Owosso Announces Results for the Second Quarter of Fiscal
2001
KING OF PRUSSIA, Pa., June 7 Owosso Corporation today announced a net loss available for
common shareholders of ($1.2 million), or ($0.20) per share, for its second
fiscal quarter ended April 29, 2001, as compared to net income available for
common shareholders of $284,000 or $0.05 per share, for the prior year second
quarter. Second quarter net sales were $22.3 million, as compared to
$32.5 million in the prior year quarter; loss from operations was ($422,000),
as compared to income from operations of $1.6 million in the prior year
quarter.
Net income available for common stockholders for the prior year quarter
includes income from discontinued operations, representing the operations of
Sooner Trailer, which was sold in January 2001, of $312,000, or $0.05 per
share.
For the six months ended April 29, 2001, the Company reported a net loss
for common shareholders of ($3.4 million), or ($0.58) per share, as compared
to a net loss for common shareholders of ($266,000) or ($0.05) per share, for
the prior year period. Net sales for the six month period ended April 29,
2001 were $42.9 million, as compared to $61.2 million in the prior year
period; loss from operations was ($1.1 million), as compared to income from
operations of $2.0 million in the prior year period.
For the six months ended April 29, 2001, loss from discontinued operations
was ($434,000), or ($0.08) per share, as compared to income from discontinued
operations of $500,000, or $0.08 per share, in the prior year period.
The net loss available for common shareholders for the second quarter of
2001 includes a non-cash pretax charge of $700,000 for the write-down of net
assets related to the sale of Astro Air UK, Ltd. ("Astro UK"), the sale of
which was completed in May 2001. The results for the second quarter of 2001
also reflect income of $400,000 related to the settlement of a vendor dispute.
Income from operations for the Motors segment increased to $1.6 million on
net sales of $13.7 million in the second quarter of 2001, as compared to
$1.1 million on net sales of $14.7 million in the prior year second quarter.
For the first six months of 2001, income from operations for the Motors
segment increased to $2.7 million on net sales of $26.7 million, as compared
to $2.2 million on net sales of $28.7 million in the prior year period.
Despite decreased net sales caused by lower demand from the recreational
vehicle and healthcare markets, income from operations improved compared to
the prior year as a result of improved productivity at the Motor Products -
Michigan facility, which was adversely affected in the prior year by temporary
production inefficiencies resulting from the introduction of lean
manufacturing techniques, and a 7.6% decrease in selling, general and
administrative expenses. In addition, the prior year included a charge of
$275,000 for warranty costs related to certain motors supplied to the
recreational vehicle market.
The Coils segment reported a loss from operations of ($681,000) for the
second quarter of 2001 on net sales of $7.9 million, as compared to income
from operations of $500,000 on net sales of $12.7 million in the prior year
second quarter. For the six-month period ended April 29, 2001, the Coils
segment reported a loss from operations of ($1.1 million) on net sales of
$14.3 million, as compared to income from operations of $728,000 on net sales
of $23.2 million in the prior year period. The current year quarter includes
a charge of $700,000 to adjust the carrying value of Astro UK's assets to
their estimated fair value, as discussed above. The decrease in operating
results also reflects lower sales volume and the under-absorption of
manufacturing period and overhead costs, partially offset by an 18.4% decrease
in selling, general and administrative costs. The lower sales results reflect
the loss of a customer that represented 17% of net sales in fiscal 2000.
However, during the second quarter of 2001, the Company again began to supply
this customer and management expects to regain most of the former business of
this customer. The decrease in net sales as compared to the prior year is
also a result of continuing weak demand from the heavy truck market.
The Company's Other segment reported a loss from operations of ($136,000)
in the second quarter of 2001, as compared to income from operations of
$759,000 in the prior year second quarter. For the six-month period ended
April 29, 2001, the Other segment reported a loss from operations of
($273,000), as compared to income from operations of $1.2 million in the prior
year period. These results include the effect of the sale, in November 2000,
of Dura-Bond, which had income from operations of $451,000 in the second
quarter of 2000. Operating results from Cramer, the only remaining business
in this segment, decreased as a result of the sale of the timer and switch
line in December 2000.
OWOSSO CORPORATION
(in thousands, except per share data)
Income Statement Data:
Three Months Ended Six Months Ended
April 29, April 30, April 29, April 30,
2001 2000 2001 2000
Net sales $22,289 $32,475 $42,905 $61,185
Gross profit 3,546 5,428 6,237 10,208
Income (loss)
from operations (422) 1,585 (1,076) 1,993
Income (loss) from
continuing operations
before taxes (898) 400 (2,999) (459)
Income (loss) from
continuing operations (831) 251 (2,218) (209)
Income (loss) from
discontinued operations -- 312 (434) 500
Change in accounting
principle, net -- -- (67) --
Net income (loss)
available for
common shareholders ** (1,159) 284 (3,373) (266)
Income (loss) per
basic and diluted share:
Continuing operations $(0.20) $(0.00) $(0.49) $(0.13)
Discontinued operations -- 0.05 (0.08) 0.08
Change in accounting
principle, net -- -- (0.01) --
$(0.20) $0.05 $(0.58) $(0.05)
Average basic
shares outstanding 5,866 5,846 5,858 5,838
April 29, October 29,
2001 2000
Current assets $30,478 $42,746
Net property, plant and equipment 20,234 22,058
Total assets 70,551 85,754
Current liabilities 44,464 40,599
Total debt, including current portion 38,522 50,279
Stockholders' equity $15,007 $18,432
** For the three-month periods, 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
$103 and $92 for 2001 and 2000, respectively. For the six-month
periods, net income (loss) available for common shareholders is
stated after deduction of preferred stock dividends of $450 and
$375 for 2001 and 2000, respectively, and after deduction of
accretion in the book value of preferred stock of $204 and $182 for
2001 and 2000, respectively.
Segment Data: (in thousands)
Three Months Ended Six Months Ended
April 29, April 30, April 29, April 30,
2001 2000 2001 2000
Net sales:
Motors $13,669 $14,704 $26,727 $28,702
Coils 7,850 12,733 14,344 23,212
Other 770 5,038 1,834 9,271
Net sales $22,289 $32,475 $42,905 $61,185
Income (loss)
from operations:
Motors $1,572 $1,058 $2,675 $2,193
Coils (681) 500 (1,134) 728
Other (136) 759 (273) 1,153
Unallocated
corporate charges (1,177) (732) (2,344) (2,081)
Income (loss)
from operations $(422) $1,585 $(1,076) $1,993
