TUCSON, Ariz., Nov. 13, 2003 (PRIMEZONE) -- Renegade Venture (NEV.) Corporation (OTCBB:RDVN) today announced its consolidated operating results for Renegade and its wholly owned subsidiary, Hamilton Aerospace Technologies, Inc., for the third quarter of 2003, in advance of its quarterly report, which it expects to file today. All commercial operations are conducted in Hamilton Aerospace, whose revenues consist primarily of revenues received for maintenance, repair, overhaul and modification (MROM) services to large commercial jet aircraft and sales of materials consumed while providing services.
Results for Q3 ended September 30, 2003, reflect the continued upward trend in revenues. Consolidated operating revenues for Q3 were approximately $5.1 million, which is over 3.5 times greater than 2002 Q3's $1.4 million and greater than the $5 million of revenues for all of 2003. Consolidated revenues for the first nine months of 2003 were approximately $12.5 million. Management believes that total revenues for 2003 will be between $16 and $17 million, or well over 3 times 2002 revenues. The acceleration in revenue for Q3 is attributable primarily to increasing the hours billed performing core MROM services and in no small part to seizing the opportunity to purchase and resell three Boeing 737-200 aircraft.
Renegade President and Chief Operating Officer John B. Sawyer stated, "We are continuing the strong growth we have promised all along. We are proud of the fact this company has delivered such strong growth, and in fact was launched, in the face of the worst aviation downturn since the Great Depression."
Renegade's consolidated gross profit for the Q3 2003 (calculated after deducting cost of sales but before overhead costs) was $626,351, which was over five times the gross profit for Q3 2002 and greater than the gross profit for the entire 2002 operating year. On a consolidated basis, Renegade experienced a $901,316 loss for Q3, of which $437,000 (or almost half) was attributable to common stock transactions and was a non-cash loss. Only $464,316 of the total loss was attributable to operations. Operating losses are due in part to lower than expected July revenues, caused by a delay in the start of contracted work, and to parts cost overruns in a fixed-price overhaul job.
Considered on a standalone basis, Hamilton Aerospace itself lost $279,138 in Q3, which is less than one third of the quarter's consolidated loss, and which compares to a loss of $475,985 for the same quarter of 2002, which occurred on just $1.4 million in revenues.
Mr. Sawyer also noted that, "Since inception, Renegade has relied upon borrowings under a secured bridge facility, financing of its receivables, and cash provided by operations to meet our working capital requirements. It is very difficult to grow and expand primarily out of cash flow, but we have done it. Profits and even gross revenues have been hurt chiefly by the lack of equity capital, which has been difficult for small companies to raise in the last couple of years. Even a modest infusion of capital would transform our ability to increase revenues and achieve lasting profitability. We are hopeful of obtaining meaningful equity funding before year's end. "
Total assets decreased from $4,687,024 as of June 30, 2003, to $3,465,190 at September 30, 2003. This reduction in assets is primarily due to a decrease in accounts receivable of over $489,000 that were paid upon the sale of aircraft, and to a decrease of over $914,000 in other current assets due to the sale of aircraft. These assets and receivables were booked in the second quarter and sold in Q3. During Q3 total liabilities decreased almost $800,000, from $5,862,582 at June 30, 2003 to $5,087,066, primarily due to decreases in trade payables.
About Renegade Venture
Through its Hamilton Aerospace subsidiary, Renegade maintenance, engineering and modification services to scheduled and charter airlines and aviation leasing companies for large passenger jet aircraft. Hamilton Aerospace holds a Federal Aviation Administration (FAA) Part 145 Air Agency Certificate, which allows it to perform such services. Hamilton operates from facilities comprising about 21 acres located at Tucson International Airport. These facilities include hangars, workshops and other buildings. Notable Hamilton customers include Jetran International, United Parcel Service, a Boeing Company joint venture, Goodrich Corporation, DHL Worldwide Express, Pegasus Aviation, Ryan International Air, Space World and Falcon Air Express.
Renegade's member website is located at www.renegadeventurecorp.com, and shareholders and other interested persons are urged to join. Members receive the Renegade Aviation Newsletter, email alerts of press releases and SEC filings, and other great benefits. Membership is absolutely free and it only takes a couple of minutes to join at www.renegadeventurecorp.com/register.htm. The Hamilton Aerospace website is located at www.hamaerotech.com.
Except for the historical information presented, the above statements are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 or regulations thereunder. These forward-looking statements are subject to risks and uncertainties, and actual results may differ materially. These risks include the economic health of the airline industry, demand for Hamilton Aerospace's services, competitive pricing pressures, and the availability of necessary financing. In addition, other risks are detailed in Renegade's Form 10-KSB filed on April 15, 2003. These statements speak only as of above date, and Renegade disclaims any intent or obligation to update them.