Trident Rowan Group, Inc. Reports Q2 Results
17 August 1998
Trident Rowan Group, Inc. Reports Improved Operating Performance in Second Quarter 1998 Gross Margin Up 38% in the Period, Second Quarter Loss Drops Significantly
From Prior Year, Net Sales for First Six Months Up Approximately 17%
SOMERSET, N.J., Aug. 17 -- Trident Rowan Group, Inc.
(Nasdaq National Market System: "TRGI") today reported a loss of Lit. 3,674
million (US$ 2,067,000) in the fiscal quarter ended June 30, 1998 on net sales
of Lit. 29,213 million (US$ 16,440,000) compared to a loss of Lit. 5,720
million (US$ 3,219,000) on net sales of Lit. 29,597 million (US$
16,656,000) in the second quarter of 1997. For the six months ended June 30,
1998, Trident Rowan Group, Inc. reported that losses narrowed to Lit. 6,026
million (US$ 3,391,000) on net sales of Lit. 62,319 million (US$
35,070,000). For the comparable six-month period ended June 30, 1997, Trident
Rowan Group reported a loss of Lit. 8,284 million (US$ 4,662,000) on net sales
of Lit. 53,287 million (US$ 29,987,000).
While Moto Guzzi S.p.A. -- Trident Rowan Group's Italian subsidiary that
manufactures high-performance motorcycles -- presented two new models to the
motorcycle press during the second quarter that were well received, problems
with suppliers for the delivery of outsourced components resulted in
production delays associated with those two models. As a consequence, orders
for the sale of 400 new model motorcycles could not be filled. In spite of
these production issues, Trident Rowan Group, Inc. reported that consolidated
gross margin increased by more than 38% for the second quarter 1998, and by
more than 54% for the first six months of 1998. Offsetting this improvement
was a strategic decision by senior management to increase research and
development at Moto Guzzi by approximately 300%.
In making today's announcement, Mark S. Hauser, President and CEO at
Trident Rowan Group, Inc. stated, "Marketplace interest and excitement in Moto
Guzzi's new models clearly runs high. Trident Rowan Group's focus now remains
on building momentum at Moto Guzzi and further establishing the infrastructure
to enable the company to increase motorcycle production to 25,000 units within
the next five years."
Howard E. Chase, Chairman of Trident Rowan Group, Inc., noted, "An
important element in the company's growth plan will be to broaden our sales
and marketing efforts and to develop heightened brand awareness for Moto Guzzi
in key regions worldwide."
TRIDENT ROWAN GROUP, INC.
Operating Highlights
For the 3 months Ended June 30, 1998
3 Months 3 Months 3 Months 3 Months
30 June 30 June 30 June 30 June
1998 1997 1998 1997
Expressed in Millions Expressed in Thousands
of Italian Lire except of U.S. Dollars except
net loss per share net loss per share*
Net sales Lit. 29,213 Lit. 29,597 $ 16,440 $ 16,656
Gross margin Lit. 5,822 Lit. 4,203 $ 3,277 $ 2,365
Operating expenses,
net Lit. (2,601) Lit. (3,001) $ (1,463) $ (1,689)
Finance cost, net Lit. (898) Lit. (772) $ (506) $ (434)
Net Loss Lit. (3,674) Lit. (5,720) $ (2,067) $ (3,219)
Net Loss per share ** Lit. (737) Lit. (1,347) $ (0.41) $ (0.76)
* Translated in U.S. dollar equivalents at the exchange rate prevailing
at June 30, 1998 of $1.00 : Lit. 1,777.
** Net loss per share calculated on the average of shares outstanding
during the period
Basic and fully diluted loss per share are the same as there are
losses in each period reported.
TRIDENT ROWAN GROUP, INC.
Operating Highlights
For the 6 months Ended June 30, 1998
6 Months 6 Months 6 Months 6 Months
30 June 30 June 30 June 30 June
1998 1997 1998 1997
Expressed in Millions of Expressed in Thousands
Italian Lire except net of U.S. Dollars except
loss per share net loss per share*
Net sales Lit. 62,319 Lit. 53,287 $ 35,070 $ 29,987
Gross margin Lit. 11,742 Lit. 7,600 $ 6,608 $ 4,277
Operating expenses,
net Lit. (2,990) Lit. (5,051) $ (1,683) $ (2,842)
Finance cost,
net Lit. (1,532) Lit. (1,792) $ (862) $ (1,008)
Net Loss Lit. (6,026) Lit. (8,284) $ (3,391) $ (4,662)
Net Loss per
share ** Lit. (1,208) Lit. (2,033) $ (0.68) $ (1.14)
* Translated in U.S. dollar equivalents at the exchange rate prevailing
at June 30, 1997 of $1.00 : Lit. 1,777.
** Net loss per share calculated on the average of shares outstanding
during the period
Basic and fully diluted loss per share are the same as there are losses
in each period reported.
