Bonded Motors Announces Third Quarter Results.LOS LOS Length of stay, see there ANGELES--(BUSINESS WIRE)--Nov. 15, 1999-- Revenues Decline 25% From Prior Year Levels Warranty Expenses, Product Returns Increase Valuation Allowance For Deferred Tax Asset Set At $2.4 Million Aaron Aaron (âr`ən), in the Bible, the brother of Moses and his spokesman in Egypt, and the first high priest of the Hebrews. He is presented as the instrument of God in performing many signs, such as the turning of his rod into a serpent and Landon Lan·don , Alfred Mossman Known as "Alf." 1887-1987. American politician who served as governor of Kansas (1933-1937) and ran unsuccessfully for President on the 1936 Republican ticket. , Chairman of the Board and Chief Executive Officer of Bonded Motors Inc. (Nasdaq:BMTR BMTR Backup Memory Transfer (AT&T) ) announced today operating results for the third quarter ended Sept. 30, 1999. Revenues declined from $10.8 million in the corresponding 1998 third quarter, to $8.1 million. Gross profit declined from $2,184,307 in the corresponding 1998 third quarter to $886,937 for the quarter ended Sept. 30, 1999. Pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta loss for the quarter was ($484,101) versus a pre-tax profit of $740,704 for the corresponding 1998 quarter. Also in the third quarter, 1999 the Company established a valuation allowance of $2,388,375 to reduce the Company's net deferred tax asset to its estimated net realizable value Net realizable value (NRV) is a commonly used method of evaluating an asset's worth in the field of inventory accounting. NRV is part of GAAP rules that apply to valuing inventory, so as to not overstate or understate the value of inventory goods. . This action was mentioned in our announcement of Oct. 14, 1999. Though these tax assets may be used through the year 2015, the Company can no longer support that it is more likely than not that such deferred tax assets will be realized in their entirety The whole, in contradistinction to a moiety or part only. When land is conveyed to Husband and Wife, they do not take by moieties, but both are seised of the entirety. . As a result, the Company has recorded an after tax loss for the quarter ended Sept. 30, 1999, of ($2,560,906) or ($.83) per share. Commenting on the results, Mr. Landon noted, "We are certainly disappointed in the revenue stream realized in the third quarter, and have met with our major customers so that we may forecast revenues. To compound the problem, product returns and related costs were higher than traditional levels, as were warranty expenses. "Selling, general and administrative expenses declined in the quarter, but at a rate slower than the revenue decline. "The resulting losses placed us in violation of our working capital line of credit and we are working diligently dil·i·gent adj. Marked by persevering, painstaking effort. See Synonyms at busy. [Middle English, from Old French, from Latin d with both Comerica Comerica Incorporated NYSE: CMA is a financial services company headquartered in Dallas, Texas. The bank was founded in Detroit in 1849 as the Detroit Savings Fund Institute, by Elon Farnsworth. Bank and our trade suppliers in order to get us through this difficult period, and hope to reach an agreement with all parties before Nov. 30, 1999. As soon as a plan is finalized See finalization. , the Company will issue a press release. If we are unable to reach an agreement with the Bank and or trade suppliers on a plan, we will be required to seek additional financing. If we are unable to obtain the necessary additional financing, our business, financial, and operating results may be materially adversely affected," Landon concluded. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: The statements in this release regarding operational improvements, future revenue and earnings expectations and the expansion of the company's facilities and markets are subjective or 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. that include risks and uncertainties, included but not limited to product demand and development, technological advancements, impact of competitive products and pricing, growth in targeted markets, manufacturing capacity, risks of foreign operations and other information detailed from time to time in the Company's Securities and Exchange Commission filings. Bonded Motors (www.bondedmotors.com) is a remanufacturer of car and light truck engines with headquarters in Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. , manufacturing facilities in California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). and Georgia Georgia, country, Asia Georgia (jôr`jə), Georgian Sakartvelo, Rus. Gruziya, officially Republic of Georgia, republic (2005 est. pop. 4,677,000), c.26,900 sq mi (69,700 sq km), in W Transcaucasia. , and Distribution Centers in California, Washington Washington, town, England Washington, town (1991 pop. 48,856), Sunderland metropolitan district, NE England. Washington was designated one of the new towns in 1964 to alleviate overpopulation in the Tyneside-Wearside area. , Colorado Colorado, state, United States Colorado (kŏlərăd`ə, –răd`ō, –rä`dō), state, W central United States, one of the Rocky Mt. states. , Ohio, New York Ohio is a town in Herkimer County, New York, United States. The population was 922 at the 2000 census. The town is named after the state of Ohio. The Town of Ohio is in the northwest part of the county and northeast of Utica. , and Georgia. The Company's principal customers are automotive parts chain stores, such as Pep (1) (Packet Exchange Protocol) A Xerox protocol used internally by NetWare to transport internal Netware NCP commands (NetWare Core Protocols). It uses PEP and IPX for this purpose. Application programs use SPX and IPX. Boys -- Manny Manny may refer to: In nobility:
see chronic superficial keratitis. Automotive (Checker check·er n. 1. a. One, such as an inspector or examiner, that checks. b. One that receives items for temporary safekeeping or for shipment: a baggage checker. 2. , Schucks, Kragen), Paccar Automotive (Grand's and Al's Auto Parts Auto parts are components of automobiles. They mainly are, in alphabetic order (only car specific articles or articles with car section):
BONDED MOTORS INC.
