Featherlite Reports First-Quarter Results; Net
Sales at $64.7 Million Posted, Off From 2000
CRESCO, Iowa, May 2 Featherlite, Inc. , a
leading manufacturer and marketer of specialty aluminum trailers and luxury
motorcoaches, today reported net sales for the first quarter ended
March 31, 2001 of $64.7 million. This is down 6.3 percent from net sales of
$69.0 million last year. Net income for the quarter was $64,000 or 1 cent per
diluted share, vs. net income of $652,000, or 10 cents per diluted share, last
year.
Sales of new luxury motorcoach conversions posted a 38% gain in sales over
last year despite a depressed RV industry, though the coach division had only
a 1% overall increase in sales for the quarter due to reduced activity in used
motorcoaches. The first quarter sales decline was due primarily to a
13 percent decrease in sales of specialty trailers, reflecting lower activity
in all categories of specialty trailers and specialized transporters compared
to last year's first quarter.
Selling and administration expenses decreased in 2001 by $1.7 million, a
22 percent decline from last year. As a percentage of sales, these expenses
decreased to 9.0 percent in 2001 from 10.8 percent in 2000 as marketing and
administrative expenses were reduced in both segments, as cost reductions in
these areas were achieved in the trailer and coach divisions.
Income from operations in the first quarter was $1,217,000 or 1.9 percent
of net sales, down from $1,807,000 or 2.6 percent of net sales in 2000.
Gross margin was 10.9 percent of sales in the quarter compared to 13.5 percent
last year, reflecting a decrease in gross margin in Featherlite's specialty
trailer segment due to increased material costs and unfavorable labor and
overhead utilization. Motorcoach segment margins improved slightly over last
year.
"We are continuing a solid strategic plan aimed at enhancing efficiencies
and improving profitability," Conrad Clement, chairman and chief executive
officer, said. "In addition, we recently announced 23 new and enhanced
trailer models, an aggressive program to meet the contemporary needs of
trailer buyers throughout North America. Our focus continues to be gaining
significant market share in both specialty trailers and luxury motorcoaches.
In addition, we are excited about the May 1, 2001, opening of our newest
luxury coach sales center in Coberg, Oregon. Located adjacent to U.S.
Interstate 5 just north of Eugene, Oregon, this facility will further enhance
Featherlite's national network of coach sales centers and provide added
convenience to our West coast markets.
"At the same time we are cautious concerning sales growth in 2001 in both
segments of our business. Beginning in December 2000 and at March 31, 2001,
order backlog for specialty trailers and luxury motorcoaches was down
substantially from levels a year ago. We believe this decrease is related to
external forces: the uncertainty and lack of consumer confidence now present
in the economy. Our focus continues to be on sales and marketing related
activities that have been effective in increasing revenues in the past. We
are continuing the process announced earlier of consolidating certain
production facilities to reduce staffing levels and control other costs until
the present economic trends become more favorable. As announced earlier, we
closed the Nashua, Iowa, and plant effective last month and consolidated
production into our Cresco facilities. As of March 2001, we reduced the
workforce in our Oklahoma facilities, consolidating the conversion of Prevost
XLII bus shells into our Sanford, Fla., plant. Cost savings for both of these
initiatives won't be realized until the 2nd quarter of 2001 and beyond."
About Featherlite
Featherlite, Inc., is an innovative leader in designing, manufacturing and
marketing high quality aluminum specialty trailers, transporters and luxury
motorcoaches. With more that 75 percent of its business in the leisure,
recreation and entertainment categories, Featherlite has highly diversified
product lines offering hundreds of standard model and custom-designed aluminum
specialty trailers, specialized transporters and luxury motorcoaches.
Featherlite is the "Official Trailer" of NASCAR, Championship Auto Racing
Teams (CART), Indy Race League (IRL), SPORTSCAR, Automobile Racing Club of
America (ARCA), American Speed Association (ASA), World of Outlaws (W.O.O.)
and the National Hot Rod Association (NHRA). Through its Featherlite Vantare
and Featherlite Vogue product lines, Featherlite is the "Official Luxury
Motorcoach" of NASCAR, IRL, SPORTSCAR, CART and NHRA. For more information
about the Company, please visit Featherlite's website at
http://www.featherliteinc.com
Featherlite, Inc.
Condensed Consolidated Statements of Income
(In Thousands, except per share data)
(unaudited)
Three Months Ended
March 31,
2001 2000
Net Sales $64,681 $69,034
Cost of sales 57,656 59,748
Gross profit 7,025 9,286
Selling and administrative expenses 5,808 7,479
Income from operations 1,217 1,807
Other income(expense)
Interest (1,332) (1,077)
Other, net 224 339
Total other expense (1,108) (738)
Income before income taxes 109 1,069
Provision for income taxes 45 417
Net income $64 $652
Net income per share -- basic and diluted $0.01 $0.10
Average common shares outstanding --
basic and diluted 6,535 6,535
Featherlite, Inc.
Condensed Consolidated Balance Sheets
(In Thousands)
March 31 December 31
2001 2000
ASSETS
Current assets
Cash $ 244 $331
Receivables 6,132 6,356
Inventories 79,352 88,391
Prepaid expenses 1,666 2,219
Deferred taxes 2,405 2,381
Total current assets 89,799 99,678
Property and equipment, net 19,718 19,958
Other assets 4,288 4,323
$113,805 $123,959
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Current maturities of long-term debt $2,091 $2,031
Wholesale financing and other notes
payable 28,105 30,215
Motorcoach shell costs payable 10,704 15,833
Accounts payable 9,427 10,121
Accrued liabilities 7,291 8,431
Customer deposits 2,084 3,078
Total current liabilities 59,702 69,709
Long-term debt, net of current maturities 29,474 29,641
Other long-term liabilities 594 597
Shareholders' investment 24,035 24,012
$113,805 $123,959
Safe Harbor Statement under the Private Securities Litigation Reform Act:
Statements in this release looking forward in time involve risks and
uncertainties discussed here and in the Company's filing with the Securities
and Exchange Commission, including product acceptance and demand in each
segment of the Company's markets, the price of aluminum, competition and
facilities utilization.
For more information, contact John K. Hall, Director of Corporate
Communications, 319-547-5028, or Jeff Mason, Chief Financial Officer,
319-547-5028, both of Featherlite, Inc.
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