Starcraft Reports Strong 3rd Quarter
20 July 1999
Starcraft Reports Strong 3rd Quarter: Sales Increase 138%; $1.5 Million Earnings vs. $1.3 Million Loss
GOSHEN, Ind.--July 20, 1999--Cap Market Listing Requirements
Starcraft Corporation results for its third quarter ending June 27, 1999 were strong, continuing the Company's profitable trend that began in the second quarter of this year. Sales rose 138 percent over third quarter 1998 sales from $11.8 million to $28.1 million. On those sales, the Company reported profits of $1.5 million, or $0.36 per share, compared to a loss of $1.3 million, or $0.31 loss per share for the same period last year.
The strong results have placed the Company in compliance with the Nasdaq Small Cap Market listing requirements. On June 23, 1999, Starcraft was placed on a conditional listing for the Nasdaq Small Cap market as it continued to work to meet the Market's net tangible asset requirements. The Company expects to comply fully with the trading exception Nasdaq established through December 31, 1999.
Year-to-date results confirm the Company's solid trend of increasing sales and profitability. Sales are up 48 percent for the first nine months of the year at $58.9 million, compared to $39.7 million for the first nine months of 1998. The Company lost $200,000, $0.05 loss per share, for the first three quarters of 1999, compared to a loss of $3.2 million, $0.78 loss per share, for the same period last year.
"I am very pleased for our loyal shareholders in reporting our return of Starcraft to profitability and its future opportunities," said Kelly L. Rose, Chairman of the Board. "Faced with market-wide volume declines in our core luxury van conversion business and having suffered several consecutive quarters of losses, our management team and associates focused on a very aggressive cost reduction program as well as diversifying into other industries. We have explored several new opportunities of diversification including entry into the mid-sized bus and handicapped vehicle markets, as well as winning ongoing conversion vehicle contracts from General Motors for their very popular sport utility and pickup truck lines."
"Every one of the Company's divisions participated in our return to profitability and is to be congratulated," said Rose. "We are pleased that our efforts have been so well received by our dealers, customers, as well as our stakeholders. With our diversification, cost and quality control programs firmly in place, we are confident that our positive sales and profitability trend will continue."
Starcraft Corporation is a leading manufacturer of second stage vehicle conversions through its Starcraft, Imperial, Bus, Tecstar and National Mobility divisions.
For additional information contact Michael H. Schoeffler, Starcraft Corporation at (219) 533-1105, ext. 257.
This news release contains forward-looking statements regarding sales, 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 1998 filed with the Securities and Exchange Commission.
STARCRAFT CORPORATION
FINANCIAL RESULTS
THIRD QUARTER FISCAL YEAR 1999
Dollars in Thousands, except EPS
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3 Months Ended 9 Months Ended
Statement of Operations
(unaudited): June 27, June 28, June 27, June 28,
1999 1998 1999 1998
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Net Sales:
Domestic $26,092 $10,079 $52,216 $31,157
Export 2,020 1,741 6,669 8,546
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28,112 11,820 58,885 39,703
Cost of Goods Sold 22,385 10,964 48,802 35,986
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Gross Profit 5,727 856 10,083 3,717
Selling and Promotion
Expenses 1,258 982 3,211 3,537
General and Administrative
Expenses 2,022 886 5,572 2,837
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3,280 1,868 8,783 6,374
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Operating Income (Loss) 2,447 (1,012) 1,300 (2,657)
Nonoperating (Expense) Income:
Interest, Net (310) (197) (920) (572)
Other Income, Net 30 (72) 89 (10)
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(280) (269) (831) (582)
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Income (Loss) Before
Income Taxes 2,167 (1,281) 469 (3,239)
Income Taxes 0 0 0 0
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Income (Loss) Before
Minority Interest 2,167 (1,281) 469 (3,239)
Minority Interest in
Income of Subsidiary 677 0 677 0
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NET INCOME (LOSS) $1,490 ($1,281) ($208) ($3,239)
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Earnings (Loss) Per Share $0.36 ($0.31) ($0.05) ($0.78)
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Earnings (Loss) Per Share
Assuming Dilution $0.33 ($0.31)(a) ($0.05)(a)($0.78)(a)
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Weighted Average Number
of Common Shares
Outstanding 4,173,300 4,133,600 4,152,100 4,133,600
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(a) Does not reflect effect of employee stock options and warrants
since their effect is antidultive.
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June 27, 1999 Sept. 27, 1998
Balance Sheets: (Unaudited) (Audited)
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Current Assets:
Cash $611 $1,369
Accounts Receivables 10,666 7,146
Inventories 18,609 10,857
Prepaid Expenses 867 401
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Total Current Assets 30,753 19,773
Property and Equipment 7,802 7,846
Goodwill 1,285 1,355
Other Assets 590 41
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$40,430 $29,015
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June 27, 1999 Sept. 27, 1998
(Unaudited) (Audited)
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Current Liabilities:
Current Maturity of LTD $1,023 $1,023
Accounts Payable, Trade 17,549 8,244
Accrued Expenses 4,048 5,104
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Total Current Liabilities 22,620 14,371
Long-Term Debt 13,346 10,777
Minority Interest in Equity
of Subsidiary 677 0
Deferred Tax 331 331
Shareholders' Equity 3,456 3,536
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$40,430 $29,015
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