Rankin Automotive Group Reports Second Quarter Results
10 October 1997
Rankin Automotive Group Reports Second Quarter Results
ALEXANDRIA, La., Oct. 10 -- Randall B. Rankin, President of
Rankin Automotive Group, Inc. announced sales and earnings for
its second quarter ended August 25, 1997 compared to the same period of the
previous year.
Three Months Ended Six Months Ended
August 25, August 25,
1997 1996 1997 1996
($000's omitted except in per share earnings)
Net Sales $10,665 $7,459 $20,572 $14,344
Net Income $11 $201 $133 $408
Earnings Per Share $0.00 $0.07 $0.03 $0.13
Results of the second quarter of the fiscal year reflected the continued
evidence of the Company's growth strategy. Sales for the three months ended
August 25, 1997 approximated $10.7 million compared to the $7.5 million for
the same period of the prior year. Likewise, sales for the six months ended
August 25, 1997 approximated $20.6 million compared to the $14.3 million for
the same six month period ended August 25, 1996. The sales gains in both
comparative periods approximated 43%.
At the beginning of this fiscal year, the Company decided to move away
from several specialty markets in which it had participated in the past. The
decision was due primarily to the volatility of those markets and the ever-
shrinking profit margins. When comparing the Company's same store sales,
excluding these two locations, for its traditional business, a 3% increase was
registered for the three months ended August 25, 1997 in relation to the same
period of the previous year.
During 1997, management determined that an increase in its reserve for
inventory shrinkage was appropriate as inventories continue to increase with
the rapid growth of the number of locations within the Company.
The Company has embarked upon a program to solidify the management staff
by hiring highly qualified individuals in key positions to assist with the
continued growth. Some of the costs of this program have been experienced
during the three months ended August 25, 1997, however, management believes
the benefits from this decision will be felt in improved efficiencies and
profitability for years to come. The Company continues to consolidate and
centralize many of the management processes to gain efficiencies.
The Company continues to analyze a considerable number of potential
candidates for acquisition, looking for the highest quality company that fits
both our geographic and marketing strategies. Coupled with this is the
direction that we maximize the management capabilities of our existing staff
and minimize the addition of overhead to the resulting combination. During
the period reported, the Company acquired a store in Natchitoches, LA and
opened a now store in Ruston, LA. Both locations were considered ideal fits
to the geographic and marketing strategies of the Company. Subsequent to the
end of the fiscal quarter, the Company opened another new traditional store in
Livingston, TX.
Financially, the Company continues to maintain its solid position. The
recently increased $7.5 million line of credit with Hibernia National Bank,
New Orleans is only partially used and continues to provide opportunity
capital for the Company. The $4.0 million cash that was previously reported
continues to be held in reserve until appropriate acquisition candidates are
located. The debt to equity ratios and the current ratios that were
previously reported continue to be maintained at the same approximate levels.
SOURCE Rankin Automotive Group