Wednesday April 1, 7:31 pm Eastern Time
Company Press Release
Newriders Inc. Reports Increased Sales, Loss for the Year
NEWPORT BEACH, Calif.--(BUSINESS WIRE)--April 1, 1998--Newriders Inc., (Nasdaq Bulletin Board: NWRD -
news) the Newport Beach-based operator of the Easyriders Cafe motorcycle theme restaurants in Fresno, Calif., and
Myrtle Beach, S.C., Wednesday reported 1997 operating results.
Sales for the year ended Dec. 31, 1997 were $2.9 million, an increase of 152 percent over the $1.2 million reported for
the same period last year, reflecting the opening of the company's second Easyriders Cafe in May 1997.
The company reported a net loss for the year of $4.8 million or $(0.29) per share, up from a loss of $1 million or
$(0.07) per share last year. The increase in net loss was primarily attributable to a non-cash compensation expense of
$1.2 million related to the issuance of stock and stock options to members of the new management team and certain
consultants, non-cash interest expense of $311,000 related to the issuance and conversion of convertible notes, an
increase in selling, general and administrative expenses related to the expansion of corporate staff and increased
expenses incurred in furtherance of the intended acquisitions of Paisano Publications and El Paso Barbecue
Company. The company said that it is progressing towards the completion of these acquisitions.
In addition, the company wrote off approximately $628,000 in leasehold improvements in connection with the
remodeling and redesign of its Fresno Easyriders Cafe. This cafe is expected to re-open under the name Easyriders
Roadhouse Barbecue in June.
The company also said that it expects its Annual Report on Form 10-KSB to be filed with the Securities and Exchange
Commission within the next few days. The delay in filing is the result of the company's previously announced change
to new auditors; the subsequent administrative and accounting reconciliation process, and a finding by the new
auditors that some balance sheet elements of the 1996 financial statements will need to be restated.
Statements in this news release that relate to future plans, financial results or projections, events or performance are
forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended and fall under the safe harbor.
The company's actual results and financial position could differ materially from those anticipated in the forward-looking
statements as a result of a number of factors, including but not limited to, successful execution of the company's
expansion plans, impact of competition, the availability of additional financing and other risks.
Contact:
Newriders Inc., Newport Beach
Bill Nordstrom, 714/718-4630
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