Meteor Industries Announces Increase in Second Quarter Revenues
15 August 2000
Second Quarter Revenue Grows 32% to Record $49 Million
DENVER - Meteor Industries, Inc. , a leading distributor of refined
petroleum products, today announced increased revenues for the second quarter
ended June 30, 2000, however, the Company experienced a loss for the second
quarter.
Revenue increased 32% to a record $49 million in the second quarter versus
revenue of $37 million in the same quarter last year. For the first six
months, revenue advanced 41% to $90 million compared with revenue of
$64 million a year ago.
Second quarter operating income was $388,000 versus operating income of
$800,000 in the same quarter last year. Through six months, operating income
was $881,000 compared with operating income of $1,569,000 a year ago. The
Company experienced a net loss of $106,000 or $.03 per basic and diluted share
versus net income of $231,000 or $.07 per basic and diluted share a year ago.
For the first six months the Company experienced a net loss of $97,000 or
$.03 per basic and diluted share compared to net income of $512,000 or
$.15 per basic and diluted share.
The Company's substantial increase in revenue is primarily due to higher
product prices during the quarter and an increase in product sales volumes as
a result of the Carroll Oil Company acquisition in April 1999. Meteor's net
loss for the quarter is primarily due to higher than anticipated operating
costs and decreased margins due to competition. Also, a significant increase
in interest expense related to carrying higher levels of accounts receivables
and inventory contributed to the second quarter loss. Accounts receivables
and inventory are significantly higher in 2000 versus 1999 due to the rapid
increase in the cost of petroleum based products.
Edward J. Names, President of Meteor, said, "While we are encouraged by
the growth in sales volumes for the quarter, we are disappointed with the
decrease in net profit from the prior year. We will continue to focus all of
our attention on improving bottom-line results, while also exploring every
alternative to enhance shareholder value, including sales of certain assets,
mergers, acquisitions and joint venture transactions."
Also, in June of 2000, Meteor announced the signing of a non-binding
letter of intent to acquire all of the outstanding shares of Innovative Drug
Delivery Systems, Inc. Meteor is continuing to negotiate with IDDS on the
proposed transaction.
Since its inception in 1993, Meteor has rapidly emerged as one of the
largest independent petroleum distributors in the Western United States. The
Company has a proven track record of acquiring and successfully integrating
solid companies that contribute to Meteor's overall financial performance.
Income Statement Highlights
(Dollars in thousands, Second quarter ended Six months ended
except per share data) June 30, June 30
2000 1999 2000 1999
Net sales $48,605 $ 36,965 $90,623 $64,115
Gross profit 5,441 5,899 11,079 11,342
Operating income 388 800 881 1,569
Income before taxes
and minority interest 30 559 261 1,198
Net income $(106) $231 $(97) $512
Basic and diluted
earnings per share $(.03) $.07 $(.03) $.15
Basic weighted average
shares outstanding 3,524,988 3,423,694 3,524,579 3,423,694
Diluted weighted average
shares outstanding 3,524,988 3,433,754 3,524,579 3,433,754
Balance Sheet Highlights
(Dollars in thousands) June 31, December 31,
2000 1999
Current assets $26,007 $22,310
Property and equipment 17,396 17,905
Other assets 4,781 4,780
Total assets 48,184 44,995
Current liabilities $25,210 $22,655
Long-term debt 5,545 5,865
Deferred tax liability 2,606 2,606
Minority interest 5,657 5,412
Total liabilities 39,018 36,538
Total stockholders' equity 9,166 8,457
Total liabilities and
stockholders' equity $48,184 $44,995