Bikers Dream Reports 1997 Year End Results and Closing of $3.9 Million Private Placement.SANTA ANA Santa Ana, city, El Salvador Santa Ana (sän'tä ä`nä), city (1993 pop. 129,873), W El Salvador. It is the second largest city in the country and the commercial and processing center for a sugarcane, coffee, and cattle region. , Calif.--(BUSINESS WIRE)--April 16, 1998--Bikers Dream Inc. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB:BIKRD) reported year end results for the period ending Dec. 31, 1997. Revenue for the year increased 66 percent, to $14,924,987, compared with $8,996,659 for the fiscal year ended Dec. 31, 1996. Net losses increased 27 percent to $5,116,984 in 1997, from $4,030,168 in 1996. Losses per share were $2.54 in 1997 compared with $2.95 in 1996. The growth in revenue was primarily due to the Motorcycle division, which was not a part of the company in 1996, and higher revenue from the Retail Stores division. The increase in net losses was due to the losses incurred from the Motorcycle division, offset by a decrease in losses from the Retail Store division. The weighted average shares outstanding were 2,018,075 in 1997 compared with 1,364,818. As of Dec. 31, 1997, the company had approximately 2,538,845 common shares outstanding, and 3 and 1,296,299 Series A Preferred and Series B Preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. outstanding, respectively, which represent approximately 1,373,299 common equivalents. All per share amounts have been adjusted to reflect the company's 1 for 5 reverse stock split, which occurred in February, 1998. The company also announced today the completion of a private placement of $3.9 million in Series C Preferred Stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. , which will aid the company in the execution of its 1998 Business Plan. The company's current production plans call for an increase in motorcycle manufacturing in 1998. Herm herm, in Greek art herm (hûrm), in 6th-century Greek art, vertical pillar surmounted by a bearded human head and often having a phallus below. These structures were considered sacred to Hermes. Rosenman, president and chief executive officer stated: "1997 was a transition year for the company as it has transformed from a motorcycle after-market retailer to a manufacturer and distributor of heavyweight cruiser motorcycles. The company invested a large amount of its resources into the acquisition and ramp-up of the Motorcycle division and is now positioned to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the large and growing heavyweight cruiser motorcycle market." Bikers Dream is a manufacturer and distributor of quality-built, American made heavyweight cruiser motorcycles. Corporate headquarters is located in Santa Ana and manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. are located in Riverside, Calif. -0- Except for the historical information in this news release, this news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risks and uncertainties, including but not limited to fluctuations in results, the management of growth, regulatory changes, and other risks detailed from time to time in the company's Securities and Exchange Commission filings. Actual results may differ materially from the information set forth herein. In addition, the company's growth and business plan is dependent upon, among other things: continuing high demand for heavyweight cruiser motorcycles, the company's ability to compete in a highly competitive market, the company's ability to increase motorcycle production, the company's ability to satisfy its capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. , the company's ability to hire and retain key employees, and the company's relationships with its customers and vendors. There can be no assurance that the company will be successful in addressing any of these risks or that its sales and earnings will grow in the future as a result of these risks or others. CONTACT: Bikers Dream 800/927-4730 |
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