American Homestar Corporation Announces Results for Second Quarter of Fiscal 2000.Business Editors HOUSTON--(BUSINESS WIRE)--Jan. 27, 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 second quarter and six months ended December December: see month. 31, 1999. For the quarter, revenues were $139 million compared with $169 million in the year-earlier period. The net loss for the second quarter was $7.4 million, or $0.40 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 $5.8 million, or $0.31 per diluted share, in the prior-year period. For the first six months of fiscal 2000, revenues were $305 million compared with $317 million in the comparable period last year. The net loss for the first six months of fiscal 2000 was $8.9 million, or $0.48 per diluted share, compared with net income of $11.5 million, or $0.62 per diluted share, for the first six months of last year. Results for the six months ended December 31, 1999, reflect an 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. restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. of $1.6 million, or $0.09 per diluted share, in connection with the closing of the Company's manufacturing facility 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 an after-tax inventory write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of $475,000, or $0.03 per diluted share to allow for reduced selling prices and selling concessions Selling concession The discount underwriters offer the selling group on securities in a new issue. selling concession See concession. on 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: Vicksburg Vicksburg, city (1990 pop. 20,908), seat of Warren co., W Miss., on bluffs above the Mississippi River at the mouth of the Yazoo; inc. 1825. An important port, it is the commercial, processing, and shipping center for a cotton, timber, and livestock area. models at Company stores and franchise locations. 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 11:00 a.m. Eastern Standard Time on Thursday Thursday: see week. , January January: see month. 27, 2000. The number for the call is 719/457-2635 with a replay available through February February: see month. 3 by dialing 719/457-0820 and entering 866445 when prompted for the access code. Commenting on the results, President and Chief Executive Officer Laurence Laurence is the surname or the given name of several people: Surname
tr.v. character·ized, character·iz·ing, character·iz·es 1. To describe the qualities or peculiarities of: characterized the warden as ruthless. 2. by a highly competitive retail environment, increasing interest rates and general credit tightening, had a noticeable and negative impact on the Company's retail sales activity, which led to the very disappointing results for the quarter. This lower-than-expected retail sales volume, together with a continuing reduction of retail inventories also resulted in lower-than-expected demand and lower production volume in our manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. . &uot;We are committed to the immediate improvement of operating results and the maintenance of a strong balance sheet despite the temporary industry-wide and competitive challenges we face. In addition to our existing inventory and floorplan debt reduction program, we have implemented several other key initiatives over the past two months aimed at further debt reduction, greater efficiencies, lower fixed operating costs operating costs npl → gastos mpl operacionales and steadily improving results from this point forward.&uot; 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 13 manufacturing plants, 122 Company-owned retail sales centers, 12 joint venture retail sales centers and serves 67 retail franchisees and over 300 independent retail locations in 28 states. The Company also provides retail financing through its finance affiliate Affiliate Relationship between two companies when one company owns substantial interest, but less than a majority of the voting stock of another company, or when two companies are both subsidiaries of a third company. See: Subsidiaries, parent company. , 21st Century Mortgage, and provides insurance and transportation services to its customers.
