Gatorz Inc.
TSX VENTURE : GTZ

Gatorz Inc.

August 30, 2010 10:50 ET

Gatorz Inc. Reports Its First Profitable Quarter

OAKVILLE, ONTARIO--(Marketwire - Aug. 30, 2010) - Gatorz Inc. ("Gatorz") (TSX VENTURE:GTZ) today reported its second quarter results for the period ended June 30, 2010. Gatorz reported its first ever profitable quarter, realizing a net profit of $15,795 compared to a net loss of $110,614 in the same period last year. The full financial results along with the MD&A can be viewed on SEDAR.

Second Quarter Highlights:

  • Overall revenue increased by 12% or $61,096 from $507,978 in the same period last year to $569,074;
  • Gross profit increased by 13% or $33,814 from $259,822 to $293,636 and gross profit margin for the quarter was 51%, flat with the same period last year;
  • Operating expenses decreased by $91,725 from $336,153 to $244,428 as a result of the physical integration of operations with No Fear Retail Stores, Inc.; and
  • Net profit for the quarter was $15,795, an increase of $126,409 from a net loss of $110,614 in the same period last year.

The synergies realized as a result of the shared services agreement with Gatorz's merger partner, No Fear Retail Stores, Inc., and adherence to tighter budgeting has resulted in the best quarterly financial performance in the history of Gatorz.

Six Months Highlights:

  • Overall revenue increased by 8% or $71,147 from $841,673 in the same period last year to $912,820;
  • Gross profit increased by 12% or $52,912 from $428,531 to $481,443 and gross profit margin for the period increased 2% to 52% from the same period last year; and
  • Net loss for the period decreased by $217,136 from $244,666 in the same period last year to $27,530.

Subsequent to the end of the second quarter, Gatorz filed its preliminary prospectus with the Ontario Securities Commission and signed an amendment to the Agreement of Plan of Merger and Reorganization, as outlined in the press releases dated August 3, 2010 and August 4, 2010.

About Gatorz

Gatorz Inc. (www.gatorz.com) designs, manufactures, and distributes performance eyewear, including sunglasses crafted from 7075 billet aluminum and from acetate. Gatorz precision built aluminum eyewear is proudly made in the USA, offering superior craftsmanship, performance and durability. Gatorz distribution markets include motorcycling and other motorsports, skydiving, military, off-road, action sports, and hunting & fishing.

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. The risks going forward remain adding production capacity and the ability to meet this demand, controlling costs and sourcing ongoing funds to meet increased growth targets. Gatorz is also subject to the general economic conditions in the domestic and international markets it operates in. 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.

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