Collins Posts Higher Earnings On Record Sales
16 August 1999
Collins Posts Higher Earnings On Record Sales HUTCHINSON, Kan., Aug. 16 -- COLLINS INDUSTRIES, INC.
reported a 118% increase in net earnings and a 34% increase in
sales for the third fiscal quarter ended July 31, 1999.
Net income for the quarter ended July 31, 1999 was $1,919,790 ($.26 per
share - diluted) compared to $880,735 ($.12 per share - diluted) for the
quarter ended July 31, 1998. The Company's profit improvement was principally
attributable to stronger operating results from bus products including those
of the newly acquired subsidiary Mid Bus, Inc., an Ohio-based manufacturer of
small school buses. Collins acquired Mid Bus in December, 1998.
The Company posted record quarterly sales of $52,836,325 for the quarter
ended July 31, 1999 compared to $39,289,431 for the same period last year.
This increase was principally due to bus and ambulance products.
The Company's backlog increased 119% to $73.5 million at July 31, 1999
compared to $33.6 million at October 31, 1998 and 88% compared to
$39.0 million at July 31, 1998. This increase continued across all product
lines. Compared to the October 31, 1998 backlogs, the backlogs of bus product
lines, including Mid Bus, increased by 136%, ambulances by 106% and terminal
trucks by 104%.
Diluted earnings per share increased 62% for the nine months ended July
31, 1999 to $.55 per share and net income was $4,106,346 compared to
$2,598,519 ($.34 per share - diluted) for the nine months ended July 31, 1998.
Sales for the nine months ended July 31, 1999 increased 19% to a record level
of $137,777,200 compared to $116,102,995 for the nine months ended July 31,
1998. Both net income and sales for the nine months ended July 31, 1999
increased principally due to stronger contributions from bus products. These
increases were partially offset by lower profit contributions from ambulance
and terminal truck products.
Donald Lynn Collins, President and CEO said, "Obviously, we are pleased
with these results and look forward to continuing to be a major player in the
small school bus market. As the largest manufacturer of small school buses in
North America, we believe the non-conforming van segment of this market will
continue to expand and we are uniquely positioned to take full advantage of
this segment of the market." He added, "In addition to the growth that we are
realizing in the small school bus market, we have also experienced stronger
growth in our ambulance and terminal truck products. This growth is primarily
a result of the expansion of our field sales force for ambulances and the
expansion of our dealer network for terminal trucks. This growth is reflected
in our current backlog positions as we begin the fourth quarter of the fiscal
year."
Collins Industries, Inc. is a leading manufacturer of ambulances, small
school buses, commercial buses and terminal trucks. The Company sells its
products throughout the United States and, to a lesser extent, abroad.
This press release contains historical and forward-looking information.
The forward-looking statements are made pursuant to the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995. The Company believes
the assumptions underlying these forward-looking statements are reasonable;
however, any of the assumptions could be inaccurate, and therefore, actual
results may differ materially from those projected in the forward-looking
statements due to certain risks and uncertainties, including, but not limited
to, changes in product demand, the availability of vehicle chassis, adequate
direct labor pools, changes in competition, interest rate fluctuations,
development of new products, various inventory risks due to changes in market
conditions, changes in tax and other governmental rules and regulations
applicable to the Company, substantial dependence on third parties for product
quality, reliability and timely fulfillment of orders, year 2000 compliance
issues and other risks indicated in the Company's filings with the Securities
and Exchange Commission. The Company undertakes no obligation to publicly
release any revisions to any forward-looking statements contained herein to
reflect events or circumstances occurring after the date released or to
reflect the occurrence of unanticipated events.
COLLINS INDUSTRIES, INC.
Financial Summary
(In thousands of dollars, except share and per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
July 31, July 31,
1999 1998 1999 1998
Sales $52,836 $39,289 $137,777 $116,103
Income before income taxes $3,097 $1,357 $6,623 $3,999
Income tax expense 1,177 476 2,517 1,400
Net income $1,920 $881 $4,106 $2,599
Earnings per share:
Basic $0.27 $0.12 $0.56 $0.35
Diluted $0.26 $0.12 $0.55 $0.34
Weighted average
outstanding common
and common equivalent
shares:
Basic 7,243,498 7,518,533 7,336,618 7,510,156
Diluted 7,504,776 7,624,141 7,465,421 7,729,063
