Lund International Announces Q3 And Year-to-Date 1999 Financial Results
15 November 1999
Lund International Holdings, Inc. Announces Third Quarter And Year-to-Date 1999 Financial Results
ANOKA, Minn., Nov. 12 -- Lund International Holdings, Inc.
announces net sales and results of operations for the third
quarter ended September 30, 1999. The financial results include the results
of operations of Auto Ventshade Company and Smittybilt, Inc. acquired by Lund
in December 1998 and January 1999, respectively.
Net sales for the third quarter of 1999 were $49,418,000 compared to
$29,342,000 for the same period in 1998. The increase in sales is primarily
attributable to volume contributed by the acquisitions of Auto Ventshade and
Smittybilt. In addition, sales increased in the third quarter over the prior
year for heavy truck accessories and certain product categories for light
trucks, especially suspension accessories. Year-to-date sales for the nine
months ended September 30, 1999 were $148,059,000 compared to $86,424,000 for
the same period in 1998.
Lund recorded a net loss of $1,435,000 or ($0.17) per share, for the
three-month period ended September 30, 1999, compared to a net loss of
$1,229,000 or ($0.18) per share for the same period in 1998. The 1999 results
for the third quarter include $1,742,000 in additional interest carrying costs
related to the two acquisitions mentioned above, additional expenses incurred
in the consolidation of warehouse operations in Anoka, Minnesota, adjustments
made to excess inventory reserves, and higher concentrations of sales in lower
margin product lines. For the nine months ending September 30, 1999, Lund
recorded a net loss of $1,495,000, or ($0.19) per share, compared to a net
loss of $1,327,000, or ($0.22) per share, for the same period in 1998.
Dennis W. Vollmershausen, President and Chief Executive Officer, stated
that, "Our third quarter financial losses are clearly disappointing.
Unfortunately, the completion of an annual physical inventory within our
Anoka, Minnesota manufacturing and warehouse operations identified the need to
make a significant one-time adjustment to excess inventory reserves. The
Company has reviewed and implemented corrective actions which it anticipates
will prevent a recurrence of similar adjustments in the future."
"On a positive note, sales volumes were strong in all markets, levels of
customer service improved considerably and expense controls put in place for
our under-performing Light Truck Accessories business led to profit
improvements toward the end of the quarter. In addition, our recent
acquisitions are performing well and are expected to contribute to further
improvements in our results."
"The growth in automotive sales, particularly pickup trucks and sport
utility vehicles has fueled strong demand for our accessories across all
market channels."
Lund International is a leading designer, manufacturer and marketer of a
broad line of accessories for the automotive aftermarket. Its products are
sold under the trade names "Lund", "Deflecta-Shield" Aluminum, "Autotron",
"Belmor", "Trail Master", "Auto Ventshade", and "Smittybilt". The corporate
headquarters are at 911 Lund Boulevard, Anoka, Minnesota 55303.
Statements in this press release relating to company operations 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; 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; introduction of competitive new products by the Company and
acceptance of those new products; increased cost and risks of expansion into
new distribution channels. 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 Nine months ended
September 30, September 30,
1999 1999 % change 1999 1998 %change
Net sales $49,418 $29,342 65.0% $148,059 $86,424 71.3%
Cost of goods
sold 35,445 21,326 66.2% 105,808 61,150 73.0%
Gross profit 13,973 8,016 74.3% 42,251 25,274 67.2%
Operating
expenses
General and
administrative 3,789 2,909 30.3% 11,721 8,416 39.3%
Selling and
marketing 5,184 3,586 44.6% 15,621 10,275 52.0%
Research and
development 862 737 17.0% 2,675 2,187 22.3%
Amortization of
intangibles 1,335 591 125.9% 3,969 1,758 125.8%
Total
operating
expenses 11,170 7,823 42.8% 33,986 22,636 50.1%
Income from
operations 2,803 193 -- 8,265 2,638 213.3%
Other expense,
net (3,077) (1,360) -126.3% (9,268) (4,017) -130.7%
Income (loss)
before income
taxes (274) (1,167) 76.5% (1,003) (1,379) 27.3%
Income tax
(before) expense 1,161 62 -- 492 (52) --
Net income
(loss) $(1,435) $(1,229) -16.8% $(1,495) $(1,327) -12.7%
Basic net
income (loss)
per share $(0.17) $(0.18) -- $(0.19) $(0.22) --
Diluted net
income (loss)
per share $(0.17) $(0.18) -- $(0.19) $(0.22) --
Weighted average
common shares 5,535 6,757 -- 8,050 6,150 --
Weighted average
common and
common equivalent
shares 8,535 6,757 -- 8,050 6,150 --
LUND INTERNATIONAL HOLDINGS, INC.
CONDENSED CONSOLIDATED
BALANCE SHEETS
(Unaudited)
(in thousands)
September 30, December 3l,
1999 1998
ASSETS
Current assets $73,038 $63,204
Non-current assets
Property and equipment,
net 32,464 29,568
Intangibles, net 126,479 119,834
Restricted cash and
marketable securities -- 3,911
Other assets, net 3,941 4,840
Total assets $235,922 $221,357
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current liabilities $115,919 $28,467
Long-term liabilities 29,342 107,003
Stockholders' equity 90,661 85,887
Total liabilities and
stockholders' equity $235,922 $221,357