Kingsley Coach Reports Financial Results for Six Months Ended June 30,2000
18 October 2000
Kingsley Coach Reports Financial Results for Six Months Ended June 30,2000
MIDDLEBURG Pa.--Oct. 18, 2000--The Kingsley Coach Inc. (OTC-BB:KNGS) announced today its operating results for the six-month transition period ended June 30, 2000.Sales for the six month period in 2000 increased by 95% over the similar period in 1999, $1,129,976 in 2000 versus $579,790 in 1999. The Company reported a Net Loss of $(580,569), or $(0.07) per share, for the six months ended June 30, 2000 as compared to a Net Loss of $(478,287), or $(0.08) per share, for the six months ended June 30, 1999.
The Company's Gross Margin, as a percent of sales, was 38% for the six months ended June 30, 2000, a significant increase from the 14% reported for the six months ended June 30, 1999 and the 31% reported for the year ended December 31, 1999.
Terry Watkins, Kingsley's Chief Executive Officer, stated, "We were anticipating a loss since the Company was finishing its development stage regarding its Kingsley Coach product. We completed design and development of three separate standard models during this six month period, and our research and development costs were still high. With our development phase being over, our research and development costs will decrease substantially as a percent of sales. Additionally, we are pleased with the continued improvement in our margins. When these improved situations are factored in with our plans to increase production and sales, it clearly demonstrates the Company's capacity for future profits." Mr. Watkins added that although one can never be satisfied with losses, "the achievements in this six months, in the areas of design and productivity, allow us to be very pleased about the prospects of the future. We are clearly in a favorable position to take advantage of the opportunities in this market."
Kingsley Coach is a manufacturer of a unique, high quality, motorcoach on a heavy duty truck chassis. The unique design of the Kingsley Coach, with the engine in front, provides for several advantages over traditional rear engine units, including safety, durability, flexibility, and ease of service.
The Kingsley product line is designed for both recreational and commercial use and is produced in conjunction with a manufacturing alliance at the Thor America plant in Middleburg, PA with Thor America, Inc., a Thor Industries company, one of the largest RV manufacturers in the USA.
Mr. Watkins further said, "The Company has managed to get through its development phase without incurring substantial debt or otherwise leveraging its future. Our balance sheet is healthy. Further, we will shortly be releasing our results for the quarter ended September 30, 2000; as reported earlier, our sales will exceed $1.25 million, and we anticipate reporting profitable results. We are justifiably excited about Kingsley's place in the 21st century as an RV manufacturer."
For Information, Contact: Investor Relations Department: Tel: 570-837-7114; Fax: 570-837-7214. Kingsley's website is at www.kingsleycoach.com.
NOTE: This press release contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current plans and expectations of Kingsley and involve risks and uncertainties that could cause actual future activities and results of operations to be materially different from those set forth in the forward looking statements.
Important factors that could cause actual results to differ include, among others: the market strength of our competition; our ability to obtain requisite financing; and the difficulties faced in developing a national marketing network.