ATV), announces record after-tax net income of $1.174 million for the year ended September 30, 2001. This represents a 15% increase compared with previous record after-tax earnings of $1.02 million for the year ended September 2000. Earnings per share for the year of 2001 were $0.32 compared with $0.28 for 2000."The company has been working diligently on the future, in both product development and preparing for our public birth. I am pleased that we could also deliver record profits," commented Ronald Hickman, President of Cycle Country Accessories Corp. Mr. Hickman continued; "I am especially proud of our employees, who have sought to meet the needs of our customers throughout the year. While recent events have given rise to greater economic uncertainty and market volatility, I remain confident that Cycle Country will continue to enhance shareholder value by continuing to grow our product lines and develop new markets for our products."
About Cycle Country Accessories Corp.
Cycle Country (http://www.cyclecountry.com), with over 50% of the worldwide market, is the industry leader in the design, engineering and manufacturing of custom fitting accessories for the all-terrain vehicle (ATV). Since 1981, Cycle Country has developed an extensive line of branded products of mowers, plows, spreaders, sprayers, three-point hitches, winch kits and many other utility equipment items along with an expanding line of accessories for recreational use. The Company's accessories custom fit virtually all brands of ATV's on the market today. Cycle Country ATV accessory products are distributed throughout the United States and Canada by a group of 16 distributors who sell Cycle Country products to essentially every ATV and motorcycle dealer in North America.
Additionally, Cycle Country dominates the manufacturing of wheel covers for golf cart manufacturers with approximately 90% of the worldwide market and 80% of after-market wheel cover sales, respectively. The Company has strategic arrangements with 19 international distributors providing product sales in Asia, Europe, Central and South America. Current international distribution agreements are in effect in 35 countries. Cycle Country also subcontracts the manufacturing of many original equipment product and product components for local, regional and national vendors.
CYCLE COUNTRY ACCESSORIES CORP. AND SUBSIDIARY
Consolidated Statements of Income
For the years ended September 30, 2000 and 2001
2000 2001
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Net sales $12,675,699 $13,204,449
Freight income $ 103,772 $ 109,377
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Total revenue $12,779,471 $13,313,826
Cost of goods sold ($9,138,162) ($9,257,543)
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Gross profit $3,641,309 $4,056,283
Selling, general &
administrative expenses ($2,646,331) ($2,978,841)
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Income from operations $ 994,978 $1,077,442
Non-operating income, net $ 25,798 $ 41,199
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Income before provision
for income taxes $1,020,776 $1,118,641
Income tax benefit -- $ 55,360
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Net income $1,020,776 $1,174,001
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Weighted average shares outstanding:
Basic 3,625,000 3,625,000
Diluted 4,025,000 4,025,000
Earnings per share:
Basic $ 0.28 $ 0.32
Diluted $ 0.25 $ 0.29
The Cycle Country 10-K filing is posted on http://www.sec.gov or on the Company's website at http://www.cyclecountry.com under the heading "Investor Relations." For further information, e-mail to IR@cyclecountry.com. Cycle Country Headquarters -- 2188 Hwy. 86 -- Milford, IA 51351 -- 800-841-2222 Please direct any financial questions to Scott Gibson, Managing Principal at Veritas Capital Group via e-mail to CYCY@veritascap.com or call 407.562.1900 from 9 am until 5 pm (EST).
This press release does not constitute an offer to sell or the solicitation of any offer to buy any securities of Cycle Country Accessories Corporation, nor shall there be any sale of any such security in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state.
Forward looking statements: This press release and other statements by Cycle Country may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act with respect to the outlook for earnings and revenues, other future financial or business performance, strategies and expectations. Forward-looking statements are typically identified by words or phrases such as "believe," "expect," "estimate," "position," "assume," "potential," "outlook," "continue," "remain," "maintain," and similar expressions, or future or conditional verbs such as "will," "would," "should," "could," or similar expressions.