Standard Automotive Corporation Reports Record Revenue Growth
16 February 1999
STANDARD AUTOMOTIVE CORPORATION Reports Record Revenue Growth for the Third Quarter and Nine Months Ended December 31, 1998
HILLSBOROUGH TOWNSHIP, N.J.--Feb. 16, 1999--Revenues Increase By 129% And 106% Respectively Year To Year
Operating Income Increases 37% And 53% Year To Year
STANDARD AUTOMOTIVE CORPORATION (AMEX:AJX,AJX.PR) (the "Company") today announced its operating results for the third quarter and nine months ended December 31, 1998.
Revenues from operations for the third quarter ended December 31, 1998 increased approximately 129% to a record $23,372(000), versus $8,680(000) that the Company reported for the comparable period ended December 31, 1997. For the nine months ended December 31, 1998 the Company reported that revenues totaled $48,857(000) which was also a record, representing an increase of nearly 106% over revenues of $19,850(000) for the comparable nine month period ended December 31, 1997. The increase in revenues during both periods is the result, in significant part, to the strong growth in new sales by the Ajax subsidiary, which manufactures trailer chassis, as well as the continued strength of the R & S and CPS subsidiaries.
Operating Income increased 37% and 53% respectively to $2,822(000) and $5,423(000) during the quarter and nine months ended December 31, 1998, as compared with $2,053(000) and $3,543(000) for the similar 1997 periods. Net Income (before Preferred dividends) improved to $1,155(000) and $2,176(000) respectively for the quarterly and nine-month periods. Net Income (available to common shareholders) for the quarter and nine months totaled $861(000) or $0.25 per share, and $1,296(000) or $0.39 per share, versus $1,092(000) and $1,327(000) for the comparable 1997 periods. During both 1998 periods the Company incurred increased cash and non-cash expenses, as well as higher interest and selling, general and administrative expenses pertaining in large part to its strategy of achieving accelerated growth though the completion of acquisitions.
The Company is continuing to implement its strategic plan of growing both internally and through complimentary acquisitions that are accretive to earnings. In addition, the Company recently announced that it is currently constructing a manufacturing plant in northern Mexico. This facility will increase the Company's trailer chassis manufacturing capacity by more than 60% and will commence production during the fourth quarter.
Mr. Steven Merker, Chairman of the Board of STANDARD AUTOMOTIVE CORPORATION, commented, " I am extremely pleased with the record sales growth and earnings results that we achieved during the most recent quarter, and over the last nine months. Our Ajax subsidiary continues to achieve record growth both in revenues and number of orders received for trailer chassis. We successfully completed the acquisitions of R & S and CPS, which added highly complimentary and profitable lines of business and have contributed in a significant part to our accelerated rate of growth. We are continuing to implement our strategic plan to achieve continued growth, both internally and through acquisitions, highlighted by our manufacturing presence in Mexico. This strategy is positioning Standard Automotive as a leading provider of truck chassis, dump bodies, specialty trailers, heavy equipment, and related specialty products, by reaching out to a wider geographic and industry audience in order to achieve continued accelerated growth of both revenues and earnings."
The Company also announced that it determined not to complete the contemplated acquisition of Al-Jon, Inc.
STANDARD AUTOMOTIVE CORPORATION, with production facilities strategically located throughout the U.S. and Mexico, is a leading manufacturer of trailer chassis for transporting maritime and railroad shipping containers, dump bodies and a wide variety of truck and specialty dump trailers. The Company services a growing number of industries that are dependent on heavy equipment, including construction and bulk commodity hauling.
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)
Three months Nine months
ended ended
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1997 1998 1997 1998
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Revenues $ 8,680 $ 23,732 $ 19,850 $ 48,857
Operating costs and expenses 6,627 20,910 16,307 43,434
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Operating income 2,053 2,822 3,543 5,423
Interest and other expenses (137) (882) (1,106) (1,549)
Provision for income taxes 824 785 1,110 1,698
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Net income before Preferred
dividend 1,092 1,155 1,327 2,176
Preferred dividend -- 294 -- 880
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Net income available to common
stockholders $ 1,092 $ 861 $ 1,327 $ 1,296
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Basic and diluted net income
per share $ 0.68 $ 0.25 $ 0.83 $ 0.39
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Basic and diluted weighted
average number of shares
outstanding 1,600 3,500 1,600 3,309