RVM Industries Announces Q1 Results for Fiscal 1999
14 August 1998
RVM Industries Announces Higher Sales and Net Income for Fiscal 1999 First Quarter
AKRON, Ohio, Aug. 14 -- RVM Industries, Inc.,
(OTC BULLETIN BOARD: RVMI) today announced higher revenues and net income for
its fiscal 1999 first quarter, which ended June 30, 1998.
RVM Industries is a holding company for Ravens, Inc., the nation's leading
manufacturer of all-aluminum flatbed truck trailers; Albex Aluminum, Inc., a
rapidly growing regional manufacturer of aluminum billets and extrusions; and
Signs and Blanks, Inc., (SABI) a growing manufacturer of a broad line of
aluminum traffic control and safety signs.
For the first quarter of fiscal 1999, net sales increased 11.3 percent to
$21.0 million from $18.9 million in last year's first quarter. Net income for
the first quarter rose substantially to $633,995, or $0.33 per share, from
$249,400, or $0.13 per share, last year.
Net income in fiscal 1998's first quarter included a charge of $211,651,
or $0.11 per share, for the cumulative effect of an accounting change
reflecting the net loss for Albex and SABI for the quarter ending March 31,
1997, when both companies changed their fiscal year ends from December 31 to
March 31 to conform with RVM and Ravens.
"We are pleased with our financial results for the first quarter of our
1999 fiscal year," commented Richard D. Pollock, RVM's President. "Sales
increased at all three of RVM's companies for the quarter, but the main
contributor to this sales improvement was a 60 percent increase in aluminum
extrusion and billet sales by Albex, which is RVM's second largest business
and our fastest growing company."
"Albex began producing billets for its own extrusion operation and for
various customers just last year in the first quarter. We will be adding a
third billet casting furnace in fiscal 1999 to support the strong internal and
external growth demands for our aluminum billets," Mr. Pollock said. "The
increase in customers and operating efficiencies has reversed Albex's
operating loss of a year ago into operating income."
"Albex currently has lower profit margins than Ravens and SABI," Mr.
Pollock continued, "and Ravens' and SABI's operating and selling costs
increased at a greater rate than sales. As a result, consolidated gross
margin for the first quarter decreased to 15.8 percent from 16.6 percent last
year. RVM's consolidated selling, general and administrative expenses
increased slightly as a percentage of net sales, and interest expense
increased with the higher level of outstanding debt in this year's first
quarter."
"These results represent a solid start to the year and confirm our
optimism about the rest of fiscal 1999," Mr. Pollock said. "The level of
business activity so far in the second quarter is quite encouraging."
RVM Industries, Inc.
Selected Financial Data (Unaudited)
Three Months Ended June 30,
1998 1997
Net sales $21,006,285 $18,865,416
Gross profit 3,313,297 3,128,273
Operating income 1,459,368 1,513,638
Income before income taxes and
cumulative effect of
accounting change 1,006,370 1,166,949
Provision for income taxes (a) 372,375 705,898
Cumulative effect of accounting change (a) 0 211,651
Net income 633,995 249,400
Basic and diluted earnings per share:
Income before income taxes and cumulative
effect of accounting change $0.33 $0.24
Cumulative effect of accounting change 0.00 (0.11)
Net income $0.33 $0.13
Weighted average number of
shares outstanding 1,936,755 1,934,255
(a) On April 1, 1997, Albex and SABI changed their fiscal year-ends from
December 31 to March 31 to conform with the March 31 year-ends of RVM
and Ravens. A charge of $211,651 was recorded as the cumulative
effect of an accounting change reflecting the net loss for Albex and
SABI for the quarter ended March 31, 1997. Albex and SABI were S-
corporations until March 31, 1997. The provision for income taxes in
this period includes $261,000 for the establishment of deferred income
tax assets and liabilities for the conversion of Albex and SABI from
S-Corporations to C-Corporations.
This release contains forward-looking statements that are subject to
certain risks and uncertainties that could cause actual results to differ
materially from those projected in such statements. Such risks and
uncertainties include, but are not limited to, unanticipated slowdowns in the
company's major markets, the effects of competition, fluctuations in the price
of raw materials, the effectiveness of operational changes expected to
increase efficiency and productivity, unforeseen economic and political
conditions that may affect results of operations, unforeseen adverse
regulatory actions affecting the company's business or the business of the
company's customers, the risk of obsolescence of the company's products, and
other uncertainties detailed in the company's filings with the Securities and
Exchange Commission.