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Microcap & Penny Stocks : TGL WHAAAAAAAT! Alerts, thoughts, discussion. -- Ignore unavailable to you. Want to Upgrade?

To: Jim Bishop who wrote (116722)	7/15/2003 2:33:21 PM
From: Taki	Read Replies (1) \| Respond to of 150070

ALERT ESXS.02x.03.Just filed Q.Profits,Revenues up 85%. NINE MONTHS ENDED MAY 31, 2003 COMPARED TO NINE MONTHS ENDED MAY 31, 2002 pinksheets.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 its 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's has expanded operations and marketing activities, the company believes future revenues will continue to grow from current levels. Management believes the seasonality in its revenues will continue to be a factor in future periods, but may not impact the company as much as in previous years when the selling window grows wider. 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 better efficiency and lower costs from our new manufacturing facilities. The company experienced an increase in petroleum product cost where 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 the 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 a loss of aproximately ($116,000) for the same period in fiscal 2002. The increase in profit is attributed to the increased demand for our product and the efficiencies we have established in our manufacturing processes. LIQUIDITY AND CAPITAL RESOURCES Cash and cash equivalents totaled approximately $10,800 at MAY 31, 2003 compared to approximately $9,000 at August 31, 2002. Current assets totaled approximately $228,000 at MAY 31, 2003 providing the Company with a current ratio of 0.97 when divided by its current liabilities of approximately $234,000. The company plans to expand by evaluating potential acquisitions and joint ventures, and the success of those efforts may require additional bank debt, equity financing, or private financing. The Company may require additional capital to fund future operating requirements, as well as to fund any new business venture. The Company has been exploring various alternatives to raise new capital, but there can be no assurances, that the Company will ultimately be successful in this regard. BACKLOG Last year at this time of the year we had only a $30,000 Backlog. This quarter with the on going upgrade to the new safety rules mandated by the NCAA and NFHS, the Company has secured an additional $150,000 back log in orders in the system for one of its most profitable products.