SALEM, Ohio, Sept. 29, 2004 (PRIMEZONE) -- Giant Motorsports, Inc. (OTCBB:GMOS), one of the nation's ten largest motorsports dealers, announced last month record financial results for its second quarter and first half ended June 30, 2004 as follows:
-- Second quarter revenues increased 52 percent to $22.8 million,
including two months of revenues from Chicago Cycles, acquired
April 30, 2004.
-- Second quarter net income increased to $206,119, from $13,216 in
the second quarter a year ago. Per-share earnings were two cents
for the quarter, versus breakeven a year ago.
"We believe the record second quarter results, combined with the continuing integration of the Chicago Cycles acquisition, demonstrates the effectiveness of our business model," said Greg Haehn, President of Giant Motorsports. "We anticipate continued sales growth and improved financial results through the third quarter."
The Company reported revenues of $34.0 million for the first six months of 2004, a 38 percent increase versus $24.5 million during the same period one year earlier. First half net income was $393,378, or three cents per share diluted, versus $199,356, or two cents per share for first half of 2003.
Giant Motorsports said second-quarter revenues include approximately $7 million from Chicago Cycles for May and June 2004. Second-quarter operating expenses nearly doubled to $2 million compared with a year earlier, principally because of higher selling and marketing expenses, as well as increased legal, accounting and auditing fees associated with public company reporting compliance.
About Giant Motorsports
Giant Motorsports, Inc., through its wholly owned subsidiaries W.W. Cycles dba Andrews Cycles and Chicago Cycle, is one of the largest multi-brand retailers of motorcycles, ATVs, scooters and personal watercraft powersport products in the United States. The company's products and services consist primarily of the sale and servicing of new and used motorcycles, all-terrain vehicles ("ATVs"), scooters and personal watercraft. In addition, the company sells parts and accessories, extended service contracts, aftermarket motorcycle products and maintenance and repair services. More information is located at http://www.andrewscycles.com and http://www.chicagocycle.com. Giant Motorsports became a public company in January 2004 through a reverse merger transaction with the former American Busing Corporation.
Forward-Looking Statements
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain of the statements contained herein, which are not historical facts, are forward-looking statements with respect to events, the occurrence of which involve risks and uncertainties. These forward-looking statements may be impacted, either positively or negatively, by various factors. Information concerning potential factors that could affect the Company is detailed from time to time in the Company's reports filed with the Securities and Exchange Commission.