Lund International Holdings, Inc. Announces Fourth Quarter And Year-to-Date 1999 Financial Results
14 March 2000
Lund International Holdings, Inc. Announces Fourth Quarter And Year-to-Date 1999 Financial Results
ANOKA, Minn., March 14 Lund International Holdings, Inc.
announces results of operations for the fourth quarter and year
ended December 31, 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 fourth quarter of 1999 were $46,310,000 compared to
$26,170,000 for the same period in 1998. The increase in sales is primarily
attributable to volume contributed by the acquisitions of AutoVentshade and
Smittybilt. In addition, sales increased in the fourth quarter over the prior
year for heavy truck accessories and certain product categories for light
trucks, especially suspension accessories. Year-to-date net sales for the
twelve months ended December 31, 1999 were $194,369,000 compared to
$112,594,000 for the same period in 1998.
Lund recorded a net loss of $2,337,000 or ($0.25) per share, for the
three-month period ended December 31, 1999, compared to a net loss of
$2,743,000 or ($0.40) per share for the same period in 1998. The 1999 results
for the fourth quarter include $1,737,000 in additional interest carrying
costs related to the two acquisitions mentioned above, adjustments made to
excess inventory reserves, allowances for doubtful accounts and higher
concentrations of sales in lower margin product lines. For the twelve months
ending December 31, 1999, Lund recorded a net loss of $3,832,000 or
($0.46) per share, compared to a net loss of $4,070,000 or ($0.64) per share,
for the same period in 1998.
Dennis W. Vollmershausen, President and Chief Executive Officer, stated
that, "Despite significant gains made for the fourth quarter in reducing
selling, general and administrative expenses, and lowering employed capital
levels, our results were substantially below expectations. The Company
experienced additional unanticipated expenses related to the write down of
excess inventories and adjustments to increase allowances for the collection
of doubtful accounts, which impacted fourth quarter results. For 2000, we
expect these expenses to be normalized.
"Throughout 1999 management has moved aggressively to position the Company
for improved financial performance and will continue these efforts in 2000."
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(R)", "Deflecta-Shield(R)",
"Deflecta-Shield(R)" Aluminum, "Autotron(TM)", "Belmor(R)", "Trail Master(R)",
"Auto Ventshade(R)", and "Smittybilt(R)". 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
(in thousands, except per share data)
Three months ended Twelve months ended
December 31, December 31,
1999 1998 %change 1999 1998 %change
Net sales $ 46,310 $ 26,170 77.0 $194,369 $112,594 72.6
Cost of goods
sold 34,870 20,675 68.7 140,678 81,825 71.9
Gross profit 11,440 5,495 108.2 53,691 30,769 74.5
Operating expenses
General and
administrative 4,441 3,384 31.2 16,162 11,800 37.0
Selling and
marketing 4,719 3,461 36.3 20,340 13,736 48.1
Research and
development 769 783 -1.8 3,444 2,970 16.0
Amortization of
intangibles 1,334 666 100.3 5,303 2,424 118.8
Total operating
expenses 11,263 8,294 35.8 45,249 30,930 46.3
Income from
operations 177 (2,799) -- 8,442 (161) --
Other expense,
net (3,732) (1,507) -147.6 (13,000) (5,524) -135.3
Income (loss)
before income
taxes (3,555) (4,306) 17.4 (4,558) (5,685) 19.8
Income tax
(benefit)
expense (1,218) (1,563) -22.1 (726) (1,615) -55.0
Net income
(loss) $(2,337) $(2,743) 14.8 $(3,832) $(4,070) 5.8
Basic net
income (loss)
per share $(0.25) $(0.40) $(0.46) $(0.64)
Diluted net
income (loss)
per share $(0.25) $(0.40) $(0.46) $(0.64)
Weighted average
common shares 9,368 6,848 8,382 6,326
Weighted average
common and
common equivalent
shares 9,368 6,848 8,382 6,326
LUND INTERNATIONAL HOLDINGS, INC.
Condensed Consolidated
Balance Sheets
(in thousands)
December 31, December 31,
1999 1998
ASSETS
Current assets $67,088 $63,204
Non-current assets
Property and equipment, net 31,331 29,568
Intangibles, net 124,502 119,834
Restricted cash and
marketable securities -- 3,911
Other assets, net 3,748 4,840
Total assets $226,669 $221,357
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities $36,641 $28,467
Long-term liabilities 101,705 107,003
Stockholders' equity 88,323 85,887
Total liabilities and
stockholders' equity $226,669 $221,357