SOURCE: M.B.A. Holdings, Inc.

June 27, 2005 09:41 ET

MBAH Announces Shareholder Update

SCOTTSDALE, AZ -- (MARKET WIRE) -- June 27, 2005 -- MBA Holdings Inc. (OTC BB: MBAH) announces a Shareholder Update for June 2005.

Mr. Gaylen Brotherson, CEO of MBAH, Tim Lach and Wayne (Lumpy) Ordakowski have teamed together to bring their views of MBAH to this author. This Update will speak directly to their valued Shareholders on progress, goals attained and projections for the future direction of this company.

MBAH CEO Gaylen Brotherson commented, "I would like to start this interview by saying Thank-you to the Shareholders that attended the MBAH Meet & Greet in Las Vegas, Nevada on June 19th. We had a fun time and I hope we conveyed to them some of the software power and new direction of this company." He continued, "We stated a new strategy for the future of MBAH at the Shareholder Meet & Greet. We believe the future of MBAH lies in the development of our new powersport rental companies, while shoring up our long-standing warranty business, building the National Motorcycle Dealers Association (NMDA), and getting our web-based software out to the public. Presently, MBA owns 100% of the following companies: Blue Sky Motorcycle Rentals, Street Eagle Motorcycle Rentals, Rent2Ride Nationwide, WorldWide Motorcycle Rentals and the NMDA.

"More importantly, we acquired the experience and know-how of Tim Lach and Wayne (Lumpy) Ordakowski in the Street Eagle/Blue Sky deals. These two individuals and our combined motorcycle experience are the foundation we'll build upon while heading the company into the powersport rental market. Our 50% acquisition of idigital will compliment all rental operations. We are planning to aggressively pursue the sale of our proprietary software to auto, RV and motorcycle dealers across the Nation in the upcoming months. Our web-based software was designed not only for our internal use, but for use in any type of rental operation in general."

Gaylen also spoke of the recent Blue Sky Licensee "Intent to Purchase" press releases. "We are in the process of finishing the Phoenix and Las Vegas store purchases. They do take some time to complete but the payoff for both sides is tremendous once done. Our Licensee's developed their individual markets and have experienced the growing pains/pressure firsthand associated with starting a new business. They now bring those experiences with them as company store managers."

Asked if the company intends to purchase more rental stores, Gaylen answered, "We'll take a look at each store individually to see if it fits in our plans. If it doesn't fit, we won't do it. The triangle of company stores is in place. All three of these stores are profitable. Further expansion depends on numerous items. Is the store profitable? Are they in a tourist location? Do they have a local footprint? These are just a few of the questions that once answered will help us expand upon the triangle."

About the MBAH warranty business he answered, "The warranty side of our business continues to evolve daily. We will not abandon it. We need to rethink some strategies, but I'm confident we'll turn it around and make it profitable. We've signed a new underwriter in Capital Assured Risk Retention Group for our RV/auto/motorcycle warranties and we recently announced a new tire and wheel coverage program too."

On the NMDA, "The National Motorcycle Dealers Association (NMDA) got off to a slower start than envisioned," Gaylen said, "We will continue with our plans to build the NMDA into the premier association for motorcycle dealers. We projected 1,000 members by this time last year. We're presently at 500 plus right now and growing steadily. We will attain our stated goal sometime this year. It has taken us longer to develop than intended, but we continue to sign members daily and we're encouraged by the dealer feedback we've received to date. We are also working with several well known motorcycle manufactures on items such as; exclusive custom rental bikes, NMDA Founding Member status and discounted fleet purchases. Details as signed and delivered will be announced."

He then turned the rental projections to Wayne (Lumpy) Ordakowski, Director of Rental Operations for MBAH and past owner of Blue Sky Motorcycle Rentals. Ordakowski commented, "Personally, I couldn't be more pleased about the new direction of MBAH. It is something I've been working on for years with Tim Lach's (Street Eagle) help and vision. GB, Tim and I are calling the MBAH Master Plan for the rental division; The Wheels of Fortune. Step 1 of The Wheels of Fortune was to target 50 cities for a company store, a Blue Sky license, a Rent2Ride license, a Worldwide license or a Street Eagle franchise. You've seen two store acquisitions in the last few weeks. Those were part of the plan. We were also recently featured on the front business page of the Arizona Tribune with that same heading, The Wheels of Fortune. A little misquoted, but still a great article!" He continued, "Projections for the future are easy to figure. Each of our company operated rental bikes historically produce about $2,000 a month in revenue while in season. Some a bit higher, some lower. In Denver for example, we've run up to 50 motorcycles at $2,000 per month in season grossing 100K a month. In Las Vegas we're above $2,000 and closer to $3,000 per bike per month in season due to the more expensive, shorter term daily rentals that is the Vegas market, but not in Denver. Phoenix enjoys mild winters where everyone from the North visits to get away from the ice and snow. It'll be part of my job to make sure we're utilizing bikes efficiently. Getting bikes to the right cities at the right time is paramount to our success. The combined rental programs under the MBAH flag currently operate over 160 rental units. 70 plus as company owned units, and the remaining under license." Ordakowski wouldn't place a date on this statement but said "Step 4 of the Wheels of Fortune is to get the company owned units up to 200. 200 units times $2,000 times 12 months is just under 5 million dollars gross. We can effectively double the gross revenue for this company with just Step 4. It doesn't include any leasing, NMDA membership or partnership money. It is all internally generated for the company. We'll talk about Steps 5, 6 and 7 when we get to 4."

In a phone interview with Tim Lach of Lihue, Hawaii, former owner of Street Eagle and now a consultant to MBAH, Tim stated, "The recent additions of people, businesses, techniques, and above all, experienced and stable minds, has allowed us all a peek into the realm of the future of powersports industry development. In my view as a seasoned veteran, experienced in many areas within the spectrum of our industry, I see many time-tested philosophies relative to finance, insurance, inventory, customer capture, and of course cash flow, beginning to bear fruit. Our industry, while ever changing, will never outgrow the standard issue business requirements taught by my elders, like steady growth curves, development within the attainable timeline, and keeping a close eye on the actual target.

In closing, it is this author's opinion that the management group now in place at MBAH (The 3 Amigo's) has the experience, know-how and drive to see this project to profitability. In my interviews I heard, but did not mention here, all of the obstacles these gentlemen had to overcome to get to this place, but know they have overcome. It is in their characters to overcome. They seem to take personal offense to perceived failures.

The warranty business is being reworked and tuned; the rental business is growing quickly, NMDA memberships steadily increasing. This company is "accomplishing" its goal of becoming a formidable force in the marketplace.

"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties, including but not limited to business conditions and the amount of growth in the insurance or associated automotive industries and general economy, competitive factors, and other risks detailed from time to time in the company's SEC reports, including but not limited to its annual report on Form 10-K and its quarterly reports on Forms 10-Q. The company does not undertake any obligation to update forward-looking statements.

MBA Holdings
http://www.mbadirect.com

NMDA
http://www.nationalmda.com

Blue Sky Motorcycle Rentals, Inc.
http://www.blueskymotorcyclerentals.com

Rent2Ride Nationwide
http://www.rent2ride.com

Street Eagle Motorcycle Rentals, Inc.
http://www.streeteagle.com

WorldWide Motorcycle Rentals
http://www.worldwidemotorcyclerentals.com

iDigital
http://www.idigitalonline.com

Contact Information

  • Contact Information:
    Equitilink
    Ron Garner
    (877) 788-1940