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HUFFY CORPORATION ANNOUNCES 1992 SALES AND EARNINGS; DIRECTORS DECLARE COMMON DIVIDEND

 DAYTON, Ohio, Feb. 12 /PRNewswire/ -- Huffy Corporation (NYSE: HUF) announced today sales and earnings for the year ended Dec. 31, 1992. In addition, the Board of Directors declared a regular quarterly dividend on its Common Stock of $.075 per share, payable May 3, 1993, to shareholders of record April 15, 1993.
 Net sales for the year ended Dec. 31, 1992, established a new record for Huffy Corporation at $703,345,000, 3.6 percent greater than the $678,936,000 reported for 1991. Net earnings for the year were $4,215,000, or $.33 per primary and fully-diluted common share, as compared to $19,827,000, or $1.41 per fully-diluted common share, reported in 1991. As previously announced, the Company elected the early adoption of Statement of Financial Accounting Standards No. 106 (SFAS 106). SFAS 106 requires employers to accrue all expected postretirement benefits other than pensions. Excluding both the one- time cumulative and annual effects related to the adoption of SFAS 106, 1992 earnings on a fully-diluted basis were $.92 per common share.
 Fourth quarter net sales were $186,744,000, 15.5 percent greater than 1991 fourth quarter net sales of $161,647,000. The company reported a net loss of $321,000, or a net loss of $.02 per common share, as compared to earnings of $3,832,000, or $.27 per common share, reported for the fourth quarter of 1991. The majority of the loss is due to increased manufacturing costs and inefficiencies at True Temper Hardware Company. In addition, 1991 fourth quarter results included a record performance in the Recreation and Leisure Time Products segment due to strong demand for higher margin mountain bikes at Huffy Bicycle Company.
 Mr. Harry A. Shaw III, Chairman and Chief Executive Officer, said, "Even though 1992 earnings were below our objectives, we did establish a new sales record during the year which demonstrates the strong demand for our products and services. This is a particularly significant achievement for a consumer products company during a period of sluggish economic growth."
 Commenting on operations, Mr. Richard L. Molen, President and Chief Operating Officer, stated, "In the Recreation and Leisure Time Products segment, Huffy Bicycle Company experienced a disappointing first half which was attributed to a new product disappointment and a market shift to lower margin mountain bikes. However, by year end Huffy Bicycle Company had made a strong recovery driven by the success of several new product introductions. In particular, the Mudslinger and Double Take bicycles introduced at the 1992 Toy Fair enjoyed strong demand during the second half of the year. Huffy Sports Company delivered strong sales and earnings supported by the successful introduction and marketing of new products such as the Inside Stuff and Jam Session, aimed at children ages three years and older. True Temper Hardware Company experienced a substantial revenue increase in 1992, but not without cost. An aggressive market share strategy created a competitive pricing environment and increased volume, which resulted in margin deterioration and increased manufacturing costs. In addition, new product introductions created manufacturing inefficiencies which led to production shortfalls, particularly in the fourth quarter.
 "Our Juvenile Products companies again turned in record results. New products continue to be the lifeblood of this business. Fifteen new products were introduced during the year including an adjustable height high chair, a walk-thru gate, and the look and listen baby monitor.
 "In the Services for Retail business segment, Huffy Service First reported record sales achieved by growing both the consumer product assembly and supplier services businesses. Profitability was negatively impacted by escalating workers' compensation claims and other insurance costs. Washington Inventory Service also reported record sales with substantial improvement in profitability. The major restructuring over the past two years, which focused on improved productivity and cost containment, has been very successful."
 Mr. Shaw concluded, "During 1992, we continued to invest in the future. Capital expenditures were approximately $24 million, matching the record level of 1991. These funds were expended primarily for cost reduction, profit improvement, and other projects that generate a return in excess of our cost of capital.
 "As we enter 1993, we are encouraged by the strong level of demand for our products and services. True Temper Hardware Company ended 1992 with a healthy backlog and will continue to aggressively focus on implementation of cost reduction programs in 1993 and beyond. All of our other operating companies are performing well. We believe retail inventory levels are in good shape. We will continue to monitor the economic environment and are looking forward to a stronger 1993 with improved profitability."
 Huffy Corporation is a diversified manufacturer and supplier of bicycles, basketball backboards, lawn and garden tools, juvenile products, and inventory, assembly and merchandising services.
 HUFFY CORPORATION
 CONSOLIDATED STATEMENT OF EARNINGS
 (Dollars in thousands, except per share data)
 Quarter Ended, 12 Months Ended
 Dec. 31, Pct. Dec. 31, Pct.
 1992 1991 Change 1992 1991 Change
 Net sales $186,744 $161,647 16 $703,345 $678,936 4
 Gross profit 25,334 30,793 122,608 132,485
 Pct. to net sales 13.6 19.0 17.4 19.5
 Selling, general
 and admin.
 expenses 24,735 22,380 95,163 92,499
 Other income
 (expense) 356 (922) 497 (482)
 Earnings before
 interest, taxes and
 cumulative effect
 of accounting
 changes 955 7,491 (87) 27,942 39,504 (29)
 Interest expense,
 net 1,955 1,865 9,321 8,047
 Earnings (loss)
 before income
 taxes and
 cumulative effect
 of accounting
 changes (1,000) 5,626 N/A 18,621 31,457 (41)
 Income taxes
 (benefit) (679) 1,794 6,778 11,630
 Earnings (loss)
 before cumulative
 effect of
 accounting
 changes (321) 3,832 11,843 19,827
 Cumulative effect
 of accounting
 changes, net of
 income taxes --- --- 7,628 ---
 Net Earnings
 (loss) ($321) $3,832 N/A $4,215 $19,827 79
 Earnings per
 common share:(1)
 Primary
 Weighted avg.
 no. of common
 shares 12,709,011 13,167,586 12,903,209 13,055,608
 Earnings per
 common share
 before cumulative
 effect of
 accounting
 changes ($0.02) $0.29 $0.92 $1.52 (39)
 Cumulative effect
 of accounting
 changes, net of
 income taxes --- --- ($0.59) ---
 Net earnings
 (loss) per
 common share ($0.02) $0.29 $0.33 $1.52 (78)
 Fully Diluted(2)
 Weighted avg. no.
 of common
 shares 14,746,204 15,225,712 14,940,493 15,113,734
 Earnings per
 common share
 before cumulative
 effect of
 accounting
 changes ($0.02) $0.27 $0.89 $1.41 (37)
 Cumulative effect
 of accounting
 changes, net of
 income taxes --- --- ($0.59) ---
 Net earnings
 (loss) per
 common share ($0.02) $0.27 $0.33 $1.41 (77)
 (1) -- Quarterly per share amounts are computed independently for each quarter and the full year based upon the respective weighted average number of common shares outstanding and may not equal the total for the year.
 (2) -- Where the assumed conversion of the 7.25 percent Convertible Subordinated Debentures was anti-dilutive, the per share amounts reported for primary and fully diluted are the same.
 -0- 2/12/93
 /CONTACT: Pamela J. Whipps, assistant treasurer and manager, Investor Relations, Huffy Corporation, 513-866-6251/
 (HUF)


CO: Huffy Corporation ST: Ohio IN: LEI SU: ERN

KE-SB -- CL019 -- 6354 02/12/93 18:14 EST
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