Featherlite Reports Record First-Quarter Sales and Net Income
27 April 1999
Featherlite Reports Record First-Quarter Sales and Net Income
First-Quarter Net Income Climbs 35 Percent; Net Sales Up 42 percent to
$59.2 Million
CRESCO, Iowa, April 27 -- Featherlite, Inc. , a
leading manufacturer and marketer of specialty aluminum trailers and luxury
motorcoaches, today reported net sales for the first quarter ended
March 31, 1999, of $59.4 million, up 42.4 percent from net sales of $41.7
million in last year's first quarter. Net income for the first quarter was
$1,543,000, or 24 cents per diluted share, up 35.2 percent from net income of
$1,141,000, or 18 cents per diluted share, in the first quarter of last year.
Conrad Clement, chairman and chief executive officer, said, "We are very
pleased with our record-setting performance for the first quarter, which came
in above earlier expectations. First-quarter sales growth was led by strong
sales of Featherlite luxury motorcoaches and specialized transporters. Our
strategic focus on the recreation, leisure and entertainment markets, and on
market opportunities in the motorsports category, continues to positively
impact our growth rate."
Featherlite's first quarter net sales increased $17.7 million over the
first quarter of 1998, $11.4 million of which was contributed by the addition
of the Featherlite Vogue(R) line of luxury motorcoaches acquired in May 1998.
The balance of the sales increase over the first quarter of 1998,
$6.3 million, resulted from growth in established product categories,
including a 30-percent increase in sales of Featherlite Vantare(TM) luxury
motorcoaches. Sales of specialty trailers, including custom-designed
specialized transporters, increased 6 percent.
"First-quarter sales of specialized car haulers and race car transporters
set a new sales record for the quarter. Motorsports continues to be a booming
entertainment category with a record number of competitors, many of whom use
our products," Clement said.
Gross profit margin in the first quarter was 16.3 percent, compared with
16.6 percent in the first quarter of last year. Improved gross margins on
trailer sales were offset by the increased proportion of luxury motorcoach
sales at lower margins, which includes increased sales of previously-owned
motorcoaches this year. Other income in the first quarter included a $200,000
gain on aircraft sales. Selling and administrative expenses were 11.2 percent
of sales in the quarter, equal to last year's percent.
Looking Forward
"We are pleased with this strong start to what we believe will be a very
successful year for Featherlite," Clement said. "Our facilities and
manufacturing capacity are in good shape to accommodate the sales increases
that we envision, and our opportunities for market share growth in each of the
categories we serve are significant.
"At mid-year, we will open our new Featherlite Luxury Motorcoach Sales and
Service Center in Sanford, Fla., supporting both the Featherlite Vantare(TM)
and Featherlite Vogue(R) lines. The high-traffic location that this new
facility enjoys on Interstate-4 will provide a new avenue of customer
visibility and brand recognition, and we are optimistic about the positive
effect that the new sales and service facility can have on our luxury
motorcoach business.
"We are also continuing to add new specialty trailer models and new
features to existing trailer models, both to stimulate additional sales and to
remain highly competitive in our product offerings. Overall, we continue to
be very optimistic about Featherlite's ability to achieve strong and
profitable growth in fiscal 1999," Clement said.
About Featherlite
Featherlite, Inc., is an innovative leader in designing, manufacturing and
marketing high quality aluminum specialty trailers, transporters and luxury
motorcoaches. With 80 percent of its business in the leisure, recreation and
entertainment categories, Featherlite has highly diversified product lines
offering 400 standard model and custom-designed aluminum specialty trailers,
specialized transporters and luxury motorcoaches. Featherlite is the
"Official Trailer" of NASCAR, Championship Auto Racing Teams (CART), Indy Race
League (IRL), SPORTSCAR, Automobile Racing Club of America (ARCA), American
Speed Association (ASA), World of Outlaws (W.O.O.) and the National Hot Rod
Association (NHRA). Through its Featherlite Vantare and Featherlite Vogue
product lines, Featherlite is the "Official Luxury Motorcoach" of NASCAR, IRL,
SPORTSCAR, CART and NHRA. For more information about the company, please
visit Featherlite's website at http://www.featherliteinc.com
Featherlite, Inc.
Condensed Statements of Income
(In thousands, except per share data)
(unaudited) Three Months Ended March 31,
1999 1998
Net sales $59,422 $41,742
Cost of sales 49,725 34,825
Gross profit 9,697 6,917
Selling and administrative expenses 6,635 4,661
Income from operations 3,062 2,256
Other income (expense)
Interest (897) (576)
Other, net 428 221
Total other expense (469) (355)
Income before taxes 2,593 1,901
Provision for income taxes 1,050 760
Net income $1,543 $1,141
Net income per common and
common equivalent share:
Basic and Diluted $0.24 $0.18
Weighted average shares outstanding:
Basic 6,501 6,255
Diluted 6,506 6,340
Featherlite, Inc.
Condensed Balance Sheets
(In thousands)
March 31, 1999 Dec. 31, 1998
ASSETS (unaudited)
Current assets
Cash $297 $188
Receivables 12,588 10,332
Inventories 62,355 61,373
Prepaid expenses 1,805 1,522
Deferred taxes 1,107 1,107
Total current assets 78,152 74,522
Property and equipment, net 16,436 15,868
Goodwill and other assets 12,793 16,398
Total assets $107,381 $106,788
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Current maturities of
long-term debt $1,216 $1,241
Other notes payable 19,075 17,936
Accounts payable 20,287 18,221
Accrued liabilities 7,417 5,720
Customer deposits 3,004 2,241
Total current liabilities 50,999 45,359
Long-term debt, net of
current maturities 24,186 30,914
Other long term liabilities 961 972
Shareholders' equity 31,235 29,543
Total liabilities and
shareholders' equity $107,381 $106,788
Safe Harbor Statement under the Private Securities Litigation Reform Act:
Statements in this release looking forward in time involve risks and
uncertainties discussed here and in the company filings with the Securities
and Exchange Commission, including product acceptance and demand in each
segment of the Company's markets, the price of aluminum, competition, and
facilities utilization.
For more information, contact Doug Ewing of Swenson NHB Investor
Relations, 612-371-0000, for Featherlite, Inc., or Jeffery A. Mason, CFO of
Featherlite, Inc., 319-547-6000.