Fountain Powerboat Industries, Inc. Reports Fourth Quarter and Fiscal Year-End Results.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. , N.C. -- Fountain fountain, natural or artificially conveyed flow of water. In ancient Greece columnar shrines were built over springs and dedicated to deities or nymphs. In ancient Rome fountains fed by the great aqueduct system furnished water in the streets, in the villa gardens, Powerboat Industries, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :FPWR FPWR Fire Precautions (Workplace) Regulations 1997 (UK) ), a leading manufacturer of high-performance Adj. 1. high-performance - modified to give superior performance; "a high-performance car" superior - of high or superior quality or performance; "superior wisdom derived from experience"; "superior math students" sport boats, fish boats and express cruisers An Express Cruiser is a fast cruising boat. To distinguish it from a Cuddy boat, it has a full head, a galley, sleeping space with two to six berths. There are large open areas near the steering area and in the back of the boat. , announces results for the fourth quarter and Fiscal year ended June June: see month. 30, 2004. Sales for Fiscal 2004 were $59,642,766 as compared to sales of $52,557,084 for Fiscal 2003, a 13.5% increase. Operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before for Fiscal 2004 were $2,465,371 as compared to $2,089,110 operating earnings for Fiscal 2003, an increase of 18%. Net earnings were $1,312,170, or $.28 per share as compares with Fiscal 2003 net earnings of $879,996, or $.19 per share, a 49% increase. Sales for the fourth quarter of Fiscal 2004 were $17,605,074, operating earnings were $860,104 and net earnings were $675,092, or $.14 per share. Sales for Fiscal 2004 increased by $7,085,682, or 13.5%, over sales for Fiscal year 2003. Sales for the fourth quarter of Fiscal 2004 increased by $2,774,647, or 18.7%, as compared to sales of $14,830,427 for the fourth quarter of Fiscal 2003. The increase in sales is attributed to an improving economy, strong sales at retail, introduction of new boat models and strengthening of the dealer network. Fountain's firm order backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. was $39 million at June 30, 2004 as compared to a backlog of $7.6 million at June 30, 2003. Fountain is in the process of developing several new fish boat models, to be introduced in the 2005 Fiscal year, to give the Company a more predominant pre·dom·i·nant adj. 1. Having greatest ascendancy, importance, influence, authority, or force. See Synonyms at dominant. 2. presence in the active fish boat market, as well as significant model redesign re·de·sign tr.v. re·de·signed, re·de·sign·ing, re·de·signs To make a revision in the appearance or function of. re and new model introduction of sport boats to enhance Fountain's "flag ship" product line. Fountain has begun a project to enhance the process flow and efficiency of the factory. A new state of the art ventilation ventilation, process of supplying fresh air to an enclosed space and removing from it air contaminated by odors, gases, or smoke. Proper ventilation requires also that there be a movement or circulation of the air within the space and that the temperature and and dust collection system is being installed that meets the "best engineering controls" criteria criteria (krītēr´ē  ),n. of the Air Quality MACT MACT Maximum Achievable Control Technology MACT Maximum Available Control Technology MACT Men of All Colors Together MACT Minnesota Association of Community Theatres MACT Maulana Azad College of Technology (Bhopal, India) standard and OSHA OSHA n. Occupational Safety and Health Administration, a branch of the US Department of Labor responsible for establishing and enforcing safety and health standards in the workplace. work place environment regulations. This project will be completed and operational in November November: see month. of 2004 and will facilitate cost reduction and increased production. "Our sales have been strong throughout the 2004 year, our backlog is at an all-time all-time adj. Exceeding all others up to the present time: an all-time speed skating record. all-time Adjective Informal high, and we are positioning for significant growth in sales going forward by redesigning and increasing our already broad line of boat models and increasing the efficiency and production of our factory," states Fountain President and Chief Executive Officer Reginald Reginald, a person's given name, comes from the Germanic Raginwald ("the prince's counsellor"). It has the meanings of powerful person, king, wise dominion, smart leadership, clever rulership, or thoughtful chief. M. Fountain, Jr. "This was our 25th anniversary year, and we are leveraging our investment of those years of research and development and technology advancement to expand our product line at minimal costs. Sport boats continue to dominate our sales, but the new fish boats that we are developing will increase our market share in that active market. The factory renovation in progress will boost our productivity and efficiency to provide capacity for our planned growth in sales," Fountain said. 