SMC Corporation Announces Second Quarter Results
23 July 1998
SMC Corporation Announces Second Quarter Results
HARRISBURG, Ore., July 23 -- SMC Corporation
today reported its results for the second quarter of 1998. For the quarter
ended June 30, 1998, net sales increased 7% to $52.3 million, compared to
$48.9 million in 1997. Net income increased to $839,000 from $164,000
reported a year earlier. 1998 second quarter earnings per share were $.13 on
6.6 million diluted shares outstanding, compared to 1997's $.02 per share,
also on 6.6 million diluted shares outstanding.
For the six months ended June 30, 1998, revenues were $100.1 million, up
1% from 1997 revenues of $99.0 million for the same period. 1998 year-to-date
income was $1.8 million, up 30% from 1997's earnings of $1.4 million.
Year-to-date earnings per share were $.27 per share in 1998, up from $.21 per
share in 1997.
"Our second quarter results are very encouraging and illustrate the
initial benefits derived from a number of manufacturing and distribution
improvements recently made, as well as continued progress in lowering our
operating costs," commented Jay L. Howard, president of SMC Corporation.
"Furthermore, during the second quarter we were able to procure additional
Allison transmissions which continue to be on tight allocation".
"Traditionally, the second quarter is our toughest quarter as dealers tend
to stop buying in anticipation of new model rollouts. SMC did a far better
job of anticipating this seasonality and had very little discounting in the
second quarter. Coupled with this, we saw continued cost improvements
throughout the entire company," explained Howard.
"During the second quarter we successfully launched the 'Zanzibar,' a new
Class A motor home. 'Zanzibar,' along with the exciting upgrades and changes
planned for our existing models, will be formally introduced at the upcoming
summer FMCA show in August. Initial sales of these new products indicate good
market acceptance and an opportunity to increase our market share during the
second half of the year."
SMC Corporation is one of the largest high line motor coach manufacturers
in the United States. Headquartered in Harrisburg, Oregon, the Company has
six locations in Oregon.
Information about SMC Corporation and its products can be found on the
World Wide Web at http://www.smc-corporation.com.
Forward Looking Statements: The statements in this report regarding
increased competition and start-up of a new production facility are
forward-looking statements. A number of factors could cause actual results to
differ materially from these statements, including delays in full operation of
the production facility, a general slowdown in the economy or the RV market
specifically, or new products from competitors. Please also refer to the
Company's SEC reports, including, but not limited to its Form 10Q Quarterly
Report for the quarter ended June 30, 1998 and its Form 10K Annual Report for
the year ended December 31, 1997.
SMC CORPORATION
CONSOLIDATED STATEMENT OF INCOME
Unaudited
Three Months Ended Year-To-Date Ended
6/30/97 6/30/98 6/30/97 6/30/98
Net sales 48,977,000 52,325,000 99,065,000 100,129,000
Cost of sales 43,695,000 46,455,000 87,185,000 88,254,000
Gross profit 5,282,000 5,870,000 11,880,000 11,875,000
Operating expenses:
Sales, general
and
administrative 4,781,000 4,283,000 9,182,000 8,881,000
Income from
operations 501,000 1,587,000 2,698,000 2,994,000
Interest expense 202,000 215,000 475,000 356,000
Other expense
(income) 25,000 7,000 (36,000) (169,000)
Income before
provision for
income taxes 274,000 1,365,000 2,259,000 2,807,000
Provision for
income taxes 110,000 526,000 905,000 1,053,000
Net income 164,000 839,000 1,354,000 1,755,000
Net income per
share - basic 0.02 0.13 0.21 0.27
Net income per
share - diluted 0.02 0.13 0.21 0.27
Weighted average
shares - basic 6,563,000 6,545,000 6,563,000 6,493,000
Weighted average
shares - diluted 6,563,000 6,550,000 6,564,000 6,529,000
SMC CORPORATION
CONSOLIDATED BALANCE SHEET
Unaudited
12/31/97 6/30/98
(in thousands)
Assets
Current 39,081 43,891
Property & Equipment 18,585 18,176
Other 2,176 2,070
Total Assets 59,842 64,137
Liabilities
Current 29,335 30,834
Deferred Tax Liability 781 781
Long-term debt 5,433 4,820
Total Liabilities 35,549 36,435
Shareholders' Equity 24,293 27,702
Total Liabilities and
Shareholders' Equity 59,842 64,137