Scorpion Performance Exceeding 2010 Revenue Forecast, Signs Spartan Securities As Market Maker
Scorpion Performance, Inc. is pleased to report that it is on track to meet or exceed its revenue forecast and anticipates closing the 2010 fiscal year at an estimated $1.2 million profit.
- (1888PressRelease) September 24, 2010 - Fort Lauderdale, FL - The Company announced today that it has signed an agreement with Spartan Securities Group based in St. Petersburg, Florida to sponsor Scorpion Performance ( http://scorpionperformance.com ) by filing the required 15C-211 for quotation on the OTC Bulletin Board. Spartan Securities is a well-established, full service investment banking firm with a dedicated team of professionals serving the needs of emerging growth companies.
"Our goal all along has been to qualify to be able to trade in a public market," stated Rob Stopanio, President and CEO of Scorpion. "This is the next step to paving the way for Scorpion Performance to obtain a trading symbol which, we believe, will provide liquidity for our shareholders and enhance shareholder value." Scorpion Performance is now in the process of submitting documents required for OTC Bulletin Board recognition and expects to complete the application process by the end of the third quarter.
According to Stopanio, "The future of Scorpion Performance looks very bright. The Company is showing tremendous growth in sales, has decreased expenses and is realizing greater efficiencies. For the last 10 years, Scorpion has reinvested earnings back into the Company and has built other subsidiaries such as Scorpion Racing Products, a leading performance parts distribution company; Anodize Inc., a supplier of anodizing, polishing and laser etching services to various industries; Scorpion Medical, a design and manufacturing firm of precision medical devices and instruments; and World Waste Management, an innovator and manufacturer of composting and waste management systems. We believe that showing a healthy profit in 2010 is just the beginning of many good years to come."
"Scorpion has nominal debt," stated Stopanio. "We own over $10 million in equipment and $6 million in real estate holdings. Properties include a 1.82-acre / 30,000 square foot Fort Lauderdale, FL and a 23-acre / 95,000 square foot in Ocala, FL. We believe that our reinvestment in Ocala will allow us to increase capacity 300%, while maintaining product quality. This reinvestment, coupled with our reputation for high quality, has allowed us to step in and start manufacturing for major U.S. auto and marine original equipment manufacturer (OEM) companies that were forced to downsize, but still need to manufacture engines. When the economy changed a couple of years ago, Scorpion was positioned to begin strategic marketing efforts that resulted in higher sales, profits and production in a 'down' economy. We believe that our planning and reinvestment has made Scorpion the 'go to' company for manufacturing OEM parts in the United States."
Sales rising consistently
Scorpion's sales to date are up 32% over last year and have exceeded the Company's sales goals set for 2010. By the beginning of June 2010, Scorpion had already matched the total sales figures for all of 2009 and has over $1 million in pending orders.
Wholesale and retail sales of the Scorpion Performance branded line of products have doubled from this time last year. Scorpion has acquired new Warehouse Distributor (WD) customers and a growing number of the Company's WD customers are increasing their private label and Scorpion Performance branded orders substantially.
Private label sales to Scorpion's large OEM customers are also increasing. While one OEM customer is increasing production and future scheduling shows an increase of 50% in orders to Scorpion, another OEM is forecasting substantial growth in their 2010 sales. The second OEM customer has implemented a new engine program that uses Scorpion-manufactured rocker arms ( http://scorpionperformance.com ) exclusively, which should drive a 300% increase in 2011 over current order levels.
Scorpion also received its first purchase order from a third large OEM customer. Orders from this new customer are expected to match or exceed Scorpion's sales to its current largest customer, which, management believes, is a substantial development. All of Scorpion's OEM customers are American manufacturers that recognize the quality of Scorpion's American-made products.
Stopanio stated, "Through the use of robotics and automation, Scorpion is not only achieving success and growth through the sales of its own brand of products, the Company has also given large U.S. manufacturing companies a high quality, precision, low cost alternative to off-shore manufacturing of many of their parts."
Ocala facility nearing completion
Construction of Scorpion's new manufacturing facility in Ocala, Florida is nearly complete and is expected to open late 2010. Scorpion will then move its current Fort Lauderdale, Florida facility to Ocala. The subsequent liquidation of the Fort Lauderdale plant will result in an estimated 50% reduction in utilities, maintenance, repairs, and other operating expenses. According to Stopanio, "While decreased expenses are contributing to Scorpion Performance's financial position, we believe that increases in efficiency are also helping to improve the Company's bottom line."
