Rankin Reports Second Quarter Results
16 October 2000
Rankin Reports Second Quarter Results
HOUSTON, Oct. 16 Rankin Automotive Group, Inc. ("Company"), today announced
sales for the three months ended August 31, 2000 of $24.9 million reflecting a
decrease of $12.8 million from sales of $37.7 million for the same period in
1999, partly resulting from the sale of the Texas jobber business during the
current quarter. Net loss totaled $(5.8) million compared to net income of
$0.8 million for the same period in 1999. Included in the current period loss
is $(2.1) million related to the loss on sale and closure of operations. Loss
per share was $(1.11) compared to earnings per share of $0.15 in the prior
year.
Sales for the six months ended August 31, 2000 of $54.1 million reflected
a decrease of $(11.9) million from sales of $66.0 million for the same period
in 1999. Net loss totaled $(6.5) million compared to net income of $1.6
million for the same period in 1999. Loss per share was $(1.26) compared to
earnings per share of $0.31 in the prior year.
The Company has not been in compliance with its financing agreement since
June 30, 2000. The Company does not anticipate that the current lender will
restructure the senior credit facility and is currently seeking alternative
sources of funding to finance its operations. There can be no assurance that
such financing would be available on acceptable terms, if at all.
Randall B. Rankin, Chairman and Chief Executive Officer stated, "We've
continued to focus on sales to professional installers and sell operating
units that do not include that core focus. We will continue this process
throughout the year and deploy all of our assets into the professional
installer business. The Company is also exploring new financing alternatives,
working with vendors to improve product flow and considering other strategic
alternatives including additional divestitures, recapitalization or
reorganization strategies."
Rankin sells automotive parts, products and accessories to commercial and
retail customers in Texas and Louisiana through its Houston distribution
center and 41 stores.
Certain statements contained in this press release are forward looking
statements. These statements discuss, among other things, expected growth,
domestic development and expansion strategy, business strategies and future
performance. These forward looking statements are subject to risks,
uncertainties, and assumptions including without limitation, competition,
product demand, domestic and international economies, government approvals,
inflation, the ability to hire and retain qualified employees, the ability to
convert acquired stores in a timely and profitable manner, consumer debt
levels, and the weather. Actual results may materially differ from
anticipated results. Please refer to the Risk Factors section of the 10-Q for
the three months ended August 31, 2000 for more details.
RANKIN FISCAL FINANCIAL HIGHLIGHTS
For the Three Months and Six Months Ended August 31, 2000
(In thousands, except per share data)
Three Months Ended Six Months Ended
August 31 August 31
2000 1999 2000 1999
Net Sales $24,898 $37,681 $54,122 $66,031
Gross Profit 6,979 13,319 17,969 24,011
Loss on sale and
closure of operation (2,085) --- (2,085) ---
Income loss from
operations (5,770) 1,694 (6,541) 3,059
Net income (loss) (5,770) 800 (6,541) 1,582
Earnings per share:
Basic $(1.11) $0.15 $(1.26) $0.31
Diluted $(1.11) $0.15 $(1.26) $0.31
Weighted average
shares outstanding
Basic 5,187 5,187 5,187 5,142
Diluted 5,187 5,187 5,187 5,143