Lowrance Reports First Quarter Results; Sales Increase 26% for Company's Seasonally Weakest Quarter
TULSA, Okla.--Nov. 2, 20034, 2003--Lowrance Electronics, Inc. announced today that the net loss for its fiscal 2004 first quarter, ended October 31, 2003, was $1,557,000, or $0.41 per diluted share, compared to $1,432,000, or $0.38 per diluted share, for the first quarter of fiscal 2003. Net sales increased to $14,036,000 compared to $11,155,000 last year.Darrell Lowrance, president and chief executive officer, said, "Sales increased 26% in our seasonally weakest quarter due to continuing strong shipments of new products. Gross profits increased 22% compared to the first quarter last year. Total operating expenses, as a percent of sales, actually declined in the quarter, to 50% of sales compared to 56% of sales in the same quarter last year. Expenses declined, as a percent of sales, despite a significant increase in research and development activities and sales and advertising efforts to support the introduction of a record number of new products this fall.
"We are already commencing shipment of our new GPS, SONAR and combination SONAR/GPS products. Strong dealer order rates have increased October 31, 2003, backlog by 24% compared to backlog at October 31, 2002."
Lowrance commented regarding the Company's improved October 31, 2003, balance sheet, compared to the same quarter last year, "Even after paying a $940,000 dividend and investing over $1,000,000 in additional plant and equipment, our total debt still declined by $1,700,000."
About Lowrance Electronics
Lowrance Electronics, Inc. (www.Lowrance.com) designs and manufactures SONAR and GPS products, digital mapping systems and other accessories 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 may include certain statements concerning expectations for the future that are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors that are difficult to predict and many of which are beyond management's control. An extensive list of factors that can affect future results are discussed in the Company's Annual Report on Form 10-K and other documents filed from time to time with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise any forward-looking statement to reflect new information or events.
LOWRANCE ELECTRONICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share information)
(Unaudited)
Three Months Ended
October 31,
2003 2002
NET SALES $ 14,036 $ 11,155
COST OF SALES 8,984 7,032
Gross profit 5,052 4,123
OPERATING EXPENSES:
Selling and administrative 5,831 5,160
Research and development 1,230 1,050
Total operating expenses 7,061 6,210
Operating loss (2,009) (2,087)
OTHER EXPENSES:
Interest expense 206 201
Other, net 137 36
Total other expenses 343 237
LOSS BEFORE INCOME TAXES (2,352) (2,324)
BENEFIT FOR INCOME TAXES (795) (892)
NET LOSS $ (1,557) $ (1,432)
NET LOSS PER COMMON SHARE:
Basic and Diluted $ (0.41) $ (0.38)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic and Diluted 3,761 3,761
DIVIDENDS 940 --
LOWRANCE ELECTRONICS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
Oct. 31, Oct. 31, Jul. 31,
2003 2002 2003
ASSETS (in thousands)
CURRENT ASSETS:
Cash and cash equivalents $ 1,010 $ 634 $ 1,206
Trade accounts receivable, less
allowances 6,284 4,966 8,431
Inventories 17,392 14,859 15,941
Current deferred income taxes 835 1,006 894
Prepaid expenses 2,659 1,115 1,290
Total current assets 28,180 22,580 27,762
PROPERTY, PLANT AND EQUIPMENT, net 8,146 7,133 7,593
OTHER ASSETS 62 49 62
DEFERRED INCOME TAXES -- 1,757 --
$ 36,388 $ 31,519 $ 35,417
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt $ 2,012 $ 1,780 $ 2,061
Accounts payable 4,859 4,049 2,951
Accrued liabilities:
Compensation and benefits 2,180 2,360 2,704
Product costs 983 808 1,004
Other 1,773 841 893
Total current liabilities 11,807 9,838 9,613
LONG-TERM DEBT, less current
maturities 6,824 8,720 5,825
DEFERRED INCOME TAXES 542 -- 430
STOCKHOLDERS' EQUITY:
Preferred stock, 230,000 shares
authorized, none issued -- -- --
Common stock, $.10 par value,
10,000,000 shares authorized and
3,761,196 shares issued 377 377 377
Paid-in capital 7,073 7,073 7,073
Retained earnings 9,635 5,769 12,132
Accumulated other comprehensive loss 130 (258) (33)
Total stockholders' equity 17,215 12,961 19,549
$ 36,388 $ 31,519 $ 35,417