Starcraft Corporation Continues Strong Financial Performance; Revenues Double and Outlook is Strong
GOSHEN, Ind.--Nov. 15, 2002--Starcraft Corporation announced today that its revenues for the fourth quarter and fiscal year ended September 29, 2002, more than doubled from the year-earlier periods, primarily the result of continued strong demand for upfit customization packages for popular pickup and sport utility vehicles provided through its Tecstar unit. Consolidated revenues for the fourth quarter were $31.4 million, a 104% increase from $15.4 million reported last year. Revenues for the fiscal year 2002 were $104.9 million, up 114% compared with the $48.9 million reported for the fiscal year 2001.Earnings before a non-recurring one-time charge for the fourth quarter and fiscal year ended September 29, 2002 were $1.2 million and $5.1 million, respectively. Net income from continuing operations for the fourth quarter and full year for the period ended September 30, 2001 were $847,000 and $502,000, respectively.
During the fourth quarter, the Company incurred a one time charge of $2.1 million, related to the redemption of certain warrants and options. Including this one-time charge, the Company incurred a net loss of $885,000 (or $0.20 per diluted share) for the fourth quarter and net income of $3.0 million (or $0.59 per diluted share) for the fiscal year ended September 29, 2002. For the comparable quarterly and full year periods ended September 30, 2001, the Company incurred net losses of $463,000 (or $0.11 per diluted share) and $3.2 million (or $0.75 per diluted share), respectively.
As a Tier 1 OEM supplier of customization packages for vehicles such as the Chevrolet Suburban and Tahoe sport-utility vehicles and a variety of pickup trucks, Tecstar and Starcraft continued to benefit from strong consumer demand for these specially equipped premium vehicles. During the quarter, Tecstar, was awarded a contract to produce ZRX upfit packages for GMC Sonoma pickups at its Shreveport, La., plant, completed an expansion of its Texas plant to accommodate growing demand and began supplying specialty parts for GM's H2 Hummer. In addition, a new plant will open later this month in Oshawa, Ontario, to supply upfit enhancements for Chevrolet Silverado pickup trucks.
Kelly L. Rose, Starcraft's Chairman, CEO and President said that demand for vehicles equipped with Tecstar's enhancements remain very high and that the Company continues to meet GM's quality and scheduling requirements. "While we work very hard to maintain our reputation for quality and value, we are also in touch with our customers to identify new ways to help them meet demand for up-market, customized vehicles with unique styling options and accessories," Rose said. "We are continuing to add capacity to support existing lines and new opportunities. We expect fiscal 2003 to be another strong year for Starcraft."
Starcraft Corporation, through its ownership interest in Tecstar, LLC is a leading supplier to the OEM automotive supply market. It also supplies after-market automotive parts and accessories to wholesale and retail customers throughout the United States. For additional information, call Timothy L. Burke, Chief Financial Officer at (574) 533-1105.
This news release contains forward-looking statements regarding Starcraft's business operations and outlook, prospective earnings and earnings per share. 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, level of customer demand, competitive pressures and other important factors detailed in the Company's Form 10-K for fiscal 2001 filed with the Securities and Exchange Commission.
STARCRAFT CORPORATION
CONSOLIDATED FINANCIAL RESULTS
FULL YEAR FISCAL YEAR 2002
Dollars in Thousands, except EPS
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3 Months Ended 12 Months Ended
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Sept. 29, Sept. 30, Sept. 29, Sept. 30,
Statement of 2002 2001 2002 2001
Operations: (Unaudited) (Audited) (Unaudited) (Audited)
-------------- ---------- ---------- ---------- ----------
Net Sales $ 31,391 $ 15,390 $ 104,875 $ 48,934
Cost of Goods Sold 24,665 11,591 79,748 38,184
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Gross Profit 6,726 3,799 25,127 10,750
Selling and Promotion
Expenses 650 253 2,019 1,209
General and
Administrative
Expenses 4,276 2,731 13,496 8,689
Expenses Related to
Redemption of
Warrants & Options 2,096(1) -- 2,096(1) --
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Operating Income (Loss) (296) 815 7,516 852
Nonoperating (Expense) Income:
Interest, Net 225 33 (144) (547)
Other, Net 66 143 256 293
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291 176 112 (254)
Income (Loss) Before
Minority Interest
and Income Taxes (5) 991 7,628 598
Minority Interest in Income
of Subsidiary 753 159 4,216 70
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Income (Loss) from Continuing
Operations Before
Income Taxes (758) 832 3,412 528
Income Taxes 127 (15) 388 26
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Income (Loss) from
Continuing Operations (885) 847 3,024 502
Income (Loss) from
Discontinued
Operations, Net of Taxes -- (1,310) -- (3,679)
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NET INCOME (LOSS) $ (885) $ (463) $ 3,024 $ (3,177)
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Basic Earnings (Loss)
Per Share $ (0.20) $ (0.11) $ 0.70 $ (0.75)
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Dilutive Earnings (Loss)
Per Share $ (0.20)(2)$ (0.11)(2)$ 0.59 $(0.75)(2)
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Weighted Average Number of
Common Shares Outstanding
-- Basic 4,407 4,245 4,324 4,245
---------- ---------- ---------- ----------
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Weighted Average Number of
Common Shares Outstanding
-- Dilutive 4,407 4,245 5,100 4,245
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(1) Reflects one-time expenses related to the redemption of warrants
and options redeemed during the fourth quarter.
(2) Does not reflect effect of employee stock options since the effect
is antidilutive.
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Sept. 29, 2002 Sept. 30, 2001
Balance Sheets: (Unaudited) (Audited)
--------------- --------------- ---------------
Current Assets:
Cash $284 $300
Accounts and Notes Receivables 23,039 12,160
Inventories 8,204 4,636
Prepaid Expenses 1,863 1,408
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Total Current Assets 33,390 18,504
Property and Equipment, net 5,730 3,304
Other Assets 231 202
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$39,351 $22,010
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Sept. 29, 2002 Sept. 30, 2001
(Unaudited) (Audited)
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Current Liabilities:
Notes Payable $1,474 $814
Accounts Payable, Trade 18,053 11,998
Accrued Expenses 4,531 3,652
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Total Current Liabilities 24,058 16,464
Long-Term Debt 12,704 8,092
Minority Interest in Equity
of Subsidiary 2,120 157
Shareholders' Equity / (Deficiency) 469 (2,703)
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$39,351 $22,010
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