Mile Marker International Announces Second Quarter Results
POMPANO BEACH, Fla.--Oct. 22, 2001--Mile Marker International, Inc. (OTCBB:MMKR), a specialty auto parts manufacturer/ distributor, today announced the financial results of its second quarter ended June 30, 2001. In its Form 10-QSB filing with the U.S. Securities and Exchange Commission, Mile Marker International, Inc. announced a 50% increase in sales during the first six months of 2001 compared to the same period in 2000. The following is excerpted from the company's SEC filing, the complete text of which is located at http://www.sec.gov.RESULTS OF OPERATIONS
The following table summarizes the results of operations, stated as a percentage of sales, for the six months and three months ended June 30, 2001, and 2000:
Six Months Three Months
2001 2000 2001 2000
---- ---- ---- ----
Sales 100.0% 100.0% 100.0% 100.0%
Cost of Sales 55.4% 54.4% 52.6% 56.5%
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Gross Profit 44.6% 45.6% 47.4% 43.5%
Selling, General and
Administrative Expenses 28.5% 27.7% 23.4% 30.1%
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Income from Operations 16.1% 17.9% 24.0% 13.4%
Other Expenses (0.0)% (0.4)% (0.0)% (0.0)%
Interest Expense (1.8)% ( 2.2)% (1.4)% (2.1)%
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Pre-Tax Income 14.3% 15.3% 22.6% 11.3%
Income Taxes (5.9)% ( 5.3% (9.2)% (3.1)%
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Net Income 8.4% 10.0% 13.4% 8.2%
Sales of $4,624,680 for the six months ended June 30, 2001, were $1,560,049, or approximately 50%, more than the $3,064,631 of sales during the same period in 2000. This sales increase was due primarily to $843,425 more military winch sales and $433,603 more special order sales in the first six months of 2001 than in the comparable period in 2000. Sales of hubs and chains were also $138,116 more in the first six months of 2001 than in the comparable period in 2000. In the quarter ended June 30, 2001, military winch sales were $1,370,638 greater than in the same period in 2000, reflecting initial shipments of the $3,568,968 military order received on January 25, 2001.
The Company's gross profit margin decreased from 45.6% of sales in the six months ended June 30, 2000 to 44.6% of sales in the comparable 2001 period primarily due to an increased volume of lower margin special orders. However, the gross margin in the three months ended June 30, 2001 increased to 47.4% from 43.5% in the comparable period in 2000 due to an increased volume of higher margin military winch sales during this period. Selling costs increased by $159,142 in the first six months of 2001 to $429,054 from $269,912. Most of this increase in selling costs was due to increases in advertising costs and sales commissions.
General and administrative expenses for the six months ended June 30, 2001, increased by $310,345, or about 54%, to $889,159 from $578,814 in comparable period in 2000. $245,399 of this increase is attributable to increased staffing and warehouse costs in order to fulfill the Company's substantial military orders and to more aggressively market its domestic winches. In addition, research and development costs were $32,503 greater in the first six months of 2001 than in the same period in 2000 due to the cost of an independent analysis of the Company's hydraulic winches against its competitors' electric winches. Relative to sales volume, however, the Company's total general and administrative costs only increased from 18.9% of sales in the first six months of 2000 to 19.2% of sales during the same period in 2001.
The Company's results from operations for the first six months of 2001 reflected income from operations of $743,665 compared to income from operations of $548,492 during the same period in 2000. This increase of approximately 36% is primarily due to the approximately 50% increase in sales in the first six months of 2001 compared to the same period in 2000. Other expenses, consisting primarily of interest, were about the same in the first six months of 2001 as in the same period in 2000. Interest costs reflected lower borrowing costs, but on greater borrowings. During the six months ended June 30, 2001, the Company recorded income before taxes of $661,808 compared to income before taxes of $468,925 during the same period in 2000. The Company's net income in the first six months of 2001 was $388,447 compared to $305,164 of net income in the same period in 2000. This net income represents income per share of $.04 for the first six months of 2001 compared to earnings per share of $0.03 for the first six months of 2000.