Starcraft Reports Profit for Third Quarter
GOSHEN, Ind.--Aug. 6, 2001--Starcraft Corporation (OTCBB:STCR) today announced profit for the third quarter ended July 1, 2001.Basic earnings per share for the quarter ended July 1, 2001 was $0.29 ($0.28 per diluted share) compared to a loss of ($0.07) per share (basic and diluted) for the prior year quarter. The return to profitability resulted from cost reduction efforts and an increase in sales of bus and mobility vehicles.
Loss per share (basic and diluted) for the nine months ended July 1, 2001 was ($0.64) compared to a basic earnings per share of $0.25 ($0.22 per diluted share) for the comparable period of the prior year.
Due to the sale of the Company's van conversion business, comprising substantially all of the Conversion Vehicle segment, a portion of the financial results have been classified as discontinued operations within the accompanying consolidated financial statements.
The Company reported net income from continuing operations of $1,405,000 on sales of $25.0 million, compared to net income of $509,000 on sales of $23.7 million for the comparable quarter in the prior year. Bus and mobility segment sales grew 80 % or $4.5 million over the prior year period, which more than offset the decline in OEM automotive supply sales.
For the first nine months of fiscal 2001, sales were $58.0 million, compared to $77.2 million for the same period last year. Net income from continuing operations was $200,000 compared to $2.6 million for the comparable period of 2000. The decline in sales and net income was primarily due to an extended plant shutdown in the OEM automotive supply segment.
On May 25, 2001 the Company sold certain assets of its conversion vehicle business to Centurion Vehicles, Inc. The loss from discontinued operations for the quarter ended July 1, 2001 was $191,000 on sales of $4.0 million compared to a loss of $786,000 on sales of $9.8 million for the comparable quarter in the prior year. For the nine months ended July 1, 2001 the Company reported a loss from discontinued operations of $2.9 million on sales of $13.9 million compared to a loss of $1.6 million on sales of $29.4 million for the comparable period of 2000. There was no significant gain or loss from the sale.
Michael H. Schoeffler, President and Chief Operating Officer, stated, "the sale of the conversion vehicle business is a major milestone in our strategy to return the Company to sustained profitability. We can now focus all of our resources toward growing our bus and mobility business and Tecstar joint venture."
Schoeffler continued, "All three Tecstar plants increased production during the third quarter thereby adding to the profitability of the quarter. We are excited about the OEM automotive supply business, as opportunities for growth over the long term remain strong. Further, prospects for bus and mobility vehicles continue to improve as we expand our product offerings and dealer network."
The Company will conduct a teleconference on Thursday August 9, 2001 at 2:00 p.m. Central Time. Investors may participate in the teleconference by calling 800-411-0099, providing the Participant Code of 706725, and identifying Michael H. Schoeffler as the host of the teleconference.
Starcraft is a leading manufacturer of second stage vehicle conversions through its Starcraft, Tecstar and National Mobility divisions.
For additional information contact Richard J. Mullin, Chief Financial Officer, Starcraft Corporation at (219) 533-1105 ext. 239.
This news release contains forward-looking statements regarding estimated results of operations, market demand, sales, profitability and other matters. Investors are cautioned that actual results may differ materially from such forward-looking statements. Forward-looking statements involve risks and uncertainties including, but not limited to, the level of customer demand, competitive pressures and other important factors detailed in the Company's annual report on Form 10-K for fiscal year 2000 or Forms 10-Q filed with the Securities and Exchange Commission since the Form 10-K filing.
STARCRAFT CORPORATION
FINANCIAL RESULTS
THIRD QUARTER FISCAL YEAR 2001
Dollars in Thousands, except EPS
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Statement of
Operations (unaudited):
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3 Months Ended 9 Months Ended
July 1, July 2, July 1, July 2,
2001 2000 2001 2000
--------- --------- --------- ---------
Net Sales $ 25,024 $ 23,694 $ 57,978 $ 77,237
Cost of Goods Sold 20,684 19,062 48,798 60,584
--------- --------- --------- ---------
Gross Profit 4,340 4,632 9,180 16,653
Selling and Promotion
Expenses 384 324 1,310 893
General and Administrative
Expenses 2,284 2,247 7,021 6,267
--------- --------- --------- ---------
Operating Income (Loss) 1,672 2,061 849 9,493
Nonoperating (Expense)
Income:
Interest, Net (345) (274) (847) (903)
Other, Net 77 31 150 -
--------- --------- --------- ---------
(268) (243) (697) (903)
Income (Loss) Before
Minority Interest
and Income Taxes 1,404 1,818 152 8,590
Minority Interest in
Income of Subsidiary - 1,278 (89) 5,531
--------- --------- --------- ---------
Income from Continuing
Operations Before
Income Taxes 1,404 540 241 3,059
Income Taxes (Credits) (1) 31 41 416
--------- --------- --------- ---------
Income from Continuing
Operations 1,405 509 200 2,643
Loss from Discontinued
Operations, Net of Taxes (191) (786) (2,914) (1,602)
--------- --------- --------- ---------
NET INCOME (LOSS) $ 1,214 $ (277) $ (2,714) $ 1,041
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Basic Earnings (Loss)
Per Share $ 0.29 $ (0.07) $ (0.64) $ 0.25
========= ========= ========= =========
Dilutive Earnings (Loss)
Per Share $ 0.28 $ (0.07)(a) $ (0.64)(a) $ 0.22
========= ========= ========= =========
Weighted Average
Number of Common
Shares Outstanding 4,245 4,224 4,245 4,205
========= ========= ========= =========
(a) Does not reflect effect of employee stock options since the effect
is antidilutive.
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July 1, October 1,
2001 2000
Balance Sheets: (Unaudited) (Audited)
--------- ---------
Current Assets:
Cash $ 466 $ 1,294
Accounts and Notes Receivables 17,468 12,962
Inventories 7,786 10,629
Prepaid Expenses 1,784 1,153
--------- ---------
Total Current Assets 27,504 26,038
Property and Equipment, net 7,482 7,646
Goodwill 1,087 1,160
Other Assets 235 150
--------- ---------
$ 36,308 $ 34,994
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July 1, October 1,
2001 2000
(Unaudited) (Audited)
--------- ---------
Current Liabilities:
Current Maturity of LTD $ 4,905 $ 1,114
Accounts Payable, Trade 17,683 16,814
Accrued Expenses 3,555 5,945
--------- ---------
Total Current Liabilities 26,143 23,873
Long-Term Debt 12,424 9,957
Minority Interest in Equity of Subsidiary - 1,087
Shareholders' Equity (2,259) 77
--------- ---------
$ 36,308 $ 34,994
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