Lund International Holdings Announces Q2 2001 Financial
Results
DULUTH, Ga., Aug. 13 Lund International Holdings, Inc.
(OTC Bulletin Board: LUND) announced results of operations for the second
quarter ended July 1, 2001.
Net sales for the second quarter of 2001 were $43,864,000, compared to
$51,064,000 for the same period in 2000. The decrease is primarily
attributable to volume declines across most of the Company's product lines.
The Company continued to experience softness in demand for its product,
impacted in part from the escalating cost of fuel and general economic
uncertainty. On a year-to-date basis for the six-month period ended July 1,
2001, net sales were $83,191,000 compared to $97,463,000 for the same period
last year.
Income from operations was $1,924,000 in the second quarter of 2001,
compared to income from operations of $3,924,000 for the same period in 2000.
The decrease was primarily the result of the 14% decline in sales volume when
compared to the second quarter in 2000. On a year-to-date basis, the 68%
decline in operating income resulted from the lower sales volume, offset in
part by reductions in selling, general, and administrative expenses.
Lund International recorded a net loss of $863,000, or $0.08 per share,
for the second quarter of 2001, compared to net income of $302,000, or
$0.04 per share, in the second quarter of 2000. For the six month period
ended July 1, 2001, the Company recorded a net loss of $3,972,000, compared to
a net loss of $540,000 for the same period in 2000. The year-to-date results
in 2001 include a $233,000 interest fee and consulting fees of $299,000
incurred as a result of the Company restructuring its loan agreements'
financial covenants. The results also include restructuring charges of
$1,327,000 related to the relocation of the Company's Anoka, Minnesota
distribution center to Lawrenceville, Georgia. The year-to-date results in
2000 include consulting fees and restructuring charges of $612,000, a $225,000
loss, net of tax benefit, on the early extinguishment of debt, and a $410,000
loss, net of tax benefit, from the cumulative effect of an accounting change.
Dennis W. Vollmershausen, President and Chief Executive Officer, stated
that, "Our second quarter net sales decline of 14% compared to the same period
in 2000 is attributable to an approximate 10% decline in Light Truck
Automotive Accessories and a 40% decline in Heavy Truck Accessories sales.
Compared to the first quarter of 2001, net sales improved by almost 12% as
consumer purchases of Light Truck and Automotive Accessories picked up and
distribution channels firmed up inventory levels. Although this is the second
consecutive quarter to quarter sales improvement, market conditions are
expected to remain unsettled over the balance of the year. Our efforts to
both anticipate and respond to this difficult market environment has lead to
significant cost reductions as well as more effective use of working capital."
Lund International is a leading designer, manufacturer and marketer of a
broad line of accessories for the automotive aftermarket. Its products are
sold under the trade names "Lund(R)," "Deflecta-Shield(R)," "Deflecta-
Shield(R)" Aluminum, "Autotron(TM)," "Belmor(R)," "Trail Master(R)," "Auto
Ventshade(R)," and "Smittybilt(R)." The corporate headquarters are at 3700
Crestwood Parkway, N.W., Suite 1000, Duluth, Georgia, 30096.
LUND INTERNATIONAL HOLDINGS, INC.
CONDENSED CONSOLIDATED
INCOME STATEMENTS
(in thousands, except per share data)
Three months ended Six months ended
July 1, July 2, % July 1, July 2, %
2001 2000 change 2001 2000 change
Net sales $ 43,864 $51,064 -14.1 $83,191 $97,463 -14.6
Cost of goods
sold 31,772 36,554 -13.1 60,976 69,768 -12.6
Gross profit 12,092 14,510 -16.7 22,215 27,695 -19.8
Operating expenses
General and
administrative 3,803 3,640 4.5 8,045 7,450 8.0
Selling and
marketing 4,342 5,053 -14.1 8,076 9,528 -15.2
Research and
development 688 557 23.5 1,275 1,282 -0.5
Amortization of
intangibles 1,335 1,336 -0.1 2,670 2,653 0.6
Total operating
expenses 10,168 10,586 -3.9 20,066 20,913 -4.1
Income from
operations 1,924 3,924 -50.1 2,149 6,782 -68.3
Other expense,
net (2,757) (3,214) -14.2 (6,061) (6,462) -6.2
(Loss) income
before income
taxes, extraordinary
item, and cumulative
effect of accounting
change (833) 710 -217.3 (3,912) 320 ---
Income tax
expense (benefit) 30 408 -116.4 60 225 -73.3
(Loss) income before
extraordinary item
and cumulative
effect of
accounting change (863) 302 --- (3,972) 95 ---
Extraordinary item,
less tax benefit
of $130 --- --- --- --- (225) ---
(Loss) income
before cumulative
effect of accounting
change (863) 302 --- (3,972) (130) ---
Cumulative effect of
accounting change
less tax benefit
of $237 --- --- --- --- (410) ---
Net (loss) income $(863) $302 --- $(3,972) $(540) ---
Basic net (loss)
income per share:
(Loss) income
before extraordinary
item and cumulative
effect of accounting
change $(0.08) $0.04 $(0.42) $0.01
Extraordinary item --- --- --- (0.03)
Cumulative effect
of accounting
change --- --- --- (0.05)
Net (loss)
income $(0.08) $0.04 $(0.42) $(0.07)
Diluted net (loss)
income per share:
(Loss) income
before extraordinary
item and cumulative
effect of accounting
change $(0.08) $0.03 $(0.42) $0.01
Extraordinary item --- --- --- (0.03)
Cumulative effect
of accounting
change --- --- --- (0.05)
Net (loss)
income $(0.08) $0.03 $(0.42) $(0.07)
Weighted average
common shares 10,267 7,868 9,532 7,836
Weighted average
common and common
equivalent
shares 10,267 11,623 9,532 7,836
LUND INTERNATIONAL HOLDINGS, INC.
CONDENSED CONSOLIDATED
BALANCE SHEETS
(in thousands)
July 1, December 31,
2001 2000
ASSETS
Current assets $ 59,674 $ 58,670
Non-current assets
Property and equipment, net 27,094 27,828
Intangibles, net 116,535 119,178
Other assets, net 2,633 2,960
Total assets $205,936 $208,636
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 114,833 $ 40,186
Long-term liabilities 4,477 82,853
Stockholders' equity 86,626 85,597
Total liabilities and stockholders' equity $205,936 $208,636
