Metrotrans Announces Year End And Q4 Results
26 February 1998
Metrotrans Announces Year End And Fourth Quarter Results -- Indicates Lower Expectations for First Quarter 1998 --
GRIFFIN, Ga., Feb. 26 -- Metrotrans Corporation
today announced record year end revenues of $80.1 million, a
3.4% increase over the $77.5 million revenues in 1996. Net income for the
year ended 1997 was down from the prior year to $1.7 million, or $0.42 per
diluted share, compared to $3.3 million, or $0.81 per diluted share, for
1996. Revenues for the fourth quarter increased 8.2% to $21.4 million over
the $19.8 million for 1996, with net income of $404,000, or $0.10 per diluted
share, compared to $477,000, or $0.12 per diluted share, for the fourth
quarter of 1996. The backlog of sales orders at the end of quarter was
$25 million including $7.5 million in orders for the Irizar(TM) full-size
coach.
Commenting on these results, Michael Walden, President and CEO, stated,
"We are clearly disappointed with the results of the fourth quarter after
achieving steady improvement in production and operating results for this
year's second and third quarters. We have a number of projects underway to
provide growth and opportunity for the future, including the introduction of
the new Irizar(TM) and Anthem(TM) product lines, chassis and body changes to
the Legacy LJ and additional Classic(TM) and Eurotrans(TM) designs. However,
we have experienced difficulty capitalizing on these projects while at the
same time maintaining steady margins in our existing business.
"Fourth quarter unit sales of 254 Classics was down from prior quarters
and was the result of a smaller order backlog which required compressed
production cycle time which resulted in higher than anticipated manufacturing
costs. The sale of 22 Legacy LJ units was below the record 40 units sold in
the third quarter as the Company undertook various design changes, including a
cosmetic redesign of the front end and windshield. The Company maintained the
level of Eurotrans sales for the previous two quarters and sold 14 units. The
gross margin in the fourth quarter of 1997 of 16.9%, while improved from the
prior year's fourth quarter margin of 15.5%, was below margin levels in the
second and third quarters, primarily as a result of the manufacturing
inefficiencies due to the shorter Classic production cycle time, higher labor
and overhead costs absorbed by a lower volume of Classic and Legacy LJ units,
and the costs of design changes in the Legacy LJ model.
"The Company anticipated lower sales volume of Classics and Legacy LJs in
the first quarter of 1998. The Company has taken actions to adjust the
production cycle time on the Classic line, including making reductions in the
manufacturing work force, and continues the Legacy LJ redesign process.
Additionally, while initial deliveries of both the new Irizar and Anthem
models had been anticipated in the first quarter of 1998, production and
engineering issues have delayed expected deliveries into the second quarter.
These factors are anticipated to have an adverse effect on both revenues and
margins in the first quarter of 1998.
"While the Company has a number of issues to manage in the short term, I
remain optimistic that the product development and enhancement activities
undertaken in the recent past create a solid opportunity for the Company's
future growth."
This press release includes "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. Such
statements involve known and unknown risks, uncertainties and other factors
that could cause the actual results of the Company to differ materially from
the results expressed or implied by such statements, including general
economic and business conditions, conditions affecting the Company's customers
and suppliers, competitor responses to the Company's products and services,
the overall market acceptance of such products and services, the costs and
availability of components, production scheduling, and other factors disclosed
in the Company's last filed Annual Report. Accordingly, although the Company
believes that the expectations reflected in such forward-looking statements
are reasonable, there can be no assurance that such expectations will prove to
be correct.
Metrotrans Corporation designs, manufactures and distributes shuttle,
mid-size and full-size touring buses through Company-operated sales centers
and independent distributors in the United States, Europe, Canada, and Puerto
Rico.
METROTRANS CORPORATION
STATEMENTS OF INCOME
(In Thousands, Except Per Share Data)
(Unaudited)
Three Months Ended Year Ended
December 31, December 31, December 31, December 31,
1997 1996 1997 1996
NET REVENUE $21,416 $19,787 $80,132 $77,482
COST OF SALES 17,802 16,725 66,153 62,814
Gross Profit 3,614 3,062 13,979 14,668
SELLING, GENERAL, AND
ADMINISTRATIVE EXPENSES 2,667 2,019 9,823 8,477
Operating Income 947 1,043 4,156 6,191
INTEREST EXPENSE, net 282 224 1,330 736
INCOME BEFORE INCOME TAXES 665 819 2,826 5,455
INCOME TAX PROVISION 261 342 1,109 2,136
NET INCOME $404 $477 $1,717 $3,319
EARNINGS PER SHARE:
Basic $0.10 $0.12 $0.43 $0.83
Diluted $0.10 $0.12 $0.42 $0.81
WEIGHTED AVERAGE SHARES
OUTSTANDING:
Basic 4,039 4,034 4,040 4,015
Diluted 4,121 4,116 4,112 4,107
METROTRANS CORPORATION
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share Amounts)
(Unaudited)
ASSETS
December 31, 1997 December 31, 1996
CURRENT ASSETS:
Cash $50 $22
Accounts receivable, net
of allowance for doubtful
accounts of $77 and $282 in
1997 and 1996 respectively 9,151 10,109
Current portion of net investment
in sales-type leases 877 810
Inventories 20,932 17,903
Prepaid expenses and other 1,333 784
Total current assets 32,343 29,628
PROPERTY, PLANT AND EQUIPMENT,
net 6,922 5,447
NET INVESTMENT IN
SALES-TYPE LEASES 405 1,098
INTANGIBLES 536 0
DEPOSITS AND OTHER 302 391
$40,508 $36,564
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Borrowings under line of credit $0 $7,297
Accounts payable and accrued
expenses 7,726 7,139
Current portion of long term debt1,087 1,132
Customer deposits 238 552
Total current liabilities 9,051 16,120
LONG-TERM DEBT, net of current
portion 11,945 2,719
OTHER NONCURRENT LIABILITIES 300 0
DEFERRED INCOME TAXES 183 629
STOCKHOLDERS' EQUITY:
Preferred stock, no par value;
10,000,000 shares authorized 0 0
Common stock, $.01 par value;
20,000,000 shares authorized,
4,084,294 and 4,076,275 shares
issued and outstanding
in 1997 and 1996 respectively, 41 41
Additional paid-in capital 10,577 10,466
Deferred compensation (210) (315)
Retained earnings 8,621 6,904
19,029 17,096
$40,508 $36,564
SOURCE Metrotrans Corporation
