TORRANCE, Calif., Sept. 13, 2007 (PRIME NEWSWIRE) -- Execute Sports Inc. (OTCBB:EXCS), a company engaged in the design, manufacturing and sale of water sports products, issued the following update today regarding the perceived benefits of its recent acquisition of Sugar Sand boats.
Commenting on the benefits of purchasing Sugar Sand, Execute Sports CEO Geno Apicella stated: "The deal is a monumental achievement for Execute Sports. We now have the exciting opportunity to drastically expand our business through avenues that were unreachable through our previous business model."
Mr. Apicella further commented, "Our continued relationship with Challenger Powerboat Inc. and the Sugar Sand team will further enable Execute to leverage the industry-proven expertise and highly esteemed operational resources of two well-respected entities into the development of a highly successful, well-diversified, water sports organization. Now comprised of two mutually beneficial, complementary business segments, our company is much better positioned for future growth than it was even a short time ago. Further, the purchase of Sugar Sand provides access to an enhanced global dealer network and allows us to position Execute Sports branded products in front of an exponentially larger potential customer base than ever before."
Benefits of the acquisition include but are not limited to:
Financial - Execute Sports is expected to realize significant financial improvements over the near-term as well as over the next two to five years. The extremely positive impact of the Sugar Sand purchase will be reflected almost immediately as 2008 revenues approach $10 million, marking a 400% increase over 2006.
Financial - Federal law mandates that all recreational boats must carry one wearable PFD (Personal Flotation Device) for each passenger aboard. Further, state laws in many regions require all children under the age of 12 to wear a PFD at all times when boating. This situation creates a unique cross-selling opportunity for Execute Sports since all jet boat sales should in theory, facilitate increased consumer purchases of and exposure to rubber segment products.
Operational (general) - The acquisition of Sugar Sand improves operational efficiencies for Execute Sports dramatically. Sugar Sand, which netted $7.7 million in sales on 381 boats during 2006, brings with it a deep pool of resources including a highly esteemed sales and administrative team, in addition to its vast manufacturing and distribution capabilities.
In a testament to the quality of Sugar Sand's distribution network, Crystal-Pierz Marine, one of the company's key affiliates was recognized among more than 220 exhibitors at the Minneapolis Boat Show this year for the dealer's Centurian/Sugar Sand display, which took top honors as Best Show Display.
Operational (Sales) The Sugar Sand sales force, which is pegged for expansion in 2008, has exhibited a proven ability to open an increasing number of new accounts and place products with a growing global dealer network. Moving forward, the expertise of Sugar Sand personnel is expected to not only result in greater exposure and sales of jet boats, but will also increase the number of dealers that will get their first look at Execute Branded products.
International Exposure: Sugar Sand jet boats were recently exhibited at The Stockholm International Boat Show, the largest boat show in the Nordic countries. With more than 24 million consumers, the region is amongst the wealthiest in the world representing an enormous opportunity for Execute Sports Inc.
Market Exposure: Bringing aboard the Sugar Sand business creates a valuable inroad into the surging water sports market (wakeboarding, water skiing, slalom, PWC, and barefoot tournaments), a key segment of the $12 billion action sports industry.
About Execute Sports, Inc.
Based in Torrance, California, Execute Sports, Inc. develops performance products including wetsuits, vests, and rash guards for the action sports industry. The Company's brands include Execute Wetsuits, Vests, Accessories and Wakeskates. Execute branded products can be found online at retailers such as The Sports Authority, Dick's, Sport Chalet and Amazon.com. For a full listing of on-line retailers, please visit the company website at http://www.executesports.com.
Additional company information, press releases and general commentary can be viewed by visiting http://www.microstockprofit.com
Certain statements in this press release are forward-looking as defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include expectations regarding the ability of the company to continue its growth and the financial performance thereafter. These statements involve certain risks and uncertainties that may cause actual results to differ materially from expectations as of the date of this release. These risks include the ability to accomplish goals and strategies, anticipated revenue enhancements, general economic conditions and the level of consumer spending, and numerous other factors identified in the Company's Form 10-KSB and other filings with the Securities Exchange Commission.