July 2, 2007 – Lehman’s 1Q income rises 43 percent

Lehman Trikes Inc., having recently launched its newest powersports partnership, is reporting nearly a 43 percent jump in its first-quarter income and is preparing for a big second quarter.
The Canadian trike manufacturer reported net revenue of $4.5 million for its fiscal 2007 first quarter, which ended Feb. 28. That’s a $1.3 million jump in comparison to the last year period. The company noted the first quarter is traditionally its smallest revenue generator of the year.
“The first quarter was punctuated with an increase in revenue primarily due to increased production and improved dealer performance,” Lehman CEO Dan Patterson wrote in the company’s first-quarter report. “Our success is directly linked to our focus on an expanded dealer network and distribution channels, along with our drive to improve operation, production and administrative processes.”
The company unveiled the PitBoss, a trike that Lehman is partnering with Victory on, during its first quarter. The new model is scheduled for a second-quarter release. That could be why the company is reporting an increased amount of inventory. The first-quarter report shows an increase of $506,000 in inventory, which is nearly three times the increase reported at this time last year.
Gross profit also is higher this year at $1.2 million — a 13 percent increase.
Lehman also reported its expenses incurred during its expansion of its U.S. facility in Spearfish, S.D. The company is expanding its U.S. manufacturing facility by 17,500 square feet. Lehman reported it purchased more than $119,000 in equipment for the company’s technology center and spent an additional $519,000 on the assembly plant expansion.
Part of the expanding manufacturing area will go toward building conversion kits for Honda touring bikes and most current models of Harley-Davidson motorcycles.