TUCSON, Ariz., Jan. 29, 2004 (PRIMEZONE) -- Renegade Venture (NEV.) Corporation (OTCBB:RDVN) announced operating results for its subsidiary Hamilton Aerospace Technologies, Inc. (HAT) for the fourth quarter and year ended December 31, 2003, and provided guidance for Renegade and HAT for 2004.
Operating Results
Total revenue for the fourth quarter for HAT was $2,539,533, up over 22% compared to $2,074,326 for the fourth quarter of 2002. Total revenue for 2003 was $15,066,167, up 200% compared to $5,009,703 for 2002. Following a larger than expected loss for the third quarter 2003, HAT's management shifted their focus from corporate growth to corporate profitability. This change in goals resulted in somewhat lower than expected revenues for 2003, but produced a record quarterly profit of $318,439 in the forth quarter, which was sufficient to overcome the earlier 2003 quarterly losses and show a small profit of $72,751 in HAT's unaudited December 31, 2003 financial statement.
John Sawyer, President of both Renegade and HAT commented, "Management is committed to building Renegade into a strong aerospace company generating over $50,000,000 in annual revenues within the next five years. At the same time we recognize that this type of growth can only be made on the foundation of a strongly profitable core business. Toward that end, we have been taking on only those contracts we know HAT to be well suited to perform successfully. This strategy dramatically improved HAT's profitability in the last quarter and further increased the already high level of customer satisfaction that HAT enjoys."
HAT was successful in attracting large new customers in 2003, which contributed some $2,000,000 (13%) of its revenues. Renegade expects to retain its working relationship with all of its current customers, as well as add additional customers in 2004.
"Our performance for 2003 was very strong in the face of the worst commercial aviation recession since the Great Depression," remarked Renegade and HAT Chairman Ian Herman. "We have not only weathered the extraordinarily adverse industry conditions, but managed to grow revenues 200% last year. A key component driving our growth has been our ability to retain existing customers and develop new customers, and that in turn has been driven by our sterling record in this industry for on-time and on-budget aircraft deliveries to customers."
2004 Guidance
HAT has already identified over $13,500,000 in revenues it expects for 2004, in addition to any presently unanticipated work provided by current customers and new business to be developed. HAT's management expects 2004 revenues to total close to $20,000,000 based on a projected 20% growth in its core aircraft maintenance business over 2003, augmented by approximately $2,000,000 in additional 2004 business from ancillary services offered by HAT such as aircraft modification, parts sales and consulting. Renegade anticipates net income for HAT before taxes of about $2,000,000 in 2004.
"We are very confident that our current business model will provide strong growth and profitability for both HAT and Renegade in 2004 and beyond," noted Mr. Sawyer. "The one and only factor keeping us from further improving our corporate growth and profitability has been our lack of proper funding. Financing our growth out of cash flow has been extremely difficult, yet we have done it. An infusion of equity capital, which we are confident will occur in 2004, will take this company to the next level."
Renegade Venture Results and Guidance
Renegade's consolidated financial results are undergoing audit and are not ready for release at this time. Renegade projects a loss for 2003 in spite of the profitability of its HAT subsidiary, primarily due to expenses at the parent level, such as professional services, stock-based compensation, accounting and similar costs. However, since its acquisition of HAT in May 2002, Renegade's revenue and profitability trend lines have been positive and Renegade fully expects to be profitable in 2004. Renegade will announce its consolidated financial results as soon as its audit is completed.
About Renegade Venture
Through its Hamilton Aerospace subsidiary, Renegade provides maintenance, repair and overhaul (MRO) services for large passenger jet aircraft to scheduled and charter airlines and aviation leasing companies. 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. 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.