Message #20 From:
NewsBot Date: December 29, 2006 01:00:00 PM
ATC News Cycle Country Announces Annual Results
MILFORD, Iowa--(BUSINESS WIRE)--Cycle Country Accessories Corp. (AMEX:ATC), the recognized
leader in developing and manufacturing a variety of products for the all
terrain vehicle (ATV), garden tractors, and golf cars, today announced
its earnings of .08 cents per share for the year ended September 30,
2006 and .15 cents per share for the year ended September 30, 2005.
These figures are based on fully diluted shares of 7,271,966 as of
September 30, 2006 compared to 5,578,106 shares as of September 30,
2005. Earnings would have been per the previously announced guidelines
of .10 - .12 cents per share except for certain extraordinary and
not-recurring expenses.
Gross profit as a percent of revenue for the year ended September 30,
2006 rose 5.9% and gross profit in dollars increased $740,184 to
$6,074,238. Gross profit for the year ended September 30, 2005 was at
$5,334,054.
Total Revenue declined by 4.2%, or $717,249 with revenue at $16,464,214
for the year ended September 30, 2006 compared to $17,181,463 for year
ended September 30, 2005.
The decrease in revenues for the fiscal year was mainly attributable to
the ATV accessories business segment, which had a decrease in sales of
approximately 17% this year compared to last year. The sale decline was
primarily due to the warmer winters’ impact on
snow plow sales and the consumers reduction in discretionary spending
due to higher gas prices. However, each of Cycle Country’s
other three business segments experienced increases in sales for this
fiscal year compared to the fiscal year ended September 30, 2005.
Contract Manufacturing increased approximately 155%, Weekend Warrior
increased approximately 139%, and the Plastic Wheel Cover business
segment increased approximately 22%.
Cycle Country Accessories’ CFO, Dave Davis
noted, “We grew our revenue in dramatic
fashion in three of our four divisions when you look at the full year
comparisons. Our contract manufacturing segment increased 155%, Weekend
Warrior increased 139%, and our Plastic Wheel Covers division rounded
out the double-and-triple digit increases of 22%.”
Randy Kempf, Cycle Country Accessories’ new
CEO noted his confidence and enthusiasm moving forward. “A
comprehensive business plan is being developed and many action items are
already being implemented to turn this company back into a strong,
growing and vibrant company that every employee, director and investor
will be proud to be part of,” said Mr. Kempf.
About Cycle Country Accessories Corporation
Cycle Country, with over 50% of the worldwide market in several product
categories, is the industry leader in the design and manufacturing of
custom-fitting accessories for virtually every brand of utility
all-terrain vehicles (ATV’s). Cycle Country
also produces accessories for the lawn and garden market through its
subsidiary, Weekend Warrior and makes high performance oil filters for
the motorsports industry through its wholly owned subsidiary, Perf-Form.
In April of 2005, Cycle Country acquired Simonsen Iron Works, now
operating as Cycle Country, Spencer, providing metal fabrication.
This press release does not constitute an offer to sell or the
solicitation of any offer to buy any securities of Cycle Country
Accessories Corporation, nor shall there be any sale of any such
security in any state in which such offer, solicitation or sale would be
unlawful prior to the registration or qualification under the securities
laws of any such state. Forward looking statements: This press release
and other statements by Cycle Country may contain forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act with respect to the outlook for earnings and revenues, other
future financial or business performance, strategies and expectations.
Forward-looking statements are typically identified by words or phrases
such as “believe,”“expect,”“estimate,”“potential,”
or future/conditional verbs such as “will,”“should,” and “could.”
