ANCASTER, ONTARIO--(Marketwire - Nov. 29, 2012) - Gatorz Inc. (TSX VENTURE:GTZ) ("Gatorz") today reported its financial results for the third quarter and year to date periods ending September 30, 2012.
Third Quarter Results: (all amounts in US$)
- Revenue decreased by $3,537 to $445,515 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 40.40% to 50.72% of sales due to the increased internet and showroom sales which realize higher sales prices and resulting margins.
- Operating expenses decreased by $79,941 to $338,285 as the company implemented a plan in the third quarter which reduced salaries and wages by $49,473 and advertising and promotion costs by $31,636.
- Total comprehensive loss for the quarter was $112,538 compared to $180,121 in the same quarter of 2011.
Nine - Month Year To Date Results: (all amounts in US$)
- Revenue decreased by $198,362 to $1,175,282 from the same period last year primarily due to the decrease in sales to No Fear;
- Gross profit percentage increased from 46.43% to 51.92% of sales due to the increased internet and showroom sales which realize higher sales prices.
- Operating expenses increased by $201,970 to $1,005,964 as the company and No Fear terminated their shared services agreement in the second quarter of 2011. On a year to date basis salaries, the largest portion of operating expenses, increased by of $186,281.
- Total comprehensive loss for the nine-month period was $563,964 compared to $226,314 in the same quarter of 2011.
Business Development since year end:
- Updated the web site and significantly increased its social media presence;
- Completed a debt offering raising $1,628,000, a portion of which will be used for growth and strategic alternatives.
- Expanded the company's offering of premium injection moulded Italian frames;
- After a successful test in 12 of Navy Exchange Service Command (Nexcom); Gatorz has expanded its presence into 26 of Nexcom's stores and hope to be in all 72 domestic and international locations.
- Testing at Marine Recruit Depot is off to an exceptional start and with continued positive results will create potential expansion for inclusion on a number of additional bases; and
- Converted $495,843 in convertible debentures to 1,068,186 common shares at the price of CDN$0.54 per share.
Gatorz CEO Kerry Lynch states, "We are pleased to see the continued growth of the Aluminum frames in the market place. The new Darth frame has been an instant hit with consumers. We are also developing two new frames to follow in its footsteps for an early spring release."
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.