Featherlite Announces Increased Third-Quarter Net Income.Business Editors CRESCO, Iowa--(BUSINESS WIRE)--Oct. 29, 2002 Featherlite, Inc. (Nasdaq:FTHR FTHR Farther FTHR Full Throttle Hot Rod (magazine) ), a leading manufacturer and marketer of specialty aluminum trailers, transporters and luxury motorcoaches, today announced net income of $753,000, or 10 cents 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, on sales of $40.6 million for the third quarter of 2002, which ended September 30th. This compares with a net income of $106,000 or 1 cent per diluted share on sales of $51.6 million in the third quarter last year. For the nine months ended September 30, 2002, net income was $2.9 million, or 40 cents per diluted share compared with a loss of $4.0 million or 61 cents per diluted share in the same period in 2001. Net income in the third quarter and the first nine months of 2002 includes $616,000, or 8 cents per diluted share, of benefit related to an income tax refund Tax refund Money back from the government when too much tax has been paid or withheld from a salary. . Net income for the nine months ended September 30, 2001 was reduced by $4.1 million of non-recurring restructuring charges 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. from closure of the Pryor, Okla. motorcoach facility. Featherlite's sales declines of 21.3% for the quarter and 14.3% for the nine months ended September 30, 2002 are due in part to the loss of sales from 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: Vogue Vogue leading fashion magazine in France and America. [Fr. and Amer. Culture: Misc.] See : Fashion coach facility in Pryor, Oklahoma, that closed in the second quarter of last year. The closed Vogue operation had sales of $4.7 million in the third quarter and $19.5 million for the first nine months of 2001. If the Vogue 2001 sales are excluded for purposes of comparison with 2002, the sales decline this year is reduced to 3.5% for the first nine months and 13.4% for the third quarter, respectively. Featherlite's profitability has continued throughout 2002 despite reduced revenues reflective of a difficult economy. This is attributed primarily to a continuing administrative and marketing cost control program, as well as improved efficiencies in manufacturing and the strategic consolidations completed in 2001. In addition, interest expense is lower due to reduced working capital debt levels as motorcoach inventory has been reduced. Overall gross profit margins Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. in the nine months ended September 30, 2002 improved by $2.6 million over the same period last year and the gross margin as a percentage of sales increased to 14.4% in 2002 from 10.8% in 2001 after excluding the effect of the $2.9 million restructuring charge included in the cost of sales last year. "Even though the economy has yet to experience a sustained recovery," Conrad Clement Clement, in the Bible Clement, in Philippians, one of Paul's coworkers. He is traditionally identified with St. Clement of Rome, the likely author of a letter written from there to the Corinthian church in c.A.D. 96. , chairman and chief executive officer, said, "we are pleased with the Company's improved efficiency and lowered SGA SGA abbr. small for gestational age Small-for-gestational-age (SGA) A term used to describe newborns who are below the 10th percentile in height or weight for their estimated gestational age. expenses, which have decreased 7.8%. "Our announcement regarding completion of a financing arrangement with U.S. Bank National Association (U.S. Bank) and Deutsche Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. on August 14, 2002, the public's enthusiasm for our exclusive new `super slide' coach and our introduction of Featherlite Luxury Coaches in new niche markets A niche market also known as a target market is a focused, targetable portion (subset) of a market sector. By definition, then, a business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers. are expected to have a positive effect in the fourth quarter. "With our new Company-wide efficiencies, new trailer models and aggressive marketing, we expect sales, gross margin and overall financial performance to improve in the fourth quarter and into 2003 as the economic recovery continues," Clement concluded. About Featherlite Featherlite, Inc., is an innovative leader in designing, manufacturing and marketing high quality aluminum specialty trailers, transporters and luxury motorcoaches. With more that 75 percent of its business in the leisure, recreation and entertainment categories, Featherlite has highly diversified product lines offering hundreds of standard model and custom-designed aluminum specialty trailers, specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. transporters, mobile marketing trailers and luxury motorcoaches. Featherlite(R) is the "Official Trailer" of NASCAR NASCAR (National Association for Stock Car Auto Racing), organization that sanctions American stock-car races, est. 1948. It held its first race in Daytona Beach, Fla. , Championship Auto Racing Teams (CART), Indy Race League (IRL 1. (jargon, chat) IRL - In real life. Generally synonymous with f2f. 2. (language, robotics) IRL - Industrial Robot Language. ), SPORTSCAR, World of Outlaws The World of Outlaws (often abbreviated WoO) is an American motorsports sanctioning body. The body sanctions two major national touring series. It is best known for sanctioning a national tour of sprint cars. (W.O.O.) and the National Hot Rod Association
