Wednesday, January 17, 2007
Laguna Research Partners Releases Analysis of Proposed Merger Between Tank Sports and Redcat Motors
Tank Sports Filed 10-QSB Showing 36% Growth in Revenues and 49% Increase in Gross Profit
Laguna Research Partners Releases Analysis of Proposed Merger Between Tank Sports and Redcat Motors
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LOS ANGELES, Jan. 17, 2007 -- Tank Sports, Inc. (OTC BB: TNSPE.OB - News) today announced that Laguna Research Partners LLC has released an Update Report and Summary Update Report providing its analysis of the proposed merger between Tank Sports and LowPrice.com, Inc., an Arizona corporation d/b/a Redcat Motors. Redcat is a power-sports equipment importer and distributor headquartered in Phoenix, Arizona whose business mainly focuses on off-road power-sports equipment.
Ms. Jing Jing Long, Chief Executive Officer of Tank Sports, stated, "We are excited about the tremendous growth opportunities for Tank Sports in the worldwide power-sports market. Since our company's founding in 2001, customer reaction to our line of cutting-edge motorcycles and all-terrain vehicles has been overwhelmingly positive.'' She added, "Also, we believe that Laguna Research Partners has provided our company's shareholders with a fair and balanced analysis of our proposed merger with Redcat.''
In part, the Laguna Research Partners analysis of the planned Tank Sports and Redcat merger states, "The proposed merger, we estimate, could immediately boost Tank's annual revenue from approximately $11.0 million to more than $25.0 million, and gross profit from roughly $2.8 million to more than $4.5 million.'' The analysis goes on to mention, "We also estimate that an improved gross profit margin at Redcat could generate an incremental $1.3 million in gross profit annually and that the elimination of redundant operating expenses could generate annual cost savings of as much as $1.5 million to $2.0 million.''
"Our firm is highly impressed with the sales performance of the Tank Sports product line in the very competitive power-sports market,'' said Kevin B. Skislock, Partner and Chief Executive Officer of Laguna Research Partners. "In our opinion, the Tank Sports management team has clearly connected with the pulse of consumers in the value-priced motorcycle and ATV markets, and we believe that the Redcat merger is an important step towards the fulfillment of Tank's long-term market strategy.''
The merger analysis released by Laguna Research Partners can be accessed at that firm's Web site at http://www.lrponline.net . It can also be accessed at the Investor Relations section of the Tank Sports Web site at http://www.tank-sports.com.
About Tank Sports, Inc.
Tank Sports is a leading company that develops, engineers, and markets high performance on-road motorcycles and scooters, off-road all-terrain vehicles (ATVs), dirt bikes and Go Karts through OEMs in China. It utilizes the so-called "China Concept'' to participate in the $31.5 billion annually (data: Motor Industry Council) motorcycle/ATV market.
The Tank Sports, Inc. logo is available at http://www.primezone.com/newsroom/prs/?pkgid=3000
About Laguna Research Partners, LLC.
Founded in 1998, Laguna Research Partners (http://www.LRPonline.net) is a privately held business intelligence and research firm that produces company, industry, economic, and geoeconomic research, analysis, and forecasting. The firm's primary objective is to provide its research users and business intelligence clients with proprietary, actionable insights. Since 2004, Laguna Research Partners has advised U.S.-based companies entering Asia and Asia-based companies entering the U.S.
Disclosure
Laguna Research Partners has been compensated U.S. four-thousand five-hundred dollars by Tank Sports, Inc. for an Update Research Report and a Summary of that Update Research. Payment was made in full prior to issuance of those reports. No Laguna Research Partners owner, officer, or employee holds a position in and/or engages in transactions with respect to the securities of Tank Sports, Inc. Full disclosure information can be accessed at http://www.LRPonline.net.
Contact:
Tank Sports, Inc.
Vanessa Hong
Investor Relations Specialist
Email: ir@tank-sports.com
Laguna Research Partners, LLC.
Kevin B. Skislock
Tel:
(949) 651-9053
Fax: (949) 651-9054
Email: skislock@lrponline.net
Tank Sports Filed 10-QSB Showing 36% Growth in Revenues and 49% Increase in Gross Profit
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LOS ANGELES, CA--(MARKET WIRE)--Jan 17, 2007 -- Tank Sports, Inc. (OTC BB: TNSP.OB - News) has filed its 10-QSB for the 3rd fiscal quarter ended on Nov. 30, 2006. For the first 9 months of 2006, its revenues reached $7.79 million, a 36% increase as compared to $5.72 million in revenues for the same period ended November 30, 2005. At the same time, the gross profit for the 9 month period ended November 30, 2006 was $2.31 million, a 49% increase as compared to $1.55 million for the same period ended November 30, 2005, while dealer numbers increased to 252, or 27% compared to the same period.
When being asked how the company accomplished these results despite the competitive market situation, Ms Jingjing Long, Chief Operation Officer of the company, says, "We have been very persistent with our business development plan. First, we stick with our enterprise core values by providing high performance power sports products at value added pricing. We launched Vision 250E motorcycle, 150T-12 Scooter and a new version of 400 ATV, all with our proprietorship design and development. Secondly, we took the company public, which gave us a lot of drive to run business in a very professional and disciplined way, which opens up a door to access more growth capital. Looking forward, we feel even more confident than ever with our growth in year 2007. Because our merger with Redcat Motors is moving smoothly to integrate the company's ERP system, 350 plus dealers, well management organization, and $15.8 million (unaudited) in revenues in 2006. With broader product mix and lowered costs to all our dealers after the merger, we will be in a better position to support both companies' dealers with a more profitable and competitive dealership business."
For more information, please check out the company website: www.tank-sports.com.
About Tank Sports, Inc.
Tank Sports is a leading company that develops, engineers, and markets high performance on-road motorcycles & scooters, off-road all-terrain vehicles (ATVs), dirt bikes and Go Karts through OEMs in China. It utilizes the so-called "China Concept" to participate in the $31.5 billion/year motorcycle/ATV market (data: Motor Industry Council).
Safe Harbor Statement
The foregoing news release includes numerous forward-looking statements concerning the company's business and future prospects and other similar statements that do not concern matters of historical fact. The federal securities laws provide a limited "safe harbor'' for certain forward-looking statements. Forward-looking statements in this news release relating to business developments are based on the company's current expectations. The company's current expectations are subject to all of the uncertainties and risks customarily associated with small business ventures including, but not limited to, market conditions, successful product development and acceptance, competition and overall economic conditions, as well as the risk of adverse regulatory actions. The company's actual results may differ materially from current expectations. Readers are cautioned not to put undue reliance on forward-looking statements. The company disclaims any intent or obligation to update publicly these forward-looking statements, whether as a result of new information, future events or for any other reason.
Contact:
Tank Sports, Inc.
10925 Schmidt Road
El Monte, CA 91733
Tel: (626)350-4039
Fax: (909)354-3174
Email: ir@tank-sports.com
Website: http://www.tank-sports.com |
