Collins Reports Record Quarterly Sales and Backlogs & Higher Earnings
18 May 1999
Collins Reports Record Quarterly Sales and Backlogs & Higher Earnings
HUTCHINSON, Kan., May 17 -- COLLINS INDUSTRIES, INC.
reported a 43% increase in diluted earnings per share and a
22% increase in sales for the second fiscal quarter ended April 30, 1999.
Net income for the quarter ended April 30, 1999 was $1,515,708 ($.20 per
share - diluted) compared to $1,119,960 ($.14 per share - diluted) for the
quarter ended April 30, 1998. The Company's profit improvement was
principally attributable to stronger operating results from bus products
including those of the newly acquired subsidiary, Mid Bus, Inc., an Ohio-based
manufacturer of small school buses. Collins completed the acquisition of Mid
Bus on December 1, 1998.
The Company posted record quarterly sales of $46,766,843 for the quarter
ended April 30, 1999 compared to $38,332,942 for the same period last year.
This increase was principally due to bus products.
The Company's backlog increased 130% to $77.2 million at April 30, 1999
compared to $33.6 million at October 31, 1998. This increase continued across
all product lines. With the Mid Bus acquisition, the backlogs of bus product
lines increased by 193%, ambulances by 89% and terminal trucks by 59%.
Diluted earnings per share increased 32% for the six months ended April
30, 1999 to $.29 per share and net income was $2,186,556 compared to
$1,717,784 ($.22 per share - diluted) for the six months ended April 30, 1998.
Sales for the six months ended April 30, 1999 increased 11% to $84,940,875
compared to $76,813,564 for the six months ended April 30, 1998. Both net
income and sales for the six months ended April 30, 1999 increased principally
due to stronger contributions from bus products which was partially offset by
lower sales and profit contributions from terminal truck products.
Donald Lynn Collins, President and CEO said, "We are pleased with our
second quarter performance. Our gross margins are improving as a result of
the cost controls and reductions implemented over the past several quarters.
Although we have not had any significant increases in selling prices, we have
experienced increases in direct labor costs. Fortunately, we have been able
to offset those increases with other cost reduction measures and improved
operating efficiencies that we have implemented." He added, "The significant
increase in our backlog is a direct result of additional sales and marketing
expenditures and market demand related to the replacement of non-conforming
vans."
Collins Industries, Inc. is a leading manufacturer of ambulances, small
school buses, commercial buses and terminal trucks. The Company sells its
products throughout the United States and, to a lesser extent, abroad.
This press release contains historical and forward-looking information.
The forward-looking statements are made pursuant to the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995. The Company believes
the assumptions underlying these forward-looking statements are reasonable;
however, any of the assumptions could be inaccurate, and therefore, actual
results may differ materially from those projected in the forward-looking
statements due to certain risks and uncertainties, including, but not limited
to, changes in product demand, the availability of vehicle chassis, adequate
direct labor pools, changes in competition, interest rate fluctuations,
development of new products, various inventory risks due to changes in market
conditions, changes in tax and other governmental rules and regulations
applicable to the Company, substantial dependence on third parties for product
quality, reliability and timely fulfillment of orders, year 2000 compliance
issues and other risks indicated in the Company's filings with the Securities
and Exchange Commission. The Company undertakes no obligation to publicly
release any revisions to any forward-looking statements contained herein to
reflect events or circumstances occurring after the date released or to
reflect the occurrence of unanticipated events.
COLLINS INDUSTRIES, INC.
Financial Summary
(in thousands of dollars, except share and per share amounts)
(Unaudited)
Three Months Ended Six Months Ended
April 30, April 30,
1999 1998 1999 1998
Sales $46,767 $38,333 $84,941 $76,814
Net income $1,516 $1,120 $2,187 $1,718
Earnings per share:
Basic $0.21 $0.15 $0.30 $0.23
Diluted $0.20 $0.14 $0.29 $0.22
Weighted average
outstanding common
and common
equivalent shares:
Basic 7,345,677 7,560,060 7,383,950 7,505,898
Diluted 7,444,991 7,742,633 7,443,081 7,768,438