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MBT International Announces Profitable First Quarter Fiscal 1999 Results Ended February 28, 1999
CASTLE ROCK, Colo.--(BUSINESS WIRE)--June 23, 1999--MBT International Inc. (OTC:MBTI - news), owner of the premier Internet web sites focused on e-commerce and auctions for the farming, agricultural and horse-related industries, today announced its first quarter results for the period ended February 28, 1999.
Revenues for the three months ended February 28, 1999 were $466,001. Net income for the three months ended February 28, 1999 was $54,245, or $0.005 per share on 11,801,246 weighted average shares outstanding. The profitable quarter is a direct result of increased brokerage sales, web storefront sales and banner advertising. In addition, management maintained close control of operating expenses. Unlike other e-commerce Internet companies who have seen their expenses spiral out of control, MBTI will continue with its strategic plan to control operating expenses and increase shareholder value.
Commenting on the first quarter results, Andy McKinnon, Chairman and CEO of MBTI, stated, ''Beginning in fiscal 1999 we shifted the strategic focus of the company to that of an e-commerce Internet business concentrated on the $300 billion agricultural market using a business model unlike anything on the Internet today. We have aggressively added to our agriculture-related web activities and are beginning to see substantial benefits:
BookStable.com specializes in equestrian book titles and includes agricultural and livestock-oriented books. By offering more than 6,000 titles for sale, including 50 magazines and almost 2,000 video titles, the web site has the potential to become an ultimate shopping destination in this industry. The Book Stable has been on line since 1995 and also markets a proprietary design of labels and business forms for the horse industry.
Horsenet.com is the leading Internet site for the purchase and sale of horses, livestock and farm equipment. It is one of the most visually helpful and easy to use agricultural web sites available today, offering over $87 million worth of agricultural machinery and related products.
''Since the launch of our on-line auction site and our acquisition of two leading agricultural web sites this quarter, our sales growth demonstrates our progress towards a leadership position on the web. In addition, we recently signed a letter of intent to acquire four more equestrian/agricultural web sites, which we expect to generate future revenues:
The Equestrianmall.com site has over 42,000 equestrian-related products and expects to offer over 150,000 products by year-end. In addition, its mail order catalogue reaches over 20,000 people with that number expected to increase to 200,000 by year-end. Along with Horsechat.com, page views per month for the sites are growing by approximately 30% per month. Equiseek.com and Equiauction.com are still under construction.
Andy McKinnon, Chairman and CEO of MBTI, added, ''This past quarter we announced our agreement to work with EchoStar Communications Corporation (NASDAQ:DISH - news, DISHP - news) and to offer our product lines to their very substantial customer base. In addition, MBTI signed agreements with the following companies: Triplus, a Trimac Company (TSE,MSE:TMA), to handle the freight component of the sales transactions; Texas Equipment (OTC:TEXQ - news) which is in the process of establishing a large storefront in AgriMall.com; and Silicon Graphics, Inc. (NYSE:SGI - news) for technological development. We continue to demonstrate the validity of our business strategy and the impact of our advertising campaign. We are very excited about the results for this quarter as they represent the Company's new focus and emergence as an e-commerce Internet business. We believe our current revenues are a good indication of our ability to grow and we are enthusiastic about the future.''
MBTI intends to file Form 10 and proceed with an application for Nasdaq listing as soon as possible.
MBTI has a database of over 400,000 and is the parent company of AgriMall.com (www.agrimall.com), Horsenet.com (www.horsenet.com), LifeAtHome.com (www.lifeathome.com) and Bookstable.com (www.bookstable.com). MBTI's strategy is to acquire content-rich, value-added and sophisticated yet navigable web sites, and to become a leader in the $300 billion agricultural industry. MBTI continually evaluates highly focused acquisitions that will further increase both the traffic and volume of e-commerce at its Agrimall.com site. MBTI applies methodologies currently in use by online auction and marketing.
For additional information on MBTI, please visit the Company's web site at www.mbtinet.com.
Certain statements in this release are forward looking. Although MBTI believes its expectations are based on reasonable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that actual results will not differ materially from its expectations. For factors that may cause actual results to differ materially from expectations and underlying assumptions, see reports by MBTI filed with the Securities and Exchange Commission.
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MCKINNON BROKERAGE TECHNOLOGIES LTD.
CONSOLIDATED STATEMENT OF EARNINGS AND RETAINED EARNINGS
FOR THE THREE MONTHS ENDED FEBRUARY 28, 1999
(expressed in US dollars)
1999
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REVENUES
Sales $ 466,001
GENERAL AND ADMINISTRATIVE
Amortization $ 16,637
Salaries $ 29,615
General & administrative expenses $ 365,504
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$ 411,756
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Net income $ 54,245
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Retained earnings, beginning of period $ 4,612,107
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Retained earnings, end of period $ 4,666,352
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Contact:
MBT International Inc., Castle Rock
Andy McKinnon, CEO
303/688-0244
Fax: 303/814-2382
or
Wolfe Axelrod Associates, New York
Stephen D. Axelrod, CFA
Jeffrey Volk
Allen Salzberg (Media)
212/370-4500
Fax: 212/370-4505 |
