Rankin Reports Third Quarter Results
15 January 2001
Rankin Reports Third Quarter Results
HOUSTON, Jan. 15 Rankin Automotive Group, Inc.
(OTC Bulletin Board: RAVE) ("Company"), today announced sales for the
three-month period ended November 30, 2000 of $12.3 million representing a
decrease of $16.9 million from sales of $29.2 million for the same period in
1999, partly resulting from the sale of the Texas jobber business during the
second quarter and the sale of the jobber and retail business in Mississippi
and Louisiana in the third quarter. Net loss totaled $(5.1) million compared
to net income of $0.2 million for the same period in 1999. The current period
loss included $(2.3) million related to the loss on sale and $(0.8) million
related to operating losses on the sold Mississippi and Louisiana operations.
Loss per share was $(0.98) compared to earnings per share of $0.05 in the
prior year.
Sales for the nine months ended November 30, 2000 was $66.4 million,
reflecting a decrease of $28.9 million from sales of $95.3 million for the
same period in 1999. Net loss totaled $(11.6) million compared to net income
of $1.8 million for the same period in 1999. Included in the loss for the
nine-month period is $(4.3) million related to the loss on sale and closure of
operations. Loss per share was $(2.24) compared to earnings per share of
$0.35 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 will continue to 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 35 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 November 30, 2000 for more details.
RANKIN FISCAL FINANCIAL HIGHLIGHTS
For the Three Months and Nine Months Ended November 30, 2000
(In thousands, except per share data)
Three Months Ended Nine Months Ended
November 30 November 30
2000 1999 2000 1999
Net Sales $12,275 $29,225 $66,397 $95,255
Gross Profit 4,897 10,989 22,866 35,000
Loss on sale and
closure of operation (2,261) --- (4,347) ---
Income loss from
operations (4,461) 1,074 (8,846) 4,133
Net income (loss) (5,081) 235 (11,622) 1,817
Earnings per share:
Basic $(0.98) $0.05 $(2.24) $0.35
Diluted $(0.98) $0.05 $(2.24) $0.35
Weighted average
shares outstanding
Basic 5,187 5,187 5,187 5,157
Diluted 5,187 5,187 5,187 5,158