GPS Maker Lowrance Second Quarter Sales
TULSA, Okla.--Feb. 2, 20058, 2005--Lowrance Electronics, Inc. announced today that sales for the second quarter ended January 31, 2005, increased 33% to $32,646,000, compared to sales of $24,468,000 for the same period last year. Net income for the second quarter increased to $2,168,000, or $0.42 per diluted share, compared to $1,609,000, or $0.40 per diluted share, for the same quarter of fiscal 2004. In the second quarter this year, weighted average common shares outstanding were 5,135,000, compared to 3,978,000 weighted average common shares outstanding in the same quarter last year.For the six months ended January 31, 2005, sales increased 30% to $50,121,000, compared to sales of $38,504,000 for the same six month period last year. Net income increased to $463,000, or $0.10 per diluted share, compared to $38,000, or $0.01 per diluted share, for the comparable period last year. During the first six months of fiscal 2005, weighted average common shares outstanding were 4,765,000, compared to 3,970,000 weighted average common shares outstanding for the same period last year.
Darrell Lowrance, President, said: "New product sales, including strong January shipments of marine SONAR and SONAR/GPS navigation products, increased second quarter sales 33%. Second quarter sales also benefited from growing shipments of new, lower margin handheld and automotive GPS products.
"Operating expenses as a percent of sales in the first six months of fiscal 2005 decreased to 36% from 38% in the comparable period in fiscal 2004. This decrease occurred despite additional advertising and selling expenses to launch the award-winning iWay 500C, our first automotive turn-by-turn GPS product, and higher research and development expenses related to the introduction of over 50 new products this year," said Lowrance.
Lowrance enters the fiscal third quarter, its seasonally strongest quarter, with backlog of $21,242,000 at January 31, 2005, compared to backlog of $15,696,000 at January 31, 2004.
About Lowrance Electronics
Lowrance Electronics, Inc. (www.lowrance.com) designs, manufactures and markets SONAR and GPS products, digital mapping systems and accessories under the brand names "Lowrance"(R) and "Eagle"(R) Electronics, "Lowrance Automotive"(TM) and "Lowrance Avionics"(R). These products are used in the following primary product markets: marine, general consumer (which includes handheld GPS outdoor recreational use and voice turn-by-turn navigational systems for aftermarket automotive use) and aviation.
This press release may include certain statements concerning expectations for the future that are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors that are difficult to predict and many of which are beyond management's control, including factors discussed in the Company's Annual Report on Form 10-K and other documents filed from time to time with the Securities and Exchange Commission. While the Company makes these statements and projections in good faith, neither the Company nor its management can guarantee that anticipated future results will be achieved. The Company undertakes no obligation to update or revise any forward-looking statement to reflect new information or events.
LOWRANCE ELECTRONICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME
(UNAUDITED)
(in thousands, except per share information)
Three Months Ended Six Months Ended
January 31, January 31,
2005 2004 2005 2004
(Restated) (Restated)
NET SALES $32,646 $24,468 $50,121 $38,504
COST OF SALES 20,325 14,405 31,256 23,389
Gross profit 12,321 10,063 18,865 15,115
OPERATING EXPENSES:
Selling and administrative 7,429 6,223 14,562 12,071
Research and development 1,533 1,214 3,224 2,444
Total operating expenses 8,962 7,437 17,786 14,515
Operating income 3,359 2,626 1,079 600
OTHER EXPENSES:
Interest expense 222 165 344 371
Other, net (9) 25 56 162
Total other expenses 213 190 400 533
INCOME BEFORE INCOME TAXES 3,146 2,436 679 67
PROVISION FOR INCOME TAXES 978 827 216 29
NET INCOME $2,168 $1,609 $463 $38
NET INCOME PER SHARE
BASIC $0.42 $0.43 $0.10 $0.01
DILUTED $0.42 $0.40 $0.10 $0.01
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING
BASIC 5,135 3,761 4,765 3,761
DILUTED 5,135 3,978 4,765 3,970
DIVIDENDS NONE NONE $940 $940
OTHER COMPREHENSIVE INCOME NET
OF TAX:
NET INCOME $2,168 $1,609 $463 $38
FOREIGN CURRENCY TRANSLATION
ADJUSTMENT (15) 58 242 221
COMPREHENSIVE INCOME $2,153 $1,667 $705 $259
LOWRANCE ELECTRONICS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands)
January 31, July 31,
2005 2004 2004
ASSETS (Restated)
CURRENT ASSETS:
Cash and cash equivalents $1,308 $813 $1,412
Trade accounts receivable, less
allowances 23,353 15,582 10,276
Inventories 50,626 26,195 23,821
Current deferred income taxes 1,345 1,642 1,107
Prepaid income taxes 1,600 -- --
Prepaid expenses 3,033 1,456 2,041
Total current assets 81,265 45,688 38,657
PROPERTY, PLANT AND EQUIPMENT, net 19,131 8,380 10,005
OTHER ASSETS 500 64 81
TOTAL ASSETS $100,896 $54,132 $48,743
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt $1,073 $1,831 $1,874
Accounts payable 11,286 10,926 6,072
Accrued liabilities:
Compensation and benefits 2,938 2,463 3,175
Product costs 2,371 2,198 1,968
Income taxes 152 197 671
Other 1,733 1,239 1,119
Total current liabilities 19,553 18,854 14,879
LONG-TERM DEBT, less current maturities 26,752 15,650 6,040
DEFERRED INCOME TAXES 1,167 702 1,169
STOCKHOLDERS' EQUITY:
Common stock, $.10 par value,
10,000,000 shares authorized,
5,135,516 shares issued and
outstanding at January 31, 2005;
3,761,196 shares issued and
outstanding at January 31, 2004 and
July 31, 2004 514 377 377
Paid-in capital 34,316 7,417 7,449
Retained earnings 18,244 10,944 18,721
Accumulated other comprehensive income 350 188 108
Total stockholders' equity 53,424 18,926 26,655
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $100,896 $54,132 $48,743