PRESTON, Wash., Feb. 3 — Ride Sports (Nasdaq: RIDE), aleading manufacturer and marketer of snowboard equipment and accessories,wakeboards and related products, announced today its financial results for itssecond quarter ended December 31, 1998.
Net income for the quarter was $0.9 million on sales of $16.1 million,compared to a net loss of ($12.9) million on sales of $10.7 million for thesame period in 1997. Basic earnings per share were $0.07 versus a per shareloss of ($1.17) for the same period in 1997. On a diluted basis, earnings pershare were $0.05 versus a loss per share of ($1.17) for the comparable periodin 1997. On a year-to-date basis, net income is $2.4 million on sales of$34.5 million, versus a loss of ($12.3) million on sales of $28.9 million forthe same period in 1997. Year-to-date basic earnings per share are$0.18 compared to a loss of ($1.10) for the same period in 1997. On a dilutedbasis, EPS for the year-to-date are $0.14 versus a loss of ($1.10) for thesame period in 1997.
“We are pleased with our performance in the second quarter,” stated RobertMarcovitch, President and CEO of Ride. “This is the first time since 1995that Ride has generated a profit in the period ending December 31. Theresults are thus not only significant from a financial standpoint, they alsorepresent a symbolic achievement for the company and its employees as tangibleevidence that our hard work is paying off.
“Ride believes its second quarter and year-to-date results reflect thepositive and strengthening image of its products in the marketplace,”continued Marcovitch. “As delighted as we are with the excellent sell-in ofour products this year, we are even more excited by the news from ourretailers that the sell-through of our current product lines has beentremendous and we believe bodes well for the company’s future.”
Ride also announced that it has reached an agreement in principal with theholder of its Series B Convertible Preferred Stock to convert the preferredshares to debt. The terms of the transaction, which remain confidential, havereceived the preliminary approval of the Company’s lender and are currentlybeing incorporated into definitive documentation. “We have been veryconcerned with the dilutive effect the preferred stock has had on our earningstargets,” noted Marcovitch. “We thus believe that eliminating the preferredshareholder’s conversion option is the appropriate thing to do under thecircumstances.”
Established in 1992, Ride is headquartered at the foothills of the CascadeMountains, in Preston, Washington. Ride is a leading manufacturer ofcontemporary sports equipment, including snowboard equipment, wakeboards, andapparel under the brand names: Ride, Liquid, 5150, Smiley Hats, and FullTilt.
This Press Release contains certain forward-looking statements within themeaning of Section 27A of the Securities Act of 1933, as amended, and Section21E of the Securities Exchange Act of 1934, as amended. Although the Companybelieves the assumptions underlying the forward-looking statements containedherein are reasonable, any of the assumptions could be inaccurate, andtherefore, there can be no assurance that the forward-looking statementscontained in this Press Release will prove to be accurate.