V-Twin Reports Second Quarter; Early Results Show Early Success
16 February 2000
V-Twin Reports Second Quarter; Early Results Show Early Success
WASHINGTON, Feb. 16 -- V-Twin Holdings, Inc.
(OTC Bulletin Board: VTWN) announced financial results for the second quarter
ended December 31, 1999. V-Twin's strategy is to be the leading retail and
Internet portal for motorcycles consumers and dealers alike, and its second
quarter results highlight its early success in motorcycle retailing.
For the second quarter, V-Twin's consolidated revenue was $2,436,074, net
loss was $(247,878) and net loss per share was $(0.07). Second quarter
results include three full months of revenue and expenses for the first two
dealerships V-Twin acquired as an operating company.
Richard Paone, President, said, "V-Twin's early results show the early
success for which we'd hoped and planned. The first V-Twin dealerships are
reaching more customers by showcasing specialty bikes as well as the quality
popular brands. V-Twin's revenue enhancing efforts will continue over several
quarters as we strengthen relationships with suppliers and increase
inventories of used motorcycles. Gross margins improved again, but I expect
that measurement to be seasonal and variable.
"V-Twin continues to gradually enhance its off-floor operations with
improvements to our computing, inventory and reporting systems at the
dealerships and in our corporate offices. Accounting, reporting and legal
fees are higher to meet the requirements for public company reporting and to
conduct negotiations for acquisitions. We also continue to build our Internet
presence. Overall, operating and corporate expenses will continue to
increase; though they'll be spread out over a wider base as we expand to more
retail stores and to the Internet.
"In the Cycle Sports stores, the Bikers Dream superstores, and our
corporate and Internet office, the people who have joined our team are pulling
together to carry off our vision of bringing the fun of motorcycling to more
and more people. Their talent is the cornerstone of any success we enjoy and
one of our core assets."
In January 2000 V-Twin acquired five Bikers Dream superstores, licensing
rights to Bikers Dream and the web site http://www.bikers-dream.com; revenues
and expenses from these assets are not included in the second quarter results
summarized below. First quarter results include only two months of
operations.
Second quarter First quarter
ended 12/31/99 ended 9/30/99
Revenue:
Sales $2,251,424 $1,410,277
Service 184,650 95,472
Total Revenue: 2,436,074 1,505,749
Cost of Goods Sold 1,710,782 1,094,195
Gross Margin 725,292 411,544
Operating Expenses 946,626 489,359
Operating income (loss) $(221,334) (77,805)
Interest expense 26,544 14,087
Net income (loss) $(247,878) $(91,892)
Net income (loss) per
share, basic and diluted: $(0.07) $(0.02)
Weighted average
shares outstanding 3,700,000 3,650,000
V-Twin Holdings, 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 second quarter 10-QSB are available at
http://www.sec.gov and at http://www.vtwin.net. For additional information
contact LaMagna Communications, Inc., at 516-668-4979.
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.