Confederate Motors Reports $1M Net Loss in 3rd Quarter

confederatemotorsAccording to Securities and Exchange Commission filings, Confederate Motors Inc. posted third quarter net losses of $1 million after a drop in shipments of its handcrafted motorcycles. The Birmingham-based motorcycle manufacturer reported $333,108 in losses from operations and $757,500 in stock-based compensation for the three months ended Sept. 30.

For the same period last year, Confederate Motors reported net losses of $41,379 and $3,559 in losses from operations. Revenue in the third quarter dropped to $150,633 compared to $659,357 for the third quarter of 2008. Net losses grew drastically to $2.9 million the first nine months of 2009 compared to a net loss of $39,961 for the first nine months of 2008.

The company, founded in 1991 by Matt Chambers is using a proprietary 45 degree radial twin engine and aircraft grade aluminum for its chassis and many of its components. Confederate will unveil a new apparel line, created exclusively for the company by Kushitani at the Los Angeles Auto Show December 4-13. Confederate Motors.

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31 Responses to “Confederate Motors Reports $1M Net Loss in 3rd Quarter”


  1. 1 J Nov 26th, 2009 at 9:28 am

    Ugh- these guys went public? Didn’t know that….. Never gonna make this fly when you’re answering to shareholders about that 75+% drop in revenue, yikers……

    Hey, that Obama stimulus plan is working out really well, huh? Bet another “cash for clunkers” fixes Confederate right up…….. Idiot……..

  2. 2 Robert Patrese Nov 26th, 2009 at 9:42 am

    Hey, J. You still don’t understand that the Bush administation created the mess? Wake up, boy. Only Obama can & will fix this country. not in 1 year. Nobody can. Too much damage created by our former dumb and liar Prez.

  3. 3 Sniperman Nov 26th, 2009 at 10:12 am

    Sad to hear the sad news.

    I’m wondering how long till Confederate runs out of money or the investors decide to pull the plug on the operation. I am willing to bet that we are going to have a horrible winter in 2010. So I see tougher times coming ahead.

    Sniperman

  4. 4 mike x Nov 26th, 2009 at 11:39 am

    Karma is undefeated ! matt chambers was a lawyer before confederate . All of the cool factor that lies within confederate can be attributed to J.T. Nesbitt. After Katrina , Matt chambers stuck it up all the asses of the people who made him .chanbers then Found some suckers in Birmingham to give him money. Only problem was he left “the talent” behind in “naw lins “. J.T. Nesbitt will be around and shine again , bet i am right !

  5. 5 Boss Hawg Nov 26th, 2009 at 12:30 pm

    Ouch…damn lawyers will screw you every time!

    Boss Hawg

  6. 6 ian Nov 26th, 2009 at 1:20 pm

    Well it makes an interesting counterpoint to the Lorenzo cycles story earlier.
    I would love a Confederate bike and even wear their T Shirt – and despite my best wishes they still lose $1M – mind you here in the UK they cost the same as an Aston Martin – which puts it in perspective.

  7. 7 bob Nov 26th, 2009 at 1:24 pm

    what is nesbitt doing now?

  8. 8 Jim C Nov 26th, 2009 at 1:55 pm

    “Revenue in the third quarter dropped to $150,633 ” pretty much says it all to me.

  9. 9 J Nov 26th, 2009 at 3:05 pm

    Hey Robert Patrese- uh, yeah, way to be enlightened there, Comrade…..

  10. 10 Bigalyts Nov 26th, 2009 at 3:40 pm

    I am a Confederate Owner from the “Days of the sensible Hell cats” when they were buiit to 2003 and they were $29 Grand . I called and ask for Parts that are from “Paioli” Front Forks and Dust Seals that are ruined a Fork Tube and ISR Brake Parts, which can be gotten from 2 Vendors, but Frame and Tanks and Front End Parts, Who has those Parts, now ?? Can you Imagine when they Close, WHOTHE HELL IS GOING TO HAVE PARTS FOR THAT ” SPACE MACHINE” ? Chambers keeps falling under the Radar after He Closes His Company’s and Never has 10 Years worth of Parts available for the all the Good Clients who Bought His Bikes in the Past !!! He has a pretty helpful Dood that is named “Blair” and He tries to help , but He is a VERY TALENTED GOPHER. He is used as a Runner and a KEEP THE BIKES UP TO LOOKING LIKE THEY ARE ALMOST DONE SO WE GET FLOAT MONEY! What do you expect from a MOUTH PIECE ( Lawyer) ? I don’t know how you feel, but give me Rock Singer and a Movie Starr anyday in the Motorcyle Business before a Mouth Piece !

