DETROIT, Mich., March 30, 2004 (PRIMEZONE) -- Ideal Accents, Inc. (OTCBB:IACE), which today filed a form 10K with 2003 full year results, said that despite a second half slowdown in new car sales in Michigan which lowered its sales, and substantial one time costs incurred in connection with going public, its 2003 loss was only slightly higher than results it reported in 2002 which also included one time costs.
The company, whose long term goal is to expand beyond the Michigan market through the acquisition of up to 100 auto accessorizing shops nationally, said that the loss in 2003 was $1,388,521 on sales of $7,573,344. This compared with a loss in 2002 of $1,235,251 on sales for the year of $8,773,668.
Full details of the company's results as reported in its 10K filing are accessible on the Ideal website located at www.idealaccents.com.
Turnaround Anticipated by Year End
According to Joe O'Connor, Ideal's Chairman and CEO, "Lackluster new car sales are continuing to affect our home base in Metro Detroit, where sales of domestic autos in particular have been very soft and represent a much larger proportion of new car sales than in most other states. We don't know how long this may continue, but it underscores that our strategy to diversify our geographic exposure and grow nationally makes a lot of sense, and we are doing everything we can to accelerate the process. Meanwhile, a parallel focus on cost reduction should permit us to achieve the turnaround by year end."
Mr. O'Connor stated further, "Our approach to cost reduction is an innovative one that we've had under development and will unveil very shortly. It's a strategy that will improve delivery of our services while reducing our fixed costs significantly, not only in the current areas we serve, but in new locations we intend to acquire going forward. This new model for our business also will greatly expand our geographic reach in each area we serve now and in the future."
Acquisitions Anticipated to Increase Annualized Sales up to 50%
According to Mr. O'Connor, "We continue to press ahead to achieve our goal of acquiring or opening up to five new shops this year. If accomplished, this would translate into an annualized sales increase of up to 50%. We are engaged in a number of preliminary discussions and are also pursuing financing avenues that may be available to us."
About Ideal Accents
Ideal Accents, Inc. (OTCBB:IACE), headquartered in Detroit, MI, is in the business of accessorizing cars and trucks at the new vehicle dealer level. An ISO 9001 certified company, Ideal is licensed by leading tier one suppliers to Original Equipment Manufacturers ("OEMs") like GM, Ford and Toyota to sell and install their accessory products on vehicles in the aftermarket. The company and its subsidiaries have over 100 employees at facilities in Metro Detroit, Lansing, Michigan and Toronto, Canada.
Working directly with and compensated by auto dealers in each area, Ideal installs products that speak to the automotive-related styling and functional needs of customers. These products include sunroofs, leather seats, wheels, keyless entry, GPS navigation systems, TV's, DVD's, CD changers, truck accessories and performance enhancement parts. According to SEMA, a leading market research company in the auto industry, the multi-billion dollar auto accessory business enjoys a steady average annual growth rate of approximately 7.5%.
Additional information about the company can be found on its Web site at www.idealaccents.com, including the company's filings with the SEC.
SAFE HARBOR Information in this news release or on the website may contain statements about future expectations, plans, prospects or performance of Ideal Accents, Inc. that constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. The words or phrases "can be," "expects," "may affect," "believed," "estimate," "project," and similar words and phrases are intended to identify such forward-looking statements. Ideal cautions you that any forward-looking information provided by or on behalf of Ideal is not a guarantee of future performance. None of the information on the website constitutes an offer to sell securities or investment advice of any kind, and visitors should not base their investment decisions on information contained in the website. Ideal Accents, Inc.'s actual results may differ materially from those anticipated in such forward-looking statements as a result of various important factors, some of which are beyond Ideal's control, in addition to those discussed in Ideal's press releases, public filings, and statements by Ideal's management, including, but not limited to, Ideal's estimate of the sufficiency of its existing capital resources, Ideal's ability to raise additional capital to fund future operations, Ideal's ability to refinance or repay its existing indebtedness. All such forward-looking statements are current only as of the date on which such statements were made. Ideal does not undertake any obligation to publicly update any forward-looking statement to reflect events or circumstances after the date on which any such statement is made or to reflect the occurrence of unanticipated events.