AMERICAN EAGLE MOTORCYCLE COMPANY, INC.

AMERICAN EAGLE MOTORCYCLE COMPANY, INC.

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Company Overview

Business Summary
American Eagle Motorcycle Co., Inc. (American Eagle) designs, develops, manufactures, and sells traditional American-styled heavyweight V-Twin custom motorcycles popularly known as “cruisers.” All of the Company’s motorcycles are positioned and offered in the premium or upscale market niche of the industry. They are sold and distributed under the American Eagle brand through the Company’s dealer network of 32 domestic dealers. The Company’s full line of American Eagle cruisers includes three basic models: the “Maverick” brand with its classic American custom styling along with its high performance riding features; the “chopper” cruisers, which merge traditional cruiser styling with the distinct stretched and front-end raked look favored by chopper enthusiasts; and the STX 2000 “sport cruiser” currently being introduced into the market.
Description and history
American Eagle Motorcycle Co., Inc. (American Eagle) designs, develops, manufactures, and sells traditional American-styled heavyweight V-Twin custom motorcycles popularly known as “cruisers.” All of the Company’s motorcycles are positioned and offered in the premium or upscale market niche of the industry. They are sold and distributed under the American Eagle brand through the Company’s dealer network of 32 domestic dealers. The Company’s full line of American Eagle cruisers includes three basic models: the “Maverick” brand with its classic American custom styling along with its high performance riding features; the “chopper” cruisers, which merge traditional cruiser styling with the distinct stretched and front-end raked look favored by chopper enthusiasts; and the STX 2000 “sport cruiser” currently being introduced into the market.

All American Eagle motorcycles are equipped with standard high performance features and components, including a hand-polished V-Twin engine, a durable drivetrain with a 5-speed close ratio transmission, a rugged and smooth-riding chassis and suspension system, a state-of-the-art brake system, solid state electrical components, modern electronics including a dual fire ignition, a chromed exhaust system, a comfortable custom seat, polished wire spoke wheels, a wide 180mm rear tire, a stretched custom teardrop gas tank, considerable chrome and billet parts and controls, and a custom high-gloss paint pattern. The Company also offers various optional custom packages depending upon the chosen cruiser model, such as a higher-powered engine, a 6-speed transmission, higher-performance engine parts, a custom two-rider seat with billet passenger pegs, one-piece billet aluminum or mag wheels, and certain individualized high-gloss paint schemes.

American Eagle’s main competitor is Harley-Davidson, which dominates the custom cruiser segment of the heavyweight motorcycle market. Recent new domestic entrants into the market include Polaris, Indian (formerly California Motorcycle Company), and Excelsior-Henderson. Major foreign competitors include Kawasaki, Honda, Suzuki, Yamaha, Ducati, BMW, Moto Guzzi and Aprilia. In recent years, a growing segment of direct competition to the Company’s cruisers also has emerged from several new domestic entrants in the market, which offer heavyweight custom V-Twin cruisers with American styling and built mostly from non-proprietary components, including Titan, Big Dog, Pure Steel, American Ironhorse, Ultra and others.

Maverick Cruisers

The Maverick cruisers feature classic styling similar to traditional custom cruisers offered by Harley-Davidson and others. The standard Maverick model, the STM Maverick-S, is powered by a 100 cubic inch (1675cc) V-Twin engine and has a prominent chrome inverted frontend fork and a full suspension Softail rearend. The Company also offers a more upscale version, the STM Maverick-RS, which has a more powerful V-Twin engine of 113 cubic inches (1825cc) and custom mag wheels. The Company offers certain variations of its basic Maverick bike including its “Stinger” and “Mirage” models. The Stinger, a more affordable bike than the Maverick, has a smaller 88 cubic inch (1462cc) V-Twin engine and certain other differences such as dual exhaust pipes and its chopper-style rear fender. The Mirage is quite similar to the Maverick with its differences being mainly custom skirted fenders and a smaller front tire, and it is offered with either a 100- or a 113-cubic inch V-Twin engine.

Chopper Cruisers

During much of the Company’s four-year commercial production history, the chopper cruisers have sold in almost equal numbers to the Maverick line, representing approximately 40% of American Eagle’s total motorcycle unit sales. The choppers have been designed to be reminiscent of the early traditional chopper craze popularized by the classic “Easy Rider” movie and other biker movies and events. For some time, the Company offered two types of chopper motorcycles, rigid and full suspension. The initial rigid model without rear suspension was sold under the BMC (Big Mike Chopper) trade name until its recent discontinuance. In order to provide more comfort for chopper riders, in 1997 the Company completed developing and commercially introduced the first full suspension Softail choppers in the industry. The Softail choppers retain the classic chopper look and high quality frontend suspension of the original rigid BMC model while also featuring the softride rear suspension of the Maverick line of cruisers. The Company offers two models of Softail choppers: the STM-C model, which is powered by a 100 cubic inch V-Twin engine, and the less expensive model powered by an 88 cubic inch V-Twin engine and sold under the “Stalker” trade name.

STX 2000 Sport Cruisers

The Company’s sport cruiser has been designed to emphasize and maintain traditional American cruiser styling while also incorporating certain high quality handling and performance features characteristic of leading sportbikes. During the past year, the Company produced and sold an initial limited edition of its sport cruiser under its “XRT Talon” trade name. Recently the Company completed final development of its sport cruiser class, and has renamed it the STX 2000 to celebrate its commercial introduction with the new millennium.

The STX 2000 retains the key standard features of the traditional Maverick cruisers. In order to offer superior handling and performance than traditional cruisers, however, the STX 2000 also incorporates additional high quality technology advances such as a mono-shock rear suspension, a specialized rubber engine-mounting system to diminish vibration, and increased front-end fork suspension travel. Weighing slightly less than 500 pounds, the STX 2000 is lighter and handles better than more traditional heavyweight streetbikes. The Company also offers the STX 2000 with dual shock rather than mono-shock rearend suspension. Styling of the STX 2000 features a streamlined look and a specially re-engineered frame intended to provide a smooth, sleek and sporty look and attitude. The STX 2000 also provides ample power with its 100 cubic inch engine. For those desiring even more power, the Company offers a top-of-the-line sport cruiser, the STX-SE, which is powered by a Patrick High Performance Engine.

Business Line

Subsidiary

Advisor
BDO SEIDMAN
IPO date

US SIC Code
3751
Company Address
2350, Technology Parkway

City province or state postal code
95023, HOLLISTER, CA
Phone: +1 831 634 4740
Fax: +1 831 630 0130
Country address: UNITED STATES OF AMERICA
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