Excelsior-Henderson Motorcycle Manufacturing Company Announces Q3 1999 Results
22 November 1999
Excelsior-Henderson Motorcycle Manufacturing Company Announces Third Quarter 1999 Results and Continues to Seek Additional Financing
BELLE PLAINE, Minn.--Nov. 22, 1999--Excelsior-Henderson Motorcycle Manufacturing Company today announced financial results for the third quarter and nine months ended October 2, 1999. The Company also announced that it had not closed on its previously announced convertible debenture offering but that it was continuing to work with the investment-banking firm to obtain financing and, in addition, was seeking other potential strategic alternatives, including creditor protection. The Company added that it had currently available cash resources of approximately $1.0 million.The Company reported net sales for the third quarter of $9,001,571 and $22,218,445 for the nine months ended October 2, 1999. The Company shipped 604 motorcycles during the third quarter. Net loss for the third quarter of 1999 was $5,244,104 or $.38 per common share compared to a net loss of $7,481,261 or $.57 per common share for the third quarter of 1998. The Company reported a net loss for the first nine months of 1999 of $19,087,754 or $1.41 per common share compared to a net loss of $15,776,118 or $1.21 per common share for the first nine months of 1998.
"We will aggressively explore all options to insure the long-term success of the Company, including strategic alternatives," stated Co-Founders Dan, Dave and Jennie Hanlon. "We are encouraged as we continue to make progress on the revised business plan started in September 1999. Sales have remained steady while component and general overhead costs have declined." "In addition," they added, " we continue to expand our dealer network and currently have 127 dealers nationwide."
"Our customers and the motorcycle industry continue to give high marks to our Super X(R) cruiser," the Co-Founders continued, " as well as to our limited edition Deadwood Special(TM) model." "We are also excited to announce our latest model, the Limited Edition Touring model, which we currently plan to begin shipping to our dealers in December 1999."
Excelsior-Henderson Motorcycle Manufacturing Company designs, manufactures, markets and sells a proprietary brand of 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. For additional information, visit the Company's web site at www.excelsior-henderson.com.
Notes concerning forward-looking statements:
This press release contains forward-looking statements regarding obtaining additional financing and seeking potential strategic alternatives that involve risks and uncertainties. The Company's actual results could differ materially from those anticipated in these forward-looking statements. There can be no assurance that sufficient additional financing or any strategic transactions will be available, or, if available, will be on terms favorable to the Company or its shareholders. 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 and the Company's Quarterly Report on Form 10-Q for the quarterly period ended October 2, 1999.
EXCELSIOR-HENDERSON MOTORCYCLE MANUFACTURING COMPANY
Condensed Financial Statements
(Unaudited)
Balance Sheets October 2, January 2,
-------------- 1999 1999
---------- ----------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $2,402,476 $4,697,542
Accounts receivable, net 970,565 --
Inventory 7,495,427 1,865,251
Other current assets 355,707 541,371
------------ ------------
Total current assets 11,224,175 7,104,164
PROPERTY AND EQUIPMENT, net 31,217,598 30,317,118
RESTRICTED CASH 2,584,388 8,065,727
OTHER ASSETS, net 2,278,376 2,501,123
------------ ------------
$47,304,537 $47,988,132
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES $33,923,198 $10,221,789
LONG-TERM DEBT, less current maturities 2,407,620 20,569,409
------------ ------------
STOCKHOLDERS' EQUITY:
Invested capital 63,979,297 51,114,758
Accumulated deficit (53,005,578) (33,917,824)
------------ ------------
Total stockholders' equity 10,973,719 17,196,934
------------ ------------
$47,304,537 $47,988,132
============ ============
Statements of Operations
------------------------
Three Months Ended Nine Months Ended
October 2, October 3, October 2, October 3,
1999 1998 1999 1998
------------ ------------ ------------- -------------
NET SALES $9,001,571 $ -- $22,218,445 $ --
COST OF SALES 10,089,492 -- 27,566,659 --
------------ ------------ ------------- -------------
Gross margin (1,087,921) -- (5,348,214) --
------------ ------------ ------------- -------------
DEPARTMENTAL EXPENSES:
Research and
development 876,227 4,303,645 3,389,045 8,466,250
Sales and
marketing 920,641 1,697,788 3,683,508 3,286,564
General and
administrative 1,351,390 1,249,357 4,265,485 3,732,824
------------ ------------ ------------- -------------
Total departmental
expenses 3,148,258 7,250,790 11,338,038 15,485,638
------------ ------------ ------------- -------------
OPERATING LOSS (4,236,179) (7,250,790) (16,686,252) (15,485,638)
INTEREST EXPENSE,
net (856,692) (230,471) (2,099,036) (290,480)
------------ ------------ ------------- -------------
NET LOSS BEFORE
PREFERRED STOCK
DIVIDENDS (5,092,871) (7,481,261) (18,785,288) (15,776,118)
Less: Preferred
Stock Dividends (151,233) -- (302,466) --
------------ ------------ ------------- -------------
NET LOSS APPLICABLE
TO COMMON
STOCKHOLDERS $(5,244,104) $(7,481,261) $(19,087,754) $(15,776,118)
============ ============ ============= =============
NET LOSS PER
COMMON SHARE $(0.38) $(0.57) $(1.41) $(1.21)
============ ============ ============= =============
WEIGHTED AVERAGE
COMMON SHARES
OUTSTANDING 13,742,319 13,062,586 13,552,314 13,041,653
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