Excelsior-Henderson Motorcycle Company First Quarter 1998 Result
20 May 1998
Excelsior-Henderson Motorcycle Manufacturing Company Announces First Quarter 1998 Results
BELLE PLAINE, Minn., May 20 -- Excelsior-Henderson Motorcycle
Manufacturing Company announced financial results for the first
quarter ended April 4, 1998.
The Company reported a net loss for the first quarter of 1998 of
$3,604,745 or $.28 per share compared to a net loss of $989,760 or $.17 per
share for the first quarter of 1997. Excelsior-Henderson is a
development-stage company and recorded no revenue for the first quarter of
1998 or 1997.
"1998 is off to a fast start... with operating results and milestones
accomplished meeting the expectations of our Business Plan," said Dan and Dave
Hanlon, Co-Founders and Co-CEOs. "The Excelsior-Henderson national dealer
network passed the 60 dealer milestone mark nearly six months ahead of plan,
we had an exciting Daytona Bike Week and are on plan to produce and sell the
first 1999 Super X motorcycles during the fourth quarter of 1998," added the
Hanlons.
"Our staffing efforts have been consistently successful... with the
Excelsior-Henderson Road Crew now numbering in excess of 80 team members,"
concluded the Hanlons... "we eagerly anticipate the remainder of 1998."
Excelsior-Henderson Motorcycle Manufacturing Company is a
development-stage company which plans to manufacture, market, and sell premium
heavyweight cruisers and touring motorcycles with a brand that evokes an
authentic American motorcycling heritage and lifestyle.
Notes Concerning Forward Looking Statements:
This press release contains forward-looking statements regarding the plan
of the Company to produce and sell the first 1999 Super X motorcycles during
the fourth quarter of 1998 that involve risks and uncertainties. The
Company's actual results could differ materially from those anticipated in
these forward-looking statements as a result of the factors set forth below
and the factors described from time to time in the Company's reports on file
with the Securities and Exchange Commission, including but not limited to the
Company's Annual Report on Form 10-K for the fiscal year ended January 3, 1998
and the Company's Quarterly Report on Form 10-Q for the quarter ended April 4,
1998.
Factors that may affect the timing of production of the Super X include
problems in acquisition, installation and successful operation of the
motorcycle production equipment, the ability of the Company to locate
competent suppliers or obtain adequate quantities of components and supplies
at reasonable costs, the ability of the Company to obtain inventory and
working capital financing as needed, the ability of the Company to hire
additional qualified personnel and the ability of the Company's engineering
and manufacturing staff to design, engineer and produce the Super X. In
addition, for the Company to be successful, its products must be manufactured
to meet high quality standards in production volumes. The transition from
prototype to mass production will involve various risks and uncertainties that
may not be apparent at this time and there can be no assurance that the
Company will be able to successfully react to unanticipated difficulties and
commence mass production in late 1998. In addition, the Company will be
required to obtain certain government approvals and certifications prior to
sales of the Super X. Potential delays and costs that could result from
obtaining such approvals could result in a delay in motorcycle production.
Financial Tables Follow
Excelsior-Henderson Motorcycle
Manufacturing Company
January 3, April 4,
Balance Sheets 1998 1998
ASSETS
CURRENT ASSETS:
Cash and short-term investments $24,249,191 $17,447,316
Other current assets 113,497 389,404
Total current assets 24,362,688 17,836,720
PROPERTY AND EQUIPMENT, net 13,353,897 20,194,108
RESTRICTED CASH 7,275,569 7,355,436
DEPOSITS 2,670,675 82,977
OTHER ASSETS 522,638 522,834
$48,185,467 $45,992,075
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES $3,258,636 $4,762,948
LONG-TERM DEBT, less current maturities 13,738,615 13,639,405
STOCKHOLDERS' EQUITY:
Invested capital 41,196,735 41,202,986
Deficit accumulated during the
development stage (10,008,519) (13,613,264)
Total stockholders' equity 31,188,216 27,589,722
$48,185,467 $45,992,075
Three Months Ended
Statements of Operations March 31, April 4,
1997 1998
PREOPERATING EXPENSES:
General and administrative $318,070 $1,280,529
Research and development 477,108 1,539,128
Marketing 283,376 835,875
Total preoperating expenses 1,078,554 3,655,532
INTEREST INCOME, net 88,794 50,787
NET LOSS $(989,760) $(3,604,745)
NET LOSS PER SHARE $(0.17) $(0.28)
WEIGHTED AVERAGE SHARES OUTSTANDING 5,874,231 13,027,821