Featherlite Reports Second-Quarter Results
CRESCO, Iowa, Aug. 3 Featherlite, Inc. , a
leading manufacturer and marketer of specialty aluminum trailers and luxury
motorcoaches, today reported net sales for the second quarter ended June 30,
2001 of $57.4 million. This is down 13.1 percent from net sales of
$66.0 million last year. Net loss for the second quarter was $4.1 million, or
63 cents per diluted share, as compared to net income of $1.1 million, or
17 cents per diluted share, last year.
The reported loss includes restructuring charges of approximately
$4.1 million associated with closing the Featherlite Vogue Luxury Coach
manufacturing and sales facility in Pryor, Okla. As previously announced,
this facility will be closed by the end of August 2001.
"Our strategic restructuring will result in the consolidation of
operations and elimination of duplicate manufacturing capacity and positions
to improve Featherlite's financial performance in the future," Conrad Clement,
chairman and chief executive officer, said. "We continue to be aggressive on
the sales side, having opened a new West coast luxury coach sales center in
Coburg, Ore., in May. We also look forward to the launch of our new
Statesville, N.C., luxury coach showroom in the fall of this year."
Losses from operations in the second quarter were $4.6 million, including
$4.1 million of restructuring charges, with $2.9 million included in cost of
sales and $1.2 million in operating expenses. Last year, profits in the
quarter were $2.8 million or 4.3 percent of net sales. The gross margin of
4.2 percent of sales in the quarter, compared with 14.7 percent last year,
reflected a decrease in gross margin in both Featherlite's specialty trailer
and coach segments as well as restructuring charges, which reduced the gross
margin by 5.1 percentage points.
The Company's selling and administration expenses continued to decline.
They decreased by $1.0 million, or more than 15 percent from the second
quarter last year, as cost reductions were achieved in the trailer and coach
segments.
For the six months ended June 30, 2001, net sales were $122.1 million,
down 10.0 percent from sales of $135.1 million in last year's comparable
period. Net loss for the six months was $4.0 million, or 62 cents per diluted
share, versus net income of $1.8 million or 27 cents per diluted share.
"We are disappointed in the results of the second quarter," Clement said.
"However, we have reduced our motorcoach inventory by about $13 million since
Jan. 1. New, as well as pre-owned, coach sales have been brisk, and the
interest level in both trailers and coaches is good. Even though our backlog
in both business segments is significantly lower than last year, we expect
sales to remain at levels comparable to the first half of 2001 and to exceed
last year's sales of $107 million in the last six months of the year.
However, we anticipate continuing cost reductions from our plant
consolidations implemented this year, even though we will continue to bear
interest costs on inventory and operating losses in the Pryor, Okla.,
facility."
Featherlite, Inc. was informed on July 31, 2001, that the Nasdaq Stock
Market has transferred the Company's common stock listing from the Nasdaq
National Market System to the Nasdaq SmallCap Market, effective as of the
opening of business on Aug. 1, 2001. The Company will retain its symbol,
FTHR.
Safe Harbor Statement under the Private Securities Litigation Reform Act:
Certain statements in this release are forward-looking, including those that
reflect our current views of future events and financial performance, involve
known and unknown risks and uncertainties that could cause actual results or
facts to be materially different. Some of these risks include, but are not
limited to, product acceptance and demand in each segment of our markets, the
price of aluminum, competition, facilities utilization, and other risks
described from time to time in our reports to the Securities and Exchange
Commission. Investors should take such risks into account when making
investment decisions. Shareholders and other readers are cautioned not to
place undue reliance on these forward-looking statements, which speak only as
of the date on which they are made. Featherlite undertakes no obligation to
update publicly or revise any forward-looking statements.
About Featherlite
Featherlite, Inc., is a national 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
product line, 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 .
CONTACT:
John K. Hall Jeffery A. Mason
Director of Corporate Communications Chief Financial Officer
Featherlite, Inc. Featherlite, Inc
P.O. Box 320 P.O. Box 320
Cresco, IA 52136 Cresco, Iowa 52136
319-547-6000 319-547-6000
FEATHERLITE, INC
Condensed Statements of Income
(Unaudited)
(In Thousands, except for per share data)
Three months Ended Six months Ended
June 30 June 30
2001 2000 2001 2000
Net sales $57,412 $66,030 $122,093 $135,064
Cost of sales 55,019 56,341 112,675 116,089
Gross profit 2,393 9,689 9,418 18,975
Selling and administration 5,810 6,856 11,618 14,336
Restructuring charge 1,150 1,150
Income (loss) from operations (4,567) 2,833 (3,350) 4,639
Other income (expense)
Interest (1,129) (1,238) (2,461) (2,315)
Other, net 155 269 380 609
Total Other expense (974) (969) (2,081) (1,706)
Income (loss) before income taxes (5,541) 1,864 (5,431) 2,933
Provision for (benefit from) income
taxes (1,403) 728 (1,358) 1,144
Net income (loss) $(4,138) $1,136 $(4,073) $1,789
Net income (loss) per share-basic
and diluted $(0.63) $0.17 $(0.62) $0.27
Average Shares Outstanding- basic
and diluted 6,535 6,535 6,535 6,535
