Champion Parts, Inc. Reports Second Quarter and Six Months Results
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HOPE, Ark., Aug. 24, 2007 -- Champion Parts, Inc. (BULLETIN BOARD: CREB) , remanufacturer of automotive parts, yesterday filed its 10Q which reflected net sales for the second quarter ended July 1, 2007 of $4,116,000, compared to $4,532,000 in the comparable period of 2006. The company reported a net loss of $830,000, or $0.23 per share, compared to a net profit of $113,000, or $0.03 per share for the same period in 2006.
For the first six months of 2007, the company reported net sales of $9,398,000, compared to $10,670,000 in 2006. The company reported a net loss of $852,000, or $0.23 per share, compared to a net profit of $352,000, or $0.10 per share for the same period in 2006.
The company said the lower second quarter results reflected significantly lower sales of heavy duty and agricultural electrical products and air conditioning products. Lower sales of heavy duty electrical products reflected the loss of a customer in late 2006. Sales of air conditioning products were down primarily due to slow market demand and a major customer's product stocking level adjustment. Additionally, product and core returns were higher and are accounted for as reductions to gross sales.
"The second quarter's results were additionally negatively impacted with a $129,000 other operating loss," said Jerry A. Bragiel, president, "resulting primarily due to certain leasehold improvements that were impaired with the termination of a lease, and the costs of relocation of the company's air conditioning product B & T Division to our Hope, Arkansas facility.
"The closing of the air conditioning products facility in Port Richey, Florida, and the costs of relocation significantly impacted our results and was a significant factor in our net loss of $830,000 for the second quarter," Bragiel said. "The relocation of our air conditioning business to Hope is now complete" added Bragiel.
Bragiel, however, further noted that although carburetor sales were lower to two major customers, the company's overall carburetor net sales significantly increased in the second quarter of 2007 compared to the same period in 2006, reflective of the company's 2006 acquisition of the Tomco remanufactured carburetor business.
About Champion
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 OPERATIONS
FOR THE PERIODS ENDED
(Unaudited)
Six Months Six Months Three Months Three Months
July 1, July 2, July 1, July 2,
2007 2006 2007 2006
Net Sales $9,398,000 $10,670,000 $4,116,000 $4,532,000
Costs and Expenses:
Cost of Products
Sold 8,439,000 8,801,000 3,926,000 3,810,000
Selling, Distribution
& Administration. 1,144,000 1,194,000 590,000 451,000
Total Costs
and Expenses 9,583,000 9,995,000 4,516,000 4,261,000
Operating (Loss) Income (185,000) 675,000 (400,000) 271,000
Other Operating Expense
/(Income):
Interest Expense, Net 530,000 286,000 301,000 139,000
Other Operating (Income) 127,000 (4,000) 129,000 (2,000)
Total Operating Expense
/(Income) 657,000 282,000 430,000 137,000
Income (Loss) Before
Income Taxes (842,000) 393,000 (830,000) 134,000
Income Tax Expense
(Benefit) 10,000 41,000 - 21,000
Net Income (Loss) ($852,000) $352,000 ($830,000) $113,000
Weighted Average Common
Shares
Shares Outstanding at
Year-end:
Basic 3,655,266 3,655,266 3,655,266 3,655,266
Diluted 3,655,266 3,708,134 3,655,266 3,712,473
Earnings Per Common
Share - Basic:
Net Income (Loss)
per common share ($0.23) $0.10 ($0.23) $0.03
Earnings Per Common Share
- Diluted:
Net Income (Loss)
Per Common Share. ($0.23) $0.09 ($0.23) $0.03