Owosso Corporation Announces Results for the Third Quarter of Fiscal 2000
21 August 2000
Owosso Corporation Announces Results for the Third Quarter of Fiscal 2000
KING OF PRUSSIA, Pa. - Owosso Corporation today announced a net loss for
common shareholders of ($85,000), or ($0.01) per share, for its third fiscal
quarter ended July 30, 2000, as compared to net income available for common
shareholders of $779,000 or $0.13 per share, for the prior year quarter.
Third quarter net sales were $41.8 million, as compared to $43.9 million in
the prior year quarter; income from operations was $1.7 million, as compared
to $3.2 million.
For the nine months ended July 30, 2000, the Company recorded a net loss
of ($351,000), or ($0.06) per share, as compared to net income available for
common shareholders of $1.4 million, or $0.24 per share in the prior year
period. Net sales for the nine-month period of 2000 were $124.9 million, as
compared to $128.5 million in the prior year period; income from operations
was $4.7 million in the current year period, as compared to $6.9 million in
the prior year period.
Income from operations from the Motors segment was $1.9 million, or 12.9%
of net sales, in the third quarter of 2000, as compared to $2.6 million, or
15.7% of net sales, in the prior year quarter. For the nine-month period,
income from operations from the Motors segment was $4.4 million, or 10.0% of
net sales, as compared to $6.7 million, or 14.1% 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 continued to be adversely affected in the third
quarter by design issues associated with a new motor developed for this
market. The design issues were resolved during the third quarter and the
Company expects sales to this market to improve during the fourth fiscal
quarter of 2000.
Income from operations for the Motors segment also continued to be
unfavorably impacted by temporary production inefficiencies resulting from a
complete overhaul of the Motor Products-Michigan facility from batch
processing to demand flow technology during the second quarter of 2000. The
Company has seen improvement in productivity levels at Motor Products over the
second quarter and expects further improvement in the coming months.
The Coils segment reported a loss from operations of ($65,000), or 0.6% of
net sales, in the third quarter of 2000, as compared to income from operations
of $893,000, or 7.4% of net sales, in the prior year quarter. For the nine-
month period, income from operations for the Coils segment was $841,000, or
2.5% of net sales, as compared to $3.3 million, or 9.1% 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. The Company expects the heavy truck market to
continue to decline in the fourth quarter.
Income from operations at Sooner Trailer was $253,000, or 2.1% of net
sales in the third quarter of 2000, as compared to $771,000, or 7.1% of net
sales in the prior year quarter. For the nine-month period, income from
operations was $1.3 million, or 3.8% of net sales, as compared to
$1.6 million, or 5.5% of net sales for the prior year period. Demand for
Sooner's products continues to be strong with a year to date sales increase of
17%. During the second quarter of 2000, Sooner initiated efforts to redefine
its manufacturing process by adopting more modern and efficient techniques.
The temporary disruption this has caused to the business has unfavorably
affected its profitability during both the second and third quarters of 2000.
The Company expects profitability at Sooner to improve during the fourth
quarter of 2000.
OWOSSO CORPORATION
(in thousands, except per share data)
Income Statement Data:
Three Months Ended Nine Months Ended
July 30, Aug. 1, % July 30, Aug. 1, %
2000 1999 Change 2000 1999 Change
Net sales $41,824 $43,910 (4.8%) $124,941 $128,487 (2.8%)
Gross profit 6,884 8,796 (21.7%) 21,119 25,320 (16.6%)
Income from
operations 1,701 3,150 (46.0%) 4,727 6,876 (31.2%)
Income before taxes 434 2,147 (79.8%) 979 3,491 (72.0%)
Net income 197 1,054 (81.3%) 488 2,221 (78.0%)
Net income (loss)
available for common
shareholders ** (85) 779 (110.8%) (351) 1,402 (125.0%)
Income (loss) per
basic and diluted
share $(0.01) $0.13 (110.8%) $(0.06) $0.24 (125.0%)
Average basic
shares outstanding 5,850 5,830 5,842 5,824
July 30, October 31,
2000 1999
Current assets $43,654 $42,654
Net property, plant and equipment 34,108 35,900
Total assets 113,663 116,690
Current liabilities 23,118 25,743
Total debt, including current portion 54,791 55,480
Stockholders' equity $32,847 $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 $562 for each of the nine-month periods, and after deduction of
accretion in the book value of preferred stock of $94 and $276 for the three-
and nine-month periods ended July 30, 2000, respectively, and $88 and $257 for
the three- and nine-month periods ended August 1, 1999, respectively.
(in thousands)
Segment Data :
Three Months Ended Nine Months Ended
July 30, August 1, July 30, August 1,
2000 1999 2000 1999
Net sales:
Motors $14,821 $16,242 $43,523 $47,864
Coils 10,473 12,007 33,685 35,800
Trailers and agricultural
equipment 12,216 10,846 34,148 30,274
Other 4,314 4,815 13,585 14,549
Total net sales $41,824 $43,910 $124,941 $128,487
Income (loss) from operations:
Motors $1,907 $2,554 $4,373 $6,728
Coils (65) 893 841 3,261
Trailers and agricultural
equipment* 253 771 1,285 1,015
Other 712 474 1,865 796
Unallocated corporate
charges (1,106) (1,542) (3,637) (4,924)
Total income from
operations $1,701 $3,150 $4,727 $6,876
* The nine-months ended August 1, 1999, includes a net loss from
operations of $607,000 attributable to the Company's former Parker subsidiary.