Owosso Corporation Announces Results for the
First Quarter of Fiscal 2001
King of Prussia, Pa., March 8 Owosso Corporation today announced a net loss for common
shareholders of ($2.2 million), or ($0.38) per share, for its first fiscal
quarter ended January 28, 2001, as compared to a net loss available for common
shareholders of ($550,000) or ($0.09) per share, for the prior year quarter.
Loss from continuing operations was ($1.4 million), or ($0.29) per share, as
compared to ($460,000), or ($0.12) per share, in the prior quarter. First
quarter net sales were $20.6 million, as compared to $28.7 million in the
prior year quarter; loss from operations was ($654,000), as compared to income
from operations of $408,000 in the prior year quarter.
Loss from discontinued operations, representing the operations of Sooner
Trailer, which was sold in January 2001, was ($434,000), or ($0.08) per share,
as compared to income from discontinued operations of $188,000, or $0.03 per
share, for the prior year quarter.
The net loss available for common shareholders for the first quarter of
2001 includes a non-cash pretax charge of $354,000 resulting from a decrease
in the fair market value of the Company's interest rate swap agreements as a
result of decreases in interest rates. This charge was recorded in accordance
with a new principle on accounting for derivatives. The cumulative effect for
prior periods of adopting this new accounting principle was $67,000, net of
tax, and is also included in the net loss available for common stockholders.
Income from operations from the Motors segment was $1.1 million, or 8.4%
of net sales, in the first quarter of 2001, as compared to $1.1 million, or
8.1% of net sales, in the prior year quarter. These results reflect a
decrease in sales volume of 6.7%, primarily as a result of lower sales to the
recreational vehicle and healthcare markets as compared to last year.
The Coils segment reported a loss from operations of ($453,000), or (7.0%)
of net sales, in the first quarter of 2001, as compared to income from
operations of $228,000, or 2.2% of net sales, in the prior year quarter.
These results reflect the loss of a customer that represented 17% of sales to
the Coils segment in fiscal 2000. However, in January 2001, management of the
Company was notified that it would again be a supplier to this customer.
Management expects to regain most of the former business of this customer.
Sales of the Coils segment also continue to be affected by low demand in the
heavy truck market in general.
The Company's Other segment, which currently consists of the remaining
Cramer business, reported a loss from operations of ($137,000), or (12.9%) of
net sales, in the first quarter of 2001, as compared to income from operations
of $394,000, or 9.3% of net sales in the prior year quarter. These results
reflect the sale of Dura-Bond Bearing Company in November and the sale of the
timer and switch line of Cramer Company (f/k/a M.H. Rhodes, Inc.) in December.
The Company expects to sell the remaining assets in this segment by the end of
the year.
To receive additional information on Owosso Corporation, via fax at no
charge, dial 1-888-OWOS-010, or visit Owosso's website, http://www.owosso.com.
This press release contains forward-looking statements that involve a
number of risks and uncertainties. Factors that could cause actual results to
differ materially from those reflected in the forward-looking statements
include changes in demand from substantial customers, as well as other factors
as discussed in the Company's Annual Report on Form 10-K for the year ended
October 29, 2000 in the section captioned "Management's Discussion and
Analysis of Financial Condition and Results of Operations."
Financial Tables Follow.
OWOSSO CORPORATION
(in thousands, except per share data)
Income Statement Data:
Three Months Ended
January 28, January 30,
2001 2000
Net sales $20,616 $28,710
Gross profit 2,691 4,780
Income (loss) from operations (654) 408
Loss from continuing operations before taxes (2,101) (859)
Loss from continuing operations (1,387) (460)
Income (loss) from discontinued operations (434) 188
Change in accounting principle, net (67) --
Net loss available for
common shareholders ** (2,214) (550)
Income (loss) per basic and diluted share:
Continuing operations $(0.29) $(0.12)
Discontinued operations $(0.08) $0.03
Change in accounting principle, net $(0.01) $--
Average basic shares outstanding 5,850 5,830
January 28, October 29,
2001 2000
Current assets $29,910 $42,746
Net property, plant and equipment 21,508 22,058
Total assets 72,041 85,754
Current liabilities 22,972 40,599
Total debt, including current portion 39,519 50,279
Stockholders' equity $16,205 $18,432
** Net income (loss) available for common shareholders is stated after
deduction of preferred stock dividends of $225 and $187 for 2001 and 2000,
respectively, and after deduction of accretion in the book value of
preferred stock of $101 and $90 for 2001 and 2000, respectively.
Segment Data : (in thousands)
Three Months Ended
January 28, January 30,
2001 2000
Net sales:
Motors $13,058 $13,998
Coils 6,494 10,479
Other 1,064 4,233
Net sales $20,616 $28,710
Income (loss) from operations:
Motors $1,103 $1,135
Coils (453) 228
Other (137) 394
Unallocated corporate charges (1,167) (1,349)
Income (loss) from operations $(654) $408
