ZAPWORLD.COM Reports Third Quarter Fiscal 1999 Results
23 November 1999
ZAPWORLD.COM Reports Third Quarter Fiscal 1999 Results
SEBASTOPOL, Calif.--Nov. 23, 1999--ZAPWORLD.COM (OTCBB:ZAPP) today announced financial results for the three months ended September 30, 1999. Revenues of $1,767,000 were recorded during third quarter fiscal 1999, an increase of $537,300 or 44% over 1998's third quarter revenues of $1,229,700. ZAP recorded losses of $323,200 during the third quarter of 1999, compared with a loss of $91,100 in the third quarter of 1998.The increase in sales in 1999 over the same period in 1998 was due to sales of the ZAPPY(TM) scooter as well as sales recognized from two newly acquired outlet stores. During the third quarter of 1999, ZAP opened its second retail rental and retail EV super store in Key West, Florida. Its first store was established at the end of the second quarter of 1999 in San Francisco. Net sales for the nine months ended September 30, 1999 were $4,444,200 compared with $2,554,600 over the same period in 1998, an increase of $1,889,600 or 74%.
Third quarter losses were due to costs involved in moving and scaling up operations, a one-time sale to a large distributor at a discount, and operating costs associated with the opening of two ZAP stores. Losses for the nine months of 1999 were $390,900 compared to $550,500 in 1998. During the third quarter, total revenues increased, while marketing costs for the third quarter of 1999 dropped from 21% of sales to 16% of sales.
"Our primary business strategy is to build the inherent value of ZAP by accelerating emerging electric vehicle technologies into the marketplace," said ZAPWORLD.COM CEO Gary Starr.
A new California law signed by Governor Gray Davis in October and going into effect January 1, 2000 allows greater access for electric scooters on public roadways and bicycle paths.
A recognized leader in the U.S. electric vehicle market, ZAP recently celebrated its fifth anniversary. The company manufactures several models of electric bikes, scooters, motorcycles and other electric vehicles. ZAP is publicly owned with stock trading under the symbol ZAPP. For complete purchasing, franchising and shareholder information, visit www.zapworld.com or call 1-800-251-4555.
ZAPWORLD.COM AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Quarter ended Nine Months ended
September 30, September 30,
1999 1998 1999 1998
NET SALES $ 1,767,000 $ 1,229,700 $ 4,444,200 $ 2,554,600
COST & EXPENSES
Cost of Goods
Sold 1,379,200 778,500 2,978,400 1,684,900
Selling 280,400 255,700 729,500 665,400
General and
administrative 363,500 225,600 877,800 608,000
Research and
development 81,600 51,500 204,800 131,400
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LOSS FROM
OPERATIONS (337,700) (81,600) (346,300) (535,100)
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OTHER INCOME
(EXPENSE)
Interest expense (1,700) (4,500) (77,400) (10,800)
Interest Income 17,700 1,000 41,400 5,700
Other (1,500) (6,000) (8,600) (10,300)
----------- ----------- ----------- -----------
14,500 (9,500) (44,600) (15,400)
----------- ----------- ----------- -----------
NET LOSS $ (323,200) $ (91,100) $ (390,900 $ (550,500)
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NET LOSS
PER COMMON SHARE,
BASIC AND DILUTED $ (0.07) $ (0.03) $ (0.11) $ (0.21)
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WEIGHTED AVERAGE
COMMON SHARES
OUTSTANDING 4,416,249 2,633,500 3,668,118 2,592,400
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Forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, continued acceptance of the Company's products, increased levels of competition for the Company, new products and technological changes, the Company's dependence upon third-party suppliers, intellectual property rights, and other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.