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. for 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. : Except for the historical information contained herein, this press release contains forward-looking statements, including statements containing the words "planned," "expects," "believes," "strategy," "opportunity," "anticipates" and similar words. Such forward-looking statements are subject to known and unknown risks, uncertainties or other factors that may cause the company's actual results to be materially different from historical results or any results expressed or implied by such forward-looking statements. We assume no obligation to update any forward-looking statements to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or arising 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" . The potential risks and uncertainties which could cause actual growth and results to differ materially include but are not limited to, customer acceptance of the company's services, products and fee structures, the success of the company's brand development efforts, the volatile and competitive nature of the industry, and changes in domestic and international market conditions, and foreign exchange rates. Further information on the factors and risks that could affect Fountain Powerboat Industries, Inc. business, financial condition and results of operations are included under the "Risk Factors" or "Factors Affecting our Operating Results" sections of Fountain Powerboat Industries, Inc. public filings with the Securities and Exchange Commission, available at (http://www.sec.gov See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. ). Following are comparative Condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: Statements of Income and Condensed Consolidated balance Sheets consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. :
FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
ASSETS
June 30,
-------------------------
2004 2003
------------ ------------
CURRENT ASSETS:
Cash & cash equivalents $ 3,713,789 $ 1,224,935
Accounts receivable, less allowance for
doubtful accounts of $82,841 for 2004
and $27,841 for 2003 4,029,065 2,015,371
Inventories 4,661,566 3,460,286
Prepaid expenses 532,229 644,581
Current tax assets 303,823 303,823
------------ ------------
Total Current Assets 13,240,472 7,648,996
PROPERTY, PLANT AND EQUIPMENT, net 15,913,794 16,165,684
CASH SURRENDER VALUE OF LIFE INSURANCE 1,581,316 1,378,626
OTHER ASSETS 494,200 736,288
------------ ------------
$31,229,782 $25,929,594
------------ ------------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt $ 772,704 $ 1,060,444
Current maturities of capital lease 17,710 20,118
Accounts payable 2,672,184 7,498,762
Accounts payable-related party 21,000 169,043
Accrued expenses 1,117,226 1,317,398
Dealer incentives 1,220,572 190,010
Customer deposits 86,077 290,658
Allowance for boat repurchases 75,000 200,000
Warranty reserve 710,000 900,000
------------ ------------
Total Current Liabilities 6,692,473 11,646,433
LONG-TERM DEBT, less current maturities 17,870,041 8,986,160
CAPITAL LEASE, less current maturities 6,657 24,367
DEFERRED TAX LIABILITY 303,823 303,823
COMMITMENTS AND CONTINGENCIES - -
------------ ------------
Total Liabilities 24,872,994 20,960,783
------------ ------------
STOCKHOLDERS' EQUITY
Common stock, $.01 par value,
200,000,000 shares authorized,
4,807,608 shares issued and
outstanding 48,075 47,576
Additional paid-in capital 10,524,740 10,436,551
Retained earnings (deficit) (4,088,510) (5,400,683)
------------ ------------
6,484,305 5,083,444
Less: Treasury Stock, at cost,
15,000 shares (110,748) (110,748)
Deferred compensation for stock
options issued - (3,885)
Accumulated other comprehensive income from
interest rate swap (16,769) -
------------ ------------
6,356,788 4,968,811
------------ ------------
$31,229,782 $25,929,594
------------ ------------
FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
Year Ended June 30,
--------------------------------------
2004 2003 2002
------------ ------------ ------------
NET SALES $59,642,766 $52,557,084 $36,950,581
COST OF SALES 49,156,596 44,037,957 35,990,833
------------ ------------ ------------
Gross Profit 10,486,170 8,519,127 959,748
------------ ------------ ------------
EXPENSES:
Selling expense 5,513,210 4,609,253 4,162,273
General and administrative 2,507,589 1,820,764 2,035,613
Impairment of long-lived
assets - - 1,182,320
------------ ------------ ------------
Total expenses 8,020,799 6,430,017 7,380,206
------------ ------------ ------------
OPERATING INCOME (LOSS) 2,465,371 2,089,110 (6,420,458)
------------ ------------ ------------
NON-OPERATING INCOME (EXPENSE):
Other income (expense) 1,380 5,567 21,512
Interest expense (1,142,685) (1,037,002) (809,571)
Gain (loss) on disposal of
assets (11,896) (8,378) -
Gain on insurance claims
from hurricane - - -
------------ ------------ ------------
(1,153,201) (1,039,813) (788,059)
------------ ------------ ------------
INCOME (LOSS) BEFORE INCOME
TAXES 1,312,170 1,049,297 (7,208,517)
CURRENT TAX EXPENSE (BENEFIT) - - (717,983)
DEFERRED TAX EXPENSE (BENEFIT) - 169,301 541,059
------------ ------------ ------------
NET INCOME (LOSS) $ 1,312,170 $ 879,996 $(7,031,593)
BASIC EARNINGS (LOSS) PER
SHARE: $ .28 $ .19 $ (1.49)
------------ ------------ ------------
WEIGHTED AVERAGE SHARES
OUTSTANDING 4,761,460 4,744,457 4,732,608
------------ ------------ ------------
DILUTED EARNINGS (LOSS) PER
SHARE: $ .27 $ .18 $ (1.49)
------------ ------------ ------------
DILUTED WEIGHTED AVERAGE
SHARES OUTSTANDING 4,825,179 4,818,806 4,732,608
------------ ------------ ------------
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