Featherlite Reports $1.1 Million Second Quarter Net Income
CRESCO, Iowa--July 26, 2005--Featherlite, Inc. , a leading manufacturer and marketer of specialty aluminum trailers, transporters and luxury motorcoaches, today reported net income of $1.1 million, or 9 cents per diluted share, for the second quarter ended June 30, 2005. This compares with net income of $1.5 million, or 13 cents per diluted share, for the same period in 2004. The decrease in net income was primarily the result of lower gross profit in both the trailer and motorcoach segments, partially offset by reductions in selling and administrative expenses. While the trailer segment maintained unit sales volume for the quarter, its net income was negatively impacted by greater than anticipated aluminum and other cost increases not sufficiently compensated for by production efficiencies or product price increases. Motorcoach segment net income declined as the result of reduced new and used motorcoach unit sales volume.Net income for the first six months of 2005 was $2.5 million compared with $2.7 million for the same period in 2004. On a diluted per share basis, the Company earned 22 cents in the first six months of fiscal 2005 compared to 24 cents for the same period in 2004.
Net sales for the second quarter ended June 30, 2005 were $52.0 million, a decline of 10.6 percent over the $58.2 million reported in the same period last year. Net sales of $110.5 for the first six months of 2005 were down 3.6 percent from $114.6 million posted in the same period last year.
"After posting six consecutive quarters of earnings gains over comparable quarters in the prior year, we were disappointed that the second quarter of 2005 did not meet expectations," Conrad Clement, Featherlite president and CEO, said. "However, we remain cautiously optimistic about the level of sales for the remaining quarters of 2005.
"We are encouraged by an increase in the motorcoach backlog to $9.2 million at June 30, 2005 compared to $5.4 million at June 30, 2004. Trailer backlog has decreased to $16.3 million compared to $21.7 million last year, but order levels have remained strong and have been filled from increased finished goods inventory. We anticipate an enthusiastic reception to the new and enhanced 2006 models now arriving at our trailer dealers and coach showrooms. Featherlite continues to introduce exciting product innovations that can capitalize on the industry's growing leisure and recreation segment, a prime target market for the Company."
About Featherlite
With more than 75 percent of its business in the leisure, recreation and entertainment categories, Featherlite(R), Inc. has highly diversified product lines offering hundreds of standard model and custom-designed aluminum specialty trailers, specialized transporters, mobile marketing trailers and luxury motorcoaches. For more information about the Company, please visit www.fthr.com.
Featherlite, Inc. Condensed Balance Sheets (Unaudited) (In thousands) June 30, Dec 31, ASSETS 2005 2004 -------- ------- Current assets Cash $ 113 $ 179 Receivables 7,837 4,781 Refundable income taxes 497 497 Inventories 63,756 61,730 Leased promotional trailers 1,599 1,669 Prepaid expenses 1,016 1,827 Deferred tax asset 1,274 1,275 -------- ------- Total current assets 76,092 71,958 Property and equipment,net 16,783 16,003 Other assets 3,379 4,252 -------- ------- $ 96,254 $92,213 ======== ======= LIABILITIES AND SHAREHOLDERS EQUITY Current liabilities Wholesale financing and other notes payable $ 22,612 $22,106 Current maturities of long-term debt 1,745 1,699 Checks issued not yet presented 5,286 2,900 Accounts payable 5,139 4,323 Motorcoach shell costs payable 5,548 7,277 Accrued liabilities 7,985 9,124 Customer deposits 1,801 2,698 -------- ------- Total current liabilities 50,116 50,127 Bank line of credit 5,609 4,243 Other long-term debt, net of current maturities 11,043 11,092 Deferred tax liabilities 1,340 1,340 Other long-term liabilities 41 48 Shareholders' equity 28,105 25,363 -------- ------- $ 96,254 $92,213 ======== ======= FEATHERLITE, INC Condensed Statements of Income (Unaudited) (In Thousands, except for per share data) Three months Ended Six months Ended June 30, June 30, ------------------ ------------------ 2005 2004 2005 2004 -------- -------- -------- -------- Net Sales $ 51,993 $ 58,151 $110,473 $114,567 Cost of Sales 44,159 49,019 92,994 96,806 -------- -------- -------- -------- Gross profit 7,834 9,132 17,479 17,761 Selling and administrative expenses 5,510 6,243 12,291 12,466 -------- -------- -------- -------- Income from operations 2,324 2,889 5,188 5,295 Other income(expense) Interest (704) (580) (1,335) (1,128) Other, net 104 58 239 130 -------- -------- -------- -------- Total other expense (600) (522) (1,096) (998) -------- -------- -------- -------- Income before taxes 1,724 2,367 4,092 4,297 Minority interest in subsidiary 11 20 (1) 51 Provision for income taxes (660) (884) (1,555) (1,609) -------- -------- -------- -------- Net income $ 1,075 $ 1,503 $ 2,536 $ 2,739 ======== ======== ======== ======== Net income(loss)per share- Basic $ 0.10 $ 0.14 $ 0.23 $ 0.25 -------- -------- -------- -------- Diluted $ 0.09 $ 0.13 $ 0.22 $ 0.24 -------- -------- -------- -------- Weighted average shares outstanding - Basic 10,930 10,813 10,909 10,804 -------- -------- -------- -------- Diluted 11,788 11,526 11,738 11,438 -------- -------- -------- --------
On April 9, 2005 the Company's Board of Directors declared a three for two split of the Company's common stock with a proportional increase in the number of issued and outstanding shares, effective May 4, 2005 to shareholders of record as of the close of business on April 22, 2005. All shares are per share amounts have been restated to reflect the retroactive effect of the stock split.