Karts International Announces 60% Increase in Third Quarter Revenues
16 November 1999
Karts International Announces 60% Increase in Third Quarter Revenues, Losses Decline and Production Capacity Sold Out
ROSELAND, La.--Nov. 16, 1999--Karts International Incorporated (OTC BB:KINT) announced today results of operations for its nine and three-month periods ended September 30, 1999.Net revenues for the nine-month period ended September 30, 1999, were approximately $6.7 million, a 85% increase over the net revenues of $3.6 million for the same period last year. For the three-month period ended September 30, 1999, the Company experienced net revenue of approximately $3.0 million as compared to $1.9 million for the three-month period ended September 30, 1998, a 60% increase.
The Company reported that operating expenses for the nine and three-month periods ended September 30, 1999, were approximately $1,802,000 and $732,000, respectively, as compared to approximately $2,258,000 and $736,000 for the same periods last year. Net loss for the nine months ended September 30, 1999, was approximately $(1,614,000) or $(0.29) per share, versus a net loss of $(2,390,000) or $(0.49) per share for the same period in 1998. Net loss for the Company's third quarter ended September 30, 1999, was approximately $(531,000) or $(0.10) per share as compared to a net loss of approximately $(872,000) or $(0.18) per share for the third quarter of 1998.
Charles "Chuck" Brister, President and Chief Executive Officer of the Company stated, "While we are pleased with the continuing progress being made toward returning the Company to profitability, we are not there yet. During the third quarter, we further consolidated our manufacturing operations; and while this consolidation and the associated cost reductions will benefit the Company in future periods, it negatively impacted us in the short-term." Mr. Brister went on to say that the Company's production capacity is basically sold out for the balance of the year and that the fourth quarter results should reflect continued sales and operational improvements.
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)
Nine months ended Three months ended
September 30, September 30,
1999 1998 1999 1998
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Net Revenues $ 6,678,886 $ 3,617,510 $ 3,013,124 $ 1,885,571
Gross profit (loss) 269,683 (140,635) 248,865 (135,053)
Operating expenses 1,802,112 2,257,562 732,381 735,562
Income (loss)
before taxes (1,614,471) (2,390,210) (531,226) (871,549)
Income taxes
Net income (loss) $(1,614,471) $(2,390,210) $ (531,226) $ (871,549)
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Earnings (loss)
per share $ (0.29) $ (0.49) $ (0.10) $ (0.18)
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Weighted average
number of shares
outstanding 5,574,298 4,854,133 5,574,298 4,854,133
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Condensed Consolidated Balance Sheet
(unaudited)
At September 30,
1999 1998
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ASSETS
Current assets $ 5,429,821 $ 3,769,712
Net property and equipment 2,004,248 1,665,021
Other assets 982,399 5,378,793
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Total Assets $ 8,416,468 $ 10,813,526
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities $ 4,897,699 $ 2,001,835
Long term debt 1,775,367 246,153
Shareholders' equity 1,743,402 8,565,538
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Total liabilities and
shareholders' equity $ 8,416,468 $ 10,813,526
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