Starcraft Corporation Reports Profit from Continuing Operations of $451,000 for the Fourth Quarter and $502,000 for Year
GOSHEN, Ind.--Dec. 5, 2001--Starcraft Corporation (OTCBB:STCR) today announced fourth quarter and year-end results. Earnings per share from continuing operations for the fourth quarter ended September 30, 2001 were $0.11 ($0.09 per diluted share) compared to a loss of ($0.18) per share (basic and diluted) for the fourth quarter of the prior year. Earnings per share from continuing operations for the 2001 fiscal year were $0.12 ($0.11 per diluted share) compared to earnings per share for fiscal 2000 of $0.99 ($0.88 per diluted share).The Company announced the sale of its conversion vehicle business in May 2001 and the sale of its bus and mobility business in August 2001. The financial results of these businesses have been classified as discontinued operations. Loss per share from discontinued operations was ($0.22) and ($0.87) for the fourth quarter and year ended September 30, 2001, respectively.
Continuing operations are comprised of the Company's conversion vehicle parts business and its 50% owned subsidiary, Tecstar, an OEM automotive supplier. Sales from continuing operations were $15.4 million for the fourth quarter of fiscal 2001 compared to $10.7 million for the same quarter of the prior fiscal year. Tecstar operated all three facilities during the current fiscal fourth quarter. Only one of the two existing facilities was in operation during the fourth quarter of the prior fiscal year. For the fiscal year ended September 30, 2001 sales from continuing operations were $48.9 million compared to $75.3 for fiscal 2000. As previously reported, Tecstar's largest operation, which supplies exterior upfit appearance packages for General Motors' popular Tahoe and Suburban models, experienced an extended nine month shutdown beginning in the fourth quarter of fiscal 2000 due to unanticipated delays in the introduction of GM's new models.
Kelly L. Rose, Chairman and Chief Executive Officer of Starcraft Corporation stated, "The sale of the conversion vehicle business in May was a major milestone in our strategy to return the Company to sustained profitability. Further, the disposal of the bus and mobility business allowed us to reduce bank debt and strengthen our balance sheet."
Rose added, "We are very excited about the growth prospects in our OEM automotive supply business. We plan to build shareholder value by capitalizing on our leadership position as a Tier 1 supplier of appearance enhancement packages to GM." Tecstar recently signed two new contracts with GM to provide exterior upfit packages for the S10 Crew Cab Sport and Silverado Specialty Vehicle.
The Company will conduct a teleconference on Tuesday December 11, 2001 at 2:00 p.m. Eastern Time. Investors may participate in the teleconference by calling 877-777-8195, providing the conference ID of 2589143 and identifying Richard J. Mullin as the host of the teleconference.
This news release contains forward-looking statements regarding projected revenues, financial capabilities, profitability and other matters. Investors are cautioned that actual results may differ materially from such forward-looking statements. Forward-looking statements involve risks and uncertainties including, but not limited to, level of customer demand, competitive pressures and other important factors detailed in the Company's annual report on Form 10-K for fiscal year 2000 filed with the Securities and Exchange Commission.
STARCRAFT CORPORATION
FINANCIAL RESULTS
FOURTH QUARTER FISCAL YEAR 2001
Dollars in Thousands, except EPS
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Statement of Operations Sept. 30, Oct. 1, Sept. 30, Oct. 1,
(unaudited): 2001 2000 2001 2000
------------------------ -------- -------- -------- --------
Net Sales $ 15,409 $ 10,704 $ 48,934 $ 75,315
Cost of Goods Sold 11,784 9,512 38,184 56,719
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Gross Profit 3,625 1,192 10,750 18,596
Selling and Promotion
Expenses 416 310 1,209 927
General and
Administrative Expenses 2,615 2,130 8,689 7,409
-------- -------- -------- --------
Operating Income
(Loss) 594 (1,248) 852 10,260
Nonoperating (Expense)
Income:
Interest, Net (127) (194) (547) (864)
Other, Net 143 82 293 82
-------- -------- -------- --------
16 (112) (254) (782)
Income (Loss) Before
Minority Interest
and Income Taxes 610 (1,360) 598 9,478
Minority Interest in
Income of Subsidiary 159 (613) 70 4,918
-------- -------- -------- --------
Income from Continuing
Operations Before
Income Taxes 451 (747) 528 4,560
Income Taxes (Credits) -- 3 26 379
-------- -------- -------- --------
Income from Continuing
Operations 451 (750) 502 4,181
Loss from Discontinued
Operations,
Net of Taxes (913) (4,638) (3,679) (8,528)
-------- -------- -------- --------
NET INCOME (LOSS) $ (462) $ (5,388) $ (3,177) $ (4,347)
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Basic Earnings (Loss)
Per Share $ (0.11) $ (1.27) $ (0.75) $ (1.03)
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Dilutive Earnings (Loss)
Per Share (a) $ (0.11) $ (1.27) $ (0.75) $ (1.03)
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Weighted Average
Number of Common
Shares Outstanding 4,245 4,242 4,245 4,214
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(a) Does not reflect effect of employee stock options since the effect
is antidilutive.
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September 30, 2001 October 1, 2000
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Balance Sheets: (Unaudited) (Audited)
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Current Assets:
Cash $ 300 $ 1,294
Accounts and Notes Receivables 12,160 12,962
Inventories 4,636 10,629
Prepaid Expenses 1,408 1,153
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Total Current Assets 18,504 26,038
Property and Equipment, net 3,304 7,646
Goodwill -- 1,160
Other Assets 202 150
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$22,010 $34,994
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Current Liabilities:
Current Maturity of LTD $ 814 $ 1,114
Accounts Payable, Trade 11,998 16,814
Accrued Expenses 3,652 5,945
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Total Current Liabilities 16,464 23,873
Long-Term Debt 8,092 9,957
Minority Interest in Equity
of Subsidiary 157 1,087
Shareholders' Equity (2,703) 77
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$22,010 $34,994
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