Condensed Balance Sheet
September 30, 1999
(Unaudited)
Assets
Current assets:
Cash $110,168
Trade accounts receivable (less allowance
for doubtful accounts of $502,029) 3,766,402
Inventories:
Parts 2,649,316
Work in process 1,398,171
Finished goods 6,275,832
------------
10,323,319
------------
Prepaid expenses and other current assets 320,631
Prepaid income taxes 13,216
------------
Total current assets 14,533,736
------------
Restricted investment, IDB 4,596,904
Property and equipment, at cost:
Machinery and equipment 3,779,282
Furniture and fixtures 650,076
------------
4,429,358
Less accumulated depreciation 1,859,886
------------
Net property and equipment 2,569,472
------------
Goodwill, less accumulated amortization of $45,024 166,855
Cost of issuance, IDB less accumulated amortization
of $3,315 247,911
------------
$22,114,878
------------
------------
Liabilities and Shareholders' Equity
Current liabilities:
Notes payable to bank $464,844
Short-term debt 7,025,793
Accounts payable 3,142,546
Accrued expenses 517,819
Accrued warranty obligations 961,813
Current installments of capital lease obligations 9,160
------------
Total current liabilities 12,121,975
------------
IDB obligation 5,130,000
Capital lease obligations, excluding
current installments 7,749
Shareholders' equity:
Preferred stock, no par value. Authorized 1,000,000
shares; none issued and outstanding --
Common stock, no par value. Authorized 10,000,000
shares; issued and outstanding 3,067,140 shares 5,040,719
Additional paid-in capital 104,000
Retained deficit (189,565)
Notes receivable from exercise of stock options (100,000)
------------
Total shareholders' equity 4,855,154
------------
$22,114,878
------------
------------
BONDED MOTORS INC.
Condensed Statement of Operations
(Unaudited)
For the For the
Three Months Ended Nine Months Ended
Sept. 30 Sept. 30
1999 1998 1999 1998
------------ ----------- ------------ ------------
Net sales $ 8,140,658 $10,807,015 $27,536,117 $30,617,667
Cost of sales 7,253,721 8,622,708 23,426,494 24,440,356
------------ ----------- ------------ ------------
Gross profit 886,937 2,184,307 4,109,623 6,177,311
Selling, general and
administrative
expenses 1,208,700 1,336,788 4,172,483 4,203,289
------------ ----------- ------------ ------------
Earnings (loss)
from operations (321,763) 847,519 (62,860) 1,974,022
Other (expense)
income:
Interest expense (206,071) (108,903) (541,847) (364,582)
Interest income 43,733 2,088 53,741 6,259
Other -- -- -- (1,896)
------------ ----------- ------------ ------------
Earnings (loss)
before income
taxes (484,101) 740,704 (550,966) 1,613,803
Income tax benefit
(expense) (2,076,805) (262,501) (2,054,071) (531,064)
------------ ----------- ------------ ------------
Net earnings
(loss) $(2,560,906) $ 478,203 $(2,605,037) $ 1,082,739
------------ ----------- ------------ ------------
------------ ----------- ------------ ------------
Basic earnings
(loss) per share $ (0.83) $ 0.16 $ (0.85) $ 0.35
Diluted earnings
(loss) per share (0.83) 0.15 (0.85) 0.34
------------ ----------- ------------ ------------
------------ ----------- ------------ ------------
Weighted average
common shares
outstanding - basic 3,067,000 3,062,000 3,067,000 3,052,000
------------ ----------- ------------ ------------
------------ ----------- ------------ ------------
Weighted average
common and common
equivalent shares
outstanding -
diluted 3,067,000 3,133,000 3,067,000 3,168,000
------------ ----------- ------------ ------------
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