Gatorz Inc.
TSX VENTURE : GTZ

Gatorz Inc.

December 05, 2011 09:26 ET

Gatorz Inc. Reports Financial Results for the Third Quarter and Year to Date Periods Ended September 30, 2011

OAKVILLE, ONTARIO--(Marketwire - Dec. 5, 2011) - Gatorz Inc. (TSX VENTURE:GTZ) ("Gatorz") today reported its financial results for the third quarter and year to date periods ending September 30, 2011.

Third Quarter Results: (all amounts in US$)
  • Revenue decreased by $34,714 to $449,052 from the same quarter last year primarily due to a decrease in sales to customer that declared bankruptcy;

  • Income from operations was ($195,948), mostly due to increases in personnel, implementation of a new accounting system and a move to a new location. In addition, earnings were affected by decreased sales, a write-down in inventory, as well as an increase in discounts on product sales;

  • Total comprehensive income (loss) for the quarter was ($180,121) which included a foreign exchange gain of $35,369 from the US dollar in comparison to the Canadian dollar.
Nine - Month Year To Date Results: (all amounts in US$)
  • Revenue decreased by $22,942 to $1,373,644 from the same period last year primarily due to the decrease in sales to a customer that declared bankruptcy;

  • Income from operations was ($166,208), mostly due to the decrease in gross profit margins as well as increases in personnel and costs in transitioning to a new location;

  • Total comprehensive loss for the period was ($226,314) which included a foreign exchange gain of $1,336.
Business Development since year end:
  • Introduced a line of premium Italian made injection moulded sunglasses combined with optical lens technology to convey performance, style, quality and value with higher margins. Retail pricing targeted in the range of $85 - $120 for these frames opens a new demographic which hasn't been available in the past;

  • Adopted a new corporate branding strategy, which includes a new Gatorz logo, company color and an exciting new web-site platform that interacts with today's youthful lifestyle;

  • Moved its head offices to Murrieta California and terminated the shared services agreement with No Fear;

  • Added a number of new employees with extensive experience and connections in the sunglass industry to enhance its growth into retail chains;

  • Completed a private placement of $455,500;

  • Completed a convertible debt offering raising $425,000.

Gatorz CEO Kerry Lynch stated "While corporate spending has increased over the past quarter, these expenditures are in line with our growth strategy. We have developed a strong employee team with extensive sunglass experience and we are being creative in offering discounts to develop the brand and drive sales. Although we did have one significant customer declare bankruptcy in 2011, we have seen growth in other areas that align with our go forward strategy which is a very positive sign."

You can view the complete financial statements along with the MD&A at www.sedar.com.

About Gatorz

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.

Contact Information

  • Investor Relations Inquiries:
    All Gatorz investor relations inquiries
    should be directed to: Mike Dianna
    (800) 767-4287
    mike@gatorz.com
    www.gatorz.com