Featherlite Reports Earnings of $4.5 Million in 2005; Annual Net Sales Increase 4% to over $225 Million
CRESCO, Iowa--Feb. 2, 20061, 2006--Featherlite, Inc. , a leading manufacturer and marketer of specialty aluminum trailers, transporters and luxury motorcoaches, today reported results for the fourth quarter and fiscal year ended December 31, 2005. For fiscal 2005, the Company posted net income of $4.5 million, or 38 cents per diluted share compared to net income of $4.9 million, or 42 cents per diluted share, in fiscal 2004, which included $0.07 per share related to a non-recurring income tax benefit of $829,000. In fiscal 2005, the Company posted net sales of $225.3 million, an increase of 4 percent over 2004 sales of $216.6 million and an improvement of 7.3 percent in operating income that increased to $9.3 million from $8.7 million in 2004.In the fourth quarter ended December 31, 2005, the Company recorded net income of $884,000, or 7 cents per diluted share, on sales of $55.6 million. This compares with net income of $1.2 million, or 10 cents per diluted share, on sales of $56.6 million in the fourth quarter last year. For the fourth quarter of 2005, overall sales decreased by $1.1 million or 1.8 percent over the comparable period in 2004.
"Despite some softness in the fourth quarter, the Company had a solid year in 2005," Conrad Clement, Featherlite President and CEO, said. "Sales in 2005 increased by $8.7 million, including an 8.3 percent increase in trailer sales. This was partially offset by a sales decrease in the coach segment of 1.8 percent.
"Going forward, we remain cautiously optimistic. Trailer sales leads in 2006, which relate to the number of consumer calls coming into the Company, are rising over last year, national retail activity in the U.S. economy is positive and consumer confidence is improving. The coach division generated excellent traffic and sales prospects from all the early trade shows and events, and we anticipate the activity to continue going forward. Though the trailer industry continues to experience margin pressure as a result of fluctuating aluminum and steel commodity costs, the Company is managing this aggressively through appropriate product price increases and surcharges. This will continue until these metal commodity prices fully stabilize," Clement said.
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)
Dec 31, Dec 31,
ASSETS 2005 2004
--------- --------
Current assets
Cash $91 $179
Receivables 7,178 4,781
Refundable income taxes 337 497
Inventories 55,714 61,730
Leased promotional trailers 1,550 1,669
Prepaid expenses 1,820 1,827
Deferred tax asset 1,329 1,275
--------- --------
Total current assets 68,019 71,958
Property and equipment, net 16,583 16,003
Other assets 3,199 4,252
--------- --------
$87,801 $92,213
========= ========
LIABILITIES AND SHAREHOLDERS EQUITY
Current liabilities
Wholesale financing and other notes payable $18,923 $22,106
Current maturities of long-term debt 1,791 1,699
Checks issued not yet presented 4,419 2,900
Accounts payable 4,384 4,323
Motorcoach shell costs payable 3,142 7,277
Accrued liabilities 8,194 9,124
Customer deposits 2,832 2,698
--------- --------
Total current liabilities 43,685 50,127
Bank line of credit 2,418 4,243
Other long-term debt, net of current maturities 10,168 11,092
Deferred tax liabilities 1,259 1,340
Other long-term liabilities 35 48
Shareholders' equity 30,236 25,363
--------- --------
$87,801 $92,213
========= ========
FEATHERLITE, INC
Condensed Statements of Income
(Unaudited)
(In Thousands, except for per share data)
Three months Twelve months
Ended Ended
December 31, December 31,
------------------- -------------------
2005 2004 2005 2004
--------- --------- --------- ---------
Net Sales $55,551 $56,626 $225,284 $216,601
Cost of Sales 47,534 47,461 190,896 182,678
--------- --------- --------- ---------
Gross profit 8,017 9,165 34,388 33,923
Selling and administrative
expenses 6,169 6,520 25,070 25,243
---------------------------------------
Income from operations 1,848 2,645 9,318 8,680
Other income (expenses)
Interest (675) (614) (2,686) (2,304)
Other, net (193) (89) 112 92
--------- --------- --------- ---------
Total other expense (868) (703) (2,574) (2,212)
--------- --------- --------- ---------
Income before taxes 980 1,942 6,744 6,468
Minority Interest in
subsidiary loss 20 10 45 81
Benefit (provision) for
income taxes (116) (742) (2,316) (1,659)
--------- --------- --------- ---------
Net income $884 $1,210 $4,473 $4,890
========= ========= ========= =========
Net Income (loss) per
share-
Basic 0.07 $0.11 $0.41 $0.45
--------- --------- --------- ---------
Diluted 0.07 $0.10 $0.38 $0.42
--------- --------- --------- ---------
Weighted average shares outstanding
Basic 10,997 10,839 10,944 10,829
--------- --------- --------- ---------
Diluted 11,776 11,713 11,900 11,545
--------- --------- --------- ---------
All shares and per share amounts have been restated to reflect the
retroactive effect of the 3 for 2 stock split on May 4, 2005
Certain prior period information has been reclassified to conform to
the current year presentation.