Company Press Release
Bikers Dream Reports Third-Quarter Financial Results
Record Nine-Month Revenues
MIRA LOMA, Calif.--(BUSINESS WIRE)--Nov. 22, 1999--Bikers Dream Inc. (Nasdaq:BIKR - news) Monday announced its financial results for the third quarter of 1999 and 1999 year to date.
Revenues were $8,478,000 for the quarter ended Sept. 30, 1999, compared with $9,697,000 for the comparable quarter in 1998. The decrease of $1,219,000 is attributable to a decrease in sales at the company-owned retail stores of $677,000, together with missed motorcycle shipments at the factory level as a result of poor vendor performance.
Net loss was $686,000, ($0.13 per share) compared with net income of $613,000 ($0.15 per share) for the comparable quarter in 1998, both before the effects of preferred stock dividends and beneficial conversion feature granted to Series C Preferred shareholders.
The loss in the third quarter of 1999 additionally includes the impact of a systems change in processing certain transactions, which had the effect of accelerating the recognition of expense by approximately $200,000.
Revenues for the nine months ended Sept. 30, 1999, were $27,108,000, compared with $22,696,000 for the comparable period in 1998, an increase of 19.4%. Net loss for the nine months ended Sept. 30, 1999, was $325,000, compared with income of $115,000 for the comparable period in 1998, both before preferred stock dividends and the impact, in the 1998 period, of the beneficial conversion feature granted to the holders of Series C Preferred Stock.
The increase in sales of $4,412,000 represents an increase in shipments of the company's Ultra brand of motorcycles from the factory of $4,814,000 and a decrease from sales in the company-owned retail stores of $402,000.
Herm Rosenman, Bikers' chairman and CEO, commented: ``We are pleased with the increase in sales of the Ultra product. Our plans to increase the revenue and profitability of our company-owned retail stores are being re-evaluated and we are presently considering alternatives to realize the value of that asset.
``The third quarter of the year presents a financial challenge, given our current capital structure. We are currently exploring a variety of ways to improve our financial flexibility.'
Bikers Dream is a manufacturer, distributor and retailer of quality-built American heavyweight cruiser motorcycles. Corporate headquarters and manufacturing operations are located in Mira Loma.
Certain matters discussed herein are ``forward-looking' statements intended to qualify for the safe harbors from liability in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to certain risks and uncertainties, which could cause actual results to differ materially from those anticipated as of the date hereof. Specific factors that might cause such a difference might include, but not be limited to, those referenced by the company's filings with the Securities and Exchange Commission. The forward-looking statements contained herein are only made as of the date hereof and the company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
Bikers Dream Inc.
Financial Highlights
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30,
(As Restated, (As Restated,
(Unaudited) Unaudited) (Unaudited) Unaudited)
1999 1998 1999 1998
REVENUES $ 8,478 $ 9,697 $ 27,108 $ 22,696
COST OF GOODS SOLD 6,996 7,511 21,226 18,205
GROSS PROFIT 1,482 2,186 5,882 4,491
OPERATING EXPENSES
Selling, general and
administrative expenses 1,808 1,226 5,122 3,559
Depreciation and
amortization 172 135 499 380
Total expenses 1,980 1,361 5,621 3,939
OPERATING INCOME (LOSS) (498) 825 261 552
OTHER EXPENSE
Interest (expense) (193) (208) (594) (414)
Other income (expense), net 5 (4) 8 (23)
Total other (expense) (188) (212) (586) (437)
INCOME (LOSS) BEFORE
PROVISION FOR INCOME TAXES (686) 613 (325) 115
PROVISION FOR INCOME TAX -- -- -- --
NET INCOME (LOSS) before
Preferred Stock Dividends
and Beneficial Conversion
Feature (686) 613 (325) 115 115
Beneficial conversion feature
granted to Series C
Preferred Shareholders -- -- (318) (1,336)
Preferred stock dividends 71 270 -- 109
NET INCOME (LOSS) available
to Common Shareholders $ (615) $ 883 $ (643) $ (1,112)
(LOSS) PER COMMON SHARE:
Basic $(0.12) $ 0.21 $(0.13) $ (0.35)
Diluted $(0.12) $ 0.18 $(0.13) $ (0.35)
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING:
Basic 5,163 4,205 5,147 3,159/a
Diluted 5,163 5,035 5,147 3,159/a
(a) Adjusted for the company's 1-for-5 reverse stock split of
February 1998.
--------------------------------------------------------------------------------
Contact:
Bikers Dream Inc., Mira Loma
Herm Rosenman, 877/62-BIKER |
