MotorVac Technologies Announces Increased Sales and EPS
29 July 1999
MotorVac Technologies Announces Increased Sales and EPS for Third Consecutive Quarter
SANTA ANA, Calif.--July 29, 1999--MotorVac(R) Technologies Inc. Thursday announced results for its second quarter and first half of 1999.Sales increased 70 percent to a record $4,229,398 for the second quarter ended June 30, 1999, compared with $2,494,464 for the quarter ended June 30, 1998. For the second quarter ended June 30, 1999, the company reported record net income of $458,563, or $0.10 per basic and diluted share, which compares with a loss of $268,938, or $0.06 per basic and diluted share for the second quarter of 1998.
Sales for the six months ended June 30, 1999 were a record $8,283,158, a 48 percent increase over the $5,578,079 for the first half of 1998. For the six months ended June 30, 1999, the company reported record net income of $742,433 or $0.17 per basic and $0.16 diluted share, which compares with a net loss of $205,053, or $0.05 per basic and diluted share for the first half of 1998.
"This is the third consecutive quarter of increased sales and EPS," said Lee W. Melody, president and chief executive officer. "Our strategic efforts last year to develop new products are continuing to show strong results, especially our new TRANSTECH II Automotive Transmission Fluid Exchange Machine, which accounted for a major portion of the sales increase," Melody concluded.
The record sales for the three- and six-month periods ended June 30, 1999 also generated record high operating margins. For the current quarter, operating income of $440,491 represented a margin of 10.4 percent, while the six-month period generated operating income of $714,053, for a margin of 8.6 percent.
MotorVac(R) Technologies designs, develops, assembles and markets unique technological solutions for the service and repair of automotive fluid systems. Product lines include specialty chemicals and shop equipment for servicing fuel systems and transmission systems. MotorVac(R)'s products are distributed to service shops, fleets and government agencies in more than 70 countries worldwide.
For additional information, visit MotorVac(R)'s Web site at www.motorvac.com.
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The company intends that such forward-looking statements shall be protected by the safe harbor provided for in such sections. In particular, statements regarding future results are subject to the risks and uncertainties that could cause actual results to vary materially from those projected in the forward-looking statements. The company may experience significant fluctuations in future operating results due to a number of economic, competitive, governmental and technological factors, including, among other things, changes in laws, the size and timing of customer orders, new or increased competition, unexpected increases in expenses, delays in acceptance of new products, product returns, seasonality in product purchases by distributors and end users, and pricing trends in the automotive after-market industry in general and, in specific, markets in which the company is active. Any of these factors, or others, could cause operating results to vary significantly from prior periods and those projected in the forward-looking statements. The making of these forward-looking statements shall not in any way obligate the company to update or correct the foregoing estimates or projections. Additional information with respect to these and other factors which could materially affect the company and its operations is included in the company's filings with the Securities and Exchange Commission, including its Annual Report or Form 10-KSB for the year ended Dec. 31, 1998 and any subsequent filings.
MotorVac Technologies Inc.
Statements of Income
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
1999 1998 1999 1998
Net Sales $4,229,398 $2,494,464 $8,283,158 $5,578,079
Cost of Sales $2,553,852 $1,400,782 $5,163,282 $3,120,993
Gross Profit $1,675,546 $1,093,682 $3,119,876 $2,457,086
Operating Expenses $1,235,055 $1,375,509 $2,405,823 $2,687,729
Operating Income
(Loss) $ 440,491 $ (281,827) $ 714,053 $ (230,643)
Interest Income, Net $ 17,100 $ 14,994 $ 28,458 $ 31,240
Income (loss) Before
Provision for
Income Taxes $ 457,591 $ (266,833) $ 742,511 $ (199,403)
Provision for
Income Taxes $ (972) $ 2,150 $ 78 $ 5,650
Net Income (Loss) $ 458,563 $ (268,983) $ 742,433 $ (205,053)
Basic Earnings (loss)
Per Share $ 0.10 $ (0.06) $ 0.17 $ (0.05)
Weighted Average
Shares Used to
Calculate Basic
Earnings (Loss)
Per Share 4,491,437 4,517,918 4,478,178 4,514,918
Diluted (Loss)
Earnings Per Share $ 0.10 $ (0.06) $ 0.16 $ (0.05)
Weighted Average
Shares Used to
Calculate Diluted
Earnings (Loss)
Per Share 4,532,909 4,517,918 4,503,389 4,514,918