Fountain Powerboat Industries Reports Fourth Quarter and Fiscal Year-End Results.Business Editors 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.--(BUSINESS WIRE)--Sept. 18, 2003 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) ), announces results for the fourth quarter and Fiscal year ended June June: see month. 30, 2003. Sales for Fiscal 2003 were $52,557,084 and earnings were $479,353 or .10 per share. This compares with Fiscal 2002 sales of $36,950,581 and earnings of $(7,031,593) or $(1.49) per share. Earnings from operations were $2,089,110 for 2003, up from a loss of $(6,420,458) from the previous fiscal year. Sales revenue increased 42% in Fiscal 2003 over Fiscal 2002, which the Company contributes to the reduction of dealer inventory in Fiscal 2002, an improving economy, competitive pricing, product diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. , and an aggressive marketing campaign. To sustain future sales growth the Company believes that they have effectively diversified diversified (di·verˑ·s their product line by entering into the wide-beam 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 fish boat markets, which accounted for 47% of 2003 sales. The gross margin for Fiscal 2003 was 16.2%, a 13.6% increase from the gross margin of 2.6% for Fiscal 2002. Improvement in margin is attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to improved sales volume, more profitable product mix and efficiency improvements in manufacturing. On July July: see month. 17, 2003, after Fiscal 2003 ended June 30, 2003, Fountain Powerboats completed a long-term financing Long-term financing Liabilities repayable in more than one year plus equity. program for $18,000,000 with Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. that we believe puts us in a very strong financial position for future growth and profitability. 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 Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. 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 With regard to computer memory, it means "temporary" and not "highly changeable," which is the usual meaning of the word. See volatile memory. 1. (programming) volatile - volatile variable. 2. (storage) volatile - See non-volatile storage. 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. ).
FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
ASSETS
June 30,
-------------------------------
2003 2002
---------- ----------
CURRENT ASSETS:
Cash & cash equivalents $ 1,224,935 $ 329,640
Accounts receivable, less
allowance for doubtful
accounts of $27,841 for
2002 and 2001 2,015,371 3,003,992
Inventories 3,460,286 3,090,451
Prepaid expenses 644,581 328,783
Current tax assets 807,315 1,132,181
---------- ----------
Total Current Assets 8,152,488 7,885,047
PROPERTY, PLANT AND EQUIPMENT, net 16,165,684 17,114,661
CASH SURRENDER VALUE OF LIFE
INSURANCE 1,378,626 1,179,223
OTHER ASSETS 736,288 355,765
---------- ----------
$ 26,433,086 $ 26,534,696
---------- ----------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term
debt $ 1,060,444 $ 919,182
Current maturities of capital
lease 20,118 15,674
Accounts payable 7,498,762 6,877,394
Accounts payable-related party 169,043 147,234
Accrued expenses 1,317,398 1,193,672
Dealer incentives 190,010 921,707
Customer deposits 290,658 631,090
Allowance for boat repurchases 200,000 200,000
Warranty reserve 900,000 870,000
---------- ----------
Total Current Liabilities 11,646,433 11,775,953
LONG-TERM DEBT, less current
maturities 8,986,160 9,791,949
CAPITAL LEASE, less current
maturities 24,367 35,212
DEFERRED TAX LIABILITY 1,207,958 962,880
COMMITMENTS AND CONTINGENCIES - -
---------- ----------
Total Liabilities 21,864,918 22,565,994
---------- ----------
STOCKHOLDERS' EQUITY
Common stock, $.01 par value,
200,000,000 shares authorized,
4,757,608 shares issued and
outstanding 47,576 47,326
Additional paid-in capital 10,436,551 10,343,935
Retained earnings (deficit) (5,801,326) (6,280,679)
---------- ----------
4,682,801 4,110,582
Less: Treasury Stock,
at cost, 15,000 shares (110,748) (110,748)
Deferred compensation
for stock options issued (3,885) (31,132)
---------- ----------
4,568,168 3,968,702
---------- ----------
$ 26,433,086 $ 26,534,696
---------- ----------
FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
Year Ended June 30,
----------------------------------------------
2003 2002 2001
