Lund Announces Q2 and Year-to-Date 1999 Financial Results
5 August 1999
Lund International Holdings, Inc. Announces Second Quarter and Year-to-Date 1999 Financial Results
ANOKA, Minn., Aug. 4 -- Lund International Holdings, Inc.
announces net sales and results of operations for the second
quarter ended June 30, 1999. The financial results include the results of
operations of Ventshade Holdings, Inc. and Smittybilt, Inc. acquired by Lund
in December 1998 and January 1999, respectively.
Net sales for the second quarter of 1999 were $54,239,000, compared to
$29,897,000 for the same period in 1998. The increase in sales is primarily
attributable to volume contributed by the acquisitions of Ventshade and
Smittybilt. As well, sales increased in the second quarter over the prior year
for heavy truck accessories and certain product categories for light trucks
including suspension and aluminum accessories. Year-to-date sales for the six
months ended June 30, 1999, were $98,641,000 compared to $57,082,000 for the
same period in 1998.
The gross profit margin for the three-month period ended June 30, 1999,
was 29.2% compared to 31.1% for the same period in 1998. The decrease is
primarily attributable to additional expense incurred in the start-up of the
Company's new warehouse in Anoka as well as increased product returns and
product mix. For the six months ended June 30, 1999, the gross profit margin
was 28.7% compared to 30.2% for the same period in 1998.
Lund recorded net income of $540,000, or $.07 per share, for the
three-month period ended June 30, 1999, compared to net income of $163,000, or
$.03 per share for the same period in 1998. The 1999 results for the second
quarter include purchase accounting amortization of $1,021,000 and $1,723,000
in additional interest carrying costs related to the two acquisitions
mentioned above. For the six months ending June 30, 1999, Lund recorded a net
loss of $60,000 and $.01 per share compared to a net loss of $98,000 and $.02
per share for the same period in 1998.
Dennis W. Vollmershausen, President and Chief Executive Officer stated
that, "Although the second quarter financial results are encouraging after
three consecutive quarters of losses, we intend to continue our aggressive
pursuit of improvements across all operations but most importantly, in our
Light Truck Accessories business which continues to underperform. Turnaround
plans for Light Truck include elimination of excessive expenses incurred in
the start-up of a new Anoka warehouse, resourcing of product for reduced
costs, price adjustments and elimination of certain general overhead expenses.
"Our markets for both light truck and heavy truck accessories continued
strong through the second quarter with an abnormally high backlog carrying
into the second half. As well, demand is expected to remain strong for the
balance of the year. Our recent acquisitions are performing extremely well and
are making significant contributions to our results through June 1999."
Lund International is a leading designer, manufacturer and marketer of a
broad line of appearance accessories for the automotive aftermarket. Its
products are sold under the trade names "Lund", "Deflecta-Shield", "Autotron",
"Belmor", "Trail Master", "Auto Ventshade", and "Smittybilt." The operation
headquarters are at 911 Lund Boulevard, Anoka, Minnesota 55303.
Statements in this press release relating to future financial results, the
effects of the acquisitions, company operations, trends and market analyses,
among others, are forward-looking statements made under the Private Securities
Litigation Reform Act of 1995. These statements involve risks and
uncertainties which could cause results of operations to differ materially
from those anticipated. Among the factors that could cause results of
operations to differ materially are the following: inability to obtain
expected efficiencies, or to obtain them in a timely manner; consumer
preference changes; risks of expansion into new distribution channels; delays
in designing, developing, testing, or shipping of products; increased
competition; general economic developments and trends; developments and trends
in the light truck and automotive accessory market; sales of heavy trucks,
which are cyclical; the timely development and introduction of competitive new
products by the Company and acceptance of those new products; and
increased costs. This is not an exhaustive list and the Company may supplement
this list in future filings or releases or in connection with the making of
forward-looking statements.
LUND INTERNATIONAL HOLDINGS, INC.
CONDENSED CONSOLIDATED
INCOME STATEMENTS
(Unaudited)
(in thousands, except per share data)
Three months ended Six months ended
June 30, June 30,
1999 1998 % Change 1999 1998 % Change
Net sales $54,239 $29,897 81.4% $98,641 $57,082 72.8%
Cost of goods sold 38,413 20,603 86.4% 70,363 39,824 76.7%
Gross profit 15,826 9,294 70.3% 28,278 17,258 63.9%
Operating expenses
General and
administrative 4,226 2,940 43.7% 7,933 5,507 44.1%
Selling and marketing 5,673 3,413 66.2% 10,436 6,689 56.0%
Research and
development 915 694 31.8% 1,813 1,450 25.0%
Amortization of
intangibles 1,337 586 128.2% 2,634 1,167 --
Total operating
expenses 12,151 7,633 59.2% 22,816 14,813 54.0%
Income from operations 3,675 1,661 121.3% 5,462 2,445 123.4%
Other expense, net (3,154) (1,366) 130.9% (6,191) (2,657) 133.0%
Income (loss) before
income taxes 521 295 76.6% (729) (212) 243.9%
Income tax (benefit)
expense (19) 132 -114.4% (669) (114) 486.8%
Net income (loss) $540 $163 231.3% $(60) $(98) -38.8%
Basic net income (loss)
per share $0.07 $0.03 -- $(0.01) $(0.02) --
Diluted net income
(loss) per share $0.06 $0.02 -- $(0.01) $(0.02) --
Weighted average common
shares 7,804 6,412 -- 7,804 5,841 --
Weighted average common
and common equivalent
shares 8,496 6,761 -- 7,804 5,841 --
LUND INTERNATIONAL HOLDINGS, INC.
CONDENSED CONSOLIDATED
BALANCE SHEETS
(Unaudited)
(in thousands)
June 30, December 3l,
ASSETS 1999 1998
Current assets $80,280 $63,204
Non-current assets
Property and equipment, net 33,150 29,568
Intangibles, net 127,822 119,834
Restricted cash and marketable securities -- 3,911
Other assets, net 4,084 4,840
Total assets $245,336 $221,357
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $37,366 $28,467
Long-term liabilities 115,874 107,003
Stockholders' equity 92,096 85,887
Total liabilities and stockholders' equity $245,336 $221,357