Company announces the receipt of orders for 430 boats, including a 250 boat backlog, in front of introduction of new Pininfarina designed performance powerboats
WASHINGTON, Mo., Nov. 20 /PRNewswire-FirstCall/ -- Challenger Powerboats, Inc. ('Challenger') (OTC Bulletin Board: CPBI), a manufacturer of powerboats, tow boats and water-jet powered sport boats, today filed its third quarter, ended September 30, 2007, financial results on SEC form 10-Q. The Company, which entered the recreational boat industry during the first quarter of this year, completed its first nine months with $5.8 million in revenue. In October, the Company was successful in converting $16.9 million in long-term debt it incurred during the development of its boat design technology and the acquisitions of International Marine and Recreation ('IMAR') Group, creators of the Sugar Line of water-jet powered boats, and Gekko Sports Corporation, into preferred equity. The Company also executed a reverse split of its shares of common stock resulting in 3,944,179 shares outstanding and 36,154,739 diluted shares.
Challenger conducted its first dealer meeting on September 11 and 12, during which it demonstrated the craftsmanship of its three boat line. As a result of the meetings and the continued expansion of its dealer network, the Company has received orders for 430 boats to date, with a backlog of 250 boat orders, and the Company continues to receive additional orders weekly, for delivery over the next several months. The Company is currently in full production in preparation for the upcoming winter boat shows, where dealers normally generate approximately 30% to 40% of their annual boat sales.
The Company is also scheduled to introduce its new Pininfarina designed boats during the first quarter of 2008. Pininfarina is a cutting-edge design company, most notably known for its designs of Ferrari and Maserati automobiles, as well as yachts and private jets. Pininfarina has designed two boats for Challenger: an open bow family performance boat and an offshore powerboat boat, both 36 feet long. Both boats will incorporate the patented revolutionary Duo Delta-Conic ('DDC') hull.
Laurie Phillips, Challenger's president and CEO, commented, 'We spent the first half of the year fine tuning our production operations and creating a critical mass of dealers and distributors. The order flow for all our lines of boats has maintained a steady growth since the dealer meetings, which was one of the first opportunities for us to demonstrate the quality of our Challenger boat line, especially the DDC line. Dealer response to our Gekko tow boats, considered the world's best tracking towboat, and our innovative water-jet powered Sugar Sand boats has exceeded our expectations. The production capacities of our Washington, Missouri and Fargo, North Dakota plants are equipped to handle significantly increased volume, while maintaining costs efficiencies and delivering exceptional quality. The company is positioned to have a strong 2008.'
