SMC Corporation Reports First Quarter Results for 2000
27 April 2000
SMC Corporation Reports First Quarter Results for 2000
BEND, Ore., April 27 SMC Corporation (Nasdaq: SMCC) today
reported results for the first quarter of 2000. For the three month period
ended March 31, 2000 net sales were $53.1 million compared to $56.8 million
reported for the first quarter of 1999. A net loss of $260,000 was recorded
for the first quarter of 2000 compared to net income for $108,000 recorded in
the same period of 1999. Earning per share were ($.045) on 5.8 million shares
outstanding compared to $.018 on 5.9 million shares outstanding for the three
months ended March 31, 2000 and April 3,1999, respectively.
Sales decreased by $3.7 million primarily in the Safari product line as
the result of weaker retail sales of Safari coaches at the dealer level. Sales
of Beaver product remained constant, however, the mix of Beaver product was
heavily weighted on the higher end models of Patriot, Marquis, and Solitaire.
Harney Coach Works products reflected a decrease in revenue primarily as the
result of lower Renegade sales that were partially offset by higher revenues
of Class C and Riata sales.
Gross profits were lower in the quarter-to-quarter comparisons by
$754,000 due to lower sales volumes. Significant improvements were achieved in
lowering labor and overhead costs however. These positive developments were
the result of the continuing efforts under the "kaizen" program.
Overall, selling, general and administrative costs decreased by
$406,000 from the same period in 1999. Administrative and finance costs
decreased $212,000 or 8.4% as the result of continued cost reduction
activities. Selling and marketing costs increased by $225,000 or 9.3% compared
to the same period in 1999 due primarily to a promotional contest and
personnel costs. Litigation and settlement costs decreased $419,000 or
48% during the first quarter of 2000 compared to the same period in 1999.
Interest expense increased by $172,000 compared to the same period in
1999, due primarily to a higher debt load. However, the Company expects
interest expense to decline in the near future as the result of its "kaizen"
efforts and its shift from a "build to forecast" to a "build to order"
production process. Inventories have been reduced by 7% since year end.
SMC Corporation is one of the largest high line motor coach manufacturers
in the United States. Headquartered in Bend, Oregon, the Company has six
locations in Oregon.
Information about SMC Corporation and its products can be found on the
World Wide Web at http://www.smc-corporation.com .
Forward Looking Statements: The statements in this report may be regarded
as forward looking statements. A number of factors could cause actual results
to differ materially from these statements, including delays in full operation
of the production facility, a general slowdown in the economy or the RV market
specifically, or new products from competitors. Please also refer to the
Company's SEC reports, including, but not limited to its Annual Report on Form
10-K for the year ended December 31, 1999.
SMC CORPORATION
CONSOLIDATED BALANCE SHEET
In Thousands
12/31/99 3/31/00
Assets
Current 59,704 50,452
Property & Equipment 13,978 13,748
Other 1,987 1,936
Total Assets 75,669 66,136
Liabilities
Current 44,127 35,073
Long-term Debt 8,663 8,445
Total Liabilities 52,790 43,518
Shareholders' Equity 22,879 22,618
Total Liability & Equity 75,669 66,136
SMC CORPORATION
CONSOLIDATED STATEMENT OF INCOME
$000's (exceptshare and per share data)
Three Months Ended
4/03/99 3/31/00
Net Sales 56,822 53,052
Cost of Sales 50,613 47,596
Gross Profit 6,209 5,456
Sales, General,
Adm 5,806 5,400
Income from
Operations 403 56
Interest Expense 310 482
Other Expense (Inc) (86) 8
Income (Loss) Before Taxes 179 (434)
Provision (Benefit) for Taxes 71 (174)
Net Income (Loss) 108 (260)
Net Income (Loss)/share
basic 0.018 (0.045)
Net Income (Loss)/share
diluted 0.018 (0.045)
Weighted share
basic 5,890,208 5,780,599
Weighted shares
diluted 5,890,208 5,780,599