Lund International Holdings, Inc. Announced Q3 Results of Operations
16 November 1998
Lund International Holdings, Inc. Announced Third Quarter Results of Operations
ANOKA, Minn., Nov. 13 -- Lund International Holdings, Inc.
announced net sales and results of operations for the third
quarter of 1998. The financial results for the quarter and nine month periods
ended September 30, 1998 include the results of operations of Deflecta-Shield
Corporation, acquired by Lund on December 30, 1997.
Net sales for the quarter were $29,342,000, compared to $10,028,000 for
the same period in 1997. Net sales for the nine month period ended
September 30, 1998 were $86,424,000, compared to $32,581,000 for the same
period in 1997. For both periods, the increase in net sales was attributed to
the consolidation of Deflecta-Shield's results in 1998.
The gross profit margin for the three month period ended September 30,
1998 was 27.3%, compared to 33.9% for the same period in 1997. The gross
profit margin for the nine month period ended September 30, 1998 was 29.2%
compared to 34.2% for the nine month period ended September 30, 1997.
Lund recorded a net loss of $1,229,000, or $.18 per share, for the three
month period ended September 30, 1998 compared to a net loss of $518,000, or
$.12 per share, for the same period in 1997. For the nine-month period ended
September 30, 1998, Lund incurred a net loss of $1,327,000, or $.22 per share,
compared to a net income of $753,000, or $.17 per share, for the same period
last year.
Dennis W. Vollmershausen, appointed on October 5, 1998 as President and
Chief Executive Officer, stated that "The Company's financial results for the
third quarter and nine months ended September 30, 1998 were clearly
disappointing. Strong performance in our Heavy Truck Accessories business
continues to be offset by under-performance in our Light Truck Accessories
business. We have initiated several major action plans with the goal of
securing a turnaround in our results. Our management team has accepted the
challenges we face and remains committed to firmly establishing Lund as the
leader in automotive accessories, primarily for trucks, sport utility vehicles
and vans. The recent announcement of our agreement to acquire Auto Ventshade
for $66 million in cash is another key step in our plan."
Lund is a leading designer, manufacturer and marketer of a broad line of
appearance accessories for the automotive market. Its products are marketed
under the trade names "Lund," "Deflecta-Shield," "Autotron" and "Belmor." The
corporation is headquartered at 911 Lund Boulevard, Anoka, Minnesota 55303.
Statements made in this press release relating to future financial
results, the effects of the acquisition, company operations, trends and market
analyses, among others, are forward-looking statements made under the Private
Securities Litigation Reform Act of 1995. These statements involve risks and
uncertainties which could cause results of operations to differ materially
from those anticipated. Among the factors that could cause results of
operations to differ materially are the following: inability to obtain
expected efficiencies, or to obtain them in a timely manner; consumer
preference changes; risks of expansion into new distribution channels; 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; sales of heavy trucks,
which are cyclical; the timely development and introduction of competitive new
products by the Company and acceptance of those new products; 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
INCOME STATEMENTS
(Unaudited)
(in thousands, except per share data)
Three months ended Nine months ended
September 30, September 30,
1998 1997 1998 1997
Net sales $29,342 $10,028 $86,424 $32,581
Cost of goods sold 21,326 6,624 61,150 21,433
Gross profit 8,016 3,404 25,274 11,148
Operating expenses
General and administrative 2,909 2,304 8,416 4,511
Selling and marketing 3,586 1,550 10,275 4,817
Research and development 737 347 2,187 1,006
Amortization of intangibles 591 43 1,758 105
Total operating expenses 7,823 4,244 22,636 10,439
Income (loss) from operations 193 (840) 2,638 709
Other (expense) income, net (1,360) 74 (4,017) 243
(Loss) income before income
taxes (1,167) (766) (1,379) 952
Income tax expense (benefit) 62 (248) (52) 199
Net (Loss) income $(1,229) $(518) $(1,327) $753
Basic net (loss) income
per share $(0.18) $(0.12) $(0.22) $0.17
Diluted net (loss) income
per share $(0.18) $(0.12) $(0.22) $0.17
Weighted average common shares 6,757 4,376 6,150 4,375
Weighted average common and
common equivalent shares 6,757 4,376 6,150 4,394
LUND INTERNATIONAL HOLDINGS INC.
CONDENSED CONSOLIDATED
BALANCE SHEETS
(Unaudited)
(in thousands)
September 30, December 31,
1998 1997
ASSETS
Current assets $46,997 $52,465
Non-current assets
Property and equipment, net 21,054 20,621
Intangibles, net 67,004 68,778
Other assets, net 2,565 2,163
Total assets $137,620 $144,027
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $70,825 $25,007
Long-term liabilities 5,580 56,506
Stockholders' equity 61,215 62,514
Total liabilities and
stockholders' equity $137,620 $144,027
SOURCE LUND International Holdings, Inc.