Lund International Holdings, Inc. Announces Q1 1999
26 April 1999
Lund International Holdings, Inc. Announces First Quarter 1999 Net Sales and Results of Operations
ANOKA, Minn., April 26 -- Lund International Holdings, Inc.
announces net sales and results of operations for the first
quarter of 1999. The financial results for the quarter ended March 31, 1999
include the results of operations of Ventshade Holdings, Inc. and Smittybilt,
Inc. which were acquired by Lund in December 1998 and January 1999,
respectively.
Net sales for the first quarter were $44,402,000, compared to $27,185,000
for the same period in 1998. The increase in net sales was primarily
attributed to volume contributed by the acquisitions of Auto Ventshade and
Smittybilt.
The gross profit margin for the three month period ended March 31, 1999
was 28.0%, compared to 29.3% for the same period in 1998. The decrease in
gross profit margin was primarily attributed to increased product returns,
product mix and operating inefficiencies in the Company's Light Truck
Division.
Lund recorded a net loss of $600,000, or $.08 per share, for the three
month period ended March 31, 1999 compared to a net loss of $261,000, or $.05
per share, for the same period in 1998. The 1999 results included additional
purchase accounting amortization of $772,000 and $1,629,000 in interest
carrying costs related to acquisitions.
Dennis W. Vollmershausen, President and Chief Executive Officer, stated
that "Although the first quarter financial results are disappointing, we are
pleased that both sales and profits for the first quarter exceeded our 1999
business plan. As well, the delay of the divestiture of the Fibernetics
business unit in California until the end of January further reduced profits.
More importantly, our Light Truck Accessories business continued to
under-perform. Turnaround plans for Light Truck Accessories, initiated in the
fourth quarter of 1998, are progressing and are expected to lead to improved
results as the year unfolds. Further, sales orders accelerated across all
product categories in the first quarter, fueled by both seasonal demand and
new vehicle sales growth.
"Our commitment to be the leader in truck accessories continues. Our
recent acquisitions are performing extremely well and are expected to make
significant contributions to the Company in 1999."
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," "Belmor," "Auto
Ventshade" and "Smittybilt." 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 acquisitions, 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
March 31,
1999 1998
Net sales $44,402 $27,185
Cost of goods sold 31,950 19,221
Gross profit 12,452 7,964
Operating expenses
General and administrative 3,737 2,567
Selling and marketing 4,763 3,276
Research and development 898 756
Amortization of intangibles 1,353 581
Total operating expenses 10,751 7,180
Income from operations 1,701 784
Other expense, net (2,951) (1,291)
Loss before income taxes (1,250) (507)
Income tax benefit (650) (246)
Net loss $(600) $(261)
Basic net less
per share $(0.08) $(0.05)
Diluted net loss
per share $(0.08) $(0.05)
Weighted average common shares 7,804 5,263
Weighted average common and
common equivalent shares 7,804 5,263
LUND INTERNATIONAL HOLDINGS, INC.
CONDENSED CONSOLIDATED
BALANCE SHEETS
(Unaudited)
(in thousands)
March 31, December 31,
1999 1998
ASSETS
Current assets $70,998 $63,203
Non-current assets
Property and equipment, net 32,310 29,568
Intangibles, net 129,166 119,834
Restricted cash and
marketable securities -- 3,911
Other assets, net 4,278 4,840
Total assets $236,752 $221,356
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $31,459 $28,467
Long-term liabilities 113,737 107,003
Stockholders' equity 91,556 85,784
Total liabilities and
stockholders' equity $236,752 $221,254