Monday August 17, 4:52 pm Eastern Time
Company Press Release
REPEAT/Newriders Inc. Releases
Second-Quarter Results
NEWPORT BEACH, Calif.--(BUSINESS WIRE)--Aug. 17, 1998-- Newriders Inc. [OTC BB:NWRD - news], the
Newport Beach-based operator of the Easyriders Cafe restaurant concept, reported its second-quarter financial
results Monday.
For the three months ended June 30, 1998, the company reported a net loss of $3.97 million, or $0.23 per
share. The cumulative net loss for the six months ended June 30, was $5.2 million, or $0.30 per share.
Revenues for the three-month period were $610,000, a decrease of 12% from the $694,000 reported in the
same period a year ago.
The company attributes its losses to several factors, including $1.89 million in non-cash stock issuance expense
in fulfillment of an earlier commitment to the owner of Paisano Publications Inc. These shares were issued in
exchange for the forgiveness of certain accounts payable owed to Paisano Publications.
The company also recorded a loss of $632,000 on the sale of its Myrtle Beach, S.C., Easyriders Cafe to the
former chairman of the company, and incurred $904,000 of non-cash interest expense related to the issuance of
convertible debentures and warrants.
In addition, the company incurred substantial non-recurring legal and accounting expenses associated with its
intended business combination with Paisano Publications and its affiliated companies, and the El Paso
Bar-B-Que chain of restaurants.
The company has formed Easyriders Inc., a Delaware corporation, to be the holding company in the
reorganization, and on July 6, 1998, Easyriders filed a form S-4 Registration Statement with the Securities and
Exchange Commission with respect to the proposed business combination.
Upon the Registration Statement being declared effective, the company will submit a form of Prospectus/Proxy
Statement to the shareholders of Newriders seeking approval of, among other things, the proposed
reorganization.
Bill Prather, CEO of the company, and the designated CEO of Easyriders, stated: ''Newriders Inc. is carrying
the burden of the expense of our intended transaction, which presents a skewed picture. The combined entities
of El Paso Bar-B-Que and the Paisano group of companies have generated revenues of approximately $23
million through the first six months of 1998, and both entities are profitable and generating positive cash flow.
''If we could report the entire picture of the combined companies, you would see a much stronger company. But,
until the transactions are completed, Newriders, unfortunately, is taking the brunt of these unusual, non-recurring,
transaction related expenses without the benefit of the revenues.
''At this time all parties are working toward completing the reorganization. We have received comments on the
Registration Statement, and are preparing a responsive amendment.
''Once the SEC declares the Registration Statement 'effective,' and state 'Blue Sky' requirements have been
met, we will give notice to our shareholders of a meeting to vote on the deal, and if the shareholders give their
approval, which we certainly expect, we're off and running as Easyriders Inc. Personally, I can't wait. It's a
tremendous opportunity, and everyone involved with the company is enthusiastic about our future.''
This document contains forward-looking statements within the meaning of the Private Securities Litigation
Reform Act of 1995. These statements involve known and unknown risks and uncertainties that may cause the
company's actual results or outcomes to be materially different from those anticipated and discussed herein.
Contact:
Newriders Inc., Newport Beach
Bill Nordstrom, 714/718-4630
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