Champion Parts Reports First Quarter Results
HOPE, Ark., May 30 Champion Parts, Inc. reported net sales of $6,840,000 for the first quarter ended March 31, 2002, compared to $6,096,000 in the same period last year. The company reported a net loss of $263,000, or $0.07 per share in the quarter, compared to a net profit of $67,000, or $0.02 per share for the same period in 2001.
"Our plant consolidation program is moving ahead on schedule," said Jerry A. Bragiel, president and chief executive officer, "and we expect the restructuring to be completed before year-end that will allow the company to significantly reduce costs and improve operating efficiencies."
The company noted it recorded, during the first quarter period, $334,000 of relocation costs, together with higher cost of sales and operating expenses. Without the attendant relocation costs and additional legal and professional expenses, the company would have reported a profit of $164,000, bettering its 2001 first quarter results.
Sales increased 12.2% in the quarter compared to the prior year. Champion attributes the increase to the addition of its air conditioning compressor product lines and a 6.5% increase in carburetor net sales. However, net sales of agricultural, heavy-duty automotive and light truck products declined due to a soft market and higher product returns.
Champion Parts remanufactures fuel system components, air conditioning compressors, front wheel drive assemblies, and underhood electrical and mechanical products for the passenger car and light truck, agricultural, heavy-duty truck and marine parts aftermarket.
Certain forward-looking statements in this press release involve various risks and uncertainties, including, without limitation, those statements relating to the impact of plant consolidation. These statements are forward- looking statements within the meaning of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. Although the Company believes that its forward-looking statements are reasonable, there are no assurances that such statements will prove to be correct. Attention is directed to the discussion of risks and uncertainties contained in the Factors Which May Affect Future Results section of the Company's most recent Form 10-Q and other reports filed with the Securities and Exchange Commission.
CHAMPION PARTS, INC.
Consolidated Results
(Unaudited)
First Quarter Ended
March 31, 2002 April 1, 2001
Net Sales $6,840,000 $6,096,000
Costs and Expenses:
Cost of products sold 6,235,000 5,179,000
Selling, distribution & administrative 752,000 613,000
Total costs and expenses 6,987,000 5,792,000
Operating (loss)/income (147,000) 304,000
Non-operating (income)/expense:
Interest expense 134,000 132,000
Other non-operating (income) (20,000) (19,000)
Total non-operating (income)/expense 114,000 113,000
(Loss)/earnings before income taxes
and extraordinary loss (261,000) 191,000
Income taxes 2,000 --
(Loss)/earnings before extraordinary loss (263,000) 191,000
Extraordinary (loss) -- (124,000)
Net (loss)/Income $(263,000) $67,000
Weighted Average Common Shares
Outstanding at March 31, 2002:
Basic 3,655,266 3,655,266
Diluted 3,655,266 3,685,073
Earnings Per Common Share - Basic:
(Loss)/earnings before extraordinary
(loss) per common share $(0.07) $0.05
Extraordinary (loss) per common share 0.00 (0.03)
Net (loss)/income per common share $(0.07) $0.02
Earnings Per Common Share - Diluted:
(Loss)/earnings before extraordinary
(loss) per common share $(0.07) $0.05
Extraordinary (loss) per common share 0.00 (0.03)
Net (loss)/income per common share $(0.07) $0.02