Collins Industries Posts Fourth Quarter 2005 Results

HUTCHINSON, Kan., Dec. 19, 2005 -- Collins Industries, Inc. today reported results for FY 2005. Sales for the quarter ended October 31, 2005 increased 31% to $76.0 million compared to $58.0 million for the same period last year.

The Company's net income increased 69% to $1.37 million ($0.21 per share - diluted) for the quarter ended October 31, 2005 compared to net income of $0.81 million ($0.13 per share - diluted) for the same period last year. This income improvement was principally led by increased revenues and gross profits.

Sales for the twelve months ended October 31, 2005 increased 29% to $269.4 million compared to $208.2 million for the same period last year. The net income for the twelve months ended October 31, 2005 was $2.24 million ($0.36 per share - diluted) compared to $2.33 million ($0.38 per share - diluted) in the same period last year. The net income for the twelve months ended October 31, 2005 was affected by nonrecurring expenses for the severance costs associated with the retirement of two executives and restatement of financial statements for fiscal years 2002 and 2003 and interim quarterly statements for 2004, along with substantially increased audit fees for fiscal 2004 financial statements. These nonrecurring expenses totaled $1.3 million after tax ($0.21 per share - diluted).

Donald Lynn Collins, President and CEO, said, "Considering the significant disruption in fiscal 2005 from management changes and work related to the restatement of fiscal 2004 financial statements, we are pleased our company operating results represent continued improvement in productivity of our businesses." He stated further, "Municipal and school district budgets continue to be under pressure, however, we are pleased with our sales backlog and our positions in the markets we serve."

The Company posted a 51% increase in its sales backlog at October 31, 2005 to $103.7 million compared to $68.5 million at October 31, 2004. The increased backlog at October 31, 2005 resulted from increased orders primarily in the Terminal Truck / Road Construction and Bus segments, including a $28 million order for terminal trucks from the United States Postal Service, which will be primarily produced in fiscal 2006.

Collins Industries, Inc. is a leading manufacturer of ambulances (including medical attack vehicles, rescue vehicles and fire emergency vehicles), North America's largest producer of Type "A" small school buses, the nation's second largest manufacturer of terminal trucks and a leader in the road construction and industrial sweeper markets. Since 1971, the Company has grown to approximately 1000 employees in six plants comprising over one million combined square feet of manufacturing space. The Company sells its products throughout the United States and abroad.

  Financial Summary

  (In thousands of dollars, except per share amounts)

  (Unaudited)

                            Three Months Ended          Twelve Months Ended
                                October 31,                  October 31,
                            2004          2005          2004           2005

  Sales                   $75,989       $57,974       $269,449      $208,203

  Income before income
   taxes                    2,358         1,421          3,761         3,861

  Income tax expense          990           610          1,520         1,530

    Net income             $1,368          $811         $2,241        $2,331

  Earnings per share:
    Basic                   $0.22         $0.14          $0.37         $0.40

    Diluted                 $0.21         $0.13          $0.36         $0.38