------------- ------------- -------------
NET SALES $ 52,557,084 $ 36,950,581 $ 45,128,034
COST OF SALES 44,037,957 35,990,833 39,878,136
------------- ------------- -------------
Gross Profit 8,519,127 959,748 5,249,848
------------- ------------- -------------
EXPENSES:
Selling expense 4,609,253 4,162,273 5,001,503
General and
administrative 1,820,764 2,035,613 2,691,826
Impairment of
long-lived assets - 1,182,320 -
------------- ------------- -------------
Total expenses 6,430,017 7,380,206 7,693,329
------------- ------------- -------------
OPERATING INCOME (LOSS) 2,089,110 (6,420,458) (2,443,431)
------------- ------------- -------------
NON-OPERATING INCOME
(EXPENSE):
Other income (expense) 5,567 21,512 118,503
Interest expense (1,037,002) (809,571) (700,965)
Gain (loss) on disposal
of assets (8,378) - 500,446
Gain on insurance claims
from hurricane - - 1,107,819
------------- ------------- -------------
(1,039,813) (788,059) 1,025,803
------------- ------------- -------------
INCOME (LOSS) BEFORE
INCOME TAXES 1,049,297 (7,208,517) (1,417,628)
CURRENT TAX EXPENSE
(BENEFIT) - (717,983) (108,590)
DEFERRED TAX EXPENSE
(BENEFIT) 569,944 541,059 (409,512)
------------- ------------- -------------
NET INCOME (LOSS) $ 479,353 $ (7,031,593) $ (899,526)
------------- ------------- -------------
BASIC EARNINGS (LOSS)
PER SHARE: $ .10 $ (1.49) $ (.19)
------------- ------------- -------------
WEIGHTED AVERAGE SHARES
OUTSTANDING 4,744,457 4,732,608 4,732,608
------------- ------------- -------------
DILUTED EARNINGS (LOSS)
PER SHARE: $ .10 $ (1.49) $ (.19)
------------- ------------- -------------
DILUTED WEIGHTED AVERAGE
SHARES OUTSTANDING 4,818,806 4,732,608 4,732,608
------------- ------------- -------------
FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Ended June 30,
-------------------------------------------
2003 2002 2001
----------- ----------- -----------
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income (loss) $ 479,353 $ (7,031,593) $ (899,526)
Adjustments to reconcile
net income (loss) to net
cash provided (used) by
operating activities:
Non-cash expense 86,512 9,162 -
Amortization of deferred
loan costs 61,800 89,098 -
Depreciation expense 2,112,051 2,294,254 2,293,284
Impairment of long-lived
assets - 1,182,320 -
(Gain) loss on disposal
of equipment - - (500,446)
(Gain) loss on disposal
of property 8,378 - -
Warranty reserve 30,000 280,000 -
(Increase) decrease in net
tax asset 569,944 541,059 (409,511)
Change in assets and
liabilities:
(Increase) decrease in
accounts receivable 988,621 (1,064,107) (238,243)
(Increase) decrease in
inventories (369,834) 1,395,518 3,324,167
(Increase) decrease in
prepaid expenses (315,798) (161,286) 402,077
Increase in accounts
payable 643,152 1,341,929 689,012
Increase (decrease) in
accrued expenses 123,726 2,654 (261,314)
Increase (decrease) in
dealer incentives (731,672) (923,885) (113,935)
Increase (decrease) in
customer deposits (340,432) 309,915 (864)
----------- ----------- -----------
Net Cash Provided (Used)
by Operating Activities 3,345,801 (1,734,962) 4,284,701
----------- ----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of
equipment 153,810 - 1,750,720
Investment in molds
and related plugs (1,056,852) (1,370,526) (2,819,252)
Purchase of property,
plant and equipment (268,410) (231,080) (590,591)
Increase in cash
surrender value of
life Insurance (199,403) (219,536) (216,849)
(Increase) decrease
in other assets (190,796) 183 -
----------- ----------- -----------
Net Cash (Used) by
Investing
Activities (1,561,651) (1,820,959) (1,875,972)
----------- ----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from notes
payable and long-term
debt 343,074 3,955,644 150,000
Proceeds from issuance
of common stock 33,600 - -
Payments of long-term
debt (1,008,836) (545,788) (3,732,563)
Payments on capital
lease (5,165) (14,393) (12,999)
Payments of deferred
loan cost (251,528) (306,508) -
----------- ----------- -----------
Net Cash Provided
(Used) by Financing
Activities (888,855) 3,088,955 (3,595,562)
----------- ----------- -----------
Net increase (decrease)
in cash & cash
equivalents $ 895,295 $ (466,966) $(1,186,833)
Beginning cash & cash
equivalents balance 329,640 796,606 1,983,439
----------- ----------- -----------
Ending cash & cash
equivalents balance $1,224,935 $ 329,640 $ 796,606
----------- ----------- -----------
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