Lund International Announces Q1 Results
30 October 1997
Lund International Holdings, Inc. Announced Sales and Results of Operations for the First Quarter Ended September 30, 1997
MINNEAPOLIS, Oct. 30 -- Lund International Holdings, Inc.
announced net sales and results of operations for the quarter
ended September 30, 1997. Net sales for the quarter were $10,027,911, down
slightly from $10,406,421 for the same period last year. The Company incurred
a net loss of $518,783, or $.12 per share, which included after-tax
non-recurring transaction fees of $823,858, or $.19 per share, for the quarter
compared to net income of $462,022, or $.11 per share, for the same period
last year.
The non-recurring transaction fees were attributed to costs associated
with the sale of stock by Allan W. Lund, former Chairman of the Board, to LIH
Holdings, Inc., an investment vehicle affiliated with Harvest Partners, Inc.
and agreements between the Company and Mr. Lund and between the Company and
Harvest Partners.
Gross profits margins for the quarter increased to 33.9%, compared to
32.2% for the same period last year. The increase in gross profit margin was
attributed to a favorable product mix, higher labor efficiencies and the
internalization of certain outside production.
William J. McMahon, President and CEO of Lund, stated that, "Although
costs associated with the stock sale were significant, Harvest Partners'
growth philosophy is well suited for Lund's strategic goals. In particular,
we expect that Harvest Partners will be an asset to the Company as we begin to
execute our acquisition strategy.
"The increase in gross margins reflects manufacturing improvements
initiated through technological advancements and employee development programs
that were implemented over the past several months," continued Mr. McMahon.
"Although our growth strategy focuses significant resources on acquisitions,
we remain committed to improving our infrastructure and internal
efficiencies."
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, minivans and other vans. The corporation is
headquartered at 911 Lund Boulevard, Anoka, Minnesota 55303.
In September 1997 the Company's Board of Directors approved a change in
the Company's fiscal year end from June 30 to December 31, with a transition
period ending on December 31, 1997.
Statements in this press release relating to future financial results, new
product development, ongoing 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
STATEMENT OF OPERATIONS
(Unaudited)
Three Months Ended
September 30,
1997 1996 % change
Net sales $10,027,911 $10,406,421 -3.6%
Cost of goods sold 6,623,982 7,060,604 -6.2%
Gross profit 3,403,929 3,345,817 1.7%
Operating expenses
General and administrative 1,172,680 939,398 24.8%
Selling and marketing 1,549,787 1,508,683 2.7%
Research and development 347,788 312,004 11.5%
Non-recurring transaction 1,174,299 --
Total operating expenses 4,244,554 2,760,085 53.8%
(Loss) income from operations (840,625) 585,732 -243.5%
Other income, net 73,609 119,644 -38.5%
(Loss) income before income taxes (767,016) 705,376 -208.7%
Income tax (benefit) expense (248,233) 243,354 -202.0%
Net (loss) income $(518,783) $462,022 -212.3%
Net (loss) income per share $(0.12) $0.11
Common and common equivalent shares 4,393,970 4,393,437
LUND INTERNATIONAL HOLDINGS, INC.
CONDENSED CONSOLIDATED
BALANCE SHEETS
September 30, June 30,
1997 1997
(Unaudited)
ASSETS
Current assets $29,698,664 $30,339,066
Long-term assets
Property and equipment, net 7,333,677 7,310,357
Intangibles, net 2,183,512 2,223,420
Restricted cash and marketable securities 587,556 580,242
Other assets 1,037,698 991,621
Total assets $40,841,107 $41,444,706
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $4,564,750 $4,196,606
Long-term liabilities 3,884,936 4,395,178
Stockholders' equity 32,391,421 32,852,922
Total liabilities and stockholders' equity $40,841,107 $41,444,706
SOURCE Lund International Holdings, Inc.