Coyote Sports Inc. 1997 Operating Results.BOULDER, Colo.--(BUSINESS WIRE)--March 26, 1998--Coyote Sports Inc. (Nasdaq:COYT), a leading provider of recreational products and sports equipment to the golf, cycling and winter sports winter sports: see bobsledding; curling; hockey, ice; ice dancing; ice skating; skiing; snowshoes; tobogganing. industries, today reported record revenues for the company's fiscal year and fourth quarter ended Dec. 31, 1997. Coyote Sports has seen its revenues increase to $27.7 million in 1997 as compared to $5.5 million in 1996. Fourth quarter revenues were $7.5 million as compared to $5.4 million for the same period in 1996. Growth in revenues is a result of six acquisitions in the last 18 months. With the recent acquisition of Unifiber Corp. on March 19, 1998, Coyote Sports wholly owns or has controlling interest controlling interest The ownership of a quantity of outstanding corporate stock sufficient to control the actions of the firm. Controlling interest often involves ownership of significantly less than 51% of a firm's outstanding stock because many owners fail in seven operating entities world wide, four located in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , two located in the United Kingdom and one located in Malaysia. For the year ended Dec. 31, 1997, the company reported a net loss of $4.2 million or $1.22 a share compared to a net loss of $0.9 million or $0.27 a share in 1996. Fourth quarter net loss was $2.0 million or $0.52 per share compared to $0.5 million or $0.14 per share for the same period in 1996. Included in the net loss for the year and the fourth quarter is a one time non-recurring charge of $1.2 million due to the write off of certain intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. and inventory related to the ICE USA business. Also included in the net loss for the year is a one time non-recurring charge of $0.6 million in debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay costs associated with bridge financing Bridge Financing A method of financing, used by companies before their IPO, to obtain necessary cash for the maintenance of operations. Notes: These funds are usually supplied by the investment bank underwriting the new issue. incurred in the second quarter of 1997. Excluding both of these one time non-recurring charges, the company incurred a net loss of $2.6 million or $0.76 per share and $1.0 million or $0.26 per share for the year and quarter ended Dec. 31, 1997, respectively. Consolidated gross margins for the year and quarter ended Dec. 31, 1997 were 20% and 14% respectively, compared to 23% and 23% for the same period in 1996. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. were 30% and 29% of revenue for the year and quarter ended Dec. 31, 1997 respectively, compared to 42% and 34% of revenues for comparable periods in 1996 respectively. Gross margins as a percent of revenues decreased primarily due to lower gross margins from the addition of Sierra Materials in March 1997, fourth quarter inventory write offs at ICE USA and high graphite graphite (grăf`īt), an allotropic form of carbon, known also as plumbago and black lead. It is dark gray or black, crystalline (often in the form of slippery scales), greasy, and soft, with a metallic luster. golf shaft finishing costs at Apollo. To improve gross margins, the company commenced a $2.5 million capital expansion in the fourth quarter at Sierra Materials to increase its capacity and improve operating efficiencies. The capital expansion project is scheduled to be completed in the third quarter of 1998. The company also closed down the Apollo graphite golf shaft finishing factory in the fourth quarter of 1997. Coyote Sports Inc. President, Jim Probst said: "1997 was a year of acquisitions and consolidation for Coyote Sports. Many of the losses in 1997 were a direct result of the costs associated with reorganizing, refocusing Noun 1. refocusing - focusing again focalisation, focalization, focusing - the act of bringing into focus and rebuilding these companies. We have successfully executed our acquisition strategy to acquire undervalued companies undervalued company A firm whose assets and potential earning power are not adequately reflected in its stock price. Although such firms are more likely to be subject to takeover attempts than others, determining whether a particular firm is actually , provide management and capital to refocus Verb 1. refocus - focus once again; The physicist refocused the light beam" focus - cause to converge on or toward a central point; "Focus the light on this image" 2. on rebuilding those companies to profitability. "In 1998, we will focus on top line revenue growth for each of our companies while tightly managing costs. We will continue to seek acquisitions that provide synergy for both revenue growth and cost consolidation. On March 19, 1998, we purchased all the stock of Unifiber Corp., a manufacturer of premium graphite golf shafts The shaft of a golf club is the long, cylindrical piece - generally made of steel or graphite - which connects the golfer’s hands to the club head. While hundreds of different designs exist, the primary purpose of the golf shaft remains the same - to provide the player with a . Unifiber's line of premium graphite golf shafts is highly complementary to our own Apollo line of golf shafts, and will position us to expand our share of the worldwide golf shaft market. Through acquisitions and internal investments, we will continue to aggressively execute our strategy of building a company with three core businesses: golf shafts, advanced materials Advanced Materials is a leading peer-reviewed materials science journal published every two weeks. Advanced Materials includes Communications, Reviews, and Feature Articles from the cutting edge of materials science, including topics in chemistry, physics, and specialty branded products." On Feb. 10, 1998, the board of directors elected Mel Stonebraker, chief executive officer and secretary; Jim Probst, president; Jim Pfeil, vice president; and John Paul The name John Paul might refer to: Full name
Coyote Sports Inc. is a diversified sports manufacturing and distribution company that specializes in golf, cycling and winter sports products. Certain oral and written statements of management of the company included in this press release may contain 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. within the meaning of Section 27A of the Securities Act of 1933, and Section 21B of the Securities Exchange Act of 1934, that involve risks and uncertainties that could cause actual results to differ materially. -0-
COYOTE SPORTS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Quarter ended Years ended
Dec. 31, Dec. 31,
1997 1996 1997 1996
Net sales $7,528,516 $5,441,516 $27,685,918 $ 5,453,117
Cost of goods sold (6,501,438) (4,168,665) (22,111,617) (4,168,665)
Gross profit 1,027,078 1,272,851 5,574,301 1,284,452
Operating expenses (2,193,034) (1,858,020) (8,243,325) (2,308,141)
Operating loss (1,165,956) (585,169) (2,669,024) (1,023,689)
Other expense:
Interest expense (108,189) (34,897) (473,402) (34,897)
Interest income 16,534 -- 16,534 --
Gain (loss) on
forward exchange
contracts, net (8,000) 126,570 (179,000) 126,570
Write down of
intangible assets (933,790) -- (933,790) --
Debt financing costs (47,156) -- (617,156) --
Loss before income
taxes and
minority
interests (2,246,557) (493,496) (4,855,838) (932,016)
Income tax
expense (benefit) (54,727) -- 281,273 --
Minority interests
in subsidiaries
losses 313,926 (5,938) 406,991 (5,938)
Net loss $(1,987,358) $(499,434) $(4,167,574) $(937,954)
Net loss per share $(0.52) $(0.14) $(1.22) $(0.27)
Shares used in
calculating per
share amounts 3,845,217 3,450,000 3,426,945 3,450,000
CONTACT: Investor Relations Investor relations The process by which the corporation communicates with its investors. Services Inc. Tel: 904/409-0200 Fax: 904/409-0043 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion