Starcraft's Quarterly Net Income Increases 60%; Performance Driven By Its Tecstar Unit
GOSHEN, Ind.--Aug. 1, 2002--Starcraft Corporation (OTCBB:STCR), today announced earnings for its third fiscal quarter ended June 30th. For the quarter, the company reported:| -- | an 81 percent increase in revenues, |
| -- | a 60 percent increase in net income, and |
| -- | a 36 percent increase in diluted earnings per share, |
compared with the same quarter a year ago.
Net income for the quarter was $1.9 million, or $0.38 per share diluted, compared with $1.2 million, or $0.28 per share diluted for the quarter ended July 1, 2001. Revenues were $29.4 million, an increase of $13.2 million over the year earlier period.
These results are primarily attributed to its OEM automotive supply business. Through its joint venture investment in Tecstar, LLC, the company is a leading supplier to the OEM automotive supply market. Tecstar upfits exterior styling packages for selected General Motors trucks and sport utility vehicles. All three of Tecstar's OEM supply plants were operating during the third quarter. During the comparable 2001 period, one plant was idle for a model changeover.
Kelly L. Rose, Chairman, President and Chief Executive Officer of Starcraft, said that demand for the company's products remained strong during the third quarter. He added that sales associated with the H2 Hummer program, which began in July, have also been very favorable. "We are very pleased with the growth in demand for vehicles equipped with our styling packages and are adding capacity to meet that demand," Rose said. "Our outlook for the rest of this fiscal year and beyond remains very bright." In June, Starcraft announced that Tecstar will double production capacity at its Grand Prairie, Texas plant. In addition, beginning in November 2002, Tecstar will start production of the Chevy Silverado exterior upfit package at a new plant in Oshawa, Canada.
Net income for the nine months ended June 30, 2002 was $3.9 million, or $0.81 per share diluted, compared to a loss of $2.7 million, or $0.64 loss per share diluted for the first nine months of fiscal 2001. The 2001 results included a loss of $1.2 million from discontinued operations. Starcraft's revenues were $73.5 million for the first nine months of 2002, compared to $33.5 million for the same period in 2001. Diluted earnings per share reflect the potential effect of stock options and warrants issued over the last several years.
During the quarter, Starcraft completed placement of a $2 million multi-year credit agreement with Comerica Bank. This facility, along with Tecstar's $15 million line of credit, is committed through April 1, 2004. The company believes that cash flows from operations and its borrowing capacity under the credit agreements will be sufficient to fulfill the company's operating requirements and meet its growth objectives over the next few years.
The Company will conduct a teleconference on Wednesday, August 7, 2002, at 2:00 p.m. EDT. Investors and interested parties may participate in the teleconference call by calling (877) 777-8195, providing the conference ID of 5015043 and identifying Timothy L. Burke as host of the teleconference.
For additional information, please call Timothy L. Burke at (574) 533-1105 (ext 239) or visit the company's website at www.starcraftcorp.com.
This news release contains forward-looking statements regarding Starcraft's business operations and outlook. 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 recent filings with the Securities and Exchange Commission.