  11. 11 sickboy Nov 26th, 2009 at 5:19 pm

    revenue in the third quarter $150,633? What’s that- one bike in three months?

  12. 12 john reed Nov 26th, 2009 at 5:19 pm

    bigalyts
    Custom chrome bought the paoli front ends left over from the confederate project for the V kit bike,
    they may tell you who bought them from them.

  13. 13 A$$HOLE Nov 26th, 2009 at 6:20 pm

    This bike looks like something from the Transformers movie. Too bad it cannot transform into a bike that sells.

  14. 14 deacon Nov 27th, 2009 at 1:44 am

    bob
    Nov 26th, 2009 at 1:24 pm
    what is nesbitt doing now?

    …see: http://bienvillestudios.com/

  15. 15 Bigalyts Nov 27th, 2009 at 12:05 pm

    Thanks John Reed, I need a Tube and the Dust Seals, now !

  16. 16 NOSEY POSEY Nov 27th, 2009 at 12:26 pm

    CAN’T SELL THE BIKE SO INVEST MORE MONEY AND TRY TO SELL A T- SHIRT. HOW PATHETIC IS THAT

  17. 17 4Cammer Nov 27th, 2009 at 3:37 pm

    From the Confederate website:

    “Founded in 1991 in Baton Rouge, Louisiana by Matt Chambers, Confederate Motor Company set out to create machines utilizing a holistic, avant-garde process for celebrating the art of rebellion.  American rebellion is adopted as fundamental to the pursuit of personal empowerment.  We remain forever determined to challenge the establishmentarian view of what honest
    “new world” American industrial and mechanical design can be.”

    Really? Is this about motorcycles?

    Wish them the best, but c’mon………

  18. 18 MDSPHOTO Nov 27th, 2009 at 6:24 pm

    Well if their bikes are anything like their customer service their screwed. I called them and e-mailed them a number of times and no one ever got back to me.

  19. 19 Chris Nov 28th, 2009 at 8:54 am

    John Reed…………..Are you THE “John Reed” ?

  20. 20 Bill Nov 28th, 2009 at 6:48 pm

    Wow you folks are a bunch of negative cynics. This economy is tough for most all companies, especially in cyclical and automotive.. Harley closing Buell and trying to spin off Augusta, Detroit taking handouts. How could one expect anything different for a company with way upscale products like Confederate?

    Confederate has several new things on the horizon. The apparal line is just to keep a more constant revenue stream during tough times. They could have sure used those sales these last few quarters, apparently.

    The machines Confederate are making these days are nothing short of incredtible. I for one hope these guys turn things around and keep growing Matt’s visions.

  21. 21 Dr Robert Harms Nov 29th, 2009 at 8:07 am

    I suspect that the previous 20 posters neglected to actually read the 10Q prior to hitting the “send” button. There is a $757,500 “Stock Based Compensation ” chargeback. Such transaction are non-cash based. The loss from operations is $333108 . Disclosure –I have NO financial interest with Confederate and am the owner of two Wraiths .

  22. 22 Matt Chambers Nov 29th, 2009 at 4:36 pm

    Since the bubble burst, under the mantra “fight fire with fire”, your Confederate team has re-doubled focused efforts on design excellence, manufacturing quality and overall operating efficiency.

    I am with our team this very Sunday afternoon finishing a couple of production P120 Fighters, the first fruit of our decisive action. In rapid succession, two more fresh honest Confederate models will exit the pipeline for 2010 introduction.

    Because of our bandwidth, we could not develop and validate our new Fighter, the C2 Wraith and the C3 Hellcat, while simultaneously continuing to supply an inventory of new uncompromised carbon fiber Wraith and C2 Hellcat production.

