After a prolonged quiet spell, Execute Sports Inc. (OTCBB: EXCS) is back in the news this morning with a major announcement. During the month of January, the company’s recently-acquired Sugar Sand boat company logged its highest total monthly sales volume since December of 2006.

With sales of 35 boats worth approximately $703,000, Sugar Sand brought in almost one-half of Execute’s revenue run rate through the first three quarters of 2007 in just one month. Judging by today’s press release, sales were driven by company affiliates presenting at a very aggressive schedule of boat shows over the past few months. Did you see the list?

I know that we all wished we could have seen it months ago, but just the same, it is very impressive to see the level of commitment Execute’s partners have shown thus far with the Sugar Sand deal. On another note, the company’s annual dealer meeting yielded sales of about $2.4M on 114 boats bringing the total to about $3.1M on 150 boats, very early on in the year.
I believe that affordability is a major factor leading to sales success here early on.

With industry analysts predicting predicting a double digit decrease in powerboat sales for 2007, a choppy economy has some potential boat purchasers watching at bay. However, the enthusiasts remain. They just don’t likely have as much to spend on a recreational boat than they did a few years back. By offering affordable boats that generally require minimal maintenance and are decent on fuel, Sugar Sand appears to have found a sweet spot in a souring market.

Although the company has been pretty quiet as of late, product placement & brand recognition have never been better for Execute’s watersports offering. Kawasaki has recently re-ordered and Execute products have been prominently featured on major television outlets including MTV, ESPN, and the E channel. The company now sells products online with leading retailers including: The Sports Authority, Dick’s Sporting Goods, Joe’s Outdoors, Sport Chalet, Modell’s and MC Sports with aspirations to break into a an increasing number of brick & mortar locations as well.

The company recently stated that 2007 watersports revenues were up nearly 37% over the prior year and also issued projections that 2008 core water sports products revenues could increase 40% over ‘07 levels and even higher depending on re-orders.

Remember, U.S. law stipulates that all recreational boats must carry one wearable PFD for each person aboard and that each passenger under 12 years of age must wear a flotation device at all times. Essentially, for every Sugar Sand jet boat that is sold at a dealer meeting, boat show, or elsewhere, the company has the opportunity to sell a few additional PFDs. In addition, Sugar Sand has developed a very strong dealer/distributor network to which Execute can pitch its brand to for the first time.

All That it Takes is One Big Announcement

When Execute Sports Inc. (OTCBB: EXCS) announced an initial deal with water sports legend Kawasaki Motors Corp. on January 19th 2007, the market simply went nutty. Shares surged upwards on massive volume – which surpassed 22 million – from an opening price of $.03 to a high of $.10 before settling down at $.08. A 333% jump in one day with a 266% daily gain.

While collaboration with Kawasaki is a major testament to the quality of Execute’s products, today’s announcement likely carries more weight from a near-term accounting standpoint. Due to this fact, I’ll be very interested to see how news thirsty investors will receive it.

Commenting on the company’s potential for the New Year, CEO Geno Apicella recently commented “We introduced new and improved products for the 2008 to our existing customers, in addition to introducing our line to select sporting goods stores and dealers that we think would be a perfect fit for our new line. We have increased our inventory to further support our ‘on-line’ effort and accommodate immediate deliveries. This will allow us to sell more products for longer periods of time.”

With President Celeste Berouty, who spent 20 years as sales director at industry leader Body Glove Wetsuits (in its prime), shopping the new-look brand around the world, and Sugar Sand’s robust representative network raking in over $3M in revenues during the winter months alone, Execute is showing a great deal of promise for 2008 and beyond.