PickUps Plus, Inc. Q2 Results on Track; Q2 Revenues Rise 12%
18 August 2000
Stores Post Record Sales Growth; New E-Commerce Site Near Ready
MASON, Ohio - PickUps Plus, Inc., posted a 12% revenue gain, keeping second-
quarter and six-month results on track and consistent with market expectations,
John Fitzgerald, President and CEO, reported today.
Revenues for the three months ended June 30, 2000 were $354,199, up 12%
over revenues of $315,633 for last year's second quarter. The increase
reflects a hefty 27% increase in sales at company-owned stores. This increase
was offset modestly by a decline in royalty revenues, which slipped to $11,446
from year-ago record revenues of $24,026. In the main, the decline reflects
the absence of royalty fees from the Florence, Kentucky and Muncie, Indiana
stores. Both of these sites have been converted to corporate stores. The
Florence store was converted to a corporate site in the second quarter and the
Muncie store in the third quarter. The Company now operates three corporate
stores.
As expected, the Company posted a loss for the quarter. The net loss was
$263,645, equivalent to $0.04 per share, compared with a net loss of $24,438,
or $0.0 per share, for 1999's second quarter. The loss resulted, principally,
from higher investments in marketing and advertising to build brand
recognition and promote franchise sales; expenses associated with the
acquisition of a retail store in Kentucky; and costs associated with the
Company's public offering.
"Despite the net loss, the second quarter was positive. Several stores,
including the Columbus, Ohio facility, posted record month-over-month sale
gains during the traditionally slow summer selling season. This sales
momentum bodes well for continued sales growth on a chainwide basis. Requests
for franchise information have grown appreciably and our pipeline is
substantial," Mr. Fitzgerald said.
"Looking forward, we are optimistic about the third quarter and second
half. Store-level sales growth is expected to accelerate in the fall. We
expect to add several franchise owners by yearend 2000. The new San Francisco
store is slated to open in the third quarter. In addition, we will launch a
new E-commerce site this quarter. The new E-commerce site is operational and
already generating limited revenue on a beta-test basis," he said.
For the six months ended June 30, 2000, revenues rose 7% to $575,324, from
$537,359 for 1999's first half. The net loss for the half was $308,888,
equivalent to $0.05 per share, compared with a net loss of $72,496, or $0.01
per share, the year before. Consistent with second quarter results, the net
loss is principally attributable to higher marketing and advertising expenses,
corporate expenses associated with the Company's public offering and store-
acquisition expenses.
Founded in 1993, PickUps Plus is a leading national franchiser of retail
stores dedicated to the sale and installation of quality aftermarket
accessories for pickup trucks and SUVs -- a $30 billion market. The Company
operates three prototype corporate retail stores and has eight franchise
stores in eight states.
For the three months ended June 30, 2000 1999
Revenues
Retail Sales $337,753 $266,607
Royalties 11,446 24,026
Initial Franchise Fees 5,000 25,000
Total Revenues 354,199 315,633
Costs and Expenses
Cost of Sales 224,484 198,201
SG&A 385,884 141,870
Other Income (Expense) - -
Interest Expense 7,476 -
Total Expenses 617,844 340,071
Net Loss $(263,645) $(24,438)
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Net Loss Per Share $ (0.04) $-
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Weighted Average Shares Outstanding 6,907,767 6,608,436
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For the six months ended June 30, 2000 1999
Revenues
Retail Sales $534,118 $472,578
Royalties 36,206 39,781
Initial Franchise Fees 5,000 25,000
Total Revenues 575,324 537,359
Costs and Expenses
Cost of Sales 371,754 329,529
SG&A 570,479 280,326
Other Income (Expense) (70,578) -
Interest Expense 12,557 -
Total Expenses 884,212 609,855
Net Loss $(308,888) $(72,496)
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Net Loss Per Share $ (0.05) $(0.01)
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Weighted Average Shares Outstanding 6,844,489 6,609,046
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