For the second straight quarter, Lehman Trikes’ sales have risen by a double-digit percentage compared to the prior-year periods, according to the manufacturer’s recently reported financials.
Its yearly net income, however, remains in the red as the manufacturer faces expenses from a reduction in its Canadian workforce.
Lehman’s third-quarter revenue of $5.9 million amounted to an increase of nearly 43 percent from the prior-year period. That follows its second-quarter sales increase of nearly 25 percent. Those two quarters are traditionally Lehman’s busiest of its fiscal year.
Dan Patterson, CEO of Lehman Trikes USA, said in the company’s third-quarter financial report that the company’s “new product releases and improvement in dealer capacities continued to drive increased revenues for the year.”
Patterson also noted the increased revenue was partially a result of the company’s efforts in obtaining “quality outsourcing partnerships.”
The company, which has its U.S. warehouse in Spearfish, S.D., does not disclose its retail unit sales. However, for the first nine months of its fiscal year, Lehman had sales of $16.3 million, a 36 percent increase over the prior year period. It also has increased its gross profit, which rose to more than $5 million, a 23 percent increase over the prior year period.
In its second-quarter report, the company disclosed it was laying off some of its workers at its Westlock, Alberta, facility. Online reports said Lehman reduced its Alberta workforce by approximately 25 employees, all of which were in the company’s metal fabrication and engineering departments. In Lehman’s second-quarter report, Patterson noted the workforce reduction would allow the company to “reap the benefits of reduced logistics and transportation costs.”
By Aug. 31, the workforce reduction was nearly complete, the company reported in its third-quarter statement. The closure of the metal fabrication and engineering departments represented more than an $800,000 expense in inventory and employee retention costs, the company reported.
Looking ahead, Patterson noted in the third-quarter report that the company has improved inventory levels, and it’s in position for “larger gains in the future.”
The trike manufacturer provides either kits or complete vehicles for Harley-Davidson, Suzuki, Honda and Victory motorcycles. psb
Copyright 2007 Powersports Business