Collins Posts Record Sales and Earnings
23 November 1999
Collins Posts Record Sales and Earnings
HUTCHINSON, Kan., Nov. 22 -- Collins Industries, Inc.
today reported record sales and pretax earnings for its fiscal
year 1999 which ended October 31, 1999. Sales increased 26% to $196,398,056
in fiscal 1999 compared to $156,445,451 in fiscal 1998. Net income for fiscal
1999 increased 79% to $5,409,501 ($.72 per share - diluted) compared to
$3,027,100 ($.39 per share - diluted) for fiscal 1998.
Sales for the quarter ended October 31, 1999 increased 45% to $58,620,856
compared to $40,342,456 for the same period in fiscal 1998. This sales
increase resulted from higher sales across all product lines in the quarter
ended October 31, 1999. Net income for the quarter ended October 31, 1999
increased over 200% to $1,303,155 ($.17 per share - diluted) compared to
$428,581 ($.06 per share - diluted) in the same period last year. The
increase in net income for the quarter ended October 31, 1999 was principally
attributable to higher profit contributions from both bus and terminal truck
products.
Sales for the year ended October 31, 1999 increased principally as a
result of higher sales of bus and ambulance products. The sales increase in
bus products principally resulted from the impact of non-conforming vans being
replaced with small, Type A school buses and the Company's acquisition of
Mid Bus, Inc. in December, 1998. Net income for fiscal 1999 was higher
principally due to the contributions of bus and terminal truck products.
These increases were partially offset by higher selling and marketing costs
associated with ambulance products in fiscal 1999.
The Company's sales backlog at October 31, 1999 increased 77% to
$59.6 million compared to $33.6 million at October 31, 1998. This increase
continued across all product lines. Compared to the October 31, 1998
backlogs, the backlogs of bus products, including Mid Bus, increased by 34%,
ambulances by 131% and terminal trucks by 53%.
Donald Lynn Collins, President and CEO said, "We are very pleased with our
overall results and accomplishments in fiscal 1999." He added, "The
acquisition of Mid Bus and our continued commitment to additional investments
in sales and marketing operations have played a significant role in both the
top and bottom line results of the Company."
The Company also announced today that the Board of Directors declared a
regular quarterly cash dividend of $.025 per share payable on December 15,
1999 to shareholders of record on December 7, 1999. Separately, the Board of
Directors declared a special cash dividend of $.08 per share payable on
January 14, 2000 to shareholders of record January 6, 2000.
The Company previously indicated that it intends to consider the payment
of regular dividends in March, June, September and December of each year. As
previously announced, the Company also said that it intends to consider the
payment of an additional dividend in January of each year equal to twenty-five
percent (25%) of the net income of the previous fiscal year (ending October
31) less the sum of any cash dividends paid in March, June, September and
December of the previous calendar year. Payment of future dividends is
subject to results of operations, limitations imposed by the Company's loan
agreements and applicable law.
Collins Industries, Inc. is a leading manufacturer of ambulances, small
school buses, commercial buses and terminal trucks. The Company sells its
products throughout the United States and to a lesser extent, abroad.
This press release contains historical and forward-looking information.
The forward-looking statements are made pursuant to the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995. The Company believes
the assumptions underlying these forward-looking statements are reasonable;
however, any of the assumptions could be inaccurate, and therefore, actual
results may differ materially from those projected in the forward-looking
statements due to certain risks and uncertainties, including, but not limited
to, changes in product demand, the availability of vehicle chassis, adequate
direct labor pools, changes in competition, interest rate fluctuations,
development of new products, various inventory risks due to changes in market
conditions, changes in tax and other governmental rules and regulations
applicable to the Company, substantial dependence on third parties for product
quality, reliability and timely fulfillment of orders, year 2000 compliance
issues and other risks indicated in the Company's filings with the Securities
and Exchange Commission. The Company undertakes no obligation to publicly
release any revisions to any forward-looking statements contained herein to
reflect events or circumstances occurring after the date released or to
reflect the occurrence of unanticipated events.
COLLINS INDUSTRIES, INC.
Financial Summary
(in thousands of dollars, except share and per share amounts)
Three Months Ended Year Ended
October 31, October 31,
1999 1998 1999 1998
(Unaudited)
Sales $58,621 $40,342 $196,398 $156,445
Income before income
taxes $2,246 $739 $8,870 $4,737
Income tax expense $943 $310 $3,460 $1,710
Net income $1,303 $429 $5,410 $3,027
Earnings per share:
Basic $0.18 $0.06 $0.74 $0.40
Diluted $0.17 $0.06 $0.72 $0.39
Weighted average outstanding
common and common equivalent
shares:
Basic 7,212,406 7,464,908 7,305,310 7,498,751
Diluted 7,572,202 7,519,629 7,551,247 7,685,267