MILFORD, Iowa, Feb. 4, 2004 (PRIMEZONE) -- Cycle Country Accessories Corp. (AMEX:ATC), the outright leader in developing and manufacturing select custom-fitting accessories for the all-terrain vehicle (ATV) and other diversified industry products, announces record revenues for the three months ended December 31, 2003 increasing $1,229,803 (27.9%) to $5,643,856 over the same period last year. Net income increased $210,830 (109%) to $404,110.
The increase in sales of Snowplow Blades, the company's mainstay product, of approximately $1,041,000, and original equipment manufacturer (OEM) products, of approximately $138,000, were primary factors in this record-breaking quarter. Increased revenue was also shown by increased sales of Weekend Warrior lawn and garden products.
First quarter highlights:
* Revenues increased 27.9% to $5,643,856.
* Net income increased 109% to $404,110.
* General operating expenses decreased $10,173 or 1.4%, to
$733,027 while revenues were increasing.
* Net cash provided by operating activities rose by 177% to
$1,433,040.
* A $1 million credit line remains unused after paying off
$420,000 balance.
* A record backlog for the company's signature product,
Snowplow Blades.
* Margins are returning after the implementation of the
quality initiative combined with OEM business and
price increases.
* Continuing to see positive impact from management's
initiative to cut/maintain costs.
Second Quarter Preliminary Highlights:
* Capacity production levels through the 2nd week of March
to fill backlog on blades.
* Orders of Quicksilver mowers and Rough Cut mowers more than
doubles from last year.
* Large scale product innovation to release over 30 products
this year.
* Recent Top100 influential companies in Powersports survey,
January, 2004 issue of Powersports Business.
* New entrants into ATV market including John Deere.
* Expected record sales of ATVs by all manufactures
including PII, ACAT.
* International increase and anticipated continued growth.
"The company is very pleased with the many positive results for this most recent quarter," said Ron Hickman, CEO and President of Cycle Country Accessories. "We anticipate that revenues and income for each of the remaining quarters of fiscal 2004 will exceed the results of fiscal 2003. We continue to address seasonality issues, expand into new markets, increase products produced for OEM's and strengthen the market-leading positions of our current products to provide strong, positive financial results."
About Cycle Country Accessories Corp.
Cycle Country, http://www.cyclecountry.com, with over 50% of the worldwide market in several product categories, is the industry leader in the design, engineering and manufacturing of custom-fitting accessories for the utility all-terrain vehicle (ATV).
Since 1981, Cycle Country has developed an extensive line of branded products of snowplows, lawnmowers, spreaders, sprayers, hitches and many other utility equipment items along with recreational accessories. The Company's products custom fit virtually every brand of ATV on the market, which are distributed to essentially all ATV and motorcycle dealers in North America.
The Company has 19 international distributors that sell Cycle Country products in 35 countries throughout Asia, Europe, Central and South America.
Additionally, Cycle Country dominates the golf car wheel cover market by manufacturing approximately 90% of all wheel covers sold to original equipment manufacturers worldwide. The Company sells high performance premium oil filters for motorcycles and ATVs throughout the U.S. under the brand name Perform Products. They also manufacture heavy-duty garden equipment attachments for garden tractors, ATVs and other utility vehicles within the Lawn & Garden industry under their brand name Weekend Warrior.
For the latest SEC filings or past news releases, go to the company's website at http://www.cyclecountry.com and click on the Investor Relations heading. Please direct any financial questions to Todd Doom at Magellan Financial Media Group, LLC. (317) 413-7990.
Cycle Country Accessories Corp: 2188 Hwy. 86, Milford, Iowa 51351, 800.841.2222.
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."