Champion Parts Reports Continued Fourth Quarter and Year-End Profitability Despite Lower Sales Demand
HOPE, Ark., April 15 -- Champion Parts, Inc. (BULLETIN BOARD: CREB) , remanufacturer of automotive parts, today announced net income for the fourth quarter ended Dec. 3, 20041, 2004 of $37,000, or $0.01 per share, compared to $221,000, or $0.06 per share for the same period in 2003. Net sales were $4,828,000, compared to $5,869,000.
For the year 2004, the company reported net income of $715,000, or $0.20 per share, compared to $1,130,000, or $0.31 per share for the same period in 2003. Net sales were $19,998,000, compared to $24,038,000 in 2003.
Jerry A. Bragiel, president and chief executive officer, said, "While we continued to be profitable for the quarter and year, our results suffered because of lower sales of carburetors and air conditioning products. We did, however, increase market share for carburetors, mitigating a major portion of the market decline, and continued to diversify our customer base."
The company said it remains optimistic about the future sales potential of its air conditioning products that have generally been a strong and consistent leader in increasing its sales as well as contributing to the company's continued profitability.
The company also said the results were impacted by higher interest costs that were imposed from extending the company's expired loan facility to until refinancing was completed in August 2004.
"We continue to monitor and benefit from our overall cost containment programs and pursue other new products and new markets for our existing products," Bragiel concluded.
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.
Certain forward-looking statements in this press release involve various risks and uncertainties, including, without limitation, those statements relating to the impact of new product development and market expansion. These statements are forward-looking statements within the meaning of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby.
Although the company believes that its forward-looking statements are reasonable, there are no assurances that such statements will prove to be correct. Attention is directed to the discussion of risks and uncertainties contained in the Factors Which May Affect Future Results section of the company's Form 10-K and other reports filed with the Securities and Exchange Commission.
CHAMPION PARTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME (CONDENSED)
FOR THE PERIODS ENDED
Twelve Months Twelve Months Three Months Three Months
Dec. 31, 2004 Dec. 31, 2003 Dec. 31, 2004 Dec. 31, 2003
Net Sales $19,998,000 $24,038,000 $4,828,000 $5,869,000
Costs and Expenses:
Cost of
products sold 16,588,000 19,813,000 4,203,000 4,910,000
Selling,
distribution &
administrative 2,358,000 2,699,000 448,000 647,000
Total costs and
expenses 18,946,000 22,512,000 4,651,000 5,557,000
Operating income 1,052,000 1,526,000 177,000 312,000
Non-operating
(income)/expense:
Interest expense 606,000 468,000 166,000 119,000
Other non-operating
(income) (424,000) (109,000) (165,000) (65,000)
Total non-operating
expense 182,000 359,000 1,000 54,000
Net income before
income taxes 870,000 1,167,000 176,000 258,000
Income taxes 155,000 37,000 139,000 37,000
Net income $715,000 $1,130,000 $37,000 $221,000
Weighted Average
Common Shares
Outstanding at
December 31, 2004:
Basic 3,655,266 3,655,266 3,655,266 3,655,266
Diluted 3,756,452 3,704,465 3,760,199 3,704,465
Earnings Per Common
Share - Basic:
Net income per
common share -
basic $0.20 $0.31 $0.01 $0.06
Earnings Per Common
Share - Diluted:
Net income per
common share -
diluted $0.19 $0.31 $0.01 $0.06