Featherlite 1st Quarter Earnings Top $1.2 Million
CRESCO, Iowa--April 27, 2004--Featherlite, Inc. , a leading manufacturer and marketer of specialty aluminum trailers, transporters and luxury motorcoaches, today reported net income of $1.2 million, or $0.16 cents per diluted share, on sales of $56.4 million for the first quarter ended March 31, 2004. This compares with a net loss of $677,000, or $(0.10) cents per diluted share, on sales of $41.7 million in the first quarter last year. The consolidated net sales for the first quarter of 2004 represent a 35 percent increase over the same period last year. Sales increased in both the specialty trailer and transporter segment and the coach segment by 32% and 39%, respectively, over the same period last year."We are pleased with Featherlite, Inc.'s strong performance in the 1st quarter," Conrad Clement, Featherlite President and CEO, said. "The improved results were due primarily to higher gross margins we realized both from increased unit sales volume and average gross margins per unit sold. The results also reflect improved efficiencies because of the increased volume.
"Also, I am pleased to report that Featherlite has made significant progress financially during the past two years. Because of this, our lenders have amended certain of our financial debt covenants providing the Company with greater operating flexibility. As a result of the Company's improved operating results and the amended financial debt covenants, the 'going concern' paragraph included in the independent auditors' report on our financial statements for the fiscal years ended December 31, 2001 and 2002 has been eliminated as of December 31, 2003. Our auditors, Deloitte and Touche LLP, expressed an unqualified opinion on the Company's December 31, 2003 financial statements. We feel this is very important to Featherlite, as well as its dealers, customers, vendors and shareholders," Clement said.
At March 31, 2004, confirmed consolidated order backlog levels were 36% greater than at March 31, 2003. According to Clement, the Company remains optimistic about the rate of sales growth in 2004, expecting continuing revenue gains as the national economy and consumer confidence improves.
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 sponsors 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 Balance Sheets
(Unaudited)
(In thousands)
March 31, Dec. 31,
ASSETS 2004 2003
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Current assets
Cash $711 $173
Receivables 7,407 6,033
Refundable income taxes 783 783
Inventories 53,930 55,638
Leased promotional trailers 1,710 1,850
Prepaid expenses 1,410 1,501
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Total current assets 65,951 65,978
Property and equipment, net 16,060 16,231
Other assets 4,302 4,391
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$86,313 $86,600
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LIABILITIES AND SHAREHOLDERS EQUITY
Current liabilities
Wholesale financing and other notes payable $22,329 $23,034
Current maturities of long-term debt 2,117 2,113
Checks issued not yet presented 2,061 2,076
Accounts payable 4,638 3,088
Motorcoach shell costs payable 5,082 6,519
Trade creditor repayment plan 1,488 2,064
Accrued liabilities 7,853 6,323
Customer deposits 1,426 2,613
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Total current liabilities 46,994 47,830
Bank line of credit 6,298 6,454
Long-term debt, net of current maturities 11,433 11,964
Other long-term liabilities 56 60
Shareholders' equity 21,532 20,292
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$86,313 $86,600
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FEATHERLITE, INC
Condensed Statements of Income
(Unaudited)
(In Thousands, except for per share data)
Three months Ended
March 31,
-------------------
2004 2003
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Net Sales $56,416 $41,696
Cost of Sales 47,834 36,559
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Gross profit 8,582 5,137
Selling and administrative expenses 6,222 5,530
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Income (loss) from operations 2,360 (393)
Other income(expense)
Interest (548) (685)
Other, net 118 146
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Total other expense (430) (539)
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Income (loss) before taxes 1,930 (932)
Minority interest in subsidiary loss 30 -
Benefit (provision) for income taxes (725) 255
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Net income (loss) $1,235 $(677)
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Net income(loss) per share-
Basic $0.17 $(0.10)
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Diluted $0.16 $(0.10)
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Weighted average shares outstanding -
Basic 7,198 6,535
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Diluted 7,568 7,319
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