Champion Parts Reports Third Quarter Results
HOPE, Ark., Nov. 25, 2002; Champion Parts, Inc. reported net sales of $5,176,000 for the third quarter ended Sept. 29, 2002, compared to $5,731,000 in the same period last year. The company reported a net loss of $98,000, or $0.03 per share in the quarter, compared to a net profit of $9,000, or $0.00 per share for the same period in 2001.For nine months of 2002, the company reported net sales of $19,172,000, compared to $17,097,000 for the same period in 2001. Net income was $16,000, or $0.00 per share for the nine months, compared to $251,000, or $0.07 per share for the same period in 2001.
The company said that 2002 profits were negatively impacted by the higher accrual rate for professional fees, plant consolidation expenses and increased insurance costs. The effect was more pronounced in the third quarter due to lower sales. Additionally, the company said without the net relocation costs associated with its plant consolidation program, it would have reported nine months net income of $547,000, an increase of $296,000 over the nine months of 2001, which included an extraordinary write-off of $124,000 for loan acquisition costs.
"Air conditioning compressor products were an increasing share of sales revenues in the third quarter," said Jerry A. Bragiel, president and chief executive officer, "more than doubling the 2001 third quarter level. However, during the period we experienced soft demand in carburetors, heavy-duty, agricultural and domestic automotive product lines."
The chief executive also noted, in addition to consolidating and improving existing operations, management is pursuing new products and markets to serve the company's diversified customer base and increase future sales.
Champion Parts remanufactures fuel system components, air conditioning compressors, front wheel drive assemblies, and other underhood electrical and mechanical products for the passenger car and light truck, agricultural, heavy-duty truck and marine parts aftermarket
CHAMPION PARTS, INC.
Consolidated Statement of Income
(Unaudited)
Third Quarter Ended Nine Months Ended
Sept. 29, Sept. 30, Sept. 29, Sept. 30,
2002 2001 2002 2001
Net Sales $5,176,000 $5,731,000 $19,172,000 $17,097,000
Costs and Expenses:
Cost of products
sold 4,503,000 5,278,000 16,290,000 14,984,000
Selling, distribution
& administrative 648,000 593,000 2,086,000 1,817,000
Relocation expense 5,000 -- 531,000 --
Total costs and
expenses 5,156,000 5,871,000 18,907,000 16,801,000
Operating/(loss)
income 20,000 (140,000) 265,000 296,000
Non-operating expense/(income):
Interest expense 130,000 125,000 412,000 355,000
Other non-operating
(income) (17,000) (274,000) (172,000) (434,000)
Total non-operating
expense/(income) 113,000 (149,000) 240,000 (79,000)
Earnings/(loss) before income
taxes and extraordinary
(loss) (93,000) 9,000 25,000 375,000
Income taxes 5,000 -- 9,000 --
Earnings/(loss) before
extraordinary (loss) (98,000) 9,000 16,000 375,000
Extraordinary (loss) -- -- -- (124,000)
Net income/(loss) $(98,000) $9,000 $16,000 $251,000
Weighted Average Common Shares
Outstanding at September 29, 2002:
Basic 3,655,266 3,655,266 3,655,266 3,655,266
Diluted 3,680,380 3,674,621 3,655,266 3,671,063
Earnings/(loss) Per Common Share - Basic:
Earnings/(loss) before
extraordinary (loss) per
common share $ (0.03) $ 0.00 $ 0.00 $ 0.10
Extraordinary (loss) per
common share 0.00 0.00 0.00 (0.03)
Net income/(loss) per
common share-basic $ (0.03) $ 0.00 $ 0.00 $ 0.07
Earnings/(loss) Per Common Share - Diluted:
Earnings/(loss) before
extraordinary (loss) per
common share $ (0.03) $ 0.00 $ 0.00 $ 0.10
Extraordinary (loss) per
common share 0.00 0.00 0.00 (0.03)
Net income/(loss) per common
share-diluted $ (0.03) $ 0.00 $ 0.00 $ 0.07