Featherlite Reports Third Quarter 2005
CRESCO, Iowa--Oct. 2, 20055, 2005--Featherlite, Inc. , a leading manufacturer and marketer of specialty aluminum trailers, transporters and luxury motorcoaches, today reported net income of $1.1 million, or 9 cents per diluted share, on net sales of $59.3 million for the third quarter ended September 30, 2005. This compares with net income of $0.9 million or $0.08 cents per diluted share in the third quarter of 2004, which included $0.07 related to a non-recurring income tax benefit recorded in the third quarter of 2004. Third quarter 2005 net sales were up 31.2 percent from $45.2 million for the same period in 2004, which resulted in a 28 percent increase in consolidated gross profit in the third quarter of 2005. These increases were partially offset by higher selling, administrative and interest expenses as well as the non-recurrence of the tax benefit recorded in 2004.Motorcoach segment sales in the third quarter of 2005 rose by 69.1 percent over the same period last year, reflecting a strong increase in customer activity and new unit sales. Trailer segment sales climbed by 14.0 percent in the third quarter of 2005 over the same period last year as order volume was stronger in third quarter of 2005 than 2004.
For the first nine months of 2005, net sales increased $10.0 million, or 6.3 percent, to $169.7 million compared to net sales of $159.7 million for the same period in 2004. Featherlite net income for the nine-month period ended September 30, 2005, was $3.6 million, or $0.31 per diluted share, compared with net income of $3.7 million, or $0.32 per diluted share for the same period in 2004, including a non-recurring tax benefit of $0.07 per diluted share.
"We are pleased with the Company's increased sales and earnings in the third quarter," Conrad Clement, Featherlite President and CEO, said. "Third quarter profits rose on the strength of higher sales and improved new coach margins as well as the favorable impact of a price increase in the trailer segment effective January 1, 2005.
"Going forward, we are optimistic about the level of sales in the fourth quarter of 2005 and going into 2006 for both the coach and trailer segments. Motorcoach backlog at September 30, 2005 is $7.7 million, up from $3.3 million at the same date last year. Though trailer backlog has decreased to $16.7 million at September 30, 2005 from $17.0 million at the same date last year, order levels have remained strong and have been filled from finished goods inventory."
About Featherlite
With more that 75 percent of its business in the leisure, recreation and entertainment categories, Featherlite(R), Inc. has highly diversified product lines offering hundreds of standard model and custom-designed aluminum specialty trailers, specialized transporters, mobile marketing trailers and luxury motorcoaches. For more information about the Company, please visit www.fthr.com.
Featherlite, Inc.
Condensed Balance Sheets
(Unaudited)
(In thousands)
Sept 30, Dec 31,
ASSETS 2005 2004
---------- ----------
Current assets
Cash $179 $179
Receivables 6,749 4,781
Refundable income taxes - 497
Inventories 61,158 61,730
Leased promotional trailers 1,603 1,669
Prepaid expenses 823 1,827
Deferred tax asset 1,274 1,275
---------- ----------
Total current assets 71,786 71,958
Property and equipment,net 16,939 16,003
Other assets 3,306 4,252
---------- ----------
$92,031 $92,213
========== ==========
LIABILITIES AND SHAREHOLDERS EQUITY
Current liabilities
Wholesale financing and other notes
payable $19,606 $22,106
Current maturities of long-term
debt 1,766 1,699
Checks issued not yet presented 2,533 2,900
Accounts payable 4,798 4,323
Motorcoach shell costs payable 3,939 7,277
Accrued liabilities 9,481 9,124
Customer deposits 2,257 2,698
---------- ----------
Total current liabilities 44,380 50,127
Bank line of credit 6,505 4,243
Other long-term debt, net of current
maturities 10,586 11,092
Deferred tax liabilities 1,340 1,340
Other long-term liabilities 34 48
Shareholders' equity 29,186 25,363
---------- ----------
$92,031 $92,213
========== ==========
FEATHERLITE, INC
Condensed Statements of Income
(Unaudited)
(In Thousands, except for per share data)
Three months Ended Nine months Ended
Sept 30, Sept 30,
------------------ -------------------
2005 2004 2005 2004
--------- -------- --------- ---------
Net Sales $59,260 $45,168 $169,733 $159,735
Cost of Sales 50,368 38,221 143,362 135,027
--------- -------- --------- ---------
Gross profit 8,892 6,947 26,371 24,708
Selling and administrative
expenses 6,610 6,250 18,901 18,716
--------------------------------------
Income from operations 2,282 697 7,470 5,992
Other income(expense)
Interest (675) (561) (2,011) (1,689)
Other, net 66 92 305 222
--------- -------- --------- ---------
Total other expense (609) (469) (1,706) (1,467)
--------- -------- --------- ---------
Income before taxes 1,673 228 5,764 4,525
Minority interest in subsidiary
loss 24 20 24 71
Benefit (provision) for income
taxes (645) 692 (2,200) (917)
--------- -------- --------- ---------
Net income $1,052 $940 $3,588 $3,679
========= ======== ========= =========
Net income(loss)per share-
Basic $0.10 $0.09 $0.33 $0.34
--------- -------- --------- ---------
Diluted $0.09 $0.08 $0.31 $0.32
--------- -------- --------- ---------
Weighted average shares
outstanding -
Basic 10,949 10,839 10,922 10,817
--------- -------- --------- ---------
Diluted 11,685 11,713 11,720 11,530
--------- -------- --------- ---------
All shares and per share amounts have been restated to reflect the retroactive effect of the three for two stock split effective on May 5, 2005
Certain prior period information has been reclassified to conform to the current year presentation.