RVM Industries Reports Financial Results
7 July 1997
Year-End Report Marks First Consolidated Statement for RVM Industries Inc.
AKRON, Ohio, July 7 -- Jacob "Jerry" Pollock, chairman and
chief executive officer of holding company RVM Industries Inc. (OTC: RVMI)
today announced the company's first year-end consolidated results.
Gross profit for the year ended March 31, 1997, rose 43 percent to
$8,655,193 from $6,051,726 in the previous year's consolidated results.
Income from operations and pro forma net income both reversed prior year
losses. Income from operations was $1,949,864, up from a loss of $274,507,
and pro forma net income was $376,876, or $.19 a share, up from a loss of
$865,677. Net sales were $61,638,221, down $156,000 from the company's 1996
net sales.
"All of the business segments began to realize cost savings and production
and quality improvements from more efficient facilities," said Pollock. "Two
subsidiaries, Ravens and Albex, moved to new facilities last year. Gross
profits rose because we did not have the relocation and startup costs in 1997
that we incurred when they moved."
In 1996, Ravens moved production of flatbed trailers to a state-of-the-art
manufacturing plant in Kent, Ohio, and Albex Aluminum moved its operations
from Elizabeth, W.Va., to Canton, Ohio.
RVM was formed March 31, 1997, when Ravens Metal Products Inc. changed its
name to Ravens Inc. and established RVM Industries Inc. as a holding company.
RVM then purchased Albex Aluminum Inc. and Signs and Blanks Inc., Akron. The
consolidated financial statements reflect the combined businesses on an "as if
pooling of interests" basis, as generally accepted accounting principles
require.
Ravens Inc. Results
Ravens Inc. posted the second-best sales year in its 41-year history and
increased income from operations 193 percent from the prior year. Ravens'
1997 sales were $41,652,421, up $1,413,666 from the previous year and only
$383,637 short of its record-setting 1995 performance. Income from operations
was $2,369,057, up from $807,419.
Ravens benefited from the introduction of the FleetHAWK, a new aluminum
flatbed trailer designed for fleet operations; construction of the Kent plant
and relocation of flatbed production from Jacksonville, N.C., to Kent in 1996;
and conversion of the Jacksonville plant to a dedicated dump trailer and body
manufacturing facility. "Profits improved because of increased sales to
fleets and improved efficiencies in facilities, and we did not have the
relocation and startup costs that were incurred in the previous year," said
Pollock.
Results were adversely affected by losses at Ravens' utility trailer
division, which was closed in 1997, and a one-time loss of $390,015 for
settlement of a pension plan.
Ravens sells its trailers primarily in the U.S. and Canada through 55 U.S.
and four Canadian dealerships. It is the leading U.S. manufacturer of
aluminum flatbed trailers with an estimated 35 percent market share.
Albex Aluminum Inc.
Albex reported an operational loss of $907,807, which represents a modest
improvement over the prior year's loss of $1,085,599. Sales to customers were
down 14 percent in 1997, to $8,693,952 as compared with prior year sales of
$10,108,780.
The extrusion market is very competitive in both price and suppliers'
capabilities to deliver products on short notice, said Pollock. "We lost
sales because Albex moved its operations, and some customers questioned our
ability to deliver product during the move. The move is complete, and we do
not anticipate any additional sales losses because of supply concerns," he
said.
Pollock said Albex, which was organized in 1991, has spent more than
$10 million in capital expenditures over the past two years to position itself
for long-term growth and stability. The expenditures include the purchase of
property in Canton and the company's subsequent relocation, and the
construction of a state-of-the-art aluminum billet cast house on the
property. The fully-automated cast house is near completion, and Albex is
poised to expand into a new business and new markets, said Pollock.
"The cast house is equipped with two electric induction furnaces that
enable us to produce high-quality billet from scrap aluminum. We began
producing billet in March for Albex extrusions, and we have budgeted $2
million this year to add aluminum scrap processing equipment, which will make
it fully operational. We are now soliciting orders for billet," said
Pollock.
Albex Aluminum makes custom and standard aluminum extruded shapes for
manufacturers, fabricators and distributors in a broad range of markets
including transportation, building and construction, and consumer durables.
Signs and Blanks, Inc.
Signs and Blanks achieved profitability for the first time since it was
formed in 1989 by Pollock. The company reported income from operations of
$513,038 on sales to customers of $11,291,848.
Signs and Blanks has grown to one of the five largest U.S. manufacturers
of aluminum blanks and coated signs, said Pollock. "Though sales have
leveled, we have achieved profitability by lowering costs and concentrating on
more profitable customers," he said.
Approximately two-thirds of Signs and Blanks sales are to fabricators and
print signs, and one-third of sales are to government agencies, either as
blanks or printed signs. The company operates a fully automated facility with
an in-house print shop.
RVM INDUSTRIES, INC.
SELECTED FINANCIAL DATA FOR YEARS ENDED MARCH 31
1997 1996
NET SALES $61,638,221 $61,793,870
COST OF SALES 52,983,028 55,742,144
GROSS PROFIT 8,655,193 6,051,726
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 6,333,561 6,326,223
INCOME FROM OPERATIONS 1,949,864 (274,507)
INCOME (LOSS) BEFORE INCOME TAXES 586,401 (1,354,680)
PROVISION FOR INCOME TAXES 505,462 110,973
NET INCOME (LOSS) 80,939 (1,465,653)
PRO FORMA INCOME TAX BENEFIT 295,937 599,976
PRO FORMA NET INCOME (LOSS) 376,876 (865,677)
AVERAGE SHARES 1,938,140 1,943,525
PRO FORMA NET INCOME (LOSS)
PER COMMON SHARE $0.19 $(0.45)
BUSINESS SEGMENTS
SELECTED FINANCIAL DATA FOR YEARS ENDED MARCH 31
1997 1996
RAVENS, INC.
SALES TO CUSTOMERS $41,652,421 $40,238,755
CAPITAL EXPENDITURES 372,225 1,588,445
INCOME (LOSS) FROM OPERATIONS 2,369,057 807,419
ALBEX ALUMINUM, INC.
SALES TO CUSTOMERS 8,693,952 10,108,780
CAPITAL EXPENDITURES 3,391,541 6,839,349
INCOME (LOSS) FROM OPERATIONS (907,807) (1,085,599)
SIGNS AND BLANKS, INC.
SALES TO CUSTOMERS 11,291,848 11,446,335
CAPITAL EXPENDITURES 56,735 16,260
INCOME (LOSS) FROM OPERATIONS 513,038 (81,489)
SOURCE RVM Industries Inc.