Edelbrock Corp. Revises Earnings and Earnings Per Share as Reported in Its September 10, 2004 Press Release
TORRANCE, Calif.--Sept. 28, 2004--Edelbrock Corporation today announced that it has revised its earnings for the quarter ending June 30, 2004 as previously reported on September 10, 2004. The revised results will be reflected in the company's Annual Report on Form 10-K to be filed on September 28, 2004.Subsequent to the issuance of its September 10, 2004 press release, the company received documentation from its workers' compensation carrier and determined that there was a liability of approximately $490,000 relating to its workers' compensation insurance that is maintained on a retrospective basis. In addition, the company increased its federal and state taxes on income to reflect the non-deductibility of certain going-private transaction costs which increased the company's effective tax rate from 37.5 percent to 40.6 percent. The impact of the adjustments resulted in a change to previously reported earnings for the year ended June 30, 2004 from $3,979,000, or $0.72 per diluted share, to $3,494,000, or $0.63 per diluted share, and a change to previously reported earnings for the quarter ended June 30, 2004 from $1,320,000, or $0.24 per diluted share, to $835,000, or $0.15 per diluted share.
About Edelbrock Corporation:
Founded in 1938, Torrance, California-based Edelbrock Corp. is recognized as one of the nation's premier designers, manufacturers and distributors of performance replacement parts for the automotive and motorcycle aftermarkets. In addition to three production facilities and an automated distribution center in Torrance, the Company owns and operates a state-of-the-art aluminum foundry and its motorcycle carburetor division in San Jacinto, Calif., at which it manufactures many of its quality products.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:
Any statements set forth above which are not historical facts, including statements relating to future economic and climatic conditions, are forward-looking statements that involve known and unknown risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Potential risks and uncertainties include such factors as the financial strength and competitive pricing environment of the automotive and motorcycle aftermarket industries, product demand, sales growth and activity levels, cash flows, dependence on key suppliers, market acceptance, manufacturing efficiencies, new product development, the success of planned advertising, marketing and promotional campaigns, and other risks identified herein and in other documents filed by the Company with the Securities and Exchange Commission. Other potential risks and uncertainties that may affect the Company's business and financial condition include the potential effects of the proposal by Mr. Edelbrock to acquire the outstanding shares of the Company's common stock not already beneficially owned or controlled by him such as (i) the distraction of the Company's management from the operation of the Company's business caused by the pendency of the proposed transaction and related litigation, required filings with the Securities and Exchange Commission, and any subsequent developments; and (ii) material increases in the Company's expenses for professional services and other transaction and litigation related costs and expenses which are expected to be incurred whether or not the proposed transaction is consummated.
EDELBROCK CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
Three months ended Fiscal Year ended
June 30, June 30,
2004 2003 2004 2003
Revenues $38,030,000 $32,678,000 $125,980,000 $115,225,000
Cost of sales 24,364,000 21,248,000 80,850,000 73,409,000
Gross profit 13,666,000 11,430,000 45,130,000 41,816,000
Operating expenses
Selling, general
and
administrative 10,734,000 9,492,000 35,813,000 33,671,000
Research and
development 1,268,000 1,185,000 3,913,000 3,827,000
Total operating
expenses 12,002,000 10,677,000 39,726,000 37,498,000
Operating income 1,664,000 753,000 5,404,000 4,318,000
Interest expense - (10,000) (6,000) (48,000)
Interest income 1,000 8,000 31,000 54,000
Gain on sale of
assets and other
(loss) income (4,000) 7,000 453,000 23,000
Income before
taxes on income 1,661,000 758,000 5,882,000 4,347,000
Taxes on income 826,000 49,000 2,388,000 1,377,000
Net income $835,000 $709,000 $3,494,000 $2,970,000
Basic net income
per share $0.15 $0.13 $0.64 $0.54
Diluted net income
per share $0.15 $0.13 $0.63 $0.54
Basic weighted
average number of
shares
outstanding 5,484,000 5,452,000 5,465,000 5,452,000
Effect of dilutive
stock options and
warrants 109,000 1,000 52,000 6,000
Diluted weighted
average number of
shares
outstanding 5,593,000 5,453,000 5,517,000 5,458,000
EDELBROCK CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, June 30,
2004 2003
ASSETS
Current assets
Cash and cash equivalents $12,540,000 $8,707,000
Accounts receivable, net 27,825,000 26,858,000
Inventories 28,399,000 26,398,000
Prepaid expenses and other 3,246,000 3,835,000
Total current assets 72,010,000 65,798,000
Property, plant and equipment, net 36,588,000 37,965,000
Real estate properties, net 229,000 266,000
Goodwill and license agreement 1,852,000 1,930,000
Other 605,000 1,441,000
Total assets $111,284,000 $107,400,000
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $10,345,000 $12,038,000
Accrued expenses 5,992,000 4,692,000
Current portion of long-term debt 35,000 48,000
Total current liabilities 16,372,000 16,778,000
Long-term debt 179,000 494,000
Deferred income taxes 3,984,000 3,090,000
Shareholders' equity 90,749,000 87,038,000
Total liabilities and shareholders'
equity $111,284,000 $107,400,000