ANCASTER, ONTARIO--(Marketwire - Aug. 29, 2012) - Gatorz Inc. (TSX VENTURE:GTZ) ("Gatorz") today reported its financial results for the second quarter and year to date periods ending June 30, 2012.
Second Quarter Results: (all amounts in US$)
- Revenue decreased by $117,274 to $408,843 from the same quarter last year primarily due to the decrease in business to No Fear Stores which was partially offset by higher internet and showroom sales;
- Gross profit percentage increased from 48.44% to 52.79% of sales due to the increased internet and showroom sales which realize higher sales prices.
- Operating expenses increased by $109,130 to $338,285 as the company and No Fear terminated their shared services agreement and Gatorz has built infrastructure and personnel to facilitate growth.
- Total comprehensive loss for the quarter was $134,585 compared to $49,983 in the same quarter of 2011.
Six - Month Year To Date Results: (all amounts in US$)
- Revenue decreased by $194,825 to $729,767 from the same period last year primarily due to the decrease in sales to No Fear;
- Gross profit percentage increased from 49.36% to 52.66% of sales due to the increased internet and showroom sales which realize higher sales prices.
- Operating expenses increased by $280,910 to $707,550 as the company and No Fear terminated their shared services agreement and Gatorz has built infrastructure and personnel to facilitate growth.
- Total comprehensive loss for the six-month period was $451,424 compared to $46,192 in the same quarter of 2011.
Business Development since year end:
- Updated the web site and significantly increased its social media presence;
- Expanded the company's offering of premium injection moulded Italian frames;
- Began the test in 12 of Navy Exchange Service Command (Nexcom) 72 domestic and international locations. Sales have been extremely positive with excellent sell through on both aluminum and plastic frames;
- Testing at Marine base Miramar is off to an exceptional start and has already been expanded to Marine Corps Recruit Depot for potential inclusion in a number of additional bases;
- Converted $495,843 in convertible debentures to 1,068,186 common shares at the price of CDN$0.54 per share; and
- Completed a debt offering raising $285,000.
Gatorz CEO Kerry Lynch states, "This is an exciting time at Gatorz with all the military retail testing underway combined with positive sell through continuing and growing weekly. We expect to see additional retail outlets being added in the near future."
You can view the complete financial statements along with the MD&A at www.sedar.com.
Gatorz Inc. (www.gatorz.com) designs, develops, manufactures, and distributes performance eyewear, including sunglasses crafted from 7075 billet aircraft aluminum and from premium injection moulded Italian frames. Gatorz precision built aluminum eyewear is proudly made in the USA, offering superior craftsmanship, performance and durability. Gatorz proprietary technologies include the ability to customize the frame to the wearer's specific facial features. In addition, the Company's lens technology, TruRay Optics, offers a comprehensive assortment of ballistic impact-proof lenses which are 100% UV blocking, optically correct and distortion free. Gatorz distribution markets include motorcycling, motorsports, skydiving, military, off-road, hunting & fishing, action sports, and youth lifestyle markets.
Certain information in this press release may contain forward-looking statements. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. Gatorz Inc. assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to Gatorz Inc.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.