Champion Parts Reports Continued Profitability For Fourth Quarter and Higher Year-End Profits
HOPE, Ark., Apr. 1 -- Champion Parts, Inc. (BULLETIN BOARD: CREB) , remanufacturer of automotive parts, today reported continued profitability for the fourth quarter, and substantially higher profits for the year ended Dec. 3, 20031, 2003.
Champion Parts today reported net income for the fourth quarter ended Dec. 31, 2003 of $221,000, or $0.06 per share, compared to $351,000, or $0.10 per share for the same period in 2002. Net sales increased to $5,869,000, against $5,618,000 in 2002.
For the year 2003, the company reported net income of $1,130,000, or $0.31 per share, compared to $367,000, or $0.10 per share for the same period in 2002. Net sales were $24,038,000, compared to $24,790,000 in 2002.
Jerry A. Bragiel, president and chief executive officer, said, "We are pleased with our continued profitability generated in the fourth quarter and year ended December 31, 2003. Recurring growth achieved by our B & T Division generated significant gains in net sales of air conditioning products. This strong contribution in revenue along with sales increases for our constant velocity axle product lines mitigated much of the company's declining sales in the carburetor products."
The chief executive also noted that the company's plant consolidation program and resultant efficiencies contributed to the company's increased operating profits. "We were also successful in achieving lower costs of products sold, reflecting the manufacturing improvements and overhead cost reductions at the Hope facility," Bragiel said.
Additionally, the company reported it is expecting to replace its existing loan facility with a new revolving credit facility and a new term loan on its Hope, Ark. property, with other lenders. The company said it has a sale agreement pending on its real estate property in Beech Creek, Pa., and remains in compliance with the tangible net worth covenant contained in its current loan agreement. The company also said, once the new credit facilities are in place and the real estate sale is completed, the company's borrowing availability under these new credit agreements, together with the cash flow generated from operations, will be sufficient to meet the working capital needs over the next fiscal year and beyond.
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 Results
For the period ended December 31, 2003
Twelve Months Twelve Months 4th Quarter 4th Quarter
December 31, December 31, December 31, December 31,
2003 2002 2003 2002
Net Sales $24,038,000 $24,790,000 $5,869,000 $5,618,000
Costs and Expenses:
Cost of
products sold 19,813,000 20,804,000 4,910,000 4,514,000
Selling,
distribution &
administrative 2,699,000 2,680,000 647,000 594,000
Relocation and
restructuring costs -- 455,000 -- (76,000)
Total costs
and expenses 22,512,000 23,939,000 5,557,000 5,032,000
Operating income 1,526,000 851,000 312,000 586,000
Non-operating
(income)/expense:
Interest expense 468,000 529,000 119,000 117,000
Other non-operating
(income) (109,000) (50,000) (65,000) 122,000
Total non-operating
expense 359,000 479,000 54,000 239,000
Net income before
income taxes 1,167,000 372,000 258,000 347,000
Income taxes 37,000 5,000 37,000 (4,000)
Net income $1,130,000 $367,000 $221,000 $351,000
Weighted Average
Common Shares
Outstanding at
December 31, 2003:
Basic 3,655,266 3,655,266 3,655,266 3,655,266
Diluted 3,704,465 3,655,266 3,704,465 3,655,266
Earnings Per Common
Share - Basic:
Net income per
common share - basic $ 0.31 $ 0.10 $ 0.06 $ 0.10
Earnings Per Common
Share - Diluted:
Net income per
common share - diluted $ 0.31 $ 0.10 $ 0.06 $ 0.10