Standard Automotive Corporation Reports Operating Results
12 November 1998
Standard Automotive Corporation Reports Operating Results for the Second Quarter and Six Months Ended September 30, 1998
HILLSBOROUGH TOWNSHIP, N.J.--Nov. 12, 1998--Revenues Increase 164% And 125% Year To Year
Operating Income Increases 149% And 75% Year To Year
STANDARD AUTOMOTIVE CORPORATION (AMEX:AJX,AJX.PR) announced today the operating results for the second quarter and six months ended September 30, 1998.
Revenues from operations for the second quarter ended September 30, 1998 increased 164% to $17,245,000, versus $6,294,000 that the Company reported for the comparable period ended September 30, 1997. For the six months ended September 30, 1998 the Company reported that revenues totaled $25,125,000, an increase of 125% over revenues of $11,170,000 for the comparable sixth month period ended September 30, 1997. The increase in revenue during both periods is the result, in significant part, of the acquisitions of R & S Truck Body Company, on July 22, 1998 and CPS Trailer Co., on September 18, 1998. In addition to the acquisitions, general improvement in the trailer industry, and in particular, the sale of new chassis by the Ajax subsidiary, resulted in continued internal growth during both periods.
Net Income improved to $387,000, or $0.12 per share during the quarter ended September 30, 1998, versus a loss of ($231,000) or ($0.14) per common share for the comparable quarter ended September 30, 1997. For the six month period ended September 30, 1998, the Company reported Net Income of $434,000, equal to $0.14 per share, versus Net Income of $235,000, or $0.15 per share for the comparable six month period ended September 30, 1997. Operating Income increased by approximately 149% and 75% respectively during each of the three and six month periods. During both periods the Company incurred significant non-cash expenses and nonrecurring charges related to its acquisition activities. For the six months ended September 30, 1998, the Company earned $0.54 on a pro forma basis, which includes in addition to AJAX, the earnings of R&S Truck Body, and CPS Trailer, as if they were owned for the entire period.
Mr. Steven Merker, Chairman of the Board of STANDARD AUTOMOTIVE CORPORATION, commented, "I am extremely pleased with the sales and earnings results that we achieved during the quarter, and over the last six months. The two (2) acquisitions that we completed during the quarter; R & S Truck Body and CPS Trailer are strategic to our continued growth, and adds several complementary and highly profitable new lines of business to the Company. I am confident that the strategic plan we are successfully implementing will continue to accrue significant benefits during the balance of this year and beyond, as it is our objective to achieve accelerated growth in sales and earnings, both internally, as well as through complementary acquisitions."
STANDARD AUTOMOTIVE CORPORATION, through its wholly owned subsidiaries is a manufacturer of trailer chassis for transporting maritime and railroad shipping containers, dump truck bodies and a wide variety of truck and specialty dump trailers, which are primarily used in the construction industry and the hauling of bulk commodities.
This release contains certain forward-looking statements which involve known and unknown risks, uncertainties, and other factors not under the Company's control which may cause actual results, performance, and achievements of the Company to be materially different from the results, performance or expectations of the Company. These factors may include, but are not limited to those detailed in the Company's periodic filings with the Securities and Exchange Commission.
Standard Automotive Corporation
Condensed Consolidated Statements of Income
(In Thousands, Except Per Share Amounts)
For the Quarter Ended Sept. 30,
1998 1997
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Revenues, Net $ 17,245 $ 6,294
Cost of revenues and expenses 15,453 5,575
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Operating income 1,792 719
Other income (expense) (525) (988)
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Income before provision for income taxes 1,267 (269)
Provision for income taxes 586 (38)
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Net income $ 681 $ (231)
Preferred stock dividends $ 294 $ --
Net income available to common
stockholders $ 387 $ (231)
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Basic and diluted net income share $ 0.12 $ (0.14)
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Weighted average number of
Shares outstanding 3,330 1,600
For the Six Months Ended Sept. 30,
1998 1997
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Revenues, Net $ 25,125 $ 11,170
Cost of revenues and expenses 22,524 9,680
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Operating income 2,601 1,490
Other income (expense) 667 (969)
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Income before provision for income taxes 1,934 521
Provision for income taxes 913 286
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Net income $ 1,021 $ 235
Preferred stock dividends $ 587 $ --
Net income available to common
stockholders $ 434 $ 235
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Basic and diluted net income share $ 0.14 $ 0.15
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Weighted average number of
Shares outstanding 3,213 1,600
Standard Automotive Corporation
Pro-Forma Summary
Six Months Ended September 30, 1998
Standard R & S CPS Adjust. Adj. Proforma
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Revenues 25,125 7,337 8,468 $40,930
Operating income 2,601 -84 1,263 1,876 5,656
Net income 1,021 -42 779 703 2,461
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Preferred dividend 587 587
Basic and diluted
net income per sh. $0.14 $0.54
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Basic and diluted
weighted average
number of shares
outstanding 3,213 280 125 3,500