SMC Corporation Reports Fourth Quarter Financial Results
5 February 1998
SMC Corporation Reports Fourth Quarter Financial Results
Results Reflect an Improvement in Profitability
HARRISBURG, Ore., Feb. 5 -- SMC Corporation
today reported its results for the fourth quarter of 1997. For the period
ended December 31, 1997, net sales remained consistent with 1996 at
$52.4 million, compared to $53.0 million for the fourth quarter of 1996. Net
income increased significantly to $1.7 million up from the $1.1 million loss
reported from the same period last year which included the impact of a
$2.4 million restructuring charge. 1997 fourth quarter earnings per share
were $.27 on 6.3 million shares outstanding, compared to a loss of $.17 per
share, on 6.7 million shares outstanding reported for the fourth quarter of
1996.
For the year ended December 31, 1997, net sales were $203.0 million, up
from 1996 revenues of $200.8 million. 1997 year-to-date income was
$4.3 million, up from $3.6 million reported in 1996. Year-to-date earnings
per share were $.65 compared to $.54 per share reported in 1996.
Jay L. Howard, SMC's president, commented, "Our better than expected
improvement in earnings for the 4th quarter were the result of the aggressive
reorganization actions that we initiated over the past 6 months."
Continuing his comments, Howard emphasized, "SMC's backlog is strong as we
head into the winter show season. We are experiencing strong demand across
our entire product line with particular strength in our newly introduced
Panther and Thunder models. Both these models utilize the heavy duty Allison
transmission which, unlike the widely used medium duty transmissions, are not
on production allocation.
"A newcomer to our product line is the Renegade. This entry, priced at
around $100,000, is an affordable entry level alternative in the luxury Class
A category. The Renegade is the first Class A unit to be manufactured out of
our Harney Coach Works facility. The Renegade line will be sold through a
separate newly established dealer network and should provide SMC with
excellent sales growth opportunities into 1998."
SMC Corporation is one of the largest high line motor coach manufacturers
in the United States. Headquartered in Harrisburg, Oregon, the Company has
six locations in Oregon.
Forward Looking Statements: The statements in this report regarding
market reception to the Company's products are forward-looking statements. A
number of factors could cause actual results to differ materially from these
statements. Please also refer to the Company's SEC reports, including, but not
limited to its Form 10Q Quarterly Report for the quarter ended September 30,
1997 and its Form 10K Annual Report for the year ended December 31, 1996.
SMC CORPORATION
CONSOLIDATED STATEMENT OF INCOME
Three Months Ended Year-To-Date Ended
12/31/96 12/31/97 12/31/96 12/31/97
Net sales 52,986,000 52,376,000 200,835,000 203,019,000
Cost of sales 47,635,000 45,331,000 174,457,000 177,194,000
Gross profit 5,351,000 7,045,000 26,378,000 25,825,000
Operating expenses:
Sales, general and
administrative 4,979,000 4,174,000 17,601,000 17,968,000
Restructuring Charges 2,392,000 0 2,392,000 0
Income from operations (2,020,000) 2,871,000 6,385,000 7,857,000
Interest expense 192,000 182,000 684,000 933,000
Other expense (income) (306,000) (83,000) (260,000) (120,000)
Income before provision
for income taxes (1,906,000) 2,772,000 5,961,000 7,044,000
Provision for income taxes (767,000) 1,086,000 2,384,000 2,798,000
Net income (1,139,000) 1,686,000 3,577,000 4,246,000
Net income per share (0.17) 0.27 0.54 0.65
Shares used in per
share calculation 6,676,000 6,343,000 6,661,000 6,507,000
SOURCE SMC Corporation