    We chose to see present market conditions as a unique opportunity for medium and long-term growth. This required an investment in our future. When you see the extraordinary refinement of our new body of work, experience the way each machine has been agonized over, learn of the remarkably detailed design execution and discover our new template for world class global distribution, you will determine that our 2009 efforts have been true to concept, contextual and strategic for Confederate.

  23. 23 nicker Nov 30th, 2009 at 12:25 am

    Robert P-

    RE:
    “… Only Obama can & will fix this country….”

    In an alternative reality, maybe…….
    The same one that got him the Nobel Prize.

    -nicker-

  24. 24 Wade Ramsey Nov 30th, 2009 at 10:12 am

    Having visited Confederate recenlty, I’m confident that Matt Chambers and company will emerge from the present economic environment intact. They build some amazing machines that most riders would all be proud to own.

  25. 25 Jared Nov 30th, 2009 at 11:38 am

    I personally believe that what Confederate Motors has tried to accomplish is nothing short of astounding. They are an American-made, hand-built motorcycle that is a world leader in design, power-to-weight-ratio and innovative materials. While their models may not appeal to everyone, they definitely have carved out a niche for themselves and have caught the world’s attention. It would be a travesty if they went the way of previous innovative American brands, like Crocker, to name just one. I take my hat off to them for their vision and effort and hope they can pull through these difficult times.

  26. 26 farducci Nov 30th, 2009 at 12:25 pm

    J.T. Nesbitt? Seriously? You must be a friend.

    Good luck to Confederate.

  27. 27 Mike Corbin Nov 30th, 2009 at 1:46 pm

    Is that ” THE John Reed ” ??

    I mentored under John in the dark ages !!

  28. 28 john reed Dec 2nd, 2009 at 4:50 am

    Corbin,
    I am trying to change my image now I am old
    retired and more sophisticated, so please dont spoil it
    for me with stories from the dark ages.

  29. 29 Confederado Jan 8th, 2010 at 1:39 pm

    First, I worked for Confederate with JT. He is the only person who designed the 2nd generation Hellcat and he created the Wraith. Period! So please Mr. Farducci don’t try to take anything away from his talent.

    Second, Confederate Motors Inc. is a yet again a new (and public) company created this time in a March 2009 reverse merger buyout of the old company Confederate Motor Company, Inc, which is now an inactive Louisiana corporation due to the merger, (from LA Sec of State records). in 2003, Confederate Motor Company Inc. took over as a new company after Confederate Motorcycles Inc filed Bankrupcy and all of its assets were sold at public auction.

    Third, It did not surprise me to read: “The Birmingham-based motorcycle manufacturer reported $333,108 in losses from operations and $757,500 in stock-based compensation for the three months ended Sept. 30. The same period last year, Confederate Motors reported net losses of $41,379 and $3,559 in losses from operations. Revenue in the third quarter dropped to $150,633 compared to $659,357 for the third quarter of 2008. Net losses grew drastically to $2.9 million the first nine months of 2009 compared to a net loss of $39,961 for the first nine months of 2008.” – [from the Birmingham Business Journal]

    So if I read all this correctly, then the stockholders received a total payout of $757,500 in the 3Q09, which caused the company to report a near $1M loss instead of a $300K loss from operations. Am I understanding this correctly? How does a company operate with net losses of nearly $3M in 2009?

  30. 30 who cares Jan 27th, 2010 at 5:02 pm

    LMAO!!!!!!!!!!!!

    Confederate is all smoke and mirrors! Stop in and see with your own eyes, I did. What a joke and Blair knows nothing. Unless ordering seafood gives you experience then he’s your man. It’s all about Matt living that rock n roll lifestyle (say Mick Jagger). Good luck getting parts or help if you do buy one! If you did then don’t take it there for any work or they will take parts off of it and tell you its not ready while someone else gets your parts so they can get a check!! Katrina was a good excuse to relocate, like locust using up it’s resources then moving on. Funny his money man Joseph used to work for Health South (ie-Scrushy). They even got FEMA money and they are not in New Orleans…….can you say fraud.

    There are better bikes out there…..like ECOSSE AND PANTERA, 100% fit and finish are better.

    The Hellcat looks nice, too bad another company does not build it!

  31. 31 Akira アキラ Jan 27th, 2010 at 9:31 pm

    if it was only red………..

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