American Homestar Corporation Announces Results for Fiscal 2000.Business Editors HOUSTON--(BUSINESS WIRE)--Aug. 15, 2000 American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Homestar Corporation (Nasdaq/NM:HSTR HSTR Harry S Truman National Historic Site (US National Park Service) HSTR High Speed Token Ring ) today announced results for the fourth quarter and fiscal year ended June June: see month. 30, 2000. For the quarter, revenues were $139 million compared with $186 million in the year-earlier period. The net loss before special charges for the fourth quarter was $3.2 million, or $0.17 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared with net income of $4.6 million, or $0.25 per diluted share, in the prior-year period. The Company previously announced that it would incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. and provide for special charges relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc a restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of its retail operations and for the closing of its Henderson, North Carolina For the city in Henderson County, North Carolina, see Hendersonville, North Carolina. Henderson is a city in Vance County, North Carolina, United States. The population was 16,095 at the 2000 census. It is the county seat of Vance CountyGR6. , manufacturing facility. Results for the fourth quarter reflect several restructuring, impairments and other special charges totaling $27.4 million, after tax, or $1.49 per diluted share. On an after-tax basis After-tax basis The comparison basis used to analyze the net after-tax returns on a corporate taxable bond and a municipal tax-free bond. , the write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of goodwill associated with prior retail acquisitions accounted for $19.9 million of the total. Of this amount, $9.8 million is goodwill associated with the acquisition of First Value Homes and NC Homes, which were not part of the Company's formal restructuring plan and were not included in previous estimates. Also on an after-tax basis, fixed asset impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. and other direct restructuring costs amounted to $3.2 million, retail inventory impairments totaled $2.6 million, and other items, principally an addition to the Company's warranty expense accrual accrual, n continually recurring short-term liabilities. Examples are accrued wages, taxes, and interest. , totaled $1.7 million. As a result of these special charges, the Company posted a net loss of $30.6 million, or $1.66 per diluted share for the quarter. For the year ended June 30, 2000, revenues were $574 million compared with $654 million in the comparable period last year. The net loss before special charges for fiscal 2000 was $16.4 million, or $0.89 per diluted share, compared with net income of $17.9 million, or $0.96 per diluted share, last year. Results for the year ended June 30 reflect the special charges mentioned above as well as after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. charges of $3.8 million, or $0.20 per diluted share, in connection with the first and third quarter closings of the Company's manufacturing facilities in Vicksburg, Mississippi Vicksburg is a city in Warren County, Mississippi. It is located 234 miles (377 km) north by west of New Orleans on the Mississippi and Yazoo rivers, and 40 miles (65 km) due west of Jackson, the state capital. , and Brilliant, Alabama Brilliant is a town in Marion County, Alabama, United States. At the 2000 census the population was 762. History The present Town of Brilliant was incorporated as Boston, Alabama and was named for the Bostick family. , asset impairment charges, and a provision for future losses in connection with new home repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. , from retail dealers. Total after-tax special charges for the year ended June 30, 2000, were $31.2 million, or $1.69 per diluted share. Including special charges, the Company reported a net loss of $47.6 million, or $2.58 per diluted share, for the year ended June 30, 2000. The Company has scheduled a conference call with its analysts and institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. at 11:00am Eastern Standard Time on Tuesday Tuesday: see week. , August 15, 2000. The number for the call is 719/457-2659. The call will be carried live on the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the with a 30-day replay available from the Company's website: www.AmericanHomestar.com and from www.StreetEvents.com, www.StreetFusion.com, and www.Vcall.com. Commenting on fourth quarter results and the Company's future plans and outlook, President and Chief Executive Officer Laurence Laurence is the surname or the given name of several people: Surname
The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. before special charges in the quarter and had slightly positive operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. . Our focus is to reduce costs and our breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations volume in order to generate profitable operations on much lower revenue levels. As our plans are more fully implemented in the core operations and as the discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: units are liquidated DAMAGES, LIQUIDATED, contracts. When the parties to a contract stipulate for the payment of a certain sum, as a satisfaction fixed and agreed upon by them, for the not doing of certain things particularly mentioned in the agreement, the sum so fixed upon is called liquidated damages. (q.v. or phased out, we expect slow but steady progress in our operating results." American Homestar is one of the leading vertically integrated manufactured housing Manufactured housing (also known as prefab housing) is a type of housing unit that is largely assembled in factories and then transported to sites of use. In the United States, the term "manufactured home" specifically refers to a house built entirely in a protected companies. The Company currently operates 11 manufacturing plants, 109 Company-owned retail sales centers, 11 joint venture retail sales centers and serves 60 retail franchisees and over 300 independent retail locations in 28 states. The Company also provides retail financing through its new finance affiliate, Homestar 21, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , and provides insurance and transportation services to its customers.
