Fountain Powerboat Industries, Inc. Reports Third Quarter Results; Continued Sales Improvement - Third Straight Quarter of Operating Profit.Business Editors WASHINGTON, N.C.--(BUSINESS WIRE)--May 8, 2003 Fountain 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) ), the leading manufacturer of high performance 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 third quarter ended March 31, 2003. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the quarter were $12,783,311 up from sales of $10,739,593 for the third quarter of fiscal 2002. Net sales for the nine months of fiscal 2003 ending March 31, 2003 were $37,799,524 up from sales of $25,669,980 for the same nine months of fiscal 2002, which exceeds net sales for the entire fiscal year of 2002. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. before other expenses and deferred tax expense for the quarter was $184,400, providing the third consecutive quarter with operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. . Operating profit for the nine months was $1,647,179, resulting in 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 per share of $.35. Fountain Powerboats' net operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. carry-forward will exempt the Company from incurring in·cur tr.v. in·curred, in·cur·ring, in·curs 1. To acquire or come into (something usually undesirable); sustain: incurred substantial losses during the stock market crash. 2. tax payments on its 2003 income. Earnings per share for the nine months, ending March 31, 2003, after non-operating expenses and before deferred taxes are deducted de·duct v. de·duct·ed, de·duct·ing, de·ducts v.tr. 1. To take away (a quantity) from another; subtract. 2. To derive by deduction; deduce. v.intr. is $.19. As announced in our earlier press release, on this basis the Company expects to exceed projections of $.27 per share for earnings after non-operating expenses and before deferred taxes for fiscal 2003 ending June 30. Net earnings per share for the nine months ended March 31, 2003 was $.10 per share. President 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. , Reginald Fountain says, "The primary focus of Fountain Powerboats continues to be growth and profitability, as is evinced by the results of the first three quarters of fiscal 2003. Continued sales improvement and cost reductions should provide the Company a profitable fourth quarter and profitable fiscal 2003." 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. : This press release may contain forward-looking statements 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 to 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
For The Three Months For The Nine Months
Ended Ended
March 31 March 31
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2003 2002 2003 2002
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NET SALES $12,783,311 $10,739,593 $37,799,524 $25,669,980
COST OF SALES 10,871,979 8,704,173 31,611,866 23,851,157
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Gross Profit 1,911,332 2,035,420 6,187,658 1,818,823
EXPENSES
Selling Expense 1,396,465 1,432,495 3,311,758 2,982,927
Selling Expense-
related parties - - - -
General &
Administrative 330,467 564,133 1,228,721 1,527,639
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Total Expenses 1,726,932 1,996,628 4,540,479 4,510,566
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OPERATING INCOME (LOSS) 184,400 38,792 1,647,179 (2,691,743)
NON-OPERATING INCOME
(EXPENSE)
Other Income (Expense) (29,799) (2,121) 166 2,162
Interest Expense (245,939) (317,205) (766,615) (721,570)
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INCOME (LOSS) BEFORE
TAX (91,338) (280,534) 880,730 (3,411,151)
CURRENT TAX EXPENSE - - - -
DEFERRED TAXES
(BENEFIT) 86,064 (91,382) 406,428 (1,297,705)
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NET INCOME (LOSS) (177,402) (189,152) 474,302 (2,113,446)
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EARNINGS (LOSS) PER
SHARE (.04) (.04) .10 (.45)
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WEIGHTED AVERAGE
SHARES OUTSTANDING 4,745,108 4,732,608 4,745,108 4,732,608
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DILUTED EARNINGS PER
SHARE N/A N/A .10 N/A
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WEIGHTED AVERAGE SHARES
OUTSTANDING ASSUMING
DILUTION N/A N/A 4,811,619 N/A
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