Standard Automotive Reports Earnings and Revenues for the Quarter
3 June 1999
Standard Automotive Corporation Reports Record Earnings and Revenues for the Quarter and Fiscal Year Ended March 31, 1999
SOMERVILLE, N.J.--June 3, 1999--STANDARD AUTOMOTIVE CORPORATION (AMEX: AJX, AJX.PR) (the "Company" or "Standard") today announced record operating results for the quarter and fiscal year ended March 31, 1999.
Revenues from operations during the quarter ended March 31, 1999 increased to $26,595,000, representing an increase of 101% as compared with revenues of $13,220,000 that the Company reported for the comparable three month period ended March 31, 1998. During the fiscal year ended March 31, 1999, the Company reported that revenues grew to a record $75,452,000, versus revenues for the period ended March 31, 1998 which totaled $7,936,000. The increase in revenue achieved by Standard was the result of record across-the-board revenue growth by each of its operating divisions: the Ajax subsidiary, which manufactures trailer chassis, the R & S Truck Body subsidiary, which commenced operations in September, 1998, at a new, state-of-the-art manufacturing facility located in Ivel, Kentucky, as well as its CPS Trailer subsidiary.
The Company's new Ajax manufacturing facility, which is located in San Luis Rio Colorado, Mexico became fully operational on April 26, 1999, significantly expanding the production capacity for trailer chassis by more than 50%. Revenues from this new, state-of-the-art 65,000 square foot facility will begin to be reflected during the first quarter ending June 30, 1999. As a result of Standard's revenue growth and continued commitment to expansion, both internally, and through acquisition, the Company's backlog of customer orders is at its highest historical level.
For the fiscal year ended March 31, 1999, the Company reported that Net Income totaled $2,309,000, or $0.69 per common share on a fully diluted basis, versus Net Income of $343,000, or $0.09 per share for the period ended March 31, 1998. The earnings of $0.29 per share, as reported by the Company for the quarter ended March 31, 1999 were directly in line with analyst estimates, as included in a research report issued by ING Baring Furman Selz on March 18, 1999. The Company completed its initial acquisition, Ajax Manufacturing Company in January 1998. This was followed by the acquisitions of R&S Truck Body Co., Inc. and CPS Trailer Co., Inc. in July and September, 1998, respectively.
Steven Merker, Chairman of the Board of Standard commented, "We are extremely pleased with the growth, of both our internal operations as well as our expansion through acquisition. These increases were the result of our commitment to expand manufacturing capacity and improve the operating infrastructure. Our growth strategy resulted in a significant increase in market share, and the largest backlog of customer orders in our Company's history. We expect this trend to continue and that the recent commencement of operations at our new production facility in Mexico will significantly increase sales by our Ajax subsidiary during the next twelve months."
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 truck 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, bulk commodity hauling, and municipal waste and landfill operations.
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.