Starcraft Reports Profit in Second Quarter On 29% Revenue Increase
3 May 1999
Starcraft Reports Profit in Second Quarter On 29% Revenue Increase
GOSHEN, Ind.--April 30, 1999--Starcraft Corporation announced today the Company turned to profitability in the second quarter of fiscal 1999, ended March 29, 1999, reporting a profit of $122,000 or $0.03 per share on sales of $18.6 million.Sales were up 29% from second quarter fiscal 1998 sales of $14.5 million. During the prior quarter the Company had a loss of $821,000, or $0.19 per share. On a year-to-date basis, the Company's net loss was $1.7 million on sales of $30.8 million for fiscal 1999, compared to a $2.0 million loss on sales of $27.9 million for the comparable period in fiscal 1998.
Domestic sales growth was primarily attributable to the Company's new Tecstar operation reaching full production and the new shuttle bus business. In 1998 the Company started Tecstar, a joint venture to supply conversion vehicles directly to the OEM's and entered the commercial shuttle bus business as a start to Starcraft's diversification strategy.
"We have returned to profitability as our efforts to diversify the business and reduce costs start to take hold. Our strategy to target new markets with additional products has contributed to our sales growth," said Michael H. Schoeffler, President. "We expect to benefit significantly from the continued sales growth of all of our operations as we complete the start-up of the second Tecstar plant in Texas and continue to realize the cost reductions implemented over the last twelve months."
Starcraft Corporation is a leading manufacturer of second stage vehicle conversions through its Starcraft, Imperial, Bus, Tecstar and National Mobility divisions. Starcraft is a publicly owned company traded on the NASDAQ National Market Systems under the symbol "STCR".
For additional information contact Michael H. Schoeffler, Starcraft Corporation at 219/533-1105, ext. 257.
This news release contains forward-looking statements regarding financing capabilities, profitability and other matters. Investors are cautioned that actual results may differ materially from such forward-looking statements. Forward-looking statements involve risks and uncertainties including, but not limited to, level of customer demand, competitive pressures and other important factors detailed in the Company's annual report on Form 10-K for fiscal year 1997 filed with the Securities and Exchange Commission.
STARCRAFT CORPORATION
FINANCIAL RESULTS
SECOND QUARTER FISCAL YEAR 1999
Dollars in Thousands, except EPS
Statement of Operations (unaudited):
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3 Months Ended 6 Months Ended
March 28, March 29, March 28, March 29,
1999 1998 1999 1998
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Net Sales:
Domestic $14,793 $11,267 $26,124 $21,078
Export 3,846 3,197 4,649 6,805
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18,639 14,464 30,773 27,883
Cost of Goods Sold 15,241 12,808 26,417 25,022
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Gross Profit 3,398 1,656 4,356 2,861
Selling and
Promotion Expenses 1,077 1,267 1,953 2,555
General and
Administrative
Expenses 1,904 1,031 3,550 1,951
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2,981 2,298 5,503 4,506
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Operating Income (Loss) 417 (642) (1,147) (1,645)
Nonoperating (Expense)
Income:
Interest, Net (323) (203) (610) (375)
Other Income, Net 28 24 59 62
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(295) (179) (551) (313)
Income (Loss)
Before Income Taxes 122 (821) (1,698) (1,958)
Income Taxes 0 0 0 0
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NET INCOME (LOSS) $122 ($821) ($1,698) ($1,958)
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INCOME (LOSS)
PER COMMON SHARE $0.03 ($0.19) ($0.41) ($0.47)
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------- ------- ------- -------
Weighted Average
Number of Common
Shares Outstanding 4,147,000 4,133,600 4,141,700 4,133,600
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March 28, 1999 Sept. 27, 1998
Balance Sheets: (Unaudited) (Audited)
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Current Assets:
Cash $779 $1,369
Accounts Receivables 8,086 7,146
Inventories 15,650 10,857
Prepaid Expenses 725 401
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Total Current Assets 25,240 19,773
Property and Equipment 7,904 7,846
Goodwill and Other Assets 1,778 1,396
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$34,922 $29,015
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March 28, 1999 Sept. 27, 1998
(Unaudited) (Audited)
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Current Liabilities:
Current Maturity of LTD $1,023 $1,023
Accounts Payable, Trade 16,068 8,244
Accrued Expenses 4,605 5,104
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Total Current Liabilities 21,696 14,371
Long-Term Debt 11,057 10,777
Deferred Tax 331 331
Shareholders' Equity 1,838 3,536
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$34,922 $29,015
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