MotorSports Emporium Releases Second Quarter Results
MotorSports Emporium Inc. (OTCBB: MSEP) today announced 2006 second quarter results.
Total revenue for the first six months of 2006 and 2005 were $77,576 and $126,889, respectively (a decrease of $49,313), consisting primarily of diecast collectibles. Though sales from GS610 brake fluid and the new Luyendyk car care product line are not reflected in the second quarter, revenues were $48,592 compared to $21,602 in the first quarter of 2006, an increase of more than 120%. The company incurred Selling, General and Administrative expenses (SG&A) primarily to develop existing businesses, improve current infrastructure to address anticipated growth and identify and evaluate complementary business development opportunities and marketing.
David Keaveney, president and CEO of MotorSports Emporium Inc., commented, "Throughout the first six months of 2006 we were more successful managing our diecast inventory than in 2005. In fact, Cost of Goods Sold (COGS) has decreased and gross profits increased during this period. The decrease in revenue this quarter was purposeful as we switched resources from our solitary line of diecast products to a more dynamic business model inclusive of our newest division -- Quadriga MotorSports (GS610 brake fluid and Arie Luyendyk car care)."
Scottsdale Diecast (DBA ScaleCars), a wholly owned subsidiary of MotorSports Emporium, is actively seeking merger and acquisition candidates to assist with: (a) exponential top line and bottom line growth; (b) scaleable leveraging of corporate resources; (c) recruitment of seasoned and experienced management to run the subsidiary and; (d) freeing up MSEP management for other growth and business development opportunities.
Keaveney continued, "We believe product diversification is showing signs of success with the greatest potential to be realized over the next few quarters. As we continue to expand our business model and focus resources away from diecast we can bring GS610 and the Luyendyk line to market much faster, generating positive operating results and significantly increased revenues and profit margins."
"By MSEP placing resources in higher growth areas, we can begin to bring a greater return on investment to our shareholders. The balance of this year will play an important role in the future of our company and right now our focus is the next two quarters," Keaveney concluded.
For complete financial results for the period ending 6/30/2006 and additional information and a discussion of risk factors, please see the MSEP current 10-Q & past 10-K reports at www.sec.gov.
About MotorSports Emporium Inc.
MotorSports Emporium Inc. is a fast-track, multi-faceted and diversified company in the motor sports industry targeting INDY, NASCAR, Formula 1 and other racing series, spectators, classic car and high-performance auto enthusiasts, professional and amateur mechanics and discriminating consumers in search of high-quality auto parts and accessories. MotorSports Emporium's marketing plan is to reach consumers through mass market retailers, auto parts suppliers, and home television shopping networks, infomercials, industry and consumer trade shows, and consumer direct advertising (television, magazine and Internet). For more information visit www.motorsportsemporium.com.
This news release may include forward-looking statements within the meaning of section 27A of the United States Securities Act of 1933, as amended, and section 21E of the United States Securities and Exchange Act of 1934, as amended, with respect to achieving corporate objectives, developing additional project interests, the company's analysis of opportunities in the acquisition and development of various project interests and certain other matters. These statements are made under the "Safe Harbor" provisions of the United States Private Securities Litigation Reform Act of 1995 and involve risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements contained herein.
MotorSports Emporium Inc.
David Keaveney, 480-596-4002
davidk@motorsportsemporium.com
