RVM Industries Announces Financial Results for Third Quarter Fiscal 2000
14 February 2000
RVM Industries Announces Financial Results for Third Quarter Fiscal 2000
AKRON, Ohio, Feb. 11 -- RVM Industries, Inc.,
(OTC Bulletin Board: RVMI) today announced financial results for its fiscal
third quarter and first nine months, which ended Dec. 31, 1999.
RVM Industries is a holding company for Ravens, Inc., one of the nation's
leading manufacturers of all-aluminum flatbed and dump truck trailers; Albex
Aluminum, Inc., a rapidly growing regional manufacturer of aluminum billets
and extrusions; and Signs and Blanks, Inc., (SABI) a manufacturer of aluminum
traffic control and safety signs.
For the third quarter, net sales increased to $21.3 million, up
4.3 percent from $20.5 million during the same period last year. Net income
decreased to $124,291 or $0.06 per share from $305,862 or $0.16 per share.
At Ravens, net sales decreased 4 percent due mainly to a temporary slow
down in orders. Sales order backlog improved from $5.6 million to
$6.6 million during the quarter. Operating income decreased 21.1 percent due
to lower sales and higher expenses for the quarter.
At Albex, net sales to customers other than Ravens and SABI increased
24.5 percent due mainly to extrusion sales. The loss from operations was
1.7 percent compared to a loss from operations of 3.5 percent for last year.
In October, new equipment was installed that improved the manufacturing
process and reduced costs. Due to a slow down in orders in January, Albex is
not expected to be profitable until the next fiscal year.
At SABI, net sales decreased 1.1 percent due mainly to competitive
conditions and a strike at a major supplier. Higher cost of purchased
materials due to the strike and lower sales resulted in a decrease in
operating profit to 2 percent from 4.5 percent during the same period last
year.
For the nine months ending Dec. 31, 1999, net sales increased to a record
$68.8 million, up 10.1 percent from $62.4 million the year before. Net income
decreased to $890,215 or $0.46 per share from $1,318,450 or $0.68 per share.
At Ravens, net sales increased 9.5 percent as the company introduced a new
line of steel dump trailers and had strong sales to fleet operators.
Operating income increased 1.1 percent as higher sales improved profitability,
but were partially offset by the start-up cost of the new line of steel dump
trailers.
At Albex, net sales to customers other than Ravens and SABI increased
15.1 percent due mainly to extrusion sales. The loss from operations was
3.8 percent compared to a loss from operations of 2.2 percent last year.
Higher manufacturing costs resulted in the loss.
At SABI, net sales decreased 10 percent due mainly to competitive
conditions. Operating profit decreased to 4 percent from 6.3 percent the year
before, due mainly to the volume loss.
This release contains forward-looking statements that are subject to
certain risks and uncertainties that could cause actual results to differ
materially from those projected in such statements. Such risks and
uncertainties include, but are not limited to, unanticipated slowdowns in the
company's major markets, the effects of competition, fluctuations in the price
of raw materials, the effectiveness of operational changes expected to
increase efficiency and productivity, unforeseen economic and political
conditions that may affect results of operations, unforeseen adverse
regulatory actions affecting the company's business or the business of the
company's customers, the risk of obsolescence of the company's products, and
other uncertainties detailed in the company's filings with the Securities and
Exchange Commission.
RVM Industries, Inc.
Selected Financial Data (Unaudited)
Three Months Ended Nine Months Ended
December 31, December 31,
1999 1998 1999 1998
Net sales $21,327,664 $20,455,850 $68,734,884 $62,427,529
Gross profit 2,587,861 2,504,809 8,221,584 8,321,970
Operating income 753,148 963,369 2,911,040 3,508,363
Income before
income taxes 197,596 485,502 1,412,191 2,092,816
Net Income $ 124,291 $ 305,862 $ 890,215 $ 1,318,450
Basic and diluted
earnings per share:
net income $ 0.06 $ 0.16 $ 0.46 $ 0.68
Weighted average
number of shares
outstanding 1,937,496 1,936,755 1,937,496 1,936,755