SOURCE: Bad Toys Holdings, Inc.

April 18, 2007 11:21 ET

Bad Toys Holdings, Inc. Announces 2006 Annual Earnings

KINGSPORT, TN -- (MARKET WIRE) -- April 18, 2007 -- Bad Toys Holdings, Inc. (OTCBB: BTYH) (the "Company") announced today the release of its earnings reports for the year ended December 31, 2006. The Company earnings for 2006 were $50 thousand compared to earnings of $3.9 million in 2005. However, the Company had operating income in 2006 of $2.1 million compared to $4.5 million in 2005. The decrease in earnings is due to an increase in wage expense and a write down of the original investment in American Eagle Motorcycle Company, Inc. which was spun off to No Borders, Inc. The wage expense increase was due in part to paramedic shortages in certain areas, scheduling and pay rate differentials. The Company's investment in No Borders, Inc. was written off as the decline in value of NBDR is deemed to be more than temporary.

During the fourth quarter of 2006, the Company implemented changes which are expected to reduce wage expense by approximately $2 million on an annualized basis. The Company hired a Vice President of Human Resources to address the paramedic shortage and to control and monitor staffing needs as well as wage rates for the different geographic areas we serve. In addition, the Company is in the process of changing its scheduling and rotation which will further reduce overtime as we bring on more paramedics, in both full and part-time roles. The write down of No Borders, Inc. investment is a one time occurrence and will not impact 2007 as the Company moves forward.

Larry Lunan, CEO of Bad Toys Holdings, Inc., commented, "We had a challenging second year as the company continued to transition its management team but plans are in place and everyone is working together for the benefit of all shareholders and employees." Mr. Lunan added, "The completion of the Southland spin-off will greatly enhance the Company Balance Sheet and liquidity as Southland moves to the trading markets estimated to occur in the second or third quarter of 2007. This will make 2007 a break-out and exciting growth year for the Company."

About Bad Toys Holdings, Inc.

Bad Toys Holdings, Inc. (OTCBB: BTYH) participates in two distinct business segments:

Southland Health Services, Inc. -- Ambulance Segment Investment

Southland Health Services, Inc. ("Southland") provides medical transportation services, including emergency and non-emergency ambulance services. Southland operates in over 200 communities within the following seven states: Mississippi, Alabama, Florida, Louisiana, Kansas, Tennessee, and Virginia. We operate in excess of 160 ambulances and wheelchair vans and have over 850 full-time and part-time employees. At our current run rate we expect to transport more than 90,000 patients in this calendar year.

Bad Toys, Inc.

This division, Bad Toys, Inc., American Eagle Manufacturing Company and Gambler Motorcycle Company, continues to design, manufacture, distribute, service and sell custom made, Harley-Davidson type, V-twin motorcycles from component parts. We also offer premium accessories, parts, customizing items and apparel related to Harley-Davidson motorcycles on-line and directly from our retail and factory outlets. This division also participates in Sprint Car Racing products and custom car construction and restoration.

For further information, contact Bad Toys Holdings, Inc., Larry N. Lunan, President and Chief Executive Officer, (423) 247-9560 or Al Kau, Investor Relations in California at (888) 795-3166. Further information about the Company may be obtained on its website at

Certain statements in this release and other written or oral statements made by or on behalf of the Company are "forward-looking statements" within the meaning of the federal securities laws. Statements regarding future events and developments and our future performance, as well as management's expectations, beliefs, plans, estimates or projections relating to the future are forward-looking statements within the meaning of these laws. The forward-looking statements are subject to a number of risks and uncertainties including market acceptance of the Company's services and projects and the Company's continued access to capital and other risks and uncertainties outlined in its filings with the Securities and Exchange Commission, which are incorporated herein by reference. The actual results the Company achieves may differ materially from any forward-looking statements due to such risks and uncertainties. These statements are based on our current expectations and speak only as of the date of such statements. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of future events, new information or otherwise.

Contact Information

  • Contact:
    Larry N. Lunan
    President and Chief Executive Officer
    Bad Toys Holdings, Inc.
    (423) 247-9560

    Al Kau
    Investor Relations in California
    (888) 795-3166