Lowrance Third Quarter Net Income Increases 29% to $4,407,000 or $1.13 Per Share; Nine Month Net Income Jumps 136% to $0.93 Per Share
TULSA, Okla.--June 11, 2003--Lowrance Electronics, Inc. today announced net income for the third quarter ended April 30, 2003 of $4,407,000, or $1.13 per diluted share, compared to $3,417,000, or $0.89 per share, in the same period last year. Net sales were $32,414,000 compared to $32,689,000 in the third quarter last year.For the nine months ended April 30, 2003, net income more than doubled to $3,595,000, or $0.93 per diluted share, compared to $1,524,000, or $0.40 per share, in the same period last year. Net sales for the nine month period increased 7% to $65,083,000 compared to $60,789,000 a year earlier.
"Lowrance introduced 25 new products this year, more than doubling our new product offerings last year. The strong market reception for these new SONAR and combination SONAR/GPS products, combined with their higher price/performance characteristics and manufacturing efficiencies, increased gross margin to nearly 50% of sales compared to 40% of sales in the third quarter last year. With our expanded advertising and marketing efforts supporting the sales growth of this new product line, we are on track to achieve strong earnings performance for fiscal 2003," said Darrell Lowrance, president and CEO.
Lowrance noted that the Company increased production and inventory of SONAR and combination SONAR/GPS products to meet anticipated sales growth. "These are very competitive products, and we believe that their continuing strong sales gains were only temporarily slowed by the commencement of international hostilities. We expect these products will continue selling well for the remainder of the year," he said.
About Lowrance Electronics
Lowrance Electronics, Inc. (www.Lowrance.com) designs and manufactures SONAR products and global positioning system (GPS) satellite products including receivers, plotters and mapping systems under the brand names "Lowrance" and "Eagle" Electronics. These products are primarily used for boating, fishing, hunting, and other outdoor activities as well as in general aviation and automotive navigation applications.
This press release contains "forward looking statements" concerning the Company's projected financial performance as allowed in the Securities Litigation Reform Act of 1995. The Company believes that these statements are based on reasonable assumptions; however, no assurances can be given that the projected results will be achieved. Unforeseen production delays due to raw materials shortages or other factors which are discussed in the Company's Securities and Exchange Commission filings could have a material adverse effect on the Company's performance.
LOWRANCE ELECTRONICS, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(000 Omitted, Except for per Share Data) (Unaudited)
Three Months Ended Nine Months Ended
April 30, April 30,
2003 2002 2003 2002
------- ------- ------- -------
Net Sales $32,414 $32,689 $65,083 $60,789
Cost of Sales 16,296 19,722 37,113 38,852
Gross Profit 16,118 12,967 27,970 21,937
Operating Expenses:
Selling and
administrative 7,812 6,766 18,438 16,573
Research and
development 1,014 454 3,025 1,891
Total Operating
Expenses 8,826 7,220 21,463 18,464
Operating Income 7,292 5,747 6,507 3,473
Other Expenses:
Interest expense 237 419 757 1,180
Other, net 15 (95) 23 (126)
Total Other Expenses 252 324 780 1,054
Income Before Income Taxes 7,040 5,423 5,727 2,419
Provision for Income Taxes 2,633 2,006 2,132 895
Net Income $4,407 $3,417 $3,595 $1,524
Net Income per Share
Basic $1.17 $0.91 $0.96 $0.40
Diluted $1.13 $0.89 $0.93 $0.40
Weighted Average Common
Shares Outstanding
Basic 3,761 3,766 3,761 3,768
Diluted 3,902 3,826 3,879 3,791
Other Comprehensive Income,
Net of Tax:
Net income $4,407 $3,417 $3,595 $1,524
Foreign currency
translation adjustment 119 52 210 (32)
Comprehensive Income $4,526 $3,469 $3,805 $1,492
LOWRANCE ELECTRONICS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
April 30, July 31,
2003 2002 2002
------- ------- -------
ASSETS (unaudited) (audited)
Current Assets:
Cash and cash equivalents $986 $983 $903
Trade accounts receivable,
less allowances 16,352 16,378 7,695
Inventories 20,128 12,164 12,130
Current deferred income taxes 1,139 911 1,161
Prepaid expenses 1,030 1,032 1,012
Total Current Assets 39,635 31,468 22,901
Property, Plant and Equipment, net 7,104 7,100 7,104
Other Assets 49 52 49
Deferred Income Taxes -- 1,336 708
$46,788 $39,956 $30,762
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Current maturities
of long-term debt $1,846 $1,975 $1,817
Accounts payable 6,243 4,744 4,420
Accrued liabilities 5,999 4,184 3,983
Total Current Liabilities 14,088 10,903 10,220
Long-Term Debt, less
current maturities 14,282 15,702 6,183
Deferred Tax Liabilities 254 -- --
Stockholders' Equity:
Common stock, $.10 par value,
10,000,000 shares authorized,
3,761,196 shares issued and outstanding
at April 30, 2003 & July 31, 2002;
3,763,796 shares issued and outstanding
at April 30, 2002 377 377 377
Paid-in capital 7,073 7,073 7,073
Treasury stock, at cost -- (18) (26)
Retained earnings 10,796 6,362 7,227
Accumulated other comprehensive loss (82) (443) (292)
Total Stockholders' Equity 18,164 13,351 14,359
$46,788 $39,956 $30,762