MILFORD, Iowa, April 20, 2004 (PRIMEZONE) -- 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 carts, is pleased to announce preliminary results for the second quarter of fiscal 2004. Revenues increased 99% from $2.826 million to $5.629 million. Net income after provision for income taxes grew to $448,000 versus $16,791 in the same period last year.
Continued strength in sales of snowplow blades, Cycle Country's signature product, along with original equipment manufacturer (OEM) products and lawn and garden accessories led to the record second quarter results. Cycle Country continues to have a backlog of orders for lawn and garden accessories as dealers restock their inventories.
Second Quarter Highlights:
-- Explosive growth in revenues and net income.
-- Operating expenses as a percentage of revenues dropped
to 18.7% from 31.7% last year.
-- Increased demand for OEM products continues to lessen
seasonality of ATC's revenues.
-- Margin expansion directly benefiting from management's
cost control initiatives.
Six-Month Highlights:
-- Gross revenues increased 55% to $11.73 million. -- Net income climbed to 7.7% of sales versus 2.9% last year. -- Gross revenues 29% higher than board approved budget.
"The Company is very pleased with the many positive results for this most recent quarter," said Mr. Ron Hickman, CEO and President of Cycle Country Accessories. "As we continue compiling second quarter results, management wanted to share Cycle Country's preliminary results with our shareholders. The numbers continue to exceed the results that we expected, which represents a continued increase in demand for our products and a continued emphasis on controlling costs."
About Cycle Country Accessories Corp.
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 (ATVs). Since 1981, Cycle Country has developed an extensive line of branded recreational accessories and utility equipment including snowplows, lawnmowers, spreaders, sprayers, and hitches found at essentially all North American ATV and motorcycle dealers under the brand names: Cycle Country, Perf-form and Weekend Warrior. The Company's products are sold through 17 domestic and 19 international distributors in 37 countries throughout North America, Asia, Europe, Central and South America.
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) 867-2839.
Cycle Country Accessories Corp: 2188 Hwy. 86, Milford, Iowa 51351, (800) 841-2222.