SOURCE: Bad Toys Holdings, Inc.

April 18, 2007 12:45 ET

Bad Toys Holdings, Inc. Announces 2006 Annual Earnings of Southland Health Services, Inc.

KINGSPORT, TN -- (MARKET WIRE) -- April 18, 2007 -- Bad Toys Holdings, Inc. (OTCBB: BTYH) (the "Company") announced today the release of its formally wholly owned subsidiary, earnings report of Southland Health Services, Inc., for the year ended December 31, 2006. Southland's earnings for 2006 were $1.9 million compared to earnings of $2.9 million in 2005. However, the Company had operating income in 2006 of $3.3 million compared to $5.0 million in 2005. The decrease in earnings is due principally to an increase in wage expense. The wage expense increase was due in part to paramedic shortages in certain areas, scheduling and pay rate differentials.

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. In addition, Southland is pursuing other cost reduction as well as margin enhancement actions. 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 served. The Company is in the process of changing its scheduling and rotations, which will further reduce overtime as we bring on more paramedics, in both full and part-time roles.

Larry Lunan, CEO of Southland Health Services, 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 Company is in negotiations with the IRS and GE, and when satisfactorily completed will allow the $10 million funding to move towards closing. This will make 2007 a break-out, exciting growth year for the Company."

About Bad Toys Holdings, Inc.

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

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.

Southland Health Services, Inc.

The second business segment, in which the Company is a major shareholder (25%) of Southland Health Services, Inc., provides an array of Health Care services including ambulatory emergency and non-emergency patient transport, wheel-chair van, stretcher van and related transport 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 207 ambulances and wheelchair vans and have over 940 full and part-time employees. At our current run rate we will transport more than 130,000 patients in this calendar year. 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 www.badtoys.net or our future website www.paladincorp.com.

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
    www.badtoys.net

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