V-Twin Reports Second Quarter Earnings; Early Results Show Early Success
17 February 2000
V-Twin Reports Second Quarter Earnings; Early Results Show Early Success
WASHINGTON, Feb. 16 -- V-Twin Holdings, Inc.
(OTC Bulletin Board: VTWN) announced financial results for the six months and
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 six months ended December 31, 1999, V-Twin's consolidated revenue
was $2,436,074, net loss was $(247,878) and net loss per share was $(0.07).
For the second quarter ended December 31, 1999, consolidated revenue was
$930,325, net loss was ($155,986) and net loss per share was ($0.05). 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, and 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 were incurred to meet the requirements for public company reporting and
to conduct negotiations for acquisitions. We also continue to build our
Internet presence. Operating and corporate expenses are expected 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.
Second Quarter: First Half: First quarter:
Three months Six months Three months
ended 12/31/99 ended 12/31/99 ended 9/30/99
Revenue:
Sales $841,147 $2,251,424 $1,410,277
Service 89,178 184,650 95,472
Total Revenue: 930,325 2,436,074 1,505,749
Cost of Goods Sold 616,587 1,710,782 1,094,195
Gross Margin 313,738 725,292 411,544
Operating Expenses 457,267 946,626 489,359
Operating income (loss) (143,529) $(221,334) (77,805)
Interest expense 12,457 26,544 14,087
Net income (loss) $(155,986) $(247,878) $(91,892)
Net income (loss) per share,
basic and diluted: $(0.05) $(0.07) $(0.02)
Weighted average shares
outstanding 3,700,000 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.