Champion Parts Reports Higher Second Quarter and Six Months Profits
Strong Demand for Air Conditioning Compressor and Marine Product Lines And Plant Efficiencies Contribute to Increased Profitability
HOPE, Ark., Aug. 15 -- Champion Parts, Inc. (BULLETIN BOARD: CREB) today reported higher net income for the second quarter ended June 29, 2003 of $613,000, or $0.17 per share, compared to $337,000, or $0.10 per share for the same period in 2002. Net sales were $6,973,000, versus $7,156,000 for the comparable period in 2002.
For the six months of 2003, the company reported higher net income of $897,000, or $0.25 per share, compared to $114,000, or $0.03 per share. Net sales were $13,169,000, compared to $13,996,000 for the same period in 2002.
"We are extremely gratified with our increased profitability in the second quarter," said Jerry A. Bragiel, president and chief executive officer. "The company has achieved significantly higher second quarter earnings as compared to both the first quarter of 2003 and the same period last year. Sales increased in the second quarter compared to the first but were slightly lower than the same period in the prior year reflecting a declining demand for carburetors, along with a soft demand in our traditional markets of heavy duty, agricultural and domestic automotive product lines."
"Additionally," Bragiel noted, "we are very pleased with the continuing strong sales in air conditioning compressors, and we expect this trend to continue in the third quarter.
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.
Certain forward-looking statements in this press release involve various risks and uncertainties, including, without limitation, those statements relating to future sales. 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 Form 10-K and other reports filed with the Securities and Exchange Commission.
CHAMPION PARTS, INC.
Consolidated Results
For the period ended June 29, 2003
(Unaudited)
Six Months Six Months Three Months Three Months
June 29, June 30, June 29, June 30,
2003 2002 2003 2002
Net Sales $13,169,000 $13,996,000 $6,973,000 $7,156,000
Costs and Expenses:
Cost of products
sold 10,704,000 11,673,000 5,545,000 5,738,000
Selling,
distribution &
administrative 1,353,000 1,552,000 706,000 835,000
Relocation and
restructuring costs 0 399,000 0 64,000
Total costs and
expenses 12,057,000 13,624,000 6,251,000 6,637,000
Operating income 1,112,000 372,000 722,000 519,000
Non-operating
(income)/expense:
Interest expense 243,000 282,000 122,000 149,000
Other non-operating
(income) (28,000) (28,000) (13,000) (9,000)
Total non-operating
expense 215,000 254,000 109,000 140,000
Net income before
income taxes 897,000 118,000 613,000 379,000
Income taxes 0 4,000 0 2,000
Net income $897,000 $114,000 $613,000 $377,000
Weighted Average Common
Shares Outstanding at
June 29, 2003:
Basic 3,655,266 3,655,266 3,655,266 3,655,266
Diluted 3,655,266 3,655,975 3,655,266 3,655,266
Earnings Per Common
Share - Basic:
Net income per
common share - basic $ 0.25 $ 0.03 $ 0.17 $ 0.10
Earnings Per Common
Share - Diluted:
Net income per common
share - diluted $ 0.25 $ 0.03 $ 0.17 $ 0.10