Owosso Corporation Announces Results for the Second Quarter of Fiscal 2000
31 May 2000
Owosso Corporation Announces Results for the Second Quarter of Fiscal 2000
KING OF PRUSSIA, Pa., May 31 Owosso Corporation today announced net income for common
shareholders of $284,000, or $0.05 per share, for its second fiscal quarter
ended April 30, 2000, as compared to $1.0 million or $0.18 per share, for the
prior year quarter. Second quarter net sales were $45.2 million as compared
to $45.7 million in the prior year quarter; income from operations was
$2.2 million, as compared to $2.7 million.
For the six months ended April 30, 2000, the Company recorded a net loss
of ($266,000), or ($0.05) per share, as compared to net income available for
common shareholders of $623,000, or $0.11 per share in the prior year six
month period. Net sales for the first six months of 2000 were $83.1 million,
as compared to $84.6 million in the prior year period; income from operations
was $3.0 million in the current year period, as compared to $3.7 million.
Income from operations from the Motors segment was $1.2 million, or
8.2% of net sales, in the second quarter of 2000, as compared to $2.4 million,
or 14.8% of net sales, in the prior year quarter. For the first six months of
2000, income from operations from the Motors segment was $2.5 million, or
8.6% of net sales, as compared to $4.2 million, or 13.2% of net sales in the
prior year period. These results reflect lower sales volume to the
recreational vehicle and healthcare markets as compared to last year. Sales
to the recreational vehicle market were adversely affected by design issues
associated with a new motor developed for this market. The design issues have
been resolved and the Company has accrued $275,000 in the quarter for the
replacement of such motors.
Income from operations for the Motors segment was also unfavorably
impacted by temporary production inefficiencies resulting from a complete
overhaul of the Motor Products-Michigan facility from batch processing to
demand flow technology. Over the next few months, the Company expects
productivity levels at Motor Products to improve over historical levels.
The Coils segment reported income from operations of $589,000, or 4.6% of net
sales, in the second quarter of 2000, as compared to $1.4 million, or 11.2% of
net sales, in the prior year quarter. For the first six months of 2000,
income from operations for the Coils segment was $906,000, or 3.9% of net
sales, as compared to $2.4 million, or 10.0% of net sales, in the prior year
period. These results reflect lower sales volume to the beverage
refrigeration and heavy truck markets and lower margins resulting from
manufacturing inefficiencies.
Income from operations at Sooner Trailer was $663,000, or 5.2% of net
sales in the second quarter of 2000, as compared to $710,000, or 6.4% of net
sales in the prior year quarter. For the first six months, income from
operations was $1.0 million, or 4.7% of net sales, as compared to $851,000, or
4.6% of net sales for the prior year period. Demand for Sooner's products has
been strong thus far this year with bookings of $36.5 million for the first
six months as compared to $20.6 million in the prior year period. The
improvement in bookings is primarily the result of orders received for
Sooner's newly introduced Revolution product line, which has been extremely
well received in the marketplace. Sooner is also redefining its manufacturing
process to adopt more modern and efficient techniques. The temporary
disruption this has caused to the business has unfavorably affected its
profitability during the second quarter of 2000.
To receive additional information on Owosso Corporation, via fax at no
charge, dial 1-888-OWOS-010, or visit Owosso's website, http://www.owosso.com.
This press release contains forward-looking statements that involve a
number of risks and uncertainties. Factors that could cause actual results to
differ materially from those reflected in the forward-looking statements
include changes in demand from substantial customers, as well as other factors
as discussed in the Company's Annual Report on Form 10-K for the year ended
October 31, 1999 in the section captioned "Management's Discussion and
Analysis of Financial Condition and Results of Operations."
Financial Tables Follow
OWOSSO CORPORATION
(in thousands, except per share data)
Income Statement Data:
Three Months Ended Six Months Ended
April 30, May 2, % April 30, May 2, %
2000 1999 Change 2000 1999 Change
Net sales $45,238 $45,742 (1.1%) $83,117 $84,577 (1.7%)
Gross profit 7,637 9,296 (17.8%) 14,235 16,524 (13.9%)
Income from
operations 2,249 2,746 (18.1%) 3,026 3,726 (18.8%)
Income before
taxes 1,053 1,587 (33.6%) 545 1,344 (59.5%)
Net income 563 1,299 (56.6%) 291 1,167 (75.1%)
Net income (loss)
available for
common
shareholders ** 284 1,026 (72.4%) (266) 623 (142.7%)
Income (loss)
per basic and diluted
share $0.05 $0.18 (72.5%) $(0.05) $0.11 (142.6%)
Average basic
shares
outstanding 5,846 5,826 5,838 5,821
April 30, October 31,
2000 1999
Current assets $ 44,588 $ 42,654
Net property, plant and equipment 35,036 35,900
Total assets 116,228 116,690
Current liabilities 25,974 25,743
Total debt, including current portion 55,220 55,480
Stockholders' equity $ 33,207 $ 33,984
** Net income (loss) available for common shareholders is stated after
deduction of preferred stock dividends of $187 for each of the three-month
periods and $375 for each of the six-month periods, and after deduction of
accretion in the book value of preferred stock of $92 and $182 for the three-
and six-month periods ended April 30, 2000, respectively, and $86 and $169 for
the three- and six-month periods ended May 2, 1999, respectively.
OWOSSO CORPORATION
(in thousands)
Segment Data :
Three Months Ended Six Months Ended
April 30, May 2, April 30, May 2,
2000 1999 2000 1999
Net sales:
Motors $14,704 $16,342 $28,702 $31,622
Coils 12,733 12,767 23,212 23,793
Trailers and
agricultural
equipment 12,763 11,450 21,932 19,428
Other 5,038 5,183 9,271 9,734
Total net sales $45,238 $45,742 $83,117 $84,577
Income (loss)
from operations:
Motors $1,200 $2,424 $2,466 $4,174
Coils 589 1,426 906 2,368
Trailers and
agricultural
equipment 663 371 1,032 244
Other 759 345 1,153 322
Unallocated
corporate
charges (962) (1,820) (2,531) (3,382)
Total income
from operations $2,249 $2,746 $3,026 $3,726