Champion Parts Reports 4th Quarter and Year-End Results
HOPE, Ark., April 4 Champion Parts, Inc. (OTC/BB: CREB)
today reported net sales of $4,627,000 for the fourth quarter ended
Dec. 31, 2000, compared to $6,830,000 in the same quarter last year. Net
income was $719,000, or $0.20 per share, in the quarter, compared to $728,000,
or $0.20 per share, for the same period in 1999.
For the year 2000, the company reported net sales of $22,245,000, compared
to $28,567,000 in 1999. Net income was $1,464,000, or $0.40 per share,
compared to $1,731,000, or $0.47 per share in 1999.
Champion maintained profits through year-end, despite significantly lower
carburetor sales. The company noted carburetor sales, in 1999, were augmented
by unusually large new stocking orders from retail customers that were not
repeated in 2000.
The company also encountered a "soft market with automotive O.E.M.
customers," but experienced a "modest 5.2% gain with its heavy-duty starters,
alternators, generators and water pumps to agricultural equipment customers."
Sales of constant velocity joint products for the year 2000 were "essentially
level," compared to 1999. The market for constant velocity assemblies is
expected to grow as an increasing number of front wheel drive vehicles enter
prime repair age.
Fourth quarter results included a net gain of $753,000 from the sale of
the company's half interest in an automotive engine remanufacturer, which
failed to yield acceptable returns.
The company also noted that it has recently closed its Fresno, Calif.
distribution center and is considering the consolidation of its manufacturing
facilities. "We have not lost focus on improving existing operations," said
Jerry A. Bragiel, president and chief executive officer, "and we must continue
aggressive cost cutting measures as appropriate, in an overall soft market for
replacement parts. Our objective is enhancing shareholder value while
improving product quality and service to our customers," he added.
The company recently closed on a new $14 million credit facility, reducing
its borrowing rate and significantly increasing available capital. "The new
credit facility allows us to pursue our plans for growth through market
expansion for existing products, introduction of new products and acquisition
opportunities," Bragiel concluded.
Champion Parts remanufactures fuel system components, front wheel drive
assemblies, and underhood electrical and mechanical products for the passenger
car and light truck, agricultural, heavy-duty truck and marine parts
aftermarket.
CHAMPION PARTS, INC.
Consolidated Results
Unaudited Audited
Fourth Quarter Ending Year Ending
Dec. 31, 2000 Dec. 31, 1999 Dec. 31, 2000 Dec. 31, 1999
Net Sales $ 4,627,000 $ 6,830,000 $22,245,000 $28,567,000
Costs and Expenses:
Cost of
products
sold 3,987,000 5,493,000 18,598,000 23,711,000
Selling,
distribution
& admin 561,000 546,000 2,391,000 2,704,000
Total costs
and expenses 4,548,000 6,039,000 20,989,000 26,415,000
Operating income 79,000 791,000 1,256,000 2,152,000
Non-operating (income)/expense:
(Gain) on the
disposal of
assets -- -- (26,000) --
(Gain) on the
sale of
investments (753,000) -- (753,000) --
Interest
expense 126,000 75,000 556,000 539,000
Other non-
operating
(income) (68,000) (8,000) (85,000) (86,000)
Total non-operating
(income)/
expense (695,000) 67,000 (308,000) 453,000
Earnings before
extraordinary (gain)
and income taxes 774,000 724,000 1,564,000 1,699,000
Income Taxes/
(Benefit) 55,000 (4,000) 100,000 27,000
Earnings before
extraordinary
gain 719,000 728,000 1,464,000 1,672,000
Extraordinary gain -- -- -- 59,000
Net Income $ 719,000 $ 728,000 $ 1,464,000 $ 1,731,000
Weighted Average Common Shares
Outstanding at December 31, 2000:
Basic 3,655,266 3,655,266 3,655,266 3,655,266
Diluted 3,689,190 3,687,544 3,689,190 3,687,544
Earnings Per Common Share - Basic:
Earnings before
extraordinary gain
per common
share $ 0.20 $ 0.20 $ 0.40 $ 0.45
Extraordinary
gain per share 0.00 0.00 0.00 (0.02)
Net income per
common share $ 0.20 $ 0.20 $ 0.40 $ 0.47
Earnings Per Common Share-Diluted:
Earnings before
extraordinary gain
per common
share $ 0.20 $ 0.20 $ 0.40 $ 0.45
Extraordinary gain
per share 0.00 0.00 0.00 (0.02)
Net income per
common share $ 0.20 $ 0.20 $ 0.40 $ 0.47
