Mile Marker International, Inc. Announces Record Results for 2001
POMPANO BEACH, Fla.--March 18, 2002--Mile Marker International, Inc. (OTCBB:MMKR), a specialty automotive parts distributor, announced record revenues and net income for its 2001 fiscal year ending December 31, 2001 in its Form 10-KSB filing with the U.S. Securities and Exchange Commission.In its Form 10-KSB filing with the U.S. Securities and Exchange Commission on March 15, 2002, Mile Marker International, Inc. announced net income of $1,009,808 for the year ending December 31, 2001, or $0.09 per common share, based on 10,634,357 shares outstanding, compared to net income of $260,973, or $0.02 per common share in 2000. The Company's revenues for the year 2001 totaled $10,676,644, compared to $5,574,986 in 2000, an increase of 91%.
Richard Aho, President and CEO of Mile Marker International, Inc., said: "These record results are primarily due to increased sales of our unique patented hydraulic winch to the U.S. military and non-military customers, improved gross profit margins and improved operating efficiencies."
Mr. Aho added: "During 2001, we fulfilled approximately $4.6 million of our $7,137,938 military winch contract. These sales confirm the U.S. military's strong confidence in the reliability of our Company's unique hydraulic winches for its Humvee combat vehicles. After years of rigorous field-testing the Mile Marker hydraulic winch, the military has been retrofitting its existing Humvee vehicles by replacing a competitor's electric winch with the Mile Marker hydraulic winch. In addition, we have been supplying our unique hydraulic winches for the ongoing OEM production of new Humvee vehicles. We believe that there is a substantial continuing demand for our field-tested hydraulic winches, not only for the many thousands of existing U. S. military Humvee vehicles, but also from foreign military allies. The success of our hydraulic winch with the U.S. military has also increased demand for our hydraulic winch from electric utilities, gas companies and other commercial users."
The Company also announced in its filing that on February 28, 2002, its lender increased the maximum amount of the Company's working capital line of credit to $3,500,000. In anticipation of continued revenue growth, particularly if the Company receives additional military contracts, the Company expects to fund its working capital needs primarily from operations and from its recently increased line of credit. The Company anticipates having more than adequate capital and liquidity for its foreseeable operational needs, and also will be repurchasing some of its shares as it believes that they are undervalued.
Mile Marker International, Inc., through its wholly owned subsidiary, Mile Marker, Inc., is a manufacturer and distributor of specialized automobile parts primarily for the four-wheel drive utility/recreational and military vehicle markets. The Company has been in business for over 19 years under the management of the Company's founder, Chairman and Chief Executive Officer, Richard E. Aho. Mile Marker's unique patented line of hydraulic winches use a vehicle's power steering pump as its source of energy. The Company is one of three nationally recognized suppliers of wheel locking hubs. Mile Marker also markets a patented four-wheel Selectric Drive coupling device and other special products. In 2002, Mile Marker introduced a new 8000 lb. electric winch with a heavy-duty 3/8" cable, making it one of the safest winches in this segment of the market.
Mile Marker International, Inc. and Subsidiary
Consolidated Balance Sheets
December 31, 2001 December 31, 2000
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ASSETS
CURRENT ASSETS
Cash $50,089 $27,191
Accounts Receivable, net 3,063,209 1,344,322
Inventories 3,254,473 2,249,961
Notes and Other Receivables 149,764 11,893
Deferred Tax Asset 39,800 63,993
Prepaid Expenses 60,210 13,818
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Total Current Assets 6,617,545 3,711,178
PROPERTY & EQUIPMENT 440,681 258,987
OTHER ASSETS 101,904 142,710
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TOTAL ASSETS 7,160,130 4,112,875
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LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Notes Payable - Line of Credit 2,584,282 1,693,885
Notes Payable - Current Portion 21,066 --
Accounts Payable 1,111,343 533,038
Income Taxes Payable 425,538 29,874
Accrued Liabilities 73,953 40,757
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Total Current Liabilities 4,216,182 2,297,554
DEFERRED TAX CREDIT 42,172 11,143
LONG-TERM DEBT 87,790 --
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TOTAL LIABILITIES 4,346,144 2,308,697
SHAREHOLDERS' EQUITY
Common Stock - 10,634,357 Shares 10,634 10,634
Additional Paid In Capital 1,521,215 1,521,215
Retained Earnings 1,282,137 272,329
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TOTAL SHAREHOLDERS' EQUITY 2,813,986 1,804,178
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TOTAL LIABILITIES AND SHARE-
HOLDERS' EQUITY $7,160,130 $4,112,875
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See Notes to Financial Statements
Mile Marker International, Inc. and Subsidiary
Consolidated Income Statements
For Years Ended
December 31, 2001 December 31, 2000
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SALES $10,676,644 $5,574,986
COST OF SALES 5,925,600 3,251,247
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GROSS PROFIT 4,751,044 2,323,739
SELLING EXPENSES 933,815 551,266
GENERAL & ADMINISTRATIVE EXPENSES 2,027,377 1,215,169
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INCOME FROM OPERATIONS 1,789,852 557,304
OTHER INCOME/(EXPENSE) (130,652) (150,182)
INCOME BEFORE INCOME TAXES 1,659,200 407,122
PROVISION FOR INCOME TAXES (649,392) (146,149)
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NET INCOME $1,009,808 $260,973
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Weighted Average Shares
Outstanding 10,634,357 10,661,260
Income Per Common Share -
Basic and Diluted $0.09 $0.02
See Notes to Financial Statements
Complete copies of the Company's filings with the U.S. Securities and Exchange Commission may be found under "Milemarker International, Inc." at www.sec.gov
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties, including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, acquisition of new business lines, governmental approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the Company's filings with the U.S. Securities and Exchange Commission.