Pre-release:
SANTA ANA, Calif.--(BUSINESS WIRE)--July 10, 1997--GT Bicycles, Inc. (NASDAQ:GTBX) today announced that it expects sales and net
income for the second quarter ended June 30, 1997 will not meet analysts' estimates.
The Company expects sales for the quarter to be approximately $51.0 million, and net income for the quarter to be in the range of $600,000 to $800,000,or $0.06 to $0.08 per share, before one-time relocation expenses of approximately $300,000 to $400,000. This would compare with net income of $2.2 million, or $0.22 per share, on sales of $44.1 million for the second quarter of 1996.
"We continue to see solid growth internationally, with total overseas sales expected to be up more than 80%, and comprising roughly 29% of sales," said Mike Haynes, President and CEO of GT Bicycles. "However, the domestic adult mountain bike market continues to be challenging, and poor spring weather impacted domestic results in all of our lines of business. Our Harley Davidson bike is an early success, and helped to offset the shortfalls elsewhere in the business.
"While sales for the first half of the year are disappointing, and will impact our performance for 1997, we continue to believe that all of our lines of business -- juvenile bikes, 'special' bikes, parts and accessories, and adult mountain bikes -- hold excellent long-term opportunity. We have a very strong market position both domestically and internationally, an exciting 1998 line planned for introduction, and our brand image and dealer loyalty are stronger than ever."
The Company expects to report its final second quarter results in early August.
The statements made in this news release are forward looking statements that involve risks and uncertainties. As discussed in the Company's annual report
on Form 10-K for the year ended December 31, 1996 and the Form 10-Q for the first quarter ended March 31, 1997, the Company's future operating
results are uncertain and may be impacted by the following factors, among others: cycles of dealer orders, weather, general economic and competitive
conditions, changing consumer trends, technological advances and the number and timing of new product introductions, shipment of products and
componentry from foreign suppliers, the timing of operating and advertising expenditures and changes in the mix of products ordered by independent
bicycle dealers.
GT Bicycles, Inc., is a leading designer, manufacturer and marketer of mid-to-premium-priced mountain and juvenile BMX bicycles sold under the
Company's GT(R), Powerlite(R), Robinson(R) and Dyno(R) brand names. The Company's Riteway Products distribution network is a leading distributor
of the Company's bicycles, parts and accessories, as well as parts and accessories of other manufacturers, to independent bicycle dealers. |