AMERICAN HOMESTAR CORPORATION
Comparative Operating Summary
Three Months Ended (1)
December 31, November 30,
Second Quarter - Fiscal 2000 1999 1998
------------- -------------
Average New Home Retail Selling
Price - HUD Code $ 55,444 $ 53,406
Average New Home Selling Price
- Modular 109,749 --
New Homes Sold at Retail 1,302 1,706
Manufacturing Shipments (2) 2,480 3,205
Retail Internalization Rate (3) 88% 82%
Sales $ 128,018,000 $ 159,376,000
Total Revenues 138,789,000 169,022,000
Operating Income (Loss) (5,543,000) 12,373,000
Net Income (Loss) $ (7,441,000) $ 5,757,000
============= =============
Diluted Earnings (Loss) Per Common
Share $ (0.40) $ 0.31
Weighted Average Number of Common
Shares Outstanding 18,423,707 18,690,511
Six Months Ended (1)
December 31, November 30,
First Half - Fiscal 2000 1999 1998
------------- -------------
Average New Home Retail Selling
Price - HUD Code $ 55,050 $ 52,871
Average New Home Selling Price
- Modular 112,438 --
New Homes Sold at Retail 2,914 3,165
Manufacturing Shipments (2) 5,557 6,171
Retail Internalization Rate (3) 88% 85%
Sales $ 283,359,000 $ 297,256,000
Total Revenues 304,568,000 316,553,000
Operating Income (Loss), Before
Special Charges (1,199,000) 23,833,000
Operating Income (Loss) (4,197,000)(4) 23,833,000
Net Income (Loss) $ (8,876,000)(5) $ 11,541,000
============= =============
Diluted Earnings (Loss) Per Common
Share $ (0.48) $ 0.62
Weighted Average Number of Common
Shares Outstanding 18,422,597 18,581,107
(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 $3.0 million (pre-tax) related
to the closing of the Vicksburg, Mississippi, manufacturing plant
and related inventory write-downs.
(5) Includes special charges of $2.1 million (after-tax), or $0.11
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 &uot;anticipate,&uot; believe,&uot; &uot;estimate,&uot; &uot;should,&uot; &uot;expect,&uot; 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 Incorrect means to not be correct and may also refer to:
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)
2nd Year to
Income Statement Quarter Date
Revenues: --------- ---------
Retail $ 81,969 $ 177,688
Manufacturing 84,010 193,258
Transportation 2,592 5,321
Finance/Insurance 4,556 8,778
Corporate 2,624 5,296
Elimination (36,962) (85,773)
--------- ---------
Total revenues 138,789 304,568
--------- ---------
Costs and expenses:
Cost of sales 108,871 234,765
S, G &A 35,461 71,002
Special charges -- 675
Restructuring charge -- 2,323
--------- ---------
Total costs and expenses 144,332 308,765
--------- ---------
Operating income (5,543) (4,197)
Interest expense (4,338) (8,370)
Other (26) (209)
--------- ---------
Income before taxes (9,907) (12,776)
Income tax expense (benefit) (2,548) (3,782)
--------- ---------
Net income before items shown below (7,359) (8,994)
Earnings in affiliates (18) 238
Minority interest (64) (120)
--------- ---------
Net income $ (7,441) $ (8,876)
========= =========
Preliminary Balance Sheet at December 31, 1999
Cash $ 10,338
Cash in transit from financial institutions 23,689
--------
Total cash and cash equivalents 34,027
Receivables 31,001
Inventories 104,404
Prepaid expenses and other current assets 15,837
--------
Total current assets 185,269
Property, plant and equipment 95,694
Goodwill 93,332
Other assets 19,110
--------
Total assets $393,405
========
Notes payable, current installments $ 3,058
Floor plan payable, net 73,430
Accounts payable and accrued expenses 58,546
--------
Total current liabilities 135,034
Notes payable, less current installments 127,168
Deferred taxes --
Minority interest 979
Shareholders' equity 130,224
--------
Total liabilities and shareholders' equity $393,405
========
AMERICAN HOMESTAR CORPORATION
SUPPLEMENTAL OPERATING DATA
FISCAL YEAR 2000
2nd Year to
Quarter Date
------ ------
Retail Units Sold:
New singles 346 846
New doubles 956 2,068
------ ------
Total new 1,302 2,914
Used 351 762
Consigned 218 379
------ ------
Total 1,871 4,055
====== ======
Manufacturing Units:
Intercompany
Singles 260 631
Doubles 764 1,630
Triples 17 53
------ ------
Total 1,041 2,314
====== ======
Outside
Singles 398 672
Doubles 947 2,354
Triples 94 217
------ ------
Total 1,439 3,243
====== ======
Total produced
Singles 658 1,303
Doubles 1,711 3,984
Triples 111 270
------ ------
Total 2,480 5,557
====== ======
Manufacturing Floors:
Total floors 4,433 10,129
====== ======
Number of Plants 13 13.5
====== ======
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion