Featherlite Reports First-Quarter Results
26 April 2000
Featherlite Reports First-Quarter Results
CRESCO, Iowa, April 26 Featherlite, Inc. (Nasdaq: FTHR), a
leading manufacturer and marketer of specialty aluminum trailers and luxury
motorcoaches, today reported net sales for the first quarter ended March 31,
2000, of $69.4 million, up 16.8 percent from net sales of $59.4 million last
year. Net income for the quarter was $652,000, or 10 cents per diluted share,
vs. net income of $1,543,000, or 24 cents per diluted share, last year. Net
earnings are within the range forecast by Featherlite last month.
Conrad Clement, chairman and chief executive officer, said, "Consistent
with our expectations, sales increased over last year's first quarter in both
our specialty trailer and luxury motorcoach segments, but operating margins in
our motorcoach segment were well below last year's level. As we previously
announced, changes were made in our motorcoach division management team at the
beginning of the first quarter, and new programs that have been implemented to
improve production efficiency and to reduce and control costs have not yet had
time to become fully effective."
The first-quarter sales gain consisted of a 15-percent increase in sales
of specialty trailers, including sales gains in horse trailers, livestock
trailers -- which were particularly strong -- car/race car transporters and
utility and recreational trailers. Luxury motorcoach sales increased
22 percent over last year in the first quarter.
Gross margin was 15.1 percent in the quarter compared to 16.3 percent last
year, reflecting an increase in gross margin in Featherlite's specialty
trailer segment, which did not offset the decline in luxury motorcoach gross
margin. Selling, general and administrative expense, at 12.5 percent of sales
in the first quarter, was above last year's level of 11.2 percent, with a
higher expense ratio in both of Featherlite's business segments. Higher
outside delivery expense, due in large part to increased fuel costs, was the
primary factor in the specialty trailer segment increase.
"Despite our decline in earnings for the first quarter, I'm pleased with
the performance of our specialty trailer segment," Clement said. "We have new
trailer models and added features on existing models, our dealer network has
never been stronger, and our manufacturing operations are benefiting from the
process improvements we have implemented during the past several quarters.
"We are also optimistic that the changes we are making in our motorcoach
segment in leadership, marketing and operations will have a positive effect on
the performance of that division, and with two new models of luxury
motorcoaches going into production in the second half of the year we are
expecting continued growth in our market share."
About Featherlite
Featherlite, Inc., is an innovative leader in designing, manufacturing and
marketing high quality aluminum specialty trailers, transporters and luxury
motorcoaches. With more than 75 percent of its business in the leisure,
recreation and entertainment categories, Featherlite has highly diversified
product lines offering 400 standard model and custom-designed aluminum
specialty trailers, specialized transporters and luxury motorcoaches.
Featherlite is the "Official Trailer" of NASCAR, Championship Auto Racing
Teams (CART), Indy Race League (IRL), SPORTSCAR, Automobile Racing Club of
America (ARCA), American Speed Association (ASA), World of Outlaws (W.O.O.)
and the National Hot Rod Association (NHRA). Through its Featherlite Vantare
and Featherlite Vogue product lines, Featherlite is the "Official Luxury
Motorcoach" of NASCAR, IRL, SPORTSCAR, CART and NHRA. For more information
about the company, please visit Featherlite's website at
http://www.featherliteinc.com
Featherlite, Inc.
Condensed Statements of Income
(In thousands, except per share data)
Three Months Ended March 31,
2000 1999
(unaudited)
Net sales $69,404 $59,422
Cost of sales 58,894 49,725
Gross profit 10,510 9,697
Selling and administrative expenses 8,703 6,635
Income from operations 1,807 3,062
Other income (expense)
Interest (1,077) (897)
Gain on aircraft and property sales 105 211
Other, net 234 217
Total other expense (738) (469)
Income before taxes 1,069 2,593
Provision for income taxes 417 1,050
Net income $652 $1,543
Net income per common share:
Basic and diluted $0.10 $0.24
Weighted average shares outstanding:
Basic 6,535 6,501
Diluted 6,535 6,506
Featherlite, Inc.
Condensed Balance Sheets
(In thousands)
March 31, 2000 Dec. 31, 1999
ASSETS
Current assets
Cash $350 $248
Receivables 12,908 8,915
Inventories 74,490 74,632
Prepaid expenses 1,629 1,547
Deferred taxes 1,362 1,159
Total current assets 90,739 86,501
Property and equipment, net 20,205 19,880
Goodwill and other assets 13,454 13,403
Total assets $124,398 $119,784
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Current maturities of long-term debt $1,872 $1,770
Other notes payable 21,079 22,919
Accounts payable 22,907 18,664
Accrued liabilities 6,624 6,405
Customer deposits 7,776 4,678
Total current liabilities 60,258 54,436
Long-term debt, net of current maturities 28,514 30,563
Other long term liabilities 1,098 1,059
Shareholders' equity 34,528 33,726
Total liabilities and shareholders'
equity $124,398 $119,784
Safe Harbor Statement under the Private Securities Litigation Reform Act:
Statements in this release looking forward in time involve risks and
uncertainties discussed here and in the company filings with the Securities
and Exchange Commission, including product acceptance and demand in each
segment of the Company's markets, the price of aluminum, competition, and
facilities utilization.
For more information contact Doug Ewing of BlueFire Partners,
612-344-1036, for Featherlite, Inc., or Jeffery A. Mason, CFO of Featherlite,
Inc., 319-547-6000.