Increases in efficiency
Scorpion's larger Ocala facility will allow the Company to increase its output by reconfiguring its automated manufacturing and assembly lines for greater productivity, and by allowing for the space needed to grow. The Ocala facility already houses Scorpion's executive management and marketing personnel, and employs three shifts of manufacturing personnel to operate two sets of CNC machinery.
The Ocala facility will also feature a new piece of robotic machinery that management believes will make this facility the most modern and productive facility of its kind anywhere in the world. This machine will reduce the manufacturing cycle time of a rocker arm from its current 1.5 minutes to only 16 seconds, which represents an increase in output of over 500%. This will be possible due to the machine performing up to 16 different functions at the same time. Additional automated productivity at this level also translates into reduced labor costs. Scorpion will be able to consolidate the work of three shifts into one shift.
The Ocala facility and new advanced equipment will also allow Scorpion to reconfigure its existing robotic cells to manufacture new product lines such as shaft mounted rocker arms, which is a huge new market that Scorpion is ready to enter and succeed in. Prototypes of this product have already been developed and are in the testing phase.
Scorpion subsidiaries adding to revenue
Numerous Scorpion Performance subsidiaries are performing well. Scorpion Racing Products and Anodize Inc. are two such companies that are producing positive results. Scorpion Racing Products is the marketing and distribution company for the products that Scorpion Performance manufactures. Net income for Scorpion Racing Products in 2009 was -$89,000. Based on current projections, Scorpion Racing Products net income for 2010 is expected to top $1,056,000 and is projected to be $3,072,000 in year 2011.
Anodize Inc. performs anodizing, mirror polishing and laser etching services for a broad range of industries including medical, defense, automotive, marine, aerospace and precision manufacturing. Year-to-date sales for Anodize Inc. are currently up 26%.
Two other Scorpion-owned companies that will begin operations in the near future are Scorpion Medical and World Waste Management. To diversify its growing operations, Scorpion Medical recently signed an agreement with its joint venture partner Global-Med Technologies Group (GTG) of Sarasota, Florida to provide manufacturing of all medical products for GTG subsidiary companies. Through this venture, Scorpion Medical will provide design, prototyping, manufacturing, testing, clean room environment, quality control, distribution and inventory control services to GTG device companies. According to Stopanio, "This will provide Scorpion Medical with an excellent opportunity to expand its medical device manufacturing business. We believe that the $100 billion U.S. medical device industry and the $4.2 trillion worldwide healthcare market provide tremendous manufacturing growth opportunities."
World Waste Management has designed and patented an environmentally friendly new product: a manure composting system that has 10 years of design and development behind it. Stopanio stated, "With ground water contamination a hot issue, this system is designed to take an environmentally harmful substance and transform it into a harmless composted material that can then be used as fertilizer. This is a solution for a problem that is prevalent in places that have large populations of people near farm animals. We believe that this proprietary composting system is the only technology of its kind and includes compacting machines that are already in limited production. Our prototypes are receiving positive reviews from customers in potential markets such as horse racing tracks / casinos, as well as large horse and cattle farms." Prototypes are currently being tested and the full manufacturing phase is projected to start later this year.
Scorpion named a Finalist by SFMA
Scorpion Performance was recently named a Finalist for the 2009 Manufacturer of the Year Award presented by the South Florida Manufacturers Association (SFMA). Being one of three Finalists out of 3500 members is truly an outstanding feat for Scorpion, especially because this was the Company's first entry into the annual competition. According to SFMA Lead Judge Phil Centonze, "Other companies have entered for six or seven years before being named a Finalist." Finalists were selected based on a stringent evaluation process that addressed six particular criteria points: Leadership; Strategic Planning; Workforce Focus; Process Management; Customer & Market Focus; and Measurement, Analysis & Knowledge Management. Scorpion is very proud to have received this award and the professional industry recognition that comes with it.
Forward-Looking Statements
Statements in this press release other than statements of historical fact, including statements regarding the Company's plans, beliefs and estimates as to projections are 'forward-looking statements.' Such statements are subject to certain risks and uncertainties, including factors listed from time to time in the Company's SEC filings, and actual results could differ materially from expected results. These forward-looking statements represent the Company's judgment as of the date of this release. The Company does not undertake to update, revise or correct any forward-looking statements.
For more information contact Scott Reynolds, Vice President Marketing, Scorpion Performance, Inc. at 954-779-3600. Visit the Scorpion Performance web site at http://scorpionperformance.com
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