Fountain Powerboat Industries, Inc. Reports Second Quarter Results.Business Editors/Sports Writers WASHINGTON, N.C.--(BUSINESS WIRE)--Feb. 14, 2002 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 sport and fish boats, announces results for the second quarter ended December 31, 2001. Sales for the quarter were $6.6 million down from sales of $8.8 million for the same quarter in the previous fiscal year. Net earnings were $(1.4) million for the second quarter of fiscal 2002. That compares to earnings of $.1 million for the same quarter in fiscal 2001, after the sale of corporate aircraft and insurance claim settlement totaling $1.5 million. Commenting on the quarter, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Reggie Fountain said, "The second fiscal quarter is always the toughest in the marine industry and in this economy, even tougher. During the quarter, the mix of smaller fish boats, which usually represents about 20% of the units shipped rose to 50% of units shipped. The Company also chose to support its dealer network with substantial rebates to help clear aging inventory. In addition, the Company maintained complete commitment to new product development, which added to fixed cost of sales through completion of the 48 -foot cruiser cruiser, large, fast, moderately armed warship, intermediate in type between the aircraft carrier and the destroyer. During World War II, battle cruisers operated as small battleships, combining in one vessel maximum qualities of gun caliber, armor protection, and and 34-foot fish boat. Despite a very tough start in Fiscal 2002, we feel very good about what we have accomplished to date. We made the difficult decision to reduce our salaried workforce and temporarily furlough fur·lough n. 1. a. A leave of absence or vacation, especially one granted to a member of the armed forces. b. A usually temporary layoff from work. c. employees as needed as needed prn. See prn order. . We froze froze v. Past tense of freeze. froze Verb the past tense of freeze froze, frozen freeze new hires and deferred all pay increases while, at the same time, we continued to invest in new product development and tooling. We also completed significant re-financing of our long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. ." As a result of those decisions, the Company will introduce 2 major new products at the Miami International Boat Show. These products are a 48-foot wide beam cruiser, with the amenities of a yacht yacht: see motorboating; sailing. yacht Sail- or motor-driven vessel used for racing or recreation. The term is popularly applied to large recreational engine-powered boats; the sailboats known as yachts and used for racing are usually light and and the nimble nim·ble adj. nim·bler, nim·blest 1. Quick, light, or agile in movement or action; deft: nimble fingers. See Synonyms at dexterous. 2. performance of a sport boat; and a 34-foot center console Center console may refer to:
With restraint in production and supporting Company dealers, the boats in dealer inventory have dropped dramatically. Current inventory positions are below levels of every year, as far back as 1997. The Company believes that results reflect a price that has been paid, as reflected in margin performances, by choosing to support their dealer network in clearing older dealer inventory and to complete new product development. However, these actions, which increased current period costs, set the stage for a solid sales growth and net earnings in the second half of the fiscal year. 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: This press release may contain 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. projecting, forecasting, or estimating the Company's performance and industry trends. The achievement of these projections, forecasts, or estimates is subject to certain risks and uncertainties, which include general economic and industry conditions that affect all businesses, as well as matters that are specific to the Company and the markets it serves. Risks that are specific to the Company and its markets include, but are not limited to, the cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. nature of the marine industry; competition in pricing; new product development from competitors; the concentration of Company sales with a few major customers; labor relations at the Company and at its customers and suppliers; and the Company's single-source supply and just-in-time inventory for some critical boat components, which could adversely affect production if a single-source supplier is unable meet the Company's requirements in a timely manner. Actual results and events may differ materially from those projected, forecasted, or estimated. The Company assumes no obligation to update the forward-looking statements or to update the reason actual results could differ from those contemplated by such forward-looking statements.
FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
-------------------------------------
(Unaudited - See Accountants' Review Report)
For The Three Months Ended For The Six Months Ended
December 31 December 31
-------------------------- ------------------------
2001 2000 2001 2000
------------- ----------- ----------- -----------
NET SALES $ 6,553,076 $ 8,838,621 $15,003,869 $22,524,964
COST OF SALES 7,148,277 7,816,539 14,911,584 19,607,756
------------ ----------- ----------- -----------
Gross Profit (595,201) 1,022,082 92,285 2,917,208
EXPENSES
Selling Expense 987,379 1,278,544 1,859,313 2,912,198
Selling Expense-
related parties - 117,255 - 157,375
General &
Administrative 475,781 720,005 963,506 1,467,697
------------ ----------- ----------- -----------
Total Expenses 1,463,160 2,115,804 2,822,819 4,537,270
------------ ----------- ----------- -----------
OPERATING INCOME
(LOSS) (2,058,361) (1,093,722) (2,730,534) (1,620,062)
NON-OPERATING
INCOME/(EXPENSE)
Other 5,135 1,569,633 4,284 1,578,320
Income
Interest
Expense (262,516) (217,764) (404,365) (471,455)
------------ ----------- ----------- -----------
INCOME (LOSS)
BEFORE TAX (2,315,742) 258,147 (3,130,616) (513,197)
CURRENT TAX
EXPENSE - (9,785) - -
DEFERRED TAXES
(BENEFIT) (898,091) 111,569 (1,206,323) (178,835)
------------ ----------- ----------- -----------
NET INCOME (LOSS) (1,417,651) 156,363 (1,924,293) (334,362)
EARNINGS (LOSS)
PER SHARE (.30) .03 (.41) (.07)
------------ ----------- ----------- -----------
WEIGHTED AVERAGE
SHARES
OUTSTANDING 4,732,608 4,732,608 4,732,608 4,732,608
------------ ----------- ----------- -----------
DILUTED EARNINGS
PER SHARE N/A N/A N/A N/A
------------ ----------- ----------- -----------
DILUTED WEIGHTED
AVERAGE SHARES
OUTSTANDING N/A N/A N/A N/A
------------ ----------- ----------- -----------
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