ePunk Announces Record Q2 and Six Month Financial Results
-- Reported quarterly sales up 134% and gross profit up 76% sequentially
SAN CLEMENTE, Calif., June 27, 2012 /PRNewswire/ -- ePunk, Inc. (PINK SHEETS: PUNK.PK), a distributor of power sports products, accessories and related services through CountyImports.com, today announced financial results for the second quarter ended March 31, 2012, as filed late, on June 27, 2012, with the Securities and Exchange Commission.
During the three months ended March 31, 2012, revenues and gross profit totaled $531,268 and $60,794, respectively, representing an increase in revenue of $304,562 or 134% and an increase in gross profit of $26,252 or 76% compared to the three months ended December 31, 2011, and an increase in revenue of $382,970 or 258% and an increase in gross profit of $41,265 or 211% compared to the three months ended September 30, 2011. During the six months ended March 31, 2012 revenues and gross profit totaled $757,974 and $95,336, respectively. Our gross margin has fluctuated from 13.2% to 15.2% to 11.4% in each of the past three quarters ending September 30, 2011, December 31, 2011 and March 31, 2012, respectively.
Our revenue consists of sales of scooters, ATV's, UTV's, motorcycles and parts and accessories through our website properties CountyImports.com, CountyImportParts.com, BidPunks.com, ViperSportUSA.com, CountyCruisers.com, PCHRides.com and through our storefront, Pacific Coast House of Rides located in Dana Point, California. We expect our gross margin to increase as our sales increase.
Excluding stock compensation, operating expenses increased from $90,639 to $119,195 to $131,787 in each of the past three quarters ending September 30, 2011, December 31, 2011 and March 31, 2012, respectively. The same operating costs as a percentage of revenue have steadily decreased from 61.1% to 52.6% to 24.8% in each of the past three quarters ending September 30, 2011, December 31, 2011 and March 31, 2012, respectively.
As the Company continues to establish operating efficiencies, we expect to see cash based operating costs as a percentage of revenue continue to decline.
As a result of the foregoing, our net loss for the three and six months ended March 31, 2012 was $144,178, or $0.005 per diluted share and $234,761, or $0.008 per diluted share, respectively. Weighted average common shares outstanding for the three months ended March 31, 2012 were 30,048,534.
Jesse Gonzales, CEO of ePunk, stated that "We are pleased to report continued improving financial performance in the second quarter, and that we have brought our financial reports to current status. We remain committed to achieving more effective administrative processes that will enable us to maintain better shareholder transparency going forward, and which will serve our business well both operationally and in terms of implementation of sound corporate governance policies."
ePunk continues to maintain focus on expanding www.countyimports.com business emphasizing revenue growth and improvement in gross and operating margins. "Traffic to CountyImports.com has hit record levels in 2012 to date, which is, in our opinion, a reflection on increasing consumer demand for scooters, ATVs and other power sports products we are offering. We are committed to providing our customers with the best quality of product supported by best-in-class service and support, and believe that is the key to building and keeping customer loyalty, as well as to achieving our operating and financial goals," added Gonzales.
"In addition, ePunk continues to move forward plans to launch the industry's first power sports auction later this year. We are excited about the opportunity to leverage our online platform and consumer base at County Imports to help successfully launch BidPunk. Despite the fact that the penny stock auction markets have become saturated in the past couple years, and increasingly competitive, we think that the timing is right and the opportunity has never been greater for a penny auction with a truly differentiated and value-added approach to online commerce that will benefit consumer and our wholesale partners alike."
Based in Dana Point, California, ePunk, Inc. is a leading distributor, which through its County Imports brand, offers competitively priced power sports products serving North American to consumers online and through its brick-and-mortar location based in Southern California. For more information about ePunk, or any of its online businesses: www.BidPunk.com, www.CountyImports.com, www.CountyImportParts.com, www.CountyCruisers.com, www.PCHRides.com, or www.ViperSportUSA.com, go to www.ePunkinc.com.
This release contains forward-looking statements, including, without limitation, statements concerning our business and possible or assumed future results of operations. Our actual results could differ materially from those anticipated in the forward-looking statements for many reasons including: our ability to continue as a going concern, adverse economic changes affecting markets we serve; competition in our markets and industry segments; our timing and the profitability of entering new markets; greater than expected costs, customer acceptance of our products or difficulties related to our integration of the businesses we may acquire; and other risks and uncertainties as may be detailed from time to time in our public announcements and SEC filings. Although we believe the expectations reflected in the forward-looking statements are reasonable, they relate only to events as of the date on which the statements are made, and our future results, levels of activity, performance or achievements may not meet these expectations. We do not intend to update any of the forward-looking statements after the date of this document to conform these statements to actual results or to changes in our expectations, except as required by law. There is no assurance that a definitive agreement will be completed.
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