SMC Corporation Reports Third Quarter Results
23 October 1997
SMC Corporation Reports Third Quarter Results
HARRISBURG, Ore., Oct. 23 -- SMC Corporation
today reported its results from operations for the third quarter of 1997. For
the period ended September 30, 1997, net sales were $51.6 million, compared to
$56.0 million for the third quarter of 1996. Net income was $1.2 million,
down from the $1.8 million reported from the same period of last year. 1997
third quarter earnings per share were $.18 on 6.6 million shares outstanding,
compared to $.27 per share on 6.7 million shares outstanding reported for the
third quarter of 1996.
For the three month period ended September 30, 1997, sales increased
$2.6 million to $51.6 million compared to sales of $49.0 million for the three
month period ended June 30, 1997. Net income increased $1.0 million to
$1.2 million for the same three month period ended September 30, 1997 from
$164,000 for the three month period ended June 30, 1997. Third quarter
earnings per share increased to $.18 per share compared to $.02 per share
reported in the prior quarter.
For the nine month period ended September 30, 1997, net sales were
$150.6 million, up slightly from net sales of $147.9 million from the same
period of 1996. 1997 year-to-date net income was $2.6 million, down from net
income of $4.7 million reported for the first nine months of 1996. Earnings
per share for the year-to-date period were $.39 compared to $.71 per share
from the same period of last year.
Jay L. Howard, SMC's president, commented, "The third quarter marks a
turning point for SMC Corporation in that we took some very aggressive steps
designed to ensure that we return to solid sales growth and profitability
trends. While these efforts impacted our results this quarter, we are
confident that these strategic moves will position us properly for the
future."
Howard continued, "Specifically, we underwent some internal housekeeping
by way of significantly reducing corporate staff as well as production line
workers. Through our efforts at process improvement, we are beginning to see
an increase in overall productivity levels as we have maintained production
levels consistent with previous periods while requiring significantly fewer
production line workers."
Continuing his comments, Howard emphasized, "Additionally, the 1998 model
year transition was our most ambitious effort ever. We incorporated a number
of important improvements into our 1998 model year coaches including high-end
Bose(R) stereo systems, our revolutionary Hurricane(TM) heating system, and
redesigned roofs which allow for better insulation and a 20% reduction in
weight. As a result of these cutting edge improvements, we are realizing
outstanding acceptance in the marketplace. Our current backlog of sales
orders is the highest in two years, and will take us through the end of this
calendar year."
SMC Corporation is one of the largest high line motor coach manufacturers
in the United States. Headquartered in Harrisburg, Oregon, the Company
operates six manufacturing facilities in Oregon.
Forward Looking Statements: The statements in this report regarding
market reception to the Company's products are forward-looking statements. A
number of factors could cause actual results to differ materially from these
statements, including a general slowdown in the economy or the RV market
specifically, new products from competitors and increased levels of
competition in general. Actual results could differ materially from those
projected in these forward-looking statements as a result of certain risk
factors set forth in the Company's SEC Form 10-K statement dated December 31,
1996.
SMC CORPORATION
CONSOLIDATED STATEMENT OF INCOME
Unaudited
Three Months Ended Year-To-Date Ended
9/30/96 9/30/97 9/30/96 9/30/97
Net sales 56,016,000 51,578,000 147,849,000 150,643,000
Cost of sales 47,903,000 44,677,000 126,823,000 131,863,000
Gross profit 8,113,000 6,901,000 21,026,000 18,780,000
Operating expenses:
Sales, general and
administrative 4,806,000 4,612,000 12,622,000 13,794,000
Income from operations 3,307,000 2,289,000 8,404,000 4,986,000
Interest expense 194,000 276,000 493,000 751,000
Other expense (income) 88,000 (1,000) 39,000 (37,000)
Income before provision
for income taxes 3,025,000 2,014,000 7,872,000 4,272,000
Provision for income
taxes 1,211,000 808,000 3,150,000 1,712,000
Net income 1,814,000 1,206,000 4,722,000 2,560,000
Net income per share 0.27 0.18 0.71 0.39
Shares used in per
share calculation 6,742,000 6,556,000 6,655,000 6,561,000
SOURCE SMC Corporation