Exhibit 99.1
Renegade Venture (NEV.) Corp. Announces
Third Quarter Financial Results
o Consolidated revenues increase 59% compared to third quarter 2003
o Consolidated revenues increase 32.4% in the first nine months of 2004
o Company reports net income of $678,655, or $0.02 per share for third
quarter; $2.3 million, or $0.10 per share for nine months
o Reiterates guidance of $2.5 million net income for fiscal 2004
TUCSON, Ariz.--November 15, 2004 --Renegade Venture (NEV) Corp. (OTCBB: RDVN -
News), a leading provider of aircraft parts sales and support, and scheduled
maintenance, repair and overhaul (MRO) services for commercial airlines, charter
airlines and aviation leasing companies, today announced financial results for
the third quarter and nine-month period ended September 30, 2004.
Revenue for the quarter was $8.1 million, a 59 percent increase compared to the
$5.1 million reported for the third quarter of 2003. The Company reported net
income of $678,655, or $0.02 per share, compared to a net loss of $901,316, or
$(0.06) per share, last year.
Hamilton Aerospace, a wholly owned subsidiary of Renegade Venture Corp.,
contributed $6.6 million in revenue for the quarter, and net income of $503,470.
Our recent acquisition, World Jet, another wholly owned subsidiary of Renegade
Venture Corp. contributed $1.9 million in revenue and net income of $180,150.
Revenue for the nine-month period ended September 30, 2004 was $16.7 million, an
increase of 32.4 percent compared to the $12.6 million reported for the first
nine months of 2003. The Company reported net income for the nine-month period
of $2.3 million, or $0.10 per share, on a GAAP weighted average issued and
outstanding basis, compared to a net loss of $1.4 million, or $(0.01) per share
for the same quarter last year.
RDVN has reiterated its revised guidance of October 8, 2004, that net income
will meet or exceed $2.5 million for fiscal 2004.
John Sawyer, President and Chief Operating Officer of Renegade and Hamilton
Aerospace, commented, "The Company's balance sheet, operating results and
business growth are all trending in a positive direction despite a continuing
malaise in the air transportation sector. Many of the Company's principal
revenue sources are counter-cyclical in nature, which we believe will continue
to drive strong top and bottom line growth for the foreseeable future. We are
particularly pleased by the expansion of our customer base through the addition
of new client airline operators such as Air California, Teebah Airlines, Iraqi
Airways, Shaheen Air International and the Presidential Fleet of Mexico."
During the quarter, Hamilton Aerospace completed several aircraft trading
transactions that contributed nearly $3 million in revenues. These transactions
included the purchase and resale of two Boeing 737-200 aircraft to Teebah
Airlines to be used by the new Iraqi flag carrier Iraqi airways.
Renegade and HAT Chairman Ian Herman added, "The addition of a rapidly expanding
aircraft trading segment to our business model, coupled with the recent
acquisition of World Jet and the continued growth of Hamilton Aerospace's
aircraft maintenance business, has now created the opportunity to build a
vertically integrated aerospace company with the potential to become an
increasingly significant player in the international aviation industry.
Renegade's aircraft sales and leasing, parts sales and maintenance divisions all
promote and support each other in very meaningful ways. HAT's technical
expertise and industry-wide contacts brings immediate credibility and
competitive advantages to Renegade's aircraft sales and leasing activities. In
turn, Renegade's aircraft trading activities generates locked-in aircraft
maintenance business for HAT. Simultaneously, World Jet can capitalize on all
the aircraft parts requirements of HAT and Renegade's aircraft trading
customers. We believe that these synergistic elements will provide a tremendous
opportunity to build shareholder value over time as we leverage the core
capabilities of each business unit."
The Company completed the quarter with a current ratio of 2 to 1, and $677,890
in cash on its balance sheet. Stockholder's equity increased to $6.06 million
from negative $1.2 million as of December 31, 2003.
Management will conduct a conference call on Tuesday, November 16, 2004, at 4:15
ET to discuss the financial results. Interested parties can access the call at
1-877-692-2592 from within the United States, or 1-973-582-2700 if dialing
internationally approximately five minutes prior to the start of the call. The
call will be webcast live via the Internet, and can be viewed at
www.renegadeventurecorp.com for up to 30 days following the call. A replay of
the call will be available through November 23, 2004 by dialing 1-877-519-4471
domestically and 1-973-341-3080 internationally and entering access code
5396250.
About Renegade Venture
Through its Hamilton Aerospace and World Jet subsidiaries, Renegade provides
parts support and maintenance, repair and overhaul (MRO) services for large
passenger jet aircraft to scheduled and charter airlines and aviation leasing
companies. Hamilton Aerospace and World Jet operate from adjacent facilities
comprising about 30 acres located at Tucson International Airport. These
facilities include hangars, workshops, warehouses, offices and other buildings.
Notable customers include United Parcel Service, Falcon Air Express, Jetran
International, Goodrich Corporation, AAR, National Jet Systems, Pemco, San
Antonio Aerospace, Pegasus Aviation, Northern Air Cargo, Asia Pacific Airlines,
Iraqi Airways and the Presidential Fleet of Mexico.
Renegade's member Web site is located at www.renegadeventurecorp.com. The
Hamilton Aerospace Web site is located at www.hamaerotech.com.
This release contains "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995 or regulations thereunder.