AMERICAN HOMESTAR CORPORATION
Comparative Operating Summary
Three Months Ended (1)
June 30, May 31,
Fourth Quarter - Fiscal 2000 2000 1999
Average New Home Retail Selling
Price - HUD Code $ 54,961 $ 54,268
Average New Home Selling
Price - Modular 94,832 90,308
New Homes Sold at Retail 1,528 1,896
Manufacturing Shipments (2) 2,456 3,437
Retail Internalization Rate (3) 92% 86%
Sales $ 128,485,000 $ 174,526,000
Total Revenue 139,113,000 186,090,000
Operating Income Before
Special Charges 1,549,000 11,572,000
Operating Income (Loss) (36,235,000)(4) 11,572,000
Net Income (Loss) $ (30,566,000)(5) $ 4,584,000
Diluted Earnings (Loss) Per
Common Share $ (1.66) $ 0.25
Weighted Average Number of Common
Shares Outstanding 18,424,000 18,589,000
Year Ended (1)
June 30, May 31,
Fiscal 2000 2000 1999
Average New Home Retail Selling
Price - HUD Code $ 55,095 $ 55,008
Average New Home Selling
Price - Modular 108,614 87,834
New Homes Sold at Retail 5,831 6,560
Manufacturing Shipments (2) 10,399 12,311
Retail Internalization Rate (3) 89% 85%
Sales $ 532,634,000 $ 612,086,000
Total Revenue 574,036,000 654,043,000
Operating Income (Loss) Before
Special Charges (4,633,000) 41,644,000
Operating Income (Loss) (48,208,000) 41,644,000
Net Income (Loss) $ (47,591,000)(7) $ 17,941,000
Diluted Earnings (Loss) Per
Common Share $ (2.58) $ 0.96
Weighted Average Number of
Common Shares Outstanding 18,423,000 18,668,000
(1) The Company changed its fiscal year in June 1999 from a May 31
year-end last year to a June 30 year-end in the current year.
(2) Including shipments to Company-owned retail locations.
(3) Percentage of new homes sold at retail, which were also
manufactured by the Company.
(4) Includes special charges totaling $37.8 million (pre-tax)
related to the write-off of goodwill and reserves for impaired
leasehold improvements, inventory and other special charges in
connection with the retail distribution restructuring plan and
the closing of the Henderson, North Carolina, manufacturing
plant.
(5) Includes special charges of $27.4 million (after-tax), or
$1.49 per share.
(6) Includes special charges totaling $43.6 million (pre-tax) in
the first and fourth quarters.
(7) Includes special charges totaling $31.2 million (after-tax),
or $1.69 per share.
This press release may contain certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. and information based on the beliefs of the Company's management as well as assumptions made by, and information currently available to, the Company's management. Words like "anticipate "believe," "estimate," "should," "expect," and similar expressions used in this press release are intended to identify forward-looking statements. Such statements reflect the current views of the Company with respect to future events and are subject to certain risks, uncertainties, and assumptions, including the risk factors described in the Company's most recently filed registration statement and Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. . Should one or more of these risks or uncertainties materialize ma·te·ri·al·ize v. ma·te·ri·al·ized, ma·te·ri·al·iz·ing, ma·te·ri·al·iz·es v.tr. 1. To cause to become real or actual: By building the house, we materialized a dream. or should underlying assumptions prove incorrect, actual events or results may vary from those described herein as anticipated, expected, believed, or estimated. For more information about the Company, visit its Website at www.americanhomestar.com
AMERICAN HOMESTAR CORPORATION
SUPPLEMENTAL FINANCIAL DATA
FISCAL YEAR 2000
(AFTER SPECIAL CHARGES)
4th Year to
Income Statement Quarter Date
Revenues:
Retail $ 86,582 $ 342,013
Manufacturing 88,596 364,841
Transportation 2,690 10,270
Finance/Insurance 3,606 16,080
Corporate 2,919 11,030
Elimination (45,280) (170,198)
--------- ---------
Total revenues 139,113 574,036
--------- ---------
Costs and expenses:
Cost of sales 104,025 438,602
S, G & A 33,539 140,067
Restructuring, impairments
and other special charges 37,784 43,575
--------- ---------
Total costs and expenses 175,348 622,244
--------- ---------
Operating (loss) (36,235) (48,208)
Interest expense (5,296) (18,366)
Other (289) (566)
--------- ---------
(Loss) before taxes (41,820) (67,140)
Income tax expense (benefit) (11,279) (20,141)
--------- ---------
(Loss) before items shown below (30,541) (46,999)
Earnings in affiliates 39 (350)
Minority interest (64) (242)
--------- ---------
Net (loss) $ (30,566) $ (47,591)
========= =========
AMERICAN HOMESTAR CORPORATION
SUPPLEMENTAL OPERATING DATA
FISCAL YEAR 2000
4th Year to
Quarter Date
Retail Units Sold:
New singles 368 1,618
New doubles 1,160 4,213
------ ------
Total new 1,528 5,831
Used 237 1,342
Consigned 222 854
------ ------
Total 1,987 8,027
====== ======
Manufacturing Units:
Intercompany
Singles 291 1,242
Doubles 847 3,231
Triples 23 96
------ ------
Total 1,161 4,569
====== ======
Outside
Singles 136 983
Doubles 1,071 4,460
Triples 88 387
------ ------
Total 1,295 5,830
====== ======
Total produced
Singles 427 2,225
Doubles 1,918 7,691
Triples 111 483
------ ------
Total 2,456 10,399
====== ======
Manufacturing Floors:
Total floors 4,634 19,160
====== ======
Number of Plants 11 12.6
====== ======
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