The National Hot Rod Association (NHRA) (NHRA NHRA National Hot Rod Association NHRA Northland Human Resource Association NHRA National Human Resources Association NHRA Nursing Home Reform Act NHRA National Hospice Regatta Alliance NHRA National Heritage Resources Act (South Africa) ). Featherlite also is sponsor of many equine equine Any member of the ungulate family Equidae, which includes the modern horses, zebras, and asses, all in the genus Equus, as well as more than 60 species known only from fossils. Equines descended from the dawn horse (see Eohippus). and livestock events and its products are displayed in over 1,000 fairs, trade shows, races and other events throughout North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. each year. Through its Featherlite Vantare'(R) product line, Featherlite is the "Official Luxury Motorcoach" of NASCAR, IRL, SPORTSCAR and NHRA. For more information about the Company, please visit Featherlite's website at www.fthr.com. 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 : Certain statements in this report, and in the Company's 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. and other filings with the SEC, are forward-looking in nature and relate to trends and events that may affect the Company's future financial position and operating results. The words "believe," "estimate," "expect," "intend," "may," "could," "will," "plan," "anticipate," and similar words and expressions are intended to identify 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. . These statements speak only as of the date of this report, are based on current expectations, are inherently uncertain, are subject to risks, and should be viewed with caution. Actual results and experience may differ materially from the forward-looking statements as a result of many factors, including but not limited to: product demand and acceptance of products in each segment of the Company's markets, fluctuations in the price of aluminum, competition, facilities utilization the availability of additional capital as may be required to finance any future net liquidity deficiency and certain other unanticipated events and conditions. It is not possible to foresee fore·see tr.v. fore·saw , fore·seen , fore·see·ing, fore·sees To see or know beforehand: foresaw the rapid increase in unemployment. or identify all such factors. The Company makes no commitment to update any forward-looking statement or to disclose any facts, events, or circumstances after the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" that may affect the accuracy of any forward-looking statement, other than as required by law.
Featherlite, Inc.
Condensed Balance Sheets
(Unaudited)
(In thousands)
Sept. 30, Dec. 31,
ASSETS 2002 2001
-------- --------
Current assets
Cash $186 $247
Receivables 5,165 5,001
Refundable income taxes 616 2,755
Inventories 62,931 66,215
Prepaid expenses 1,124 1,977
-------- --------
Total current assets 70,022 76,195
Property and equipment, net 16,147 17,024
Other assets 4,657 3,952
-------- --------
$90,826 $97,171
======== ========
LIABILITIES AND SHAREHOLDERS EQUITY
Current liabilities
Wholesale financing and other notes payable $22,402 $27,713
Current maturities of long-term debt 7,514 9,299
Bank line of credit 5,655 7,226
Subordinated convertible debt 1,474 -
Checks issued not yet presented 1,867 3,061
Accounts payable 2,724 5,902
Motorcoach shell costs payable 7,445 7,531
Current portion trade creditor repayment plan 2,736 3,253
Accrued liabilities 8,383 8,365
Customer deposits 1,934 2,204
-------- --------
Total current liabilities 62,134 74,554
Long-term debt, net of current maturities 7,724 3,146
Trade creditor plan, net of current portion 2,752 4,240
Other long-term liabilities 79 90
Shareholders' equity 18,137 15,141
-------- --------
$90,826 $97,171
======== ========
FEATHERLITE, INC
Condensed Statements of Income
(Unaudited)
(In Thousands, except for per share data)
Three months Ended Nine months Ended
September 30 September 30
------------------ -------------------
2002 2001 2002 2001
--------- -------- --------- ---------
Net Sales $40,601 $51,566 $148,830 $173,659
Cost of Sales 34,768 45,137 127,472 157,812
--------- -------- --------- ---------
Gross profit 5,833 6,429 21,358 15,847
Selling and admininistrative
expenses 4,918 5,407 15,703 17,025
Restructure charge 0 0 0 1,150
------------------ -------------------
Income (loss) from operations 915 1,022 5,655 (2,328)
Other income (expense)
Interest (688) (882) (2,281) (3,342)
Other, net (9) 1 215 380
--------- -------- --------- ---------
Total Other expense (697) (881) (2,066) (2,962)
--------- -------- --------- ---------
Income (loss) before taxes 218 141 3,589 (5,290)
Provision (benefit) for income
taxes (535) 35 712 (1,323)
--------- -------- --------- ---------
Net income (loss) $753 $106 $2,877 $(3,967)
========= ======== ========= =========
Net income per share-
Basic $0.12 $0.01 $0.44 $(0.61)
--------- -------- --------- ---------
Diluted $0.10 $0.01 $0.40 $(0.61)
--------- -------- --------- ---------
Weighted average shares
outstanding -
Basic 6,535 6,535 6,535 6,535
--------- -------- --------- ---------
Diluted 7,168 6,535 7,107 6,535
--------- -------- --------- ---------
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