These forward-looking statements are subject to risks and uncertainties, and
actual results may differ materially. These risks include the economic health of
the airline industry, demand for Hamilton Aerospace's services, and competitive
pricing pressures. In addition, other risks are detailed in Renegade's Form
10-KSB filed on April 15, 2003. These statements speak only as of the above
date, and Renegade disclaims any intent or obligation to update them.
Contact:
Renegade Venture Corp., Tucson
Ian Herman, 520-275-6059
iherman@hamaerotech.com
-----------------------
or
Alliance Advisors, LLC
Alan Sheinwald, 914-244-0062
asheinwald@allianceadvisors.net
-------------------------------
RENEGADE VENTURE (NEV) CORPORATION
Consolidated Statement of Operations
For the Three and Nine Months Ended September 30, 2003 and 2004
(unaudited)
Three Months ended Nine Months ended
September 30, September 30,
2003 2004 2003 2004
------------ ------------ ------------ -----------
Net sales $ 5,091,825 $ 8,112,082 $ 12,611,185 $ 16,698,987
Cost of sales (4,465,474) (6,208,825) (10,640,024) (11,810,539)
------------ ------------ ------------ ------------
Gross profit 626,351 1,903,257 1,971,161 4,888,448
Selling, general and administrative
expense (1,454,328) (1,787,144) (3,021,597) (3,404,548)
------------ ------------ ------------ ------------
Penalties (19,976) (21,255) (156,277) (211,767)
------------ ------------ ------------ ------------
Gain (loss) from operations (847,953) 94,858 (1,206,713) 1,272,133
Other income (expense):
Interest income 62,063 3,159 187,356 64,551
Interest expense (113,788) (50,765) (377,646) (235,578
Discounts taken 13,271 27,544
Miscellaneous expense (1,643) (17,124) (9,084)
Miscellaneous income 5 10,938 10,513 13,521
Gain on renegotiation of contracts 607,194 1,144,502
------------ ------------ ------------ ------------
Pre-tax net income (901,316) 678,655 (1,403,613) 2,277,589
Income tax without carryforward (278,031) (933,083)
Reduction from carryforward of NOL 278,031 933,083
------------ ------------ ------------ ------------
Net profit (loss) $ (901,316) $ 678,655 $(1,403,613) $ 2,277,589
============ ============ ============ ============
Net profit (loss) per share (0.06) 0.02 (0.10) 0.10
Net profit (loss) per share, Fully
diluted $ (0.06) $ 0.02 $ (0.10) $ 0.09
============ ============ ============ ============
The accompanying notes are an integral
part of these condensed consolidated financial statements.
RENEGADE VENTURE (NEV) CORPORATION
Consolidated Balance Sheet
December 31, 2003 and September 30, 2004
ASSETS
2003 2004
(audited) (unaudited)
---------- ----------
CURRENT ASSETS
Cash and cash equivalents $ 8,680 $ 677,890
Accounts receivable 1,612,945 2,343,017
Note receivable 6,400 149,667
Costs and estimated earnings on uncompleted contracts in 137,382
excess of billings
Inventory 570,794 3,289,420
Funds in Escrow 476,354
Other current assets 392,407 366,676
---------- ----------
TOTAL CURRENT ASSETS $2,591,226 $7,440,406
Property, plant and equipment 532,388 1,612,321
Investment 25,000
Goodwill 597,724
Other non-current assets 122,167 126,328
---------- ----------
TOTAL ASSETS $3,245,781 $9,801,779
========== ==========
The accompanying notes are an integral part of these condensed consolidated financial statements.
RENEGADE VENTURE (NEV) CORPORATION
Consolidated Balance Sheet
December 31, 2003 and September 30, 2004
LIABILITIES AND STOCKHOLDERS' EQUITY
2003 2004
(audited) (unaudited)
------------ -----------
CURRENT LIABILITIES
Notes payable - short term $ 798,862 $ 109,696
Notes payable - related party 417,000
Accounts payable - trade 1,691,853 1,573,398
Accounts payable - related party 71,827
Due to factor 394,391
Customer deposits 27,800 27,000
Billings in excess of costs and estimated
earnings on contracts in progress 323,686
Accrued liabilities 688,518 927,323
Income taxes payable 311,182
Commitments and contingencies
Shares subject to mandatory redemption 400,535 400,535
----------- -----------
TOTAL CURRENT LIABILITIES $ 4,397,472 $ 3,766,134
LONG-TERM LIABILITIES
Notes payable - long term portion
----------- -----------
TOTAL LONG-TERM LIABILITIES
----------- -----------
TOTAL LIABILITIES 4,397,472 3,766,134
=========== ===========
STOCKHOLDERS' EQUITY
Common stock, $.001 par value, 50,000,000 shares
authorized 14,680,000 and 30,650,386 shares
issued 2003 and 2004 and 14,680,000 and
30,650,386 shares outstanding 2003 and 2004 18,110 31,280
Additional paid-in capital 2,412,123 6,976,700
Deferred compensation (332,000)
Contributed capital 620,289 620,289
Retained earnings (3,870,213) (1,592,624)
----------- -----------
Total paid-in capital and accumulated deficit (1,151,691) 6,035,645
----------- -----------
TOTAL STOCKHOLDERS' EQUITY (1,151,691) 6,057,253
=========== ===========
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 3,245,781 $ 9,801,779
=========== ===========
The accompanying notes are an integral part of these condensed consolidated financial statements.