V-Twin Reports 1999 and First Quarter 2000 Results
16 December 1999
V-Twin Reports 1999 and First Quarter 2000 Results
Management Discusses Start-Up Progress and Strategy
WASHINGTON, Dec. 15 -- V-Twin Acquisitions, Inc.
(OTC Bulletin Board: VTWN) announced fiscal 1999 and first quarter 2000
financial results today, reporting on its first five months as an operating
company.
From V-Twin's inception in July 1998 until May 1, 1999, the Company was in
development stage and incurred research and development expenses. On May 1,
1999, V-Twin's affiliate completed its first acquisition by purchasing two
motorcycle dealerships and service centers in the Washington, D.C. area.
Therefore, results for the fiscal year ended June 30, 1999 include only two
months of revenue as an operating company.
In fiscal 1999, V-Twin's consolidated revenue was $1,539,236, net loss was
$(213,113) and net loss per share was $(0.07). For the first quarter ended
September 30, 1999, revenue was $1,505,749, net loss $(91,892) and net loss
per share $(0.02).
Richard Paone, President, commented on V-Twin's progress: "Since Cycle
Sport joined V-Twin we have been working together to increase sales and reduce
costs. Everyone is proud of the team's first lap around the track. Cycle
Sport is already carrying more specialty brands and displaying a broader
selection of used bikes and accessories. Off the showroom floor, we are
streamlining operations and modernizing back office systems. As we expected,
there were additional expenses for adding new brands and improving
communications and computer systems. While this is a seasonal and variable
business, we're happy with the initial improvements in gross margin and
operating expenses."
Mr. Paone continued, "V-Twin is getting a positive reception from many
dealers interested in joining our network. Not only is there more strength in
numbers, but there's more talent too. We've entered formal negotiations to
acquire several retail stores, so our distribution strategy is on track. In
2000 we will launch our Internet strategy to enhance marketing, sales and
inventory management. Our web site will be an e-commerce hub for V-Twin
dealers and provide rich content for enthusiasts, complete with streaming
media events and auctions."
A summary of V-Twin's financial results is provided below:
Fiscal year First quarter
ended 6/30/99 ended 9/30/99
Revenue:
Sales $1,441,876 $1,410,277
Service 97,360 95,472
Total Revenue: 1,539,236 1,505,749
Cost of Goods Sold 1,145,927 1,094,195
Gross Margin 393,309 411,544
Operating Expenses 591,756 489,359
Operating income (loss) $(198,447) (77,805)
Interest expense 14,666 14,087
Net income (loss) $(213,113) $(91,892)
Net income (loss) per share $(0.07) $(0.02)
Weighted average shares
outstanding 3,000,033 3,650,000
V-Twin Acquisitions, Inc., headquartered in Washington, DC, was formed to
acquire independent motorcycle dealerships and integrate them into an
operating network, which enhances dealers' service, selection and value.
The full text of V-Twin's year-end 10-KSB and its first quarter 10-QSB are
available at http://www.sec.gov.
Certain statements in this press release, including statements regarding
the anticipated development and expansion of the company's business, and
intent, belief or current expectations of the Company, its directors or its
officers, are "forward-looking" statements (as such term is defined in the
Private Securities Litigation Reform Act of 1995). Because such statements
are subject to risks and uncertainties, actual results may differ materially
from those expressed or implied by such forward-looking statements.