Champion Parts Reports Continued Profitability for Second Quarter and Six Months on Lower Sales
HOPE, Ark., Aug. 21, 2006 -- Champion Parts, Inc. (BULLETIN BOARD: CREB) , remanufacturer of automotive parts, today announced net income for the second quarter ended July 2, 2006 of $113,000, or $0.03 per share, compared to $256,000, or $0.07 per share for the same period in 2005. Net sales were $4,532,000, compared to $5,995,000 in 2005.
For the first six months of 2006, the company reported net income of $352,000, or $0.10 per share, compared to $416,000, or $0.11 per share. On a comparison basis for the first six months of 2006, the $64,000 decline in net income primarily reflects higher non-operating income recorded in 2005, when the company earned $78,000 in rebates. Net sales were $10,670,000, compared to $11,808,000 in 2005.
Jerry A. Bragiel, president and chief executive officer, said, "We continued our profitability in both periods and experienced moderately higher sales of air conditioning products and sustained sales of carburetors." The chief executive also noted that the carburetor market remains viable for replacement carburetors for older vehicles, which predominantly use carburetors. "However, lower sales were recorded in our traditional markets of constant velocity axles, heavy duty and agricultural products," Bragiel concluded.
The chief executive also said the company is pursuing other new products and markets for existing products, as well as acquisition opportunities.
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.
CHAMPION PARTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (CONDENSED)
FOR THE PERIODS ENDED
(Unaudited)
Six Months Six Months
July 2, 2006 July 3, 2005
Net Sales $10,670,000 $11,808,000
Costs and Expenses:
Cost of products sold 8,801,000 9,980,000
Selling, distribution
& administrative 1,194,000 1,140,000
Total costs and expenses 9,995,000 11,120,000
Operating income 675,000 688,000
Non-operating
expense/(income):
Interest expense, net 286,000 322,000
Other non-operating
(income) (4,000) (86,000)
Total non-operating
expense/(income) 282,000 236,000
Net income before
income taxes 393,000 452,000
Income taxes 41,000 36,000
Net income $352,000 $416,000
Weighted Average Common Shares
Outstanding:
Basic 3,655,266 3,655,266
Diluted 3,708,134 3,745,776
Earnings Per Common
Share - Basic:
Net income per common
share - basic $0.10 $0.11
Earnings Per Common
Share - Diluted:
Net income per common
share - diluted $0.09 $0.11
Three Months Three Months
July 2, 2006 July 3, 2005
Net Sales $4,532,000 $5,995,000
Costs and Expenses:
Cost of products sold 3,810,000 5,044,000
Selling, distribution
& administrative 451,000 568,000
Total costs and expenses 4,261,000 5,612,000
Operating income 271,000 383,000
Non-operating
expense/(income):
Interest expense, net 139,000 150,000
Other non-operating
(income) (2,000) (42,000)
Total non-operating
expense/(income) 137,000 108,000
Net income before
income taxes 134,000 275,000
Income taxes 21,000 19,000
Net income $113,000 $256,000
Weighted Average Common Shares
Outstanding:
Basic 3,655,266 3,655,266
Diluted 3,712,473 3,738,181
Earnings Per Common
Share - Basic:
Net income per common
share - basic $0.03 $0.07
Earnings Per Common
Share - Diluted:
Net income per common
share - diluted $0.03 $0.07