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Starcraft Corporation Announces 3rd Quarter Results

4 August 2000

Nine month revenues increase 79 percent; net income $3.0 million versus ($208,000) Loss

    GOSHEN, Ind. - Starcraft Corporation today announced third quarter results for the quarter, ended July 2, 2000.

    Sales were up sharply for the first nine months of 2000 at $105.6 million, an increase of 79 percent over the same period last year sales of $58.9 million. Net income for the period was $3.0 million, or $0.72 per basic share, $0.63 per diluted share, compared to a loss of ($208,000), or ($0.05) per basic and diluted share for the same period last year.

    Sales for the third quarter were $33.1 million, a 17.7 percent increase over last year's third quarter sales of $28.1 million. Net income for the quarter was $217,000, or $0.05 per basic share, $0.04 per diluted share, compared to $1.5 million, or $0.36 per basic share and $0.33 per diluted share a year ago. The prior year quarter benefited from $ 300,000 of cumulative minority interest credit.

    "Although we continued to experience relatively strong growth in the third quarter, our overall volume was slowed due to the closure during June of Tecstar's Texas plant for retooling for the Tahoe and Suburban 2001 models. In addition, production was temporarily halted at the Texas plant following a severe hail storm which damaged inventory," commented Michael H. Schoeffler, President and Chief Operating Officer. "Losses associated with the storm have been included in this quarter, however, the company believes a substantial portion of the loss will be covered by insurance. Margins were also depressed in the quarter due to lower volume and higher discounts on conversion vans and a temporary change in product mix caused by a large OEM order of lower margin product."

    Schoeffler said, "In the fourth quarter, we will continue to make significant investment in the business. Retooling of the Tecstar Texas plant will run through November and a major portion of the start-up costs for Tecstar's New Jersey plant will also fall in the fourth quarter. Our strategy remains to diversify and become more profitable for the long-term as we expand our OEM Automotive Supply business and expand the commercial vehicle business. With this plan well in place, we are confident of strong financial results in fiscal 2001 and beyond."

    Starcraft Corporation is a leading manufacturer of second stage vehicle conversions and a supplier to the Original Equipment Manufacturers (OEMs).