* Loss Narrowed Substantially from 2003 Fourth Quarter * Company Remains on Track to Achieve Turnaround and Up to 50% Sales Increase by Year End
DETROIT, May 18, 2004 (PRIMEZONE) -- Ideal Accents, Inc. (OTCBB:IACE) a leading installer and wholesaler of car and truck accessories at the new vehicle dealer level, with plans for national expansion, today announced results for the three months ended March 31, 2004.
According to Joe O'Connor, Chairman and CEO, "First quarter results, while primarily reflecting the anticipated continued slowdown in sales of new domestic autos in Michigan, also contain important signs of progress. Most significantly, while our loss in the quarter was up approximately $40,000 from the comparable quarter last year, it narrowed very considerably from the approximately $802,000 loss in the fourth quarter last year, which included year-end adjustments and writedowns. Also of note, while sales were somewhat lower compared to the same period last year, they were about even with results in the prior quarter (the fourth quarter of 2003) and included the first contribution from our Lansing expansion which we expect will be profitable in the current quarter."
The company reported that the net loss for the first quarter ended March 31, 2004 was $280,500 on sales of $1,408,400. This compared with a net loss in the comparable quarter last year of $239,900 on sales of $1,799,400. Full details of these results as reported in the Company's Form 10Q filing are accessible through the Investor/SEC Section of the Ideal website located at http://www.idealaccents.com.
April Sales Up; Mobile Installation Units Beginning To Contribute
Mr. O'Connor continued, "Going into the second quarter, when new car sales normally begin to perk up in Michigan, our cost cutting measures are taking hold and will be increasingly apparent in our results. We also have seen an approximately 18% sales increase in April compared to the prior month, and are gaining further confidence in the anticipated contribution from our new Mobile Installation Units, the first of which is now successfully operating. Based on our initial experience, we believe each new MIU is capable of profitably generating an average of $300,000 annually in incremental sales."
Sales Unchanged As Acquisition Talks Continue
"Additionally," said Mr. O'Connor, "we are actively pursuing our nationwide acquisition program, with advanced talks underway with priority targets on our list. We continue to focus on achieving a turnaround in financial results by year end, and an increase of up to 50% in revenues based on successfully completing the acquisition or opening of 4-5 new shops."
About Ideal Accents
Ideal Accents, Inc. (OTCBB:IACE), headquartered in Detroit, MI, is a leading installer and wholesaler of accessories for cars and trucks at the new vehicle dealer level. An ISO 9001 certified company, Ideal is licensed by leading tier one suppliers to Original Equipment Manufacturers ("OEMs") like GM, Ford and Toyota to sell and install their accessory products on vehicles in the aftermarket. The company and its subsidiaries have over 100 employees at facilities including its new Mobile Installation Units (MIU's) in Metro Detroit, where it serves approximately 78% of the market, Lansing, Michigan and Toronto, Canada, where it serves 40% of the market.
Working directly with and compensated by auto dealers in each area, Ideal installs products that speak to the automotive-related styling and functional needs of customers. These products include sunroofs, leather seats, wheels, keyless entry, GPS navigation systems, TV's, DVD's, CD changers, truck accessories and performance enhancement parts. According to SEMA, a leading market research company in the auto industry, the multi-billion dollar auto accessory business enjoys a steady average annual growth rate of approximately 7.5%. Ideal's goal is to exceed this growth rate by expanding nationally through the opening or acquisition of up to 100 shops coast to coast.
Additional information about the company can be found on its Web site at www.idealaccents.com, including the company's filings with the SEC.
Ideal Accents, Inc. info@idealaccents.com www.idealaccents.com or alternatively contact Medallion Capital Corp. (416) 865-9790 or 1-800-295-0671 to speak to an IR representative.
SAFE HARBOR Information in this news release or on the website may contain statements about future expectations, plans, prospects or performance of Ideal Accents, Inc. that constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. The words or phrases "can be," "expects," "may affect," "believed," "estimate," "project," and similar words and phrases are intended to identify such forward-looking statements. Ideal cautions you that any forward-looking information provided by or on behalf of Ideal is not a guarantee of future performance. None of the information on the website constitutes an offer to sell securities or investment advice of any kind, and visitors should not base their investment decisions on information contained in the website. Ideal Accents, Inc.'s actual results may differ materially from those anticipated in such forward-looking statements as a result of various important factors, some of which are beyond Ideal's control, in addition to those discussed in Ideal's press releases, public filings, and statements by Ideal's management, including, but not limited to, Ideal's estimate of the sufficiency of its existing capital resources, Ideal's ability to raise additional capital to fund future operations, Ideal's ability to refinance or repay its existing indebtedness. All such forward-looking statements are current only as of the date on which such statements were made. Ideal does not undertake any obligation to publicly update any forward-looking statement to reflect events or circumstances after the date on which any such statement is made or to reflect the occurrence of unanticipated events.