Edelbrock Corp. Reports Continued Improvement in Sales and Earnings for Fourth Quarter and Fiscal Year.TORRANCE, Calif.--(BUSINESS WIRE)--Sept. 3, 1997--Edelbrock Corp. (Nasdaq/NM:EDEL EDEL Electronic Deliverable ) Wednesday reported continued sales and earnings improvement for its fiscal 1997 fourth quarter and year ended June 30, 1997. The company's quarterly and annual gains were fueled by strong growth in the sale of automotive aluminum cylinder cylinder, in mathematics, surface generated by a line moving parallel to a given fixed line and continually intersecting a given fixed curve called the directrix; each line of the family of lines forming the cylinder is called a ruling, or generator. heads, automotive carburetors and aftermarket Aftermarket See: Secondary market. aftermarket See secondary market. products for Harley-Davidson motorcycles. For the quarter, net income increased 10.3 percent to $2.7 million, or 52 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , from net income of $2.5 million, or 47 cents per share, for the same period of fiscal 1996. Revenues for the fourth quarter of fiscal 1997 rose 8.9 percent to $27 million from $24.8 million in the comparable quarter a year ago. For fiscal 1997, net income improved 11.7 percent to $7.2 million, or $1.38 per share, from net income of $6.5 million, or $1.24 per share, in fiscal 1996. Revenues for fiscal 1997 increased 10.2 percent to $87.1 million from $79.0 million last year. Sales of Edelbrock's automotive aluminum cylinder heads remained strong in both the fourth quarter and fiscal year, improving 53.5 percent and 38.0 percent, respectively. Sales of automotive carburetors also improved, rising 4.7 percent over the comparable quarter of fiscal 1996 and 18.6 percent for the year. The company attributed the improvement in sales of cylinder heads to the ongoing expansion of its application base and to its success in positioning Edelbrock as the premier brand of aftermarket aluminum cylinder head. The company's growing strength in the carburetor aftermarket reflects both the recognized quality of its products among consumers and the large number of carbureted car·bu·ret tr.v. car·bu·ret·ed or car·bu·ret·ted, car·bu·ret·ing or car·bu·ret·ting, car·bu·rets To combine or mix (a gas, for example) with volatile hydrocarbons, so as to increase available fuel energy. domestic vehicles that remain in use today. Edelbrock also produces sophisticated electronic fuel injection conversion kits for many of those vehicles. Demand also improved significantly for Edelbrock's aftermarket products for Harley-Davidson motorcycles. Sales of these products advanced 73.9 percent during the quarter and 34.4 percent for the year. The company attributed the improvements chiefly to its introduction of new products during the year, including those for Harley-Davidson's popular Sportster Sportster may refer to several things, such as:
The Total Power Package marketing concept, which Edelbrock has applied with great success to its automotive line, allows customers to achieve incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. performance gains by purchasing packaged sets of matched components. Sales also were favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. influenced by the growing acceptance of the Edelbrock brand among Harley-Davidson enthusiasts. SG&A expenses, as a percentage of sales, declined in the fourth quarter to 22.8 percent of sales from 23.5 percent of sales a year ago. Year-to-year, SG&A expenses decreased to 24.3 percent of sales from 25.8 percent of sales for the comparable period of fiscal 1996. R&D expenses for fiscal 1997, reflecting Edelbrock's aggressive efforts to develop the application base of its new line of Performer IAS See iPlanet Application Server. 1. (computer) IAS - The first modern computer. It had main registers, processing circuits, information paths within the central processing unit, and used Von Neumann's fetch-execute cycle. shock absorbers Shock absorbers See: Circuit breakers , increased 12.7 percent in the fourth quarter and 29.1 percent over fiscal 1996. In the fourth quarter, the company commenced production on shock absorbers for a range of two- and four-wheel drive vehicles, including trucks, light trucks and sport utility vehicles This page lists sports utility vehicles currently in production (as of April 2007), as well as past models. The list includes crossover SUVs, Mini SUVs, Compact SUVs and other similar vehicles. . Commenting on the company's results, Edelbrock chairman and chief executive officer, Vic Edelbrock O. Victor Edelbrock, Sr. (1913 - 1962) was an American automotive aftermarket performance parts engineer and racer. Victor, known as "Vic", established Edelbrock Corporation in Beverly Hills in 1938. , said: "Our efforts for much of fiscal 1997 were focused on achieving a strong roll-out for our new Performer IAS shock absorbers, a product we feel has excellent potential. We are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that