NEWS!!!!
Ad-HaTTeRs Year-End Results To Exceed Analyst Expectations
- Ad-HaTTeRs to report first profitable year -- vs. expected loss -
CENTENNIAL PARK, Ariz., April 6 /PRNewswire/ -- Ad-HaTTeRs, Inc., a unit of Coconino S.M.A., Inc. (OTC Bulletin Board: CSMA), reports that its fiscal year ending in May will exceed analyst expectations by 30%, or more than $2 million in revenues -- and be profitable.
According to Ad-HaTTeRs' president, David Timpson, "We are confident that Ad-HaTTeRs will meet this revised projection, given that our third quarter revenues were up 50% over the previous quarter and exceeded projections by 60%.
"While there was a projected loss for the final two quarters of our fiscal year, we now expect Ad-HaTTeRs to report a significant profit for these periods resulting in the company's first profitable fiscal year."
Timpson attributed the extraordinary gains to sales of new products, newly-designed in-store displays, and greater market penetration.
The new Dream Catcher air freshener has become one of Ad-HaTTeRs' most popular products, garnering weekly sales gains. The company has also added a new scented Mandella Shield and Prayer Feather to its Native American-derived line of products and a scented Rio Concho to its western series.
Auto Zone, the nation's largest chain of auto parts distributors -- with more than 1700 stores -- received its first shipment of Ad-HaTTeRs products in March, joining established accounts such as Pep Boys, CSK Auto, and Western Auto (a Sears & Roebuck subsidiary).
"The company's new product displays are proving to be so compelling that distributors are opening up new sales in grocery and mass-merchandising areas," said Timpson. "This represents important market gains beyond Ad-HaTTeRs' traditional auto-aftermarket segment."
Giant mass-merchandisers Wal-Mart and K-mart are expected to begin offering Ad-HaTTeRs products within the next few weeks, adding to other large national grocery chains, including Publix, Smiths, Albertsons, and Fred Meyers.
"Our fiscal '98 has been exciting and rewarding for all associated with Ad-HaTTeRs," said Timpson, "and it demonstrates the power of our new business strategy. We expect our success to gain momentum in fiscal 1999 and create another banner year. We offer the best products in our market niche and our distribution partners are unparalleled in terms of market dominance and service."
Timpson also reported that Ad-HaTTeRs has obtained an additional line of credit which will reduce financing costs by approximately 35%. While the company has maintained minimum long term debt, this financial support will be available as needed to facilitate the company's escalating market expansion.
An institutional research firm, M3 Research of Dallas, Texas, issued a nine page report on Coconino in January, 1998. For more information, please contact M3 at (940) 825-3034.
Coconino S.M.A. is a diversified company that offers consumer products and services through two subsidiaries, Ad-HaTTeRs, Inc. of Centennial Park, Arizona, and LPS, Ltd., of Las Vegas, Nevada. The company is also involved in natural resources development through its Coconino Oil & Gas, Inc. subsidiary located in Roswell, New Mexico, and non-toxic waste disposal through its Enviro-Tec, Inc. subsidiary, with offices in Salt Lake City, Utah and Roswell, New Mexico.
This release may contain forward looking statements that involve risks and uncertainties, including, without limitation: continued acceptance of the company's products and services; increased levels of competition, new products and technological changes; the company's dependence upon financing, third- party suppliers, and intellectual property rights; government regulation; and other risks detailed from time to time in the company's federal filings, annual report, offering memorandum, or prospectus. Mention of the M3 Research report is for informational purposes only, and the company does not necessarily agree or disagree with the content or conclusions of the report.
SOURCE Ad-HaTTeRs, Inc.
CO: Ad-HaTTeRs, Inc.
ST: Arizona
IN:
SU: ERP
04/06/98 07:15 EDT prnewswire.com
Brady B |
