Featherlite Announces 4th Quarter Results and 2003 Earnings
CRESCO, Iowa--Feb. 2, 20046, 2004--Featherlite, Inc. , a leading manufacturer and marketer of specialty aluminum trailers, transporters and luxury motorcoaches, today reported a net income of $16,000, or 0 cents per diluted share, on sales of $45.2 million for the fourth quarter ended December 31, 2003. This compares with a net loss of $182,000 or 2 cents per diluted share on sales of $44.3 million in the fourth quarter last year. Overall sales increased by $833,000 or 1.9% over the same period last year."Despite stronger performance in the 3rd quarter and a surge in December trailer sales, we did not meet our expectations in the 4th quarter of 2003," Conrad Clement, Featherlite President and CEO, said. "However, as we entered 2004, orders remained very active. At December 31, 2003, our total backlog was 85% greater than at December 31, 2002, with trailers ahead 74% and motorcoaches 106%. Since then, our backlog continues to increase well above 1st quarter levels in 2003 and was 114% ahead at January 31, 2004.
For the year ended December 31, 2003, the Company reported net earnings of $705,000, or 10 cents per diluted share, on sales of $180 million. This compares with earnings of $2.7 million, or 38 cents per diluted share, on sales of $193.2 million for 2002.
The significant decrease in 2003 earnings primarily reflects reduced gross profit as the result of lower sales in 2003 and reduced gross margin percentages.
The Company will require waivers of defaults from lenders on certain financial covenants and is confident that these waivers will be granted.
"We feel Featherlite gained market share in 2003 in nearly all segments it serves, including luxury motorcoaches, horse and livestock trailers, and other specialty trailers," Clement said.
Clement believes sales and earnings will strengthen as consumer confidence and the overall economy continues to improve.
About Featherlite
Featherlite, Inc., is an innovative leader in designing, manufacturing and marketing high quality aluminum specialty trailers, transporters and luxury motorcoaches. With more that 75 percent of its business in the leisure, recreation and entertainment categories, Featherlite has highly diversified product lines offering hundreds of standard model and custom-designed aluminum specialty trailers, specialized transporters, mobile marketing trailers and luxury motorcoaches. Featherlite(R) is the "Official Trailer" of NASCAR, Champ Car, ARCA, Indy Race League (IRL), SPORTSCAR and World of Outlaws. Featherlite also is sponsor of many equine and livestock events and its products are displayed in over 1,000 fairs, trade shows, races and other events throughout North America each year. Through its Featherlite Vantare'(R) product line, Featherlite is the "Official Luxury Motorcoach" of NASCAR, IRL and SPORTSCAR. For more information about the Company, please visit Featherlite's website at www.fthr.com.
FEATHERLITE, INC
Condensed Statements of Income
(Unaudited)
(In Thousands, except for per share data)
Three months Year Ended
Ended
December 31, December 31,
---------------- ------------------
2003 2002 2003 2002
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Net Sales $45,169 $44,336 $179,974 $193,166
Cost of Sales 40,312 39,817 157,113 167,288
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Gross profit 4,857 4,519 22,861 25,878
Selling and administrative
expenses 5,011 5,144 20,393 20,847
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Income(loss) from operations (154) (625) 2,468 5,031
Other income(expense)
Interest (609) (751) (2,466) (3,032)
Other, net 86 223 492 438
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Total other expense (523) (528) (1,974) (2,594)
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Income(loss) before taxes (677) (1,153) 494 2,437
Minority interest in subsidiary
loss 40 - 105 -
Benefit from income taxes 653 971 106 258
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Net income(loss) $ 16 $ (182) $ 705 $ 2,695
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Net income (loss) per share-
Basic 0.00 $ (0.03) $ 0.11 $ 0.41
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Diluted 0.00 $ (0.03) $ 0.10 $ 0.38
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Weighted average shares
outstanding-
Basic 7,146 6,535 6,689 6,535
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Diluted 7,433 7,207 7,300 7,158
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