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Cycle Country Accessories Corp. Reports Preliminary Unaudited Fiscal 2010 First and Second Quarter Financial Results, Announces

^{Published on 2010-05-10 15:35:22 - Market Wire}
 

SPENCER, Iowa--([ BUSINESS WIRE ])--Cycle Country Accessories Corp. (AMEX:ATC)(aCycle Countrya) reported on a preliminary, unaudited basis that it experienced a net loss of ($.05) per diluted share for the second quarter of fiscal 2010, compared to ($.13) per diluted share for the prior year period. Net income for the second quarter of fiscal 2010 was ($288,471), compared to the prior yeara™s second quarter net income of ($799,560). Sales for the quarter increased 45 percent to $2,337,402, compared to last yeara™s second quarter sales of $1,611,252.

"On the positive side, lower product costs resulting from improvements in purchasing, inventory control and manufacturing processes are beginning to take effect, and are reflected in higher sustainable product margins and a significant upturn in sales volume for the second quarter."

The Company also reported on a preliminary, unaudited basis that it experienced a net profit of $.04 per diluted share for the first quarter of fiscal 2010, compared to ($.03) per diluted share for the prior year period. Net income for the first quarter of fiscal 2010 was $227,277, compared to the prior yeara™s first quarter net loss of $187,894. Sales for the quarter decreased 4 percent to $4,153,248, compared to last yeara™s first quarter sales of $4,333,615.

The Company also announced two organizational changes. Mr. Alan Bailey, the Vice President of Engineering and a former member of the Companya™s Board of Directors, retired from the Company effective April 30, 2010. In addition, Mr. Phil Kohrs, most recently the Vice President of Manufacturing, has accepted the new position of Vice President of Business Development for the Companya™s Imdyne division, where he will be responsible for the sales of contract manufacturing services.

Jeffrey Tetzlaff, Chief Executive Officer of Cycle Country commented, aThe extraordinary legal and reporting costs associated with the January 2010 announcement of misappropriated funds by the former Chairman of the Board resulted in the net loss reflected for the second quarter. Without these extraordinary expenses, both the first and second quarter would have shown positive results.a He added, aOn the positive side, lower product costs resulting from improvements in purchasing, inventory control and manufacturing processes are beginning to take effect, and are reflected in higher sustainable product margins and a significant upturn in sales volume for the second quarter.a

About Cycle Country Accessories Corp.

The Company is the recognized industry leader in the marketing, sales, design and manufacturing of custom fitting accessories for utility all-terrain vehicles (ATV's), under the brand names of Cycle Country Accessories and Weekend Warrior. Products include snowplows, mowers, 3-point hitches and implements, storage, bed lifts, brush guards and more.

The Company also produces a line of specialty products for golf carts, lawn and garden equipment and motor sports vehicles under the brand name of Plazco.

Under the brand name of Perf-Form, the Company manufactures and distributes a broad line of high performance oil filters for motorcycles, ATVa™s and watercraft.

In addition, the Company provides metal fabrication and contract manufacturing services through its Imdyne division.

[ www.cyclecountry.com ][ www.plazco.com ][ www.perf-form.com ][ www.imdyne.com ]

Forward Looking Statements This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as aanticipates,a aexpects,a aintends,a aplans,a abelieves,a aseeks,a aestimates,a amay,a awill,a ashould,a and their variations are intended to identify forward-looking statements. Forward-looking statements include the amount misappropriated in connection with the matters discussed above; the period in which the activities discussed above took place and the persons involved in such activities; the outcome of any further investigation or other action that Cycle Country or federal or state authorities may undertake with respect to these matters; the availability of insurance coverage; any remediation that Cycle Country may take with respect to any financial accounting and disclosure control deficiencies it may discover; and Cycle Countrya™s ability to filed restated financial statements. These statements speak only of the date hereof and are subject to risks and uncertainties that could cause actual results to differ materially, including further review of the matters discussed above, actions that may be taken or required as a result of the Investigation, including the need to restate prior financial results, and the conclusions reached by Cycle Countrya™s management and board of directors based on the results of any investigations, and any further review or investigation. Cycle Country undertakes no obligation to revise or update publicly any forward-looking statements