Coyote Sports Inc. Re-Releases Results for Third Quarter; Non-Cash Gain From One-Time Transaction Revised.BOULDER Boulder, city, United States Boulder, city (1990 pop. 83,312), seat of Boulder co., N central Colo.; inc. 1871. A Rocky Mountain resort and a suburb of Denver, it is the seat of the Univ. of Colorado (1876). , Colo.--(BUSINESS WIRE)--Nov. 16, 1998--Coyote Sports Inc. (Nasdaq:COYT), issued a press release on Nov. 11, 1998 showing net income of $1,055,776 or $0.22 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share and $1,576,236 or $0.34 per diluted share, which included a non-cash gain from exchange of ownership interests of $1,022,467 or $0.21 per diluted share for the three and nine months ended Sept. 30, 1998. Subsequent to the release, upon further analysis of the accounting for this one-time exchange of ownership, it has been determined that the proper amount of the non-cash gain should be $17,266. Based upon the revised non-cash gain, net income was $50,575 or $0.01 per diluted share and $571,035 or $0.12 per diluted share for the three and nine months ended Sept. 30, 1998. The initial $1,022,467 gain was initially calculated by the company and its independent auditors Independent Auditor An external auditor with a certified public accounting designation that qualifies him or her to provide an auditor's report. Notes: These auditors aren't affiliated with the company being audited. KPMG KPMG Klynveld Peat Marwick Goerdeler (accounting firm) KPMG Kaiser Permanente Medical Group KPMG Keiner Prüft Mehr Genau (German) KPMG Kommen Prüfen Meckern Gehen Peat Marwick LLP LLP - Lower Layer Protocol as a result of a non-cash exchange in ownership interests through changes in foreign currency translation. After further review, it has been determined that the one time non-cash gain was offset by a foreign currency translation adjustment which resulted in an adjusted net gain of $17,266. "This is simply reconciling the foreign exchange translation effect from the company's exchange in ownership interests in southeast Asia Southeast Asia, region of Asia (1990 est. pop. 442,500,000), c.1,740,000 sq mi (4,506,600 sq km), bounded roughly by the Indian subcontinent on the west, China on the north, and the Pacific Ocean on the east. which resulted in a smaller non-cash gain than originally calculated. There are no going forward effects to the income statement from this exchange in ownership interests," said Jim Probst, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. and president of Coyote Sports Inc. Net revenues, gross profit, and operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. remain unchanged from the amounts reported on Nov. 11, 1998. Net revenues reported were $10,011,658, for the third quarter and $30,889,395 for the nine months ended Sept. 30, 1998. Gross profit reported was 26% and 24% for the three and nine months ended Sept. 30, 1998. Operating income reported was $373,345 and $835,897 for the three and nine months ended Sept. 30, 1998. Coyote Sports Inc. is a diversified diversified (di·verˑ·s sports manufacturing company that specializes in golf (Apollo and Unifiber 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 ), cycling (Reynolds premium cycle tubing), and the manufacture of advanced composite materials composite material or composite, any material made from at least two discrete substances, such as concrete. Many materials are produced as composites, such as the fiberglass-reinforced plastics used for automobile bodies and boat hulls, but the used for sporting goods Noun 1. sporting goods - sports equipment sold as a commodity commodity, trade good, good - articles of commerce sports equipment - equipment needed to participate in a particular sport 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 21E 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
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three months Nine months
Ended Ended
Sept. 30, Sept. 30,
1998 1997 1998 1997
Net sales $10,011,658 7,407,233 30,889,395 20,157,402
Cost of goods sold (7,447,523) (5,825,644) (23,487,493)(15,610,179)
Gross profit 2,564,135 1,581,589 7,401,902 4,547,223
Operating expenses (2,190,790) (1,978,751) (6,566,005) (6,050,291)
Operating income
(loss) 373,345 (397,162) 835,897 (1,503,068)
Other income
(expense):
Interest expense,
net (414,808) (165,595) (814,657) (365,213)
Gain (loss) on
forward exchange
contracts, net 69,000 (132,000) 64,000 (171,000)
Debt financing costs (100,141) (20,000) (200,140) (570,000)
Other 47,289 -- 140,319 --
Income (loss) before
income taxes,
minority interests
and extraordinary
item (25,315) (714,757) 25,419 (2,609,281)
Income tax (expense)
benefit -- 155,000 (13,000) 336,000
Minority interests in
subsidiaries' losses 75,890 45,023 212,035 93,065
Net income (loss)
before extraordinary
item 50,575 (514,734) 224,454 (2,180,216)
Extraordinary item,
net of taxes -- -- 346,581 --
Net income (loss) $ 50,575 (514,734) 571,035 (2,180,216)
Basic earnings
per share
Income (loss) before
extraordinary item $0.01 (0.17) 0.05 (0.66)
Extraordinary item,
net of taxes -- -- 0.08 --
Net income (loss) $0.01 (0.17) 0.13 (0.66)
Diluted earnings
per share
Income (loss) before
extraordinary item $0.01 (0.17) 0.05 (0.66)
Extraordinary item,
net of taxes -- -- 0.07 --
Net income (loss) $0.01 (0.17) 0.12 (0.66)
Shares used in
calculating basic
earnings per
share 4,823,221 2,963,315 4,546,757 3,285,989
Shares used in
calculating diluted
earnings per
share 4,829,118 2,963,315 4,574,060 3,285,989
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