Starcraft Corporation Reports Significant Earnings Turnaround From Last Year; Net Income of $1.1 Million for Second Quarter
GOSHEN, Ind.--May 2, 2002--Starcraft Corporation (OTCBB:STCR) today announced earnings for the second quarter ended March 31, 2002 of $1.1 million and $0.25 per share ($0.19 per diluted share), compared to a $0.6 million loss and ($0.14) per share (basic and diluted) from continuing operations last year. Second quarter results are 21% improved over the first fiscal quarter results.Sales were $23.2 million for the quarter ended March 31, 2002 compared to $10.5 million for the same quarter of the prior fiscal year primarily due to higher OEM Automotive Supply sales. OEM Automotive Supply operated all three facilities in the current quarter. In the prior year, a main facility was shutdown due to a model changeover in the 2001 Quarter.
Kelly L. Rose, Chairman and Chief Executive Officer of Starcraft Corporation stated, "demand for trucks and SUVs, upfitted with our unique exterior packages, remained strong in the second quarter. Sales were favorably impacted by the start of the new S10 Crew Cab upfit program at our Bridgewater, New Jersey facility. Once again, we have demonstrated our ability to bring a new program to market on time, and enhance product offerings."
Earnings for the six months ended March 31, 2002 were $2.0 million and $0.46 per share ($0.35 per diluted share) on sales of $44.1 million, compared to a loss of $1.3 million and ($0.30) per share (basic and diluted) from continuing operations on sales of $17.3 million for the same period of the prior year.
Rose added, "We are very excited about the growth prospects in our OEM automotive supply business. We will begin supplying aftermarket options for GM's H2 Hummer in the third quarter and we remain on schedule to begin production of the Silverado upfit package at our new facility in Oshawa, Canada in the first quarter of our next fiscal year."
The Company will conduct a teleconference on Tuesday, May 7, 2002 at 2:00 p.m. Eastern Time. Investors may participate in the teleconference call by calling 877-777-8195 providing the conference ID of 4069274 and identifying Richard J. Mullin as the host of the teleconference.
For additional information call Richard J. Mullin, President, Starcraft Corporation at (574) 533-1105, ext. 239.
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 2001 filed with the Securities and Exchange Commission.
STARCRAFT CORPORATION
FINANCIAL RESULTS
SECOND QUARTER FISCAL YEAR 2002
Dollars in Thousands, except EPS
Statement of Operations 3 Months Ended 6 Months Ended
(unaudited): March 31, April 1, March 31, April 1,
2002 2001 2002 2001
----------------------- -------- -------- -------- --------
Net Sales $ 23,171 $ 10,480 $ 44,081 $ 17,294
Cost of Goods Sold 17,239 8,276 33,251 13,915
-------- -------- -------- --------
Gross Profit 5,932 2,204 10,830 3,379
Selling and
Promotion Expenses 612 326 879 745
General and
Administrative
Expenses 3,121 2,326 5,684 3,778
-------- -------- -------- --------
Operating Income
(Loss) 2,199 (448) 4,267 (1,144)
Nonoperating (Expense)
Income:
Interest, Net (135) (186) (236) (251)
Other, Net 44 64 66 74
-------- -------- -------- --------
(91) (122) (170) (177)
Income (Loss) Before
Minority Interest
and Income Taxes 2,108 (570) 4,097 (1,321)
Minority Interest in
Income of Subsidiary 938 -- 1,963 (89)
-------- -------- -------- --------
Income (Loss) from
Continuing Operations
Before Income Taxes 1,170 (570) 2,134 (1,232)
Income Taxes 90 23 162 27
-------- -------- -------- --------
Income (Loss) from
Continuing Operations 1,080 (593) 1,972 (1,259)
Loss from Discontinued
Operations, Net of Taxes -- (1,189) -- (2,669)
-------- -------- -------- --------
NET INCOME (LOSS) $ 1,080 $ (1,782) $ 1,972 $ (3,928)
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Basic Earnings
(Loss) Per Share $ 0.25 $ (0.42) $ 0.46 $ (0.93)
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Dilutive Earnings
(Loss) Per Share $ 0.19(a) $ (0.42) $ 0.35(a) $ (0.93)
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Weighted Average
Number of Common
Shares Outstanding 4,267 4,245 4,265 4,245
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(a) Does not reflect effect of employee stock options since the effect
is antidilutive.
March 31, September 30,
2002 2001
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Balance Sheets: (Unaudited) (Audited)
-------------- ------- -------
Current Assets:
Cash $ 199 $ 300
Accounts and Notes Receivables 16,610 12,160
Inventories 4,468 4,636
Prepaid Expenses 1,599 1,408
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Total Current Assets 22,876 18,504
Property and Equipment, net 3,445 3,304
Other Assets 603 202
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$26,924 $22,010
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March 31, September 30,
2002 2001
------- -------
(Unaudited) (Audited)
------- -------
Current Liabilities:
Notes Payable to Bank $ 1,512 $ 814
Accounts Payable, Trade 12,592 11,998
Accrued Expenses 3,365 3,652
------- -------
Total Current Liabilities 17,469 16,464
Long-Term Debt 8,798 8,092
Minority Interest in Equity
of Subsidiary 1,367 157
Shareholders' Deficiency (710) (2,703)
------- -------
$ 26,924 $ 22,010
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