Starcraft Corporation Continues to Post Solid Financial Gains
23 November 1999
Starcraft Corporation Continues to Post Solid Financial Gains
GOSHEN, Ind.--Nov. 22, 1999--versus a loss of $1.63
4th Quarter sales up 129%; Earnings per share $0.18,
compared to a loss of $0.85
Starcraft Corporation (NASDAQ Small Cap:STCRC) today announced year-end and fourth quarter results. For the fiscal 1999 year, ended October 3, 1999, sales were $89.5 million, up 69 percent from 1998 sales of $53.1 million. Net income for the year was $522,000, or $0.13 per share, compared to a $6.76 million loss, or a loss of $1.63 per share, in 1998.
In the fourth quarter, Starcraft's sales rose 129% over the same period last year, to $30.6 million. Net income for the quarter was $730,000, or $0.18 per share, compared to a net loss of $3.5 million, or $0.85 loss per share in the fourth quarter 1998.
"We are pleased to see continued solid financial performance as we diversify into related conversion businesses and consolidate operations to achieve cost efficiencies," said Michael H. Schoeffler, President. "During the quarter, our core van conversion business realized significant domestic sales growth. In addition to the Company's nationally known Starcraft and Imperial conversion van brands, we are seeing strong acceptance of our wheelchair-accessible vans produced by the National Mobility unit, and our mid-sized buses built by Starcraft Bus. Our Tecstar joint venture with a Detroit-based engineering firm had another successful quarter. During the quarter, Tecstar was awarded a 5-year extension of its contract to install upfit packages on popular GM sport utility vehicles. The new contract has an estimated value of $150 million over 5 years.
"I am proud of the achievements of Starcraft Corporation employees and management," said Schoeffler. "The automotive market has taken us through many challenges in our history," he went on to say, "but our commitment to product quality and service superiority has won the confidence of customers around the country. We knew it was only a matter of time before our hard work was rewarded."
Schoeffler concluded, "We expect continued favorable results as we enter the new year on the strength of our new businesses and our core van conversion business. Industry association figures report van conversion registrations by all three chassis manufacturers to be on a steady climb; while other national data point to growth for the Starcraft Bus and Mobility segments."
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 market demand, 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
FOURTH QUARTER FISCAL YEAR 1999
Dollars in Thousands, except EPS
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Statement of Operations
(unaudited): 3 Months Ended 12 Months Ended
Oct. 3, Sept. 27, Oct. 3, Sept. 27,
1999 1998 1999 1998
----------------------- --------- --------- --------- ---------
Net Sales:
Domestic $29,181 $11,700 $81,397 $42,857
Export 1,438 1,689 8,107 10,235
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30,619 13,389 89,504 53,092
Cost of Goods Sold 25,746 13,604 74,548 49,590
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Gross Profit (Loss) 4,873 (215) 14,956 3,502
Selling and Promotion
Expenses 1,427 947 4,638 4,484
General and Administrative
Expenses 712 2,227 6,284 5,064
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Operating Income (Loss) 2,734 (3,389) 4,034 (6,046)
Nonoperating (Expense) Income:
Interest, Net (310) (320) (1,230) (892)
Other Income, Net 26 110 115 100
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(284) (210) (1,115) (792)
Income (Loss) Before
Income Taxes 2,450 (3,599) 2,919 (6,838)
Income Taxes (Credit) (51) (79) (51) (79)
--------- --------- --------- ---------
Income before Minority
Interest 2,501 (3,520) 2,970 (6,759)
Minority Interest in Income of
Subsidiary 1,771 0 2,448 0
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NET INCOME (LOSS) $730 ($3,520) $522 ($6,759)
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Earnings (Loss) Per Share $0.18 ($0.85) $0.13 ($1.63)
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Earnings (Loss) Per Share
Assuming Dilution $0.16 ($0.85)(a) $0.12 ($1.63)(a)
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Weighted Average Number
of Common Shares
Outstanding 4,177,000 4,133,600 4,159,000 4,133,600
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(a) Does not reflect effect of employee stock options and warrants
since there effect is antidilutive.
October 3, 1999 Sept. 27, 1998
Balance Sheets: (Unaudited) (Audited)
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Current Assets:
Cash $640 $1,369
Accounts Receivables 17,076 7,146
Inventories 16,377 10,857
Prepaid Expenses 381 401
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Total Current Assets 34,474 19,773
Property and Equipment 7,864 7,846
Goodwill 1,258 1,355
Other Assets 76 41
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$43,672 $29,015
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October 3, 1999 Sept. 27, 1998
(Unaudited) (Audited)
--------------------------------
Current Liabilities:
Current Maturity of LTD $1,023 $1,023
Accounts Payable, Trade 18,571 8,244
Accrued Expenses 4,654 5,104
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Total Current Liabilities 24,248 14,371
Long-Term Debt 13,540 10,777
Minority Interest in Equity
of Subsidiary 1,698 0
Deferred Tax 0 331
Shareholders' Equity 4,186 3,536
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$43,672 $29,015
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