Collins Posts Record Sales
18 August 2000
Collins Posts Record Sales
HUTCHINSON, Kan. - Collins Industries, Inc. today reported record sales for
the three and nine months ended July 31, 2000. Sales for the quarter ended July
31, 2000 increased 10% to $58,220,485 compared to $52,836,325 for the same
period last year. This increase was principally due to higher ambulance and
terminal truck sales and was partially offset by weaker bus sales. Field
activity and inbound orders continue to be strong for ambulance and truck sales.
Bus sales have been lower in fiscal 2000 versus fiscal 1999 primarily due to
lower overall market demand and, in our particular case, lower national
contractor orders. However, dealer distribution sales for the first nine months
of fiscal 2000 are comparable to the same period for fiscal 1999. There are
indications that national contractor bus sales will be stronger in fiscal 2001.
Net income for the quarter ended July 31, 2000 was $1,262,997
($.17 per share - diluted) compared to $1,919,790 ($.26 per share - diluted)
for the same period last year. Net income for the quarter ended July 31, 2000
decreased principally due to lower contributions from bus products.
Donald Lynn Collins, President and CEO said, "Despite lower earnings, we
are pleased with our continued strong performance in the marketplace." He
added, "We anticipate continued strong sales growth with continued pressure on
earnings for the remainder of the fiscal year."
Sales for the nine months ended July 31, 2000 increased 16% to
$159,447,884 compared to $137,777,200 for the same period in fiscal 1999. Net
income for the nine months ended July 31, 2000 decreased to $3,170,832
($.42 per share - diluted) compared to $4,106,346 ($.55 per share - diluted)
in the same period last year. The sales increase principally resulted from
higher sales of ambulance and terminal truck products. The decrease in net
income principally resulted from lower sales of bus products, offset in part
by increased profit contributions from both ambulance and terminal truck
products.
Historically, the Company's proprietary bus products have been heavily
skewed toward Ford Motor Company (Ford) products which carry higher gross
margins. However, the Type-A school bus market has moved heavily away from
Ford chassis to General Motors (GM) chassis due to price and model
availability. Consequently, the Company's mix of bus products in fiscal 2000
has followed this shift to a greater volume of GM bus products which carry
lower margins.
The Company's sales backlog at July 31, 2000 was $63.7 million compared to
$59.6 million at October 31, 1999 and $73.5 million at July 31, 1999.
Collins Industries, Inc. is a leading manufacturer of ambulance, small
school buses, commercial buses and terminal trucks. The Company sells its
products throughout the United States and, to a lesser extent, abroad.
COLLINS INDUSTRIES, INC.
Financial Summary
(In thousands of dollars, except share and per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
July 31, July 31,
2000 1999 2000 1999
Sales $58,220 $52,836 $159,448 $137,777
Income before
income taxes $1,625 $3,097 $4,465 $6,623
Income tax expense $362 $1,177 $1,294 $2,517
Net income $1,263 $1,920 $3,171 $4,106
Earnings per share:
Basic $0.18 $0.27 $0.44 $0.56
Diluted $0.17 $0.26 $0.42 $0.55
Weighted average
outstanding
common and common
equivalent shares:
Basic 7,212,482 7,243,498 7,212,432 7,336,618
Diluted 7,456,147 7,504,776 7,568,586 7,465,421