Featherlite Reports First-Quarter Profits
CRESCO, Iowa--April 22, 2002--Featherlite, Inc. , a leading manufacturer and marketer of specialty aluminum trailers and luxury motorcoaches, today reported profits of $1.1 million, or 17 cents per diluted share, in the first quarter ended March 31, 2002. This is up from net income of $64,000, or 1 cent per diluted share, last year. Sales for the first quarter this year were $60.6 million, down 6.3% from $64.7 in the same quarter in 2001."We are pleased with the rebound in profits in the first quarter of 2002," Conrad Clement, chairman and chief executive officer, said. "We are seeing some of the results of our strategic plan, which aims at enhancing efficiencies, lowering expenses and improving operating results. Though our gross sales in the first quarter were down slightly as the economy has yet to see a full revival, we continue to build a backlog in trailer orders and luxury coach sales have been strong. Featherlite's focus on profitability has yielded some positive signs and I expect Featherlite to further improve its performance as the economy moves forward," Clement said.
Gross margins improved by $830,000 as the margin as a percentage of sales increased to 13.0% from 10.9%, due to improved margins in both the trailer and coach divisions. Trailer sales decreased by 8.7% and coach sales were off 4.4% from a year ago. Selling and administrative expenses decreased by nearly $500,000 or 8.6% in the first quarter of 2002 compared to last year's first quarter.
"First quarter sales are ahead of our projections," Clement said, "and we are beginning to see the results of our efforts to reduce selling and administrative expenses, as well as the positive effects of implementing lean manufacturing processes. Interest expense also decreased in the quarter as average debt levels and interest rates are lower than last year. These factors have improved our net income in the first quarter, and we expect to continue to see positive operating results in the next three quarters and beyond as national economic conditions improve and we maintain our strategic plan.
"In addition, we are in the final stages of closing long-term financing agreements with our existing lenders, as we have previously reported. We expect this to be completed in the next few weeks," Clement said.
About Featherlite
Featherlite, Inc., is an innovative 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, mobile marketing trailers 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). Featherlite also is sponsor of many equine and livestock events and its products are displayed in over 1,000 fairs, trade shows, races and other events throughout North America each year. Through its Featherlite Vantare' product line, Featherlite is the "Official Luxury Motorcoach" of NASCAR, IRL, SPORTSCAR and NHRA. For more information about the Company, please visit Featherlite's website at www.featherliteusa.com.
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.
Featherlite, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)
March 31, December 31,
ASSETS 2002 2001
------------ ------------
Current assets
Cash $121 $247
Receivables 8,057 5,001
Refundable income taxes -- 2,755
Inventories 54,560 66,215
Prepaid expenses 1,802 1,977
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Total current assets 64,540 76,195
Property and equipment, net 16,637 17,024
Other assets 4,260 3,952
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$85,437 $97,171
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Current maturities of long-term debt $8,773 $9,299
Bank line of credit 5,648 7,226
Checks issued, not yet presented 3,673 3,061
Wholesale financing and other notes
payable 20,748 27,713
Motorcoach shell costs payable 5,219 7,531
Accounts payable 3,551 5,902
Trade creditor repayment plan 3,494 3,253
Accrued liabilities 8,055 8,365
Customer deposits 1,481 2,204
------------ ------------
Total current liabilities 60,642 74,554
Long-term debt, net of current maturities 6,964 7,386
Subordinated convertible debt 1,500 --
Other long term liabilities 85 90
Commitments and contingencies (Note 6)
Shareholders' equity 16,246 15,141
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$85,437 $97,171
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Featherlite, Inc.
Condensed Consolidated Statements of Income
(Unaudited)
(In thousands, except for per share data)
Three months Ended
March 31,
--------------------
2002 2001
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Net sales $60,605 $64,681
Cost of sales 52,750 57,656
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Gross profit 7,855 7,025
Selling and administrative expenses 5,310 5,808
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Income from operations 2,545 1,217
Other income (expense)
Interest (811) (1,332)
Other, net 14 224
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Total other expense (797) (1,108)
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Income before income taxes 1,748 109
Provision for income taxes 647 45
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Net income $1,101 $64
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Net income per share - basic
and diluted $0.17 $0.01
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Average common shares outstanding-basic
and diluted 6,535 6,535
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