Champion Parts Reports First Quarter Results
Maintains Profitability on Lower Sales
HOPE, Ark., May 23 Champion Parts, Inc. (OTC Bulletin Board: CREB) reported net sales of
$6,096,000 for the first quarter ended April 1, 2001, compared to $7,429,000
in the same period last year. Net income was $67,000, or $0.02 per share,
compared to $602,000, or $0.16 per share in the same period in 2000. First
quarter results included a $124,000 extraordinary write-off for costs
associated with loans refinanced in the quarter. Earnings before the
extraordinary item were $191,000 or $0.05 per share.
While the replacement parts market remains soft overall, Champion
experienced a strong demand for automotive starters, diesel pumps and constant
velocity axles. However, agricultural and heavy-duty equipment product and
carburetor sales were lower. The company noted that despite substantially
lower overall sales, its operations remain profitable due to effective cost
controls.
The company recently reported that it is assessing the consolidation of
its manufacturing facilities. "We realize that consolidation of our existing
facilities and the development of new products and markets are important to
our future," said Jerry A. Bragiel, president and chief executive officer.
"The company's recently completed $14 million credit facility has provided
Champion with augmented financial flexibility to focus and pursue growth
through new products and to seek strategic, profitable acquisition
opportunities," Bragiel concluded.
Champion also reported a positive net working capital for the first
quarter of $3.9 million, a $1.3 million increase from year-end 2000,
reflecting an increase in current assets combined with a decrease in current
liabilities. The increase in working capital primarily reflects substantially
higher receivables, lower payables and reductions in accrued expenses.
CHAMPION PARTS, INC.
Consolidated Results
(Unaudited)
First Quarter Ended
Apr. 1, 2001 Apr. 2, 2000
Net Sales $6,096,000 $7,429,000
Costs and Expenses:
Cost of products sold 5,179,000 5,992,000
Selling, distribution &
administrative 613,000 699,000
Total costs and expenses 5,792,000 6,691,000
Operating income 304,000 738,000
Non-operating (income)/expense:
Interest expense 132,000 151,000
Other non-operating (income) (19,000) (39,000)
Total non-operating expense 113,000 112,000
Earnings before income taxes and
extraordinary loss 191,000 626,000
Income taxes 0 24,000
Earnings before extraordinary loss 191,000 602,000
Extraordinary loss 124,000 0
Net income $67,000 $602,000
Weighted Average Common Shares
Outstanding at April 1, 2001:
Basic 3,655,266 3,655,266
Diluted 3,685,073 3,709,063
Earnings Per Common Share - Basic:
Earnings before extraordinary loss
per common share $0.05 $0.16
Extraordinary loss per common share 0.03 0.00
Net income per common share $0.02 $0.16
Earnings Per Common Share - Diluted:
Earnings before extraordinary loss
per common share $0.05 $0.16
Extraordinary loss per common share 0.03 0.00
Net income per common share $0.02 $0.16
