ESXS.03.Good news.Turn profit.(COMTEX)B: EssxSport Corp. Exceeds Annual Projection With Increased Margi
s and Revenues in Its Third Quarter
B: EssxSport Corp. Exceeds Annual Projection With Increased Margins and Revenues
in Its Third Quarter
SUN VALLEY, CA, Jul. 24, 2003 (MARKET WIRE via COMTEX) -- EssxSport Corp (OTC:
ESXS) recently filed its third Quarter 10QSB.
Bruce Caldwell, EssxSport President and CEO stated, "EssxSport continues to move
in the proper direction. Sales are up, expenses are well managed and gross
margins are where we need them to be." He added, "Management would also like to
announce that we have increased our annual projection by 20% over prior
projections for the year ending August 31, 2003."
Further details for our most recent filings can be found at
investor.essxsport.com.
NET SALES
Net sales for the nine months ended May 31st 2003, increased by approximately
$483,000 or 85%, compared to the same period in 2002. The company attributes the
growth in revenues for this period to brand awareness through marketing
activities, and new, safer rules mandated by the governing rule committees for
sports, for which our products comply. As a result, the company has expanded
operations and marketing activities.
GROSS PROFIT
Gross profit for the nine months ended May 31, 2003 increased by approximately
$366,000, or 137%, compared to the same period in 2002. As a percentage of
sales, gross profit for the nine months ended May 31, 2003, increased to 60%
compared to 47% for the same period in 2002. This increase is primarily due to
greater efficiency and lower costs from our new manufacturing facilities. The
company experienced an increase in petroleum product cost; however,
contingencies were built in to maintain gross margins over previous quarter's
numbers as expected.
OPERATING EXPENSES
Operating expenses for the nine months ended May 31, 2003, increased by
approximately $208,000, or 54% compared to the same period in 2002. The increase
is predominantly due to increased expenses of labor cost for overtime and
additional part-time help required to move product through the seasonal window.
As a percentage of sales, operating expenses for the nine months ended May 31,
2003 decreased to 57% from 68% for the same period in 2002.
NET INCOME (LOSS)
The Company's net income increased to $38,000 for the nine months ended May 31,
2003, compared to a loss of approximately ($116,000) for the same period in
fiscal 2002.
Safe Harbor Statement under the Private Securities Litigation Reform Act of
1995: The statements contained herein that are not historical are
forward-looking statements that are subject to risks and uncertainties that
could cause actual results to differ materially from those expressed in the
forward-looking statements, including, but not limited to, certain delays beyond
the Company's control with respect to market acceptance of new technologies or
products; delays in testing and evaluation of products; and other risks detailed
in the Company's information package available upon request from the Company.
CONTACT: Bruce Caldwell
President and CEO
EssxSport Corp |
