V-Twin Reports Third Quarter Revenue Increase with New Superstores
16 May 2000
V-Twin Reports Third Quarter Revenue Increase with New Superstores; Acquisitions Add to Expenses as V-Twin Invests in Future Growth
WASHINGTON, May 15 V-Twin Holdings, Inc.
(OTC Bulletin Board: VTWN) announced financial results for the third quarter
ended March 31, 2000 that reflect its acquisition of Bikers Dream dealerships,
web-site and licenses. V-Twin's strategy is to become the leading retail and
Internet marketplace for motorcycle riders, dealers, manufacturers and
distributors.
For the third quarter ended March 31, 2000, consolidated revenue was
$3,231,768, net loss was ($185,751) and net loss per share was $(0.05).
Comparisons to the prior year's period are not meaningful, since the Company
was in development stage. Compared sequentially to the Company's second
quarter, revenue increased 247%, which V-Twin primarily attributes to the
addition of the Bikers Dream assets and to favorable weather in March. Net
losses increased 133% primarily due to expenses associated with the Bikers
Dream acquisition.
For the nine months ended March 31, 2000, V-Twin's consolidated revenue
was $5,667,842, net loss was ($433,629) and net loss per share was $(0.11).
Richard Paone, President, said, "V-Twin is integrating bricks and clicks
in a fast-growing industry. Our network of superstores is undergoing a
controlled program to increase revenue opportunities and streamline costs.
The two Cycle Sport stores are progressing very well, and we're adding
terrific new brands to the Bikers Dream showrooms. We will continue to build
our core network of motorcycle and powersports dealers by making selective
acquisitions."
Mr. Paone continued, "Like many other dealers, we look forward to the
launch of CycleClick, V-Twin's on-line marketplace for the motorcycle and
powersports industry. V-Twin's technology partnership with PurchasePro.Com
gives us invaluable expertise and infrastructure. Our consumer web-site,
bikers-dream.com, continues to attract riders of cruisers."
On January 31, 2000 V-Twin acquired five Bikers Dream dealerships, rights
to the Bikers Dream brand name that it licensed to sixteen dealerships in
fourteen states, and the e-commerce site http://www.brikers-dream.com. The Bikers
Dream acquisition significantly advanced V-Twin retail and Internet
strategies.
Historically the Bikers Dream stores were retailers exclusively of Ultra
motorcycles, parts and accessories. V-Twin has negotiated dealer agreements
with American Ironhorse, Panzer Motorcycle Works, Big Dog Motorcycles,
Confederate Motorcycles and Carefree Customer Cycles, and will add a selection
of these American-made bikes to Bikers Dream showrooms in the coming months.
On March 29, 2000 V-Twin announced the planned launch of CycleClick.com,
which will be an on-line marketplace serving buyers and sellers in the
motorcycle and powersports industry. V-Twin is using an e-commerce software
and services package from PurchasePro.Com to make CycleClick.com an easy-to-
use marketplace. Any dealer, distributor or manufacturer with a PC and
Internet access will be able to use their Internet browser to purchase or sell
goods at competitive prices at CycleClick.com
The third quarter results summarized below include only two months of
revenues and expenses from the Bikers Dream assets acquired on January 31,
2000.
Third Second First
Nine Quarter: Quarter: Quarter:
Months Three months Three months Three months
Ended Ended Ended Ended
3/31/00 3/31/00 12/31/99 9/30/99
Revenue:
Sales $5,244,909 $2,993,485 $841,147 $1,410,227
Service 422,933 238,283 89,178 95,472
Total Revenue: 5,667,842 3,231,768 930,325 1,505,749
Cost of Goods Sold 4,202,851 2,492,069 616,587 1,094,195
Gross Margin 1,464,991 739,699 313,738 411,544
Operating Expenses 1,903,801 957,175 457,267 489,359
Operating
income (loss) (438,810) (217,476) (143,529) (77,805)
Other Income 50,102 50,102 -- --
Other Expense (44,921) (18,377) (12,457) (14,087)
Net income (loss) $(433,629) $(185,751) $(155,986) $(91,892)
Net income (loss) per share;
Basic and diluted $(0.11) $(0.05) $(0.05) $(0.02)
Weighted average shares
Outstanding 3,735,000 3,856,000 3,700,000 3,650,