SMC Reports Third Quarter Earnings
19 October 2000
SMC Reports Third Quarter Earnings
BEND, Ore., Oct. 19 Today SMC Corporation
released its results for the three and nine month periods ended
September 30, 2000. For the three months ended September 30, 2000, SMC
reported sales of $49.5 million and net loss of $2.1 million. This compares to
sales of $46.7 million and net income of $130,000 for the three month period
ended October 2, 1999. For the nine month period ended September 30, 2000,
sales were $148.0 million and the Company incurred a net loss of $5.5 million.
This compares to sales of $157.3 million and net income of $89,000 recorded
for the nine month period ended October 2, 1999.
Inventories have been reduced by over $22 million (46%) since
October 2, 1999. The Company's operating line of credit has also been reduced
by approximately $5 million (73%) and overall liabilities have been reduced by
over $8 million (16%). As of October 17, 2000, the Company has no borrowings
against its operating line of credit and has approximately $2 million in its
investment account.
Although the Company has made significant improvements to its balance
sheet, operating results continued to reflect the costs of converting the
factories to a build-to-order method and the costs associated with the
completion of the model year changes. The 2001 model year incorporated many
significant and substantial changes to virtually all products. These changes
have been well received in the market place as evidenced by increased sales to
dealers and record sales by dealers at the Company's homecoming events. The
Company believes that the majority of the costs associated with the model
change and build-to-order manufacturing capabilities have been incurred and
additional costs, if any, will be minimal.
Overall, the Company has reduced its labor and personnel by 15% since
September 30, 1999. The Company's year to date costs of administration,
finance and engineering are approximately $600,000 lower than those costs
incurred year to date in 1999. The Company anticipates that additional savings
will be realized in the fourth quarter of 2000 as a result of personnel
reductions late in the third quarter of 2000.
Interest and other expenses were higher in the third quarter of 2000
compared to the third quarter of 1999 as the result of a one time gain of
$1.1 million in 1999 from the sale of the Company's aircraft.
Mr. Michael R. Jacque, President and Chief Operating Officer, adds, "Our
cash position has improved immensely. We will continue to aggressively reduce
our costs where ever possible."
SMC Corporation is one of the largest high line motor coach manufacturers
in the United States. Headquartered in Bend, Oregon, the Company has six
locations in Oregon. The Company offers customers luxury recreational vehicle
models under the Beaver, Safari and Harney Coach Works brand names.
Information about SMC Corporation and its products can be found on the World
Wide Web at http://www.smccorporation.com.
Forward Looking Statements: The statements in this report regarding
anticipated cost savings are forward looking statements. A number of factors
could cause actual results to differ materially from these statements. Please
also refer to the Company's SEC reports, including, but not limited to its
Annual Report on Form 10-K for the year ended December 31, 1999.
SMC CORPORATION
CONSOLIDATED STATEMENT OF INCOME
$000's (except share and per share data)
Three Months Ended Nine Months Ended
10/02/99 9/30/00 10/02/99 9/30/00
Net Sales 46,711 49,515 157,327 147,992
Gross Profit 5,012 2,851 15,365 8,509
Income (Loss) from Operations (489) (2,902) (209) (7,425)
(Loss) Before Taxes 217 (3,483) 148 (9,162)
(Benefit) for Taxes 87 (1,393) 59 (3,665)
Net (Loss) Income 130 (2,090) 89 (5,497)
Net (Loss) Income/share basic 0.02 (0.36) 0.02 (0.95)
Net (Loss) Income/share diluted 0.02 (0.36) 0.02 (0.95)
Weighted share basic 5,839,000 5,798,000 5,839,000 5,786,000
Weighted shares diluted 5,841,000 5,798,000 5,841,000 5,786,000
SMC CORPORATION
CONSOLIDATED BALANCE SHEET
In Thousands
12/31/99 9/30/00
Assets
Current 59,704 44,060
Property & Equipment 13,978 14,462
Other 1,987 1,833
Total Assets 75,669 60,355
Liabilities
Current 44,127 33,868
Long-term Debt 8,663 9,224
Total Liabilities 52,790 43,092
Shareholders' Equity 22,879 17,263
Total Liability & Equity 75,669 60,355