Cycle Country Records Positive 3rd Quarter NumbersMILFORD, Iowa--Aug. 15, 2002--Cycle Country Accessories Corp. (OTCBB:CYCY), the recognized leader in developing and manufacturing custom-fitted accessories for the all-terrain vehicle (ATV), is pleased to announce revenues of $2,286,391 for the three-month period ending June 30, 2002. This represents a 1.8% increase compared with record revenues of $2,246,879 for the same period in 2001. Gross profit as a percentage of revenues was 34.9% for the third quarter compared to 27.2% for the same period in 2001. The increase of 7.7% in gross profit is primarily the result of lower material costs and manufacturing input cost realized in the Wheel Cover segment through greater gains in labor efficiency and better manufacturing processes.
An increase in ATV accessory and Wheel Cover sales to OEMs and sales of the recently acquired Perf-Form premium oil products offset a decrease in Snowplow Blade and Mower unit sales during the 3rd quarter. The company anticipates further revenue increases for the 4th quarter of fiscal 2002 ending September 30th.
The seasonality of one of Cycle Country's most popular products, the snowplow blade, was negatively impacted due to distributors already meeting their quotas. This past spring, distributors did not need to order more products to achieve rebate program goals or certain quotas as they did last year. This did not occur because most distributors had already achieved rebate incentive levels during the regular retail-selling season. This bodes well for the Company since distributor inventory levels are much lower going into the prime dealer ordering season, which historically leads to increased orders and sales activity over the next two quarters.
The Company foresees the selling, general and administrative expenses to remain consistent or to decrease slightly as a percent of revenues during the remainder of calendar 2002. This will be achieved from the increased production of new and existing products from the current manufacturing capacity available at their operating facilities.
Cycle Country president, Ron Hickman stated: "Other key factors contributing to increased revenues during the 3rd quarter and anticipated revenue increases for the 4th quarter include the continuing success of our new product introductions and the re-engineering of our mainstay products. Additionally, the successful completion of acquiring Perf-Form Products and their premium motorcycle and ATV oil filters should begin to have a more positive impact to earnings going forward." Mr. Hickman further commented: "We will continue to address the seasonality of any products by a focus on untapped geographical locations, expansion into the Lawn & Garden market and increased sales and marketing efforts. Our long established tradition of success continues as Cycle Country will record its 21st year of sustained profitability with our fiscal year ending next month on September 30, 2002."
About Cycle Country Accessories Corp.
Cycle Country, http://www.cyclecountry.com, with over 50% of the worldwide market in several product categories, is the industry leader in the design, engineering and manufacturing of custom-fitting accessories for the utility all-terrain vehicle (ATV). Since 1981, Cycle Country has developed an extensive line of branded products of mowers, plows, spreaders, sprayers, hitches and many other utility equipment items along with accessories for the recreational user. The Company's accessories custom fit virtually every brand of ATV on the market. Cycle Country's ATV accessories are distributed throughout the U.S. and Canada by a group of 16 distributors who sell their products to essentially all ATV and motorcycle dealers in North America.
The Company has also developed 19 international distributors that have sold Cycle Country products in 40 countries throughout Asia, Europe, Central and South America. Additionally, Cycle Country dominates the golf car wheel cover market by manufacturing approximately 90% of all wheel covers sold to original equipment manufacturers (OEM's) worldwide. Cycle Country also sells high-performance premium oil filters for motorcycles and ATVs throughout the U.S. under the brand name Perf-form Products. Through Cycle Country's most recent acquisition of Weekend Warrior and their superior farm equipment attachments for Trailers and ATVs, Cycle Country has begun marketing heavy-duty farm equipment for the Lawn & Garden market.
For the complete 10-QSB filing, go to the company's website at http://www.cyclecountry.com and click on the Investor Relations heading. Please direct any financial questions to Scott Gibson at Veritas Capital Group via e-mail to CYCY@veritascap.com or phone 407/772-7723 from 9am until 5pm (EST). Cycle Country Accessories Corporation Headquarters: 2188 Highway 86, Milford, Iowa 51351, 800/841-2222.
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," "potential," or future/conditional verbs such as "will," "should" and "could."