SMC Corporation Reports Second Quarter Results for 2000
28 July 2000
SMC Corporation Reports Second Quarter Results for 2000
BEND, Ore. - Today SMC Corporation released its results for the three month
period and six month period ending June 30, 2000. For the three months ending
June 30, 2000, SMC reported sales of $45.4 million and a net loss of $3.1
million. This compares to sales of $53.8 million and a net loss of $149,000 for t
he three month period ending June 30, 1999. For the six month period ended June
30, 2000, sales were $98.5 million and the Company incurred a net loss of $3.4
million. This compares to sales of $110.6 million and a net loss of $41,000
recorded for the six month period ended June 30, 1999.
"Some short-term losses were to be expected during the Company's shift to
build-to-order from build-to-forecast. We decided mid-April that this decision
was our best long-term course of action to reduce interest costs and to
protect the Company in a fickle market," reported Mike Jacque, President and
Chief Operating Officer. He continued, "As evidence of our progress, last year
at this time the Company had about 165 past model spec units in stock
available for sale to dealers, valued at approximately $23 million. This year
the Company currently has 8 units, valued at about $1 million." The Company's
cash flows are positive year to date, and Jacque reported that the Company has
succeeded in reducing inventories by over $12.6 million this year and debt by
$1.6 million. Although the retail market has been challenging this year,
second quarter retail unit sales of all SMC products were up 4.3% over the
corresponding period last year led by a 95% retail sales increase in
Harney Coach Works products.
Significant costs were absorbed during the second quarter as the inventory
of spec units were sold during a period of reduced production. Our 2001
products are debuting now and production levels are returning to normal
levels. After demand for 2001 models is assessed, the Company will adjust its
cost structure to those production demands without the interest expense
associated with carrying large inventories.
In terms of product development, the Company has implemented significant
changes in its 2001 models. At Safari, Trek and Serengeti models have
undergone particularly substantial design changes, whereas all Safari products
now include the Company's exclusive new VR2 tuned suspension in addition to
new cabinets in Walnut and Frosted Maple among several other content changes.
Beaver's Patriot models now have content comparable to top-line Marquis models
from only a few years ago and the Monterey and Contessa models been
substantially redesigned for 2001. At Harney Coach Works, solid Hickory
cabinets have been added to the completely upgraded Renegade Classic models
that now include double slides in addition to several upgrades to Riata
products. The Company has invested heavily in these changes and "Kaizan"
production methods that improve both quality and efficiency, and believes its
products are positioned very competitively for the year 2001 and beyond.
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. The Company offers customers luxury recreational
vehicle models under the Solitaire, Marquis, Beaver, Safari, Trek and
Harney Coach Works brand names. Information about SMC Corporation and its
products can be found on the World Wide Web at http://www.smc-corporation.com
.
SMC CORPORATION
CONSOLIDATED STATEMENT OF INCOME
$000's (except share and per share data)
Three Months Ended Six Months Ended
7/03/99 6/30/00 7/03/99 6/30/00
Net Sales 53,794 45,425 110,616 98,477
Gross Profit 4,143 203 10,352 5,658
Income (Loss) from
Operations (123) (4,578) 280 (4,523)
(Loss) Before Taxes (248) (5,243) (69) (5,678)
(Benefit) for Taxes (99) (2,097) (28) (2,271)
Net (Loss) Income (149) (3,146) (41) (3,407)
Net (Loss) Income/share
basic (0.03) (0.54) (0.01) (0.59)
Net (Loss) Income/share
diluted (0.03) (0.54) (0.01) (0.59)
Weighted share
basic 5,845,000 5,780,000 5,868,000 5,780,000
Weighted shares
diluted 5,846,000 5,780,000 5,868,000 5,780,000
SMC CORPORATION
CONSOLIDATED BALANCE SHEET
In Thousands
12/31/99 6/30/00
Assets
Current 59,704 45,267
Property & Equipment 13,978 14,806
Other 1,987 1,885
Total Assets 75,669 61,958
Liabilities
Current 44,127 32,998
Long-term Debt 8,663 9,488
Total Liabilities 52,790 42,486
Shareholders' Equity 22,879 19,472
Total Liability & Equity 75,669 61,958