Lund International Holdings, Inc. Announced Sales and Earnings for the Quarter and Year Ended June 30, 1997
26 August 1997
Lund International Holdings, Inc. Announced Sales and Earnings for the Quarter and Year Ended June 30, 1997
MINNEAPOLIS, Aug. 26 -- Lund International Holdings, Inc.
announced sales and earnings for the quarter and year ended
June 30, 1997. Net sales for the fourth quarter decreased to $12,112,092 from
$14,193,987 for the same period in fiscal 1996. Net income was $804,152, or
$.18 per share, for the fourth quarter of fiscal 1997 compared to $1,588,367,
or $.36 per share, for the fourth quarter of fiscal 1996.
Net sales and net income for the year ended June 30, 1997 were $43,304,927
and $2,195,734, respectively. These compared to $46,423,208 and $4,622,162,
respectively, for the year ended June 30, 1996. Earnings per share for fiscal
1997 were $.50 compared to $1.05 for fiscal 1996. The decrease in net sales
for fiscal 1997 was primarily attributed to lower unit sales of Lund's
SunVisor and MoonVisor product lines. Management believes customers reduced
orders for these products while awaiting the release of the new Solar and
Lunar visor lines.
The decrease in net income was primarily attributed to a decrease in gross
profit margin as well as lower net sales. The decreased gross profit margin
primarily resulted from an increased percent of sales of lower gross margin
product. Additionally, the Company experienced significantly higher customer
advertising and display expenses as Lund recently began its expansion into
retail and OEM distribution channels.
William J. McMahon, President and CEO, stated that, "Although the
financial results for fiscal 1997 were in line with recent estimates they were
considerably below initial expectations. Existing product lines performed as
anticipated but new product lines did not reach the marketplace as scheduled.
New products, including the Hatchback tonneau cover, Solar and Lunar visors
and the Avenger and Defender hood shields are now beginning to ship but did
not materially affect fiscal 1997 revenues. The remainder of the newly
developed product applications are expected to roll out in September and
October of this year.
"Fiscal 1997 presented unprecedented challenges and opportunities. The
sleeker, more aerodynamic design of light trucks along with the increased
sophistication of product designs has necessitated advances in the design and
manufacture of Lund's aftermarket accessories. Lund has made, and will
continue to make, technological improvements to address the way new products
are developed and produced.
"In addition, the automotive retail chains and OEMs continued to expand
their market share in the truck accessory category. We are responding to this
shift in the market with the development of programs and critical changes to
our organizational infrastructure to better serve these market segments.
These changes, however, are in their initial stages and will have their
greatest impact in the coming years."
Lund is a leading designer, manufacturer and marketer of a broad line of
appearance accessories for new and used light trucks, including pickup trucks,
sport utility vehicles, mini-vans and other vans. The corporation is
headquartered at 911 Lund Boulevard, Anoka, MN 55303.
Statements in this press release relating to future financial results, new
product development, company operations, trends and market analysis, among
others, are forward-looking statements under the Private Securities Litigation
Reform Act of 1995. These statements involve risks and uncertainties which
could cause results to differ materially from those anticipated. Among the
factors that could cause results to differ materially are the following:
consumer preference changes, expansion into new distribution channels,
additional delays in designing, developing, testing or shipping of products,
increased competition, general economic developments and trends, developments
and trends in the light truck and automotive accessory market and increased
costs. This is not an exhaustive list and the Company may supplement this
list in future filings or releases or in connection with the making of
forward-looking statements.
LUND INTERNATIONAL HOLDINGS, INC.
CONDENSED CONSOLIDATED
INCOME STATEMENTS
(Unaudited)
Three months ended Twelve months ended
June 30, June 30,
1997 1996 % change 1997 1996 % change
Net sales $12,112,092 $14,193,987 -14.7% $43,304,927 $46,423,208 -6.7%
Cost of
goods sold 7,897,893 8,642,804 -8.6% 28,531,370 28,824,792 -1.0%
Gross profit 4,214,199 5,551,183 -24.1% 14,773,557 17,598,416 -16.1%
Operating expenses
General and
administrative 1,106,583 1,055,427 4.8% 4,386,304 3,942,855 11.2%
Selling and
marketing 1,790,019 1,866,692 -4.1% 6,332,003 5,749,668 10.1%
Research and
development 332,358 275,424 20.7% 1,289,655 1,108,750 16.3%
Total operating
expenses 3,228,960 3,197,543 1.0% 12,007,962 10,801,273 11.2%
Income from
operations 985,239 2,353,640 -58.1% 2,765,595 6,797,143 -59.3%
Other income,
net 104,726 69,532 50.6% 363,925 257,773 41.2%
Income before
income taxes 1,089,965 2,423,172 -55.0% 3,129,520 7,054,916 -55.6%
Provision for
income taxes 285,813 834,805 -65.8% 933,786 2,432,754 -61.6%
Net income $804,152 $1,588,367 -49.4% $2,195,734 $4,622,162 -52.5%
Net income
per share $0.18 $0.36 $0.50 $1.05
Common and
common equivalent
shares 4,397,970 4,393,630 4,393,566 4,393,889
LUND INTERNATIONAL HOLDINGS, INC.
CONDENSED CONSOLIDATED
BALANCE SHEETS
(Unaudited)
June 30, June 30,
1997 1996
ASSETS
Current assets $30,339,066 $29,518,795
Long-term assets
Property and equipment, net 7,310,357 6,906,446
Intangibles, net 2,223,420 2,355,424
Restricted cash and marketable securities 580,242 777,919
Other assets, net 991,621 761,021
Total assets $41,444,706 $40,319,605
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $4,196,606 $4,870,111
Long-term liabilities 4,395,178 4,942,225
Stockholders' equity 32,852,922 30,507,269
Total liabilities and
stockholders' equity $41,444,706 $40,319,605
SOURCE Lund International Holdings, Inc.