TUCSON, Ariz., Sept. 23, 2002 (PRIMEZONE) -- Renegade Venture (NEV.) Corporation (OTCBB:RDVN), a public Nevada corporation announced its first earnings report for the first partial quarter that included two months of operations involving Renegade subsidiary, Hamilton Aerospace Technologies.
"Our 10-QSB, just filed for the June 30 quarter, clearly reflects Hamilton's start up during and limited operations for the quarter," said Ian Herman, Renegade President and Chief Executive Officer. "Hamilton booked its first sale only at the end of April, and then for the first month of operations paid out 95 percent of every revenue dollar to a third party to complete customer contracts before the FAA awarded Hamilton its own operating certificate. In short, Hamilton operated at first under another company's license."
"While the 10-QSB reflects a loss of just over $1.8 million, readers should carefully note that more than $1.3 million of that loss is due to expensing compensatory stock options and stock awards using the Black-Scholes formula, the most conservative possible treatment of option and stock awards. This compensatory portion of the quarter's loss is a non-cash item, an extraordinary one that will not recur in every quarter. However, total revenues for the first operating quarter were over $1.4 million, and the actual operating loss (not considering the compensation expense) was only $500,000," Herman said.
Herman also emphasized that, "Our first operating quarter, although we operated for only part of it, was a very active one and we are very pleased with our hard operating results. During this quarter, the Renegade team was able to expend very little cash while significantly expanding operations. By June 30, despite the late start, Hamilton had taken in 4 contracts and completed 3 of them, had grown to 125 employees, and established itself as an industry player. As industry veterans, we know that anyone starting up a business equivalent to Hamilton from scratch could be expected to spend, at the absolute minimum, over $10 million in the process, and we have launched Hamilton for less than a fifth of that cost."
Herman also pointed out that, "Since June 30, we have continued to grow revenues and sign important customer contracts. We also have signed a strategic alliance with World Jet Corp., a leading aviation parts company, which gives us access to parts at a considerable discount to retail. This alliance is significantly increasing our margin on contracts in which Hamilton supplies the parts. World Jet is scheduled to soon begin relocating a significant portion of its $25 million parts inventory to our Hamilton facilities in Tucson."
About Hamilton Aerospace Technologies
Hamilton Aerospace provides maintenance, engineering and modifications for large passenger jet aircraft. Customers include scheduled and charter airlines, aviation leasing companies and government entities. The Federal Aviation Administration (FAA) on May 6, 2002, awarded Hamilton Aerospace its own Part 145 Air Agency Certificate, which allows it to perform such services. Hamilton Aerospace operates from leased facilities comprising about 21 acres located at the Tucson International Airport. These facilities include hangars, workshops and other buildings.
Hamilton's website can be found at www.hamiltonaerospacetechnologies.com
Except for the historical information presented herein, the matters set forth in this press release are forward-Looking statements within the meaning of the "safe harbor" provision of the Private Securities Litigation Reform Act of 1995, or by the Securities and Exchange Commission in its rules, regulations, and releases. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. These risks include the economic health of the airline industry and concomitant demand for Hamilton's services, competitive pricing pressures for Hamilton's services, and the availability of financing to complete management's plans and objectives. In addition, other risks are detailed in Renegade's current report on Form 8-K filed on May 9, 2002. These forward-looking statements speak only as of the date hereof. Renegade disclaims any intent or obligation to update these forward-looking statements.
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