Starcraft Corporation Reports First Quarter Results
GOSHEN, Ind.--Feb. 13, 2001--Starcraft Corporation today announced results for the first quarter of fiscal year 2001 ending December 31, 2000.The Company incurred a net loss of $ 1,821,000, or ($ .43) per share (basic and diluted), on sales of $ 18.8 million compared to net income of $ 553,000, or $ .13 per share basic and $ .12 per share diluted, on sales of $ 36.2 million for the comparable quarter in the prior year. The current quarter includes a $ 378,000 non-cash charge for the issuance of certain stock options.
Domestic sales declined by 48% as sales in its OEM automotive supply segment declined $ 19.7 million. Bus and mobility vehicle sales increased $ 4.6 million while conversion vehicle sales declined $ 2.3 million. The OEM automotive supply sales were adversely impacted by an extended plant shutdown in Texas due to a contract changeover. The slowdown in the economy, higher gas prices and interest rates further reduced the demand for conversion vehicles. International sales declined by 52% due to the decline in demand in Japan.
Michael H. Schoeffler, President and Chief Operating Officer, stated, "While Starcraft's results were negatively impacted by delays beyond our control, opportunities for growth over the long term in the OEM automotive supply business remain strong. During the first quarter Starcraft was awarded the contract to design, tool and manufacture accessories for the General Motors H-2 vehicle beginning in the 2002 model year. The Company also opened up its third OEM automotive supply manufacturing facility in New Jersey in November. Further, we continue to be successful in expanding our product offerings and market penetration in the bus and mobility markets."
Schoeffler said, "We should have all three OEM automotive supply plants operating at expected capacity by the end of the second fiscal quarter. Demand for bus and mobility vehicles remains strong and we believe we will see an increase in demand for conversion vehicles during the current quarter, especially from overseas. In the meantime, we will continue to explore cost reduction opportunities in the conversion vehicle segment."
Starcraft Corporation is a leading manufacturer of second stage vehicle conversions and a supplier to the OEMs.
The Company will conduct a teleconference on Thursday February 15, 2001 at 2:00 p.m. EST. Investors may participate in the teleconference by calling 800-586-2517 and identifying Michael H. Schoeffler as the host of the teleconference.
For additional information contact Richard J. Mullin, Chief Financial Officer, Starcraft Corporation at (219) 533-1105 ext. 239.
This news release contains forward-looking statements regarding estimated results of operations, market demand, sales, profitability and other matters. 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, the level of customer demand, competitive pressures and other important factors detailed in the Company's annual report on Form 10-K for fiscal year 2000 or Form 10-Q filed with the Securities and Exchange Commission since the Form 10-K filing.
STARCRAFT CORPORATION
FINANCIAL RESULTS
FIRST QUARTER FISCAL YEAR 2001
Dollars in Thousands, except EPS
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3 Months Ended
Statement of Operations (unaudited) December 31, January 2,
----------------------------------- 2000 2000
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Net Sales:
Domestic $ 17,708 $ 34,010
Export 1,051 2,183
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18,759 36,193
Cost of Goods Sold 17,226 29,188
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Gross Profit 1,533 7,005
Selling and Promotional Expense 1,200 1,086
General and Adminstrative Expense 2,276 2,064
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3,476 3,150
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Operating Income (Loss) (1,943) 3,855
Nonoperating (Expense) Income:
Interest, Net (320) (380)
Other Income, Net 33 31
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Income (Loss) Before
Minority Interest
and Income Taxes (2,230) 3,506
Minority Interest in Income
(Loss) of Subsidiary (413) 2,765
Income Taxes 4 188
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NET INCOME (LOSS) ($ 1,821) $ 553
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Earnings (Loss) per share ($ 0.43) $ 0.13
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Earnings (Loss) per share,
assuming dilution ($ 0.43) $ 0.12
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Weighted Average Number of
Common Shares Outstanding 4,245,059 4,186,673
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BALANCE SHEETS December 31, 2000 October 1, 2000
(Unaudited) (Audited)
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Current Assets:
Cash $476 $1,294
Accounts Receivables 14,092 12,962
Inventories 10,472 10,629
Prepaid Expenses 870 1,153
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Total Current Assets 25,910 26,038
Property and Equipment 7,774 7,646
Goodwill and other assets 1,402 1,310
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$35,086 $34,994
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December 31, 2000 October 1, 2000
(Unaudited) (Audited)
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Current Liabilites:
Current Maturity of LTD $5,479 $1,114
Accounts Payable, Trade 18,251 16,814
Accrued Expenses 5,026 5,945
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Total Current Liabilities 28,756 23,873
Long-Term Debt 8,021 9,957
Minority Interest (325) 1,087
Shareholders' Equity (1,366) 77
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$35,086 $34,994
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