sales of this revolutionary product will increase significantly over time as more and more consumers get the chance to experience for themselves the superior performance and handling they deliver. "I am particularly gratified grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. that our financial results continued to improve," Edelbrock continued. "Maintaining strong growth while building for the future is the mark of a successful company, and in our case, this results from having capable, committed employees at every level of the organization, a sharply-focused operating strategy, and a product line carefully tailored. With the successful roll-out of our new Performer IAS shock absorbers, we are even more excited about the future." Founded in 1938, Torrance-based Edelbrock is recognized as one of the nation's premier designers, manufacturers and distributors of performance replacement parts for the automotive and motorcycle motorcycle, motor vehicle whose design is based on the bicycle. The German inventor Gottlieb Daimler is generally credited with building the first practical motorcycle in 1885. The motorcycle did not become dependable and popular, however, until after 1900. aftermarkets. In addition to three production facilities in Torrance, the company owns and operates state-of-the-art aluminum foundry A semiconductor manufacturer that makes chips for third parties. It may be a large chip maker that sells its excess manufacturing capacity or one that makes chips exclusively for other companies. and its QwikSilver Division for motorcycle aftermarket parts in San Jacinto San Jacinto, river, c.130 mi (210 km) long, rising in SE Texas as the West Fork and flowing S to Galveston Bay. Its chief tributary is Buffalo Bayou, and both the bayou and the lower river are used for the Houston ship channel. , Calif., at which it manufactures many of its quality products. Harley-Davidson and Sportster are registered trademarks of Harley-Davidson Inc., Milwaukee. Edelbrock, Edelbrock Total Power Package and Performer IAS are registered trademarks of Edelbrock Corp., Torrance. -0- 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: Any statements set forth above that are not historical facts are 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 involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Potential risks and uncertainties include such factors as the financial strength and competitive pricing environment of the automotive and motorcycle aftermarket industries, product demand, market acceptance, manufacturing efficiencies, new product development, the success of planned advertising, marketing and promotional campaigns and other risks identified in documents filed by the company with the Securities and Exchange Commission. -0-
EDELBROCK CORP.
Consolidated Statements of Income
(Unaudited)
Three Months Ended Fiscal Year Ended
June 30, June 30,
1997 1996 1997 1996
Revenues $27,000,000 $24,799,000 $87,120,000 $79,032,000
Cost of sales 15,733,000 14,751,000 52,163,000 47,043,000
Gross profit 11,267,000 10,048,000 34,957,000 31,989,000
Operating
expenses
Selling,
general and
administrative 6,150,000 5,819,000 21,153,000 20,392,000
Research and
development 1,113,000 988,000 2,874,000 2,227,000
Total operating
expenses 7,263,000 6,807,000 24,027,000 22,619,000
Operating income 4,004,000 3,241,000 10,930,000 9,370,000
Interest expense 80,000 -- 340,000 292,000
Interest income 76,000 152,000 317,000 471,000
Other income 192,000 -- 469,000 274,000
Income before
taxes on income 4,192,000 3,393,000 11,376,000 9,823,000
Taxes on income 1,480,000 935,000 4,138,000 3,346,000
Net income $2,712,000 $2,458,000 $7,238,000 $6,477,000
Net income per
share $0.52 $0.47 $1.38 $1.24
Weighted average
number of
shares
outstanding 5,248,000 5,241,000 5,244,000 5,241,000
-0-
EDELBROCK CORP.
Condensed Consolidated Balance Sheets
June 30, June 30,
1997 1996
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents $9,744,000 $8,771,000
Accounts receivable, net 20,031,000 17,973,000
Inventories 13,048,000 9,735,000
Prepaid expenses and other 1,155,000 436,000
Total current assets 43,978,000 36,915,000
Property, plant and equipment, net 31,918,000 27,382,000
Real estate properties, net 1,282,000 971,000
Other 797,000 1,162,000
Total assets $77,975,000 $66,430,000
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $13,443,000 $9,454,000
Accrued expenses 3,023,000 2,537,000
Current portion of long-term debt 976,000 971,000
Total current liabilities 17,442,000 12,962,000
Long-term debt 2,178,000 3,148,000
Deferred income taxes 2,612,000 1,900,000
Shareholders' equity 55,743,000 48,420,000
Total liabilities and shareholders'
equity $77,975,000 $66,430,000
CONTACT: Edelbrock Corp., Torrance Jeffrey L. Thompson Thompson, city, Canada Thompson, city (1991 pop. 14,977), central Man., Canada, on the Burntwood River. A mining town, it developed after large nickel deposits were discovered in the area in 1956. , 310/781-2222 |
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