Saleen Preps for 2015 Mustang; Reports Q2 Financials

Posted by Laura Swartz

November 17, 2014 at 10:56 AM

Saleen_logoSaleen Automotive (SLNN-OTC) has reported its financial results for its second quarter and six months ended September 30, 2014. (Fiscal year end is March 31.)

The company experienced a slowdown in sales during the quarter due to a production switch by Ford from the 2014 Mustang to the 2015 Mustang. Ford discontinued supply of the 2014 Mustang chassis in May 2014, and did not start shipping on the 2015 until mid-November 2014. Saleen reports in its Form 10-Q filed with the SEC on Friday that many of its authorized resellers and dealers have preferred to place orders for the 2015 Saleen Mustang instead. To capitalize on anticipated 2015 demand, the company stated in its November 14th press release that it had "just recently received [the] initial shipment from Ford of the 2015 Mustangs and will begin production shortly."

Accordingly, Saleen reported sales for the quarter ended Sept. 30, 2014 of $866,524 versus sales of $1,536,264 for the year-ago quarter. For the six-month period ended Sept. 30, 2014, however, the company's sales increased to $2,563,901 from $2,442,696 a year ago.

The full text of Saleen's press release announcing its quarterly and six-month financial results is provided below. Our past blog articles include details (specs and pictures) of the 2015 Saleen Mustang and latest new product offering, the all-electric Saleen FOURSIXTEEN (based on the Tesla Model S chassis).

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CORONA, CA--(Marketwired - Nov 14, 2014) - Saleen Automotive, Inc. (OTCBB: SLNN) (the "Company"), an American specialty manufacturer of high performance vehicles, technical performance parts, lifestyle accessories and apparel, is pleased to provide the market with its results for the three and six months ended September 30, 2014. The Company's full report on Form 10-Q is available in its entirety at http://edgar.sec.gov/.

Key financial results of operations for the three months ended September 30, 2014 are summarized herein:

  • Revenue decreased to $866,524 for the quarter ended September 30, 2014 from $1,536,264 for the quarter ended September 30, 2013;

  • Gross margin decreased to $96,534 for the quarter ended September 30, 2014 from $302,256 for the quarter ended September 30, 2013;

  • Operating expenses increased to $1,549,765 for the quarter ended September 30, 2014 from $1,450,182 for the quarter ended September 30, 2013;

  • Loss from operations increased to $1,453,231 for the quarter ended September 30, 2014 from $1,147,926 for the quarter ended September 30, 2013;

  • Net loss for the quarter ended September 30, 2014 increased to $2,083,705, compared to a net loss of $1,134,966 for the quarter ended September 30, 2013.

Key financial results of operations for the six months ended September 30, 2014 are summarized herein:

  • Revenue increased to $2,563,901 for the six months ended September 30, 2014 from $2,442,696 for the six months ended September 30, 2013;

  • Gross margin decreased to $362,626 for the six months ended September 30, 2014 from $365,717 for the six months ended September 30, 2013;

  • Operating expenses declined to $3,419,606 for the six months ended September 30, 2014 from $3,452,736 for the six months ended September 30, 2013;

  • Loss from operations decreased to a loss of $3,056,980 for the six months ended September 30, 2014 from a loss of $3,087,019 for the six months ended September 30, 2013;

  • Net income for the six months ended September 30, 2014 was $902,279, compared to a net loss of $3,578,213 for the six months ended September 30, 2013. Excluding the impact of a non-cash gain of $5,032,789 from the extinguishment and change in fair value of a derivative liability extinguished in June 2014, net loss increased to a net loss of $4,130,510 for the six months ended September 30, 2014 from a net loss of $3,578,213 for the six months ended June 30, 2013.

"This quarter represented a major transition period for the Company, as we introduced the 2015 Saleen Mustang, which is, in my opinion, our boldest and most exciting Saleen Mustang that we've done in quite some time. As anticipated, sales during this quarter were negatively impacted, as Ford discontinued production of the 2014 Mustangs in order to switch to the all new and completely redesigned 2015 model," stated Steve Saleen, CEO, Saleen Automotive. "This was further compounded as many of our dealers decided to hold off on 2014 Mustang orders in anticipation of the new Saleen 2015 model. To put in perspective, during the same period in the prior year, the change from the 2013 to 2014 Mustang model year was minimal and the supply of vehicles was not disruptive. Having said this, I'm extremely excited and proud of our team, as we have received positive feedback on the design of the 2015 Saleen Mustang along with increased enthusiasm and demand for our product. In addition, we just recently received our initial shipment from Ford of the 2015 Mustangs and will begin production shortly. From this, I can clearly see a path to an anticipated increase in volume for the Saleen Mustang compared to where we were a year ago," added Saleen.

"This quarter, we also debuted an all-electric Tesla Model S based vehicle 'The FOURSIXTEEN' at the 2014 Pebble Beach Concours d' Elegance. The Saleen FOURSIXTEEN boasts an array of features that make the vehicle faster, more stylish with an improved ride while maintaining Tesla Motors' remarkable mileage efficiency. We have used all the experience and ingenuity in our collective acumen to create a truly exceptional all electric vehicle," stated Saleen. "I think that we have also raised the bar significantly with styling and improved interior that are worthy of the Saleen moniker," added Saleen. The Saleen FOURSIXTEEN will be a featured display at the upcoming Los Angeles Auto Show scheduled for November 18 - 20, 2014.

Major Milestones from the period include:

  • Saleen Automotive Releases Feature List and Image for 2015 Saleen 302 Mustang, Begins to Take Orders

  • Saleen Automotive Unleashes the All-Electric, All-Performance Tesla Saleen FOURSIXTEEN

All the above events can be read in their entirety by looking under the news feed for SLNN. Saleen uses the following outlets to provide updates from time to time to the public regarding its business and operations:

Facebook: https://www.facebook.com/Saleen

Company website: www.saleenautomotive.com

About Saleen Automotive, Inc.

Saleen is an American specialty manufacturer of high performance vehicles, technical performance parts, lifestyle accessories and apparel. Founder Steve Saleen has continually set the bar for automotive design and performance engineering in both street and racing applications. Saleen plans to utilize its existing strategic partnerships and dealer network to refine its design and engineering prowess, continue development of emerging automotive technologies, and expand its presence nationwide with a combination of automotive retail services, aftermarket parts and new vehicle sales to build significant long-term value. Learn more at www.saleenautomotive.com.

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For details of Saleen's muscle car heritage, current production, and growth plans, as well as a discussion of the automotive market and fuel-efficiency trends, download our Executive Informational Overview on Saleen or visit our Key Points summary of the company.
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