MotorSports Emporium Releases First Quarter Revenue Results; Refocused Objectives Yield Higher Margin Product Line
SCOTTSDALE, Ariz.--May 1, 20060, 2006--MotorSports Emporium Inc. (OTCBB: MSEP) today announced 2006 first quarter results and explains its new product line focus.Total revenue for the first three months of 2006 and 2005 were $28,984 and $50,586, respectively (a decrease of $21,602), consisting primarily of the sale of die cast collectibles. The decrease in revenue is attributable to management's focus away from an exclusive die cast merchandising business with slow-moving inventory, toward developing its new line of higher-margin businesses, including its brake fluid and car care product lines, which are beginning to show promising results.
David Keaveney, MSEP president and CEO, commented, "MotorSports Emporium relies a great deal on revenue produced from its wholly owned subsidiary ScaleCars.com. Throughout the first quarter of 2005 ScaleCars focused on selling its aged, higher-end products with limited inventory turnover. Fundamentally, ScaleCars concentrated on selling off its assets and not generating renewable cyclical business. Comparably, first quarter 2006 ScaleCars had a higher inventory turnover and a limited aging, high-end product line. Though revenues were lower this quarter, ScaleCars is a better operating entity with focused objectives and broader product line potential today than it was on March 31, 2005.
"Though we will continue to sell die cast model cars through ScaleCars, our focus has dramatically shifted away from die cast merchandise and has transitioned toward improving the growth and margins of our other product lines, more particularly the Quadriga MotorSports brand," Keaveney continued.
Keaveney stated, "Under MotorSports Emporium we have several working divisions; DriversDigs, PitStopStudios, Quadriga MotorSports and Scottsdale Diecast (DBA ScaleCars.com), our wholly owned subsidiary. Our objective is to have all divisions complementing each other and allowing MSEP to distribute its costs among several entities, and relying on multiple revenue streams."
Quadriga MotorSports continues to gain ground with their high performance brake fluid -- GS610(TM). Throughout NASCAR-sanctioned series, race teams like Bill MacAnally, Curb Agajanian and Kasey Kahne Racing rely on GS610(TM) for its superiority. In the Indy Racing League, Andretti Green Racing and Indy Pro Series team AFS Racing are both supplied with GS610(TM) brake fluid. GS610(TM) is now available throughout the continent of Australia through Martini Racing and its nearly 20 distribution entities. Martini Racing is committed to purchasing a pallet (140 cases, 1680 bottles) of GS610(TM) every 45 days.
"As we continue to explore new and creative ways of expanding the distribution of GS610(TM) we are considering a private label and joint cooperation with a well-known brake company. Our efforts under Quadriga MotorSports go further than brake fluid: The Arie Luyendyk Pro Series(TM) is our latest line of products. Catering to automotive care, The Arie Luyendyk Pro Series Spray n Shine(TM) is the first of five products to be launched this June. Quadriga MotorSports plans to have a complete line of car care products by August of this year," explained Keaveney.
"As we continue to reshape the landscape of MSEP we will update our shareholders and the investment community of our forward-moving efforts. I would like to extend a thank you to all of our shareholders for their continued support," concluded Keaveney.
For complete financial results for the period ending 3/31/2006 and additional information and a discussion of risk factors, please see the MSEP current 10Q & past 10K reports at www.sec.gov.
About MotorSports Emporium Inc.
MotorSports Emporium Inc. is a fast-track company in the motor sports industry targeting enthusiasts who participate in die cast collectible cars, automobile restoration, high-performance accessories, motor sports-related collectibles, automotive and racing art, driver's apparel, race venues and product licensing. For more information visit www.motorsportsemporium.com. For products visit www.scalecars.com, www.driversdigs.com, www.pitstopstudios.com, and www.quadrigamotorsports.com, www.cleancarkit.com and www.gs610usa.com.
This news release may include forward-looking statements within the meaning of section 27A of the United States Securities Act of 1933, as amended, and section 21E of the United States Securities and Exchange Act of 1934, as amended, with respect to achieving corporate objectives, developing additional project interests, the company's analysis of opportunities in the acquisition and development of various project interests and certain other matters. These statements are made under the "Safe Harbor" provisions of the United States Private Securities Litigation Reform Act of 1995 and involve risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements contained herein.