OFF THE WIRE
Sturgis Motorcycle Rally Serves as Successful Snapshot of Greater Operational Rollout
STURGIS, S.D., Dec. 2, 2010 -- Monkey Rock Group, Inc. ("Monkey Rock" or the "Company") (OTCBB:MKRO), a retail leisure brand servicing the North American motorcycle rally industry, recently announced operating results for the three months ended September 30, 2010.1
o The Company recognized revenue of $651,075 for the three months ended September 30, 2010, as compared to $387,280 for the three months ended September 30, 2009 - a 68% increase.
o The Company recorded a gross profit of $502,128 for the three months ended September 30, 2010, as compared to $96,671 for the three months ended September 30, 2009 - a 519% increase.
"We like to think of Sturgis (www.sturgismotorcyclerally.com) as our laboratory for Monkey Rock research and development," stated Monkey Rock CEO John Dent. "Over the last two years, we have launched and polished our model for adult-themed entertainment at this event, and both the response and evolution has been extraordinary. As new participants in 2009, we achieved gross margins of 25%. In 2010, the Company achieved gross margins of 77%, more than tripling our margins from the prior year. We feel strongly that we have built and refined a brand positioned to succeed on a much broader scale. We intend to grow our business through the acquisition or creation of destination properties at motorcycle enthusiast hotspots across the country, and complement those brick-and-mortar assets with dynamic social media products. During the week of December 6, 2010, we plan on issuing an open letter to shareholders describing in detail our model and anticipated rollout timeline."
Please visit www.sec.gov to view the Company's complete financial results.
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About Monkey Rock Group, Inc. (www.monkeyrockusa.com)
Founded in 2009, Sturgis, SD-based Monkey Rock is a retail leisure brand positioned to service the greater North American motorcycle rally industry. Currently, the Company has retail business operations in the short-cycle food, beverage and entertainment industry. The Company's foundation is built upon a professional European-styled leisure concept that serves select North American markets with its unique delivery of food, beverage, and live adult-themed entertainment venues. The Company's traveling concept focuses on our goal to serve some of the country's largest social and sporting events to include motorcycle and auto rallies, rodeo events, and auto races.
1As the August Sturgis Motorcycle Rally was the only revenue generating event in both fiscal years 2009 and 2010, third quarter and year-to-date operating results are approximately equivalent.
