Excelsior-Henderson Motorcycle Announces First Quarter 1999 Results
13 May 1999
Excelsior-Henderson Motorcycle Manufacturing Company Announces First Quarter 1999 Results
Belle Plaine, Minn.--May 12, 1999--Excelsior-Henderson Motorcycle Manufacturing Company today announced financial results for the first quarter ended April 3, 1999.The Company reported its initial production net sales for the first quarter of 1999 were $1,857,232 with no sales recorded during the first quarter of 1998. Net loss for the first quarter of 1999 was $7,769,172 or $.58 per share compared to a net loss of $3,604,745 or $.28 per share for the first quarter of 1998.
The first quarter of 1999 represents the dramatic beginning of production and revenue for Excelsior-Henderson and the public introduction of the Super X(tm) motorcycle through demo rides at Bike Week in Daytona Beach, Florida. These results also represent actual shipments of motorcycles to all of Excelsior-Henderson nationwide dealers, who are now making their deliveries to Excelsior-Henderson customers.
"We now look forward to the balance of 1999 during which we transition from a 'development stage' company to an operating company," stated the Co-Founders, Dan, Dave and Jennie Hanlon. "Production is increasing on a planned, steady pace and the motorcycle is being well received by the motorcycle community, and we are happy to welcome our new customers to the Excelsior-Henderson family," added the Hanlons.
Excelsior-Henderson Motorcycle Manufacturing Company manufactures, markets and sells premium heavyweight American cruiser motorcycles, as well as related parts, apparel and accessories branded with a name that evokes an authentic American motorcycling heritage and lifestyle. The Company distributes its products through a national dealer network. Excelsior-Henderson is one of only two authentic American motorcycle companies exclusively committed to the manufacture of motorcycles.
Notes Concerning Forward Looking Statements:
This press release contains forward-looking statements regarding the Company's transition from development stage to an operating company and an increase in production volume that involve risks and uncertainties. The Company's actual results could differ materially from those anticipated in these forward-looking statements. Potential risks and uncertainties include the ability of the Company to increase production volume, while maintaining high quality and controlling production costs. Factors that may affect production volume include the ability of the Company to maintain adequate quantities of high-quality components and supplies, to refine its manufacturing processes, to solve unanticipated problems, and to hire qualified personnel. Factors that may affect production costs include the ability of the Company to purchase motorcycle components and supplies at reasonable costs and to increase production volume. Investors are also encouraged to review 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 2, 1999.
EXCELSIOR-HENDERSON MOTORCYCLE MANUFACTURING COMPANY
Condensed Financial Statements
(Unaudited)
Balance Sheets April 3, January 2,
1999 1999
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ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 2,359,498 $ 4,697,542
Accounts receivable, net 476,618 --
Inventory 5,609,406 1,865,251
Other current assets 480,709 541,371
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Total current assets 8,926,231 7,104,164
PROPERTY AND EQUIPMENT, net 31,234,412 30,317,118
RESTRICTED CASH 3,529,268 8,065,727
OTHER ASSETS 2,506,207 2,501,123
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$ 46,196,118 $ 47,988,132
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LIABILITIES AND
STOCKHOLDERS' EQUITY
CURRENT LIABILITIES $ 11,357,936 $ 10,221,789
LONG-TERM DEBT, less
current maturities 22,491,101 20,569,409
STOCKHOLDERS' EQUITY:
Invested capital 54,034,077 51,114,758
Accumulated deficit (41,686,996) (33,917,824)
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Total stockholders' equity 12,347,081 17,196,934
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$ 46,196,118 $ 47,988,132
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Statements of Operations Three Months Ended
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April 3, 1999 April 4, 1998
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NET SALES $ 1,857,232 $ --
COST OF SALES 4,633,225 --
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Gross margin (2,775,993) --
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DEPARTMENTAL EXPENSES:
Research and development 1,415,994 1,539,128
Sales and marketing 1,425,642 835,875
General and administrative 1,555,877 1,280,529
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Total departmental expenses 4,397,513 3,655,532
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OPERATING LOSS (7,173,506) (3,655,532)
INTEREST INCOME (EXPENSE), net (595,666) 50,787
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NET LOSS $ (7,769,172) $ (3,604,745)
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NET LOSS PER SHARE $ (0.58) $ (0.28)
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WEIGHTED AVERAGE
SHARES OUTSTANDING 13,329,888 13,027,821
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