Featherlite 2nd Quarter Earnings Rise 67.3 Percent
CRESCO, Iowa--July 27, 2004--Featherlite, Inc. , a leading manufacturer and marketer of specialty aluminum trailers, transporters and luxury motorcoaches, today reported net income of $1.5 million, or $0.20 cents per diluted share, on sales of $58.2 million for the second quarter ended June 30, 2004. This compares with earnings of $898,000, or $0.12 cents per diluted share, on sales of $47.4 million in the second quarter last year. Featherlite earnings in the second quarter of 2004 reflect a 67.3 percent increase over the same period in 2003. Net income per share rose 54 percent as compared with the same period last year. Improved second quarter earnings in 2004 were primarily the result of higher gross profit on increased sales volume and increased margins from manufacturing efficiencies.The second quarter 2004 consolidated net sales were up 22.8 percent over the same period last year. Both trailer and luxury coach segments showed significant net sales increases in the second quarter of 2004, with trailers up 24 percent and coaches up 21 percent from the same quarter last year.
"We are pleased to report another strong quarter for Featherlite," Conrad Clement, Featherlite President and CEO, said. "Our trailer dealers are seeing very active traffic on both their sales lots and at fairs and shows following the spring 2004 announcement of new Featherlite models. Transporter and specialty trailer activity is also strong. Likewise, our luxury coach sales offices are reporting increased customer traffic and excitement over the 2005 Featherlite coaches, especially the Triple Crown and Super Slide model Vantares. We have lowered our used coach inventory significantly, which will lower interest costs and should increase margins."
On a year-to-date basis, net sales of $114.6 million for the six months ended June 30, 2004 are $25.5 million, or 28.6 percent above net sales of $89.1 million for the same period in 2003. Featherlite net income for the six-month period ended June 30, 2004, was $2.7 million, or $0.36 per diluted share, compared with net income of $222,000, or $0.03 per diluted share in 2003. Improved earnings in the first six-months of 2004 reflect higher gross profit from both an increase in unit sales volume and an increase in average gross profit per unit due to changes in product mix and increased manufacturing efficiencies.
"I expect Featherlite sales growth will continue in 2004," Clement said. "We look for continued sales strength as national business conditions and consumer confidence improves." At June 30, 2004, confirmed consolidated order backlog levels were 36% greater than at the same period in 2003.
"Based on our assessment, Featherlite continues to gain market share in most of the luxury coach and trailer markets we serve. Featherlite will continue to fine tune our manufacturing processes and procedures, as well as maintain our aggressive marketing strategies," Clement said.
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)
June 30, Dec. 31,
ASSETS 2004 2003
--------- --------
Current assets
Cash $ 913 $ 173
Receivables 7,416 6,033
Refundable income taxes 235 783
Inventories 53,575 55,638
Leased promotional trailers 1,618 1,501
Prepaid expenses 1,164 1,850
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Total current assets 64,921 65,978
Property and equipment, net 16,109 16,231
Other assets 4,309 4,391
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$ 85,339 $ 86,600
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LIABILITIES AND SHAREHOLDERS EQUITY
Current liabilities
Wholesale financing and other notes payable $ 19,053 $ 23,034
Current maturities of long-term debt 1,606 2,113
Checks issued not yet presented 1,934 2,076
Accounts payable 4,400 3,088
Motorcoach shell costs payable 6,595 6,519
Trade creditor repayment plan 929 2,064
Accrued liabilities 9,648 6,323
Customer deposits 1,132 2,613
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Total current liabilities 45,297 47,830
Bank line of credit 5,382 6,454
Other long-term debt, net of current maturities 11,504 11,964
Other long-term liabilities 53 60
Shareholders' equity 23,103 20,292
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$ 85,339 $ 86,600
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FEATHERLITE, INC
Condensed Statements of Income
(Unaudited)
(In Thousands, except for per share data)
Three months Six months
Ended Ended
June 30, June 30,
---------------- -----------------
2004 2003 2004 2003
------- ------- -------- -------
Net Sales $58,151 $47,364 $114,567 $89,074
Cost of Sales 49,089 40,852 96,923 77,425
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Gross profit 9,062 6,512 17,644 11,649
Selling and administrative
expenses 6,243 4,653 12,464 10,182
-------- -------- --------- --------
Income from operations 2,819 1,859 5,180 1,467
Other income(expense)
Interest (580) (618) (1,129) (1,303)
Other, net 128 131 246 277
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Total other expense (452) (487) (883) (1,026)
------- ------- -------- -------
Income before taxes 2,367 1,372 4,297 441
Minority interest in subsidiary
loss 20 52 51 52
Provision for income taxes (884) (526) (1,609) (271)
------- ------- -------- -------
Net income $ 1,503 $ 898 $ 2,739 $ 222
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Net income(loss)per share-
Basic 0.21 $ 0.14 $ 0.38 $ 0.03
------- ------- -------- -------
Diluted 0.20 $ 0.12 $ 0.36 $ 0.03
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Weighted average shares
outstanding -
Basic 7,209 6,535 7,203 6,535
------- ------- -------- -------
Diluted 7,684 7,219 7,625 7,268
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