Karts International Announces 108% Increase in Second Quarter Revenues
16 August 1999
Karts International Announces 108% Increase in Second Quarter Revenues
ROSELAND, La.--Aug. 16, 1999--Karts International Incorporated announced today results of operations for its six and three month periods ended June 30, 1999.Net revenues for the six month period ended June 30, 1999, were approximately $3.7 million, a 118% increase over the net revenue of $1.7 million for the same period last year. For the three month period ended June 30, 1999, the Company experienced net revenue of approximately $2.5 million as compared to $1.2 million for the three month period ended June 30, 1998, a 108% increase.
The Company reported that operating expenses for the six and three month periods ended June 30, 1999, were approximately $1,070,000 and $530,000 respectively, as compared to approximately $1,522,000 and $1,093,000 for the same periods last year. Net loss for the six months ended June 30, 1999, was approximately $(1,083,000) or $(0.19) per share, versus a net loss of $(1,519,000) or $(0.31) per share for the same period in 1998. Net loss for the Company's second quarter ended June 30, 1999, was approximately $(393,000) or $(0.07) per share as compared to a net loss of approximately $(897,000) or $(0.18) per share for the second quarter of 1998.
Charles "Chuck" Brister, President and Chief Executive Officer of the Company said that he was "extremely pleased with the progress that has been made toward returning the Company to profitability. Increased orders and sales indicate that demand for our karts is continuing to grow and with the newly increased capacity of our manufacturing operations, the Company is positioned to experience a record-breaking year. Now that we have put our price increases in place, improved gross margins and the reduced overhead structure of the Company should allow us to be profitable during the last two quarters of the year."
Karts International Incorporated, through its three wholly owned subsidiaries, Brister's Thunder Karts, Inc., USA Industries, Inc. and Straight Line Manufacturing, Inc. is one of the largest manufacturers of recreational go-karts in the United States.
The information in this news release includes certain forward looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements to the future financial performance of the Company. Although the Company believes that the expectations reflected in its forward looking statements are reasonable, it can give no assurance that such expectations or any of its forward looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development and acceptance, the impact of competitive services and pricing, or general economic risks and uncertainties.
Karts International Incorporated and Subsidiaries
Summarized Financial Data
(unaudited)
Six months ended Three months Ended
June 30, June 30,
1999 1998 1999 1998
Net Revenues $3,665,762 $1,731,939 $2,462,403 $1,222,734
Gross profit (loss) 20,818 (5,582) 189,978 196,013
Operating expenses 1,069,731 1,522,000 530,504 1,093,463
Income (loss) before
taxes (1,083,245) $(1,518,661) (392,947) (896,688)
Income taxes -- -- -- --
Net Income (loss) $(1,083,245) $(1,518,661) $(392,947) $(896,688)
------------- ------------ ----------- -----------
------------- ------------ ----------- -----------
Earnings (loss) per
share: $(0.19) $(0.31) $(0.07) $(0.18)
------------- ------------ ----------- -----------
------------- ------------ ----------- -----------
Weighted average
number of shares
outstanding 5,574,298 4,854,133 5,574,298 4,854,133
------------- ------------ ----------- -----------
------------- ------------ ----------- -----------
Condensed Consolidated Balance Sheet
(unaudited)
At June 30,
1999 1998
ASSETS
Current Assets $3,871,182 $3,510,891
Net property and equipment 1,954,106 1,390,709
Other assets 1,086,518 5,432,557
Total Assets $6,911,806 $10,334,157
----------- -----------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities $2,900,924 $642,581
Long term debt 1,736,254 254,489
Shareholders' equity 2,274,628 9,437,087
Total liabilities and
shareholders' equity $6,911,806 $10,334,157