August 16, 1999 13:16
Bikers Dream Inc. Reports Record Second Quarter
Revenue and Profits
MIRA LOMA, Calif.--(AutomotiveWire)--Aug. 16, 1999--Bikers Dream Inc.
(Nasdaq:BIKR) Monday announced record revenues and profits for the second
quarter of 1999.
Revenues were $9,867,429 for the quarter ended June 30, 1999, compared with
$8,121,021 for the comparable quarter in 1998, an increase of 22%. Net
income for the quarter ended June 30, 1999 was $233,592, or $0.04 per share,
on approximately 5.1 million shares, compared with $207,440 or $0.07 per
share, on approximately 2.7 million shares, for the comparable quarter in 1998,
an increase in net income of 13%.
Revenues for the six months ended June 30, 1999 were $18,630,157,
compared with $13,113,809 in 1998, an increase of 42%. Net income for the
six months ended June 30, 1999, was $361,529 or $0.07 per share, on
approximately 5.1 million shares, compared with a net loss of $(477,656) or
$(0.18) per share, on approximately 2.7 million shares. The increase in net
income was 176%. Per share amounts for each of the first quarters and
six-month periods exclude the effects of the beneficial conversion feature
applicable to the Series C and Series D Convertible Preferred Stock.
Herm Rosenman, Bikers' Chairman and CEO commented, "We are pleased
with the results of the second quarter of 1999. Revenues were significantly
higher and we achieved record profitability, notwithstanding our move to a new
headquarters and manufacturing facility. The move cost us about 150 units of
production that could have been shipped during the quarter, as well as direct
moving-related costs.
"In addition to our positive operating progress, the Company continues to
pursue strategic marketing and distribution relationships such as it has in
place with Speedvision, Castrol and Costco."
In addition to announcing the results for the second quarter, management has
completed its review of the 1998 fourth quarter unusual inventory adjustment of
approximately $2 million. In addition to this review, the Audit Committee of the
Company's Board of Directors engaged an independent auditing firm, not
associated with the Company or its current independent accountants in any
way, to perform certain agreed upon procedures designed to assist in the
determination of the causes of the adjustment and to provide management with
information regarding strengthening internal controls. Based on the results of
these reviews, management has concluded that significant material handling
and warranty control weaknesses existed during 1998. Management believes
that it has identified and corrected such weaknesses to provide reasonable
assurance that its control objectives will be met.
Concurrent with the Company's move to its new headquarters and
manufacturing facility during the second quarter, a bonded warehouse was
implemented to receive and issue material into production. In addition, the
production management function has been reorganized and substantially
strengthened and a new material control function has been added. The
Company's production control system and related employee training were also
significantly upgraded.
Bikers Dream is a manufacturer, distributor and retailer of quality-built
American heavyweight cruiser motorcycles. Corporate headquarters and
manufacturing operations are located in Mira Loma.
Certain matters discussed herein are "forward-looking" statements intended to
qualify for the safe harbors from liability in the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements are subject to certain
risks and uncertainties, which could cause actual results to differ materially
from those anticipated as of the date hereof. Specific factors that might cause
such a difference might include, but not be limited to, those referenced by the
Company's filings with the Securities & Exchange Commission. The
forward-looking statements contained herein are only made as of the date
hereof and the Company undertakes no obligation to publicly update such
forward-looking statements to reflect subsequent events or circumstances.
CONTACT: Bikers Dream Inc., Mira Loma
Investor Relations
877/62BIKER
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