Southern Energy Homes, Inc. Reports Higher Sales and Net Income for Second Quarter.ADDISON Addison, village (1990 pop. 32,058), Du Page co., NE Ill.; inc. 1884. An industrial suburb of Chicago, it manufactures machinery and plastic items. , Ala., July July: see month. 20 /PRNewswire-FirstCall/ -- Southern Energy Homes, Inc. (OTC OTCSee: Over-the-counter. OTC See over-the-counter market (OTC). Pink Sheets: SEHI SEHI Self Employed Health Insurance ) today reported higher sales and net income for the second quarter ended June 30, 2006. "Sales rose 65.9% to $77.3 million in the second quarter of 2006, which positions Southern Energy Homes as the fourth largest HUD Hud (h  d), a pre-Qur'anic prophet of Islam. Hud unsuccessfully exhorted his South Arabian people, the Ad, to worship the One God. manufacturer in the industry," stated Keith Keith may refer to:People with the given name Keith:
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. in the second quarter of 2006 increased to $5.3 million, compared to $0.6 million for the second quarter of 2005. Our 2006 second quarter results included a $1.9 million income tax expense compared to the 2005 second quarter, which included an income tax benefit of $1.6 million due to the reversal reversal n. the decision of a court of appeal ruling that the judgment of a lower court was incorrect and is reversed. The result is that the lower court which tried the case is instructed to dismiss the original action, retry the case, or is ordered to change its of substantially all of our valuation allowance on deferred tax assets. "This was our tenth consecutive quarter-over-quarter increase in revenues and the tenth consecutive quarter of profitability. We continue to improve the efficiency of our plants and have benefited from higher unit volume. Operating income totaled almost $10.0 million in the first half of 2006 compared with $10.7 million for the entire year of 2005. We remain focused on providing our customers with a large range of customized options while strengthening our dealer base and the quality of our homes. We believe this strategy remains an important part of building future sales and market share." Second Quarter Results Net revenues for the second quarter of 2006 rose to $77.3 million compared with $46.6 million for the second quarter of last year. The second quarter 2006 results included approximately $18.0 million in revenues related to Giles Giles may refer to:
"We continued to gain market share in the second quarter based on recent industry statistics," continued Mr. Holdbrooks. "We believe our growth in market share is due to our strong dealer base, continued emphasis on product quality and the addition of Giles Industries. Over the past year, our market share has grown faster than any of the top manufacturers in the industry." Gross profit increased 118% to $15.3 million in the second quarter of 2006 compared with $7.0 million in the second quarter of 2005. Gross margin percentage increased in the second quarter of 2006 to 19.8% from 15.1% in the second quarter of 2005. The increase in gross margin percentage was due primarily to higher sales, product mix and increased utilization of our existing manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. . Operating income rose substantially to $5.3 million compared with $0.6 million in the second quarter of 2005. The growth in operating income benefited from the higher sales volume, the acquisition of Giles Industries and improved leverage of selling, general and administrative expenses in 2006 compared with 2005. The second quarter 2006 results included $1.3 million in operating income related to Giles Industries. Selling, general and administrative expenses declined to 12.9% of revenues in the second quarter of 2006 compared with 13.8% of revenues in the second quarter of 2005. Net income for the second quarter of 2006 was $3.4 million, or $0.26 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared with net income of $2.2 million, or $0.17 per diluted share, in the second quarter of 2005. Results for 2005 include a non-cash tax benefit of $1.6 million (approximately $0.12 per diluted share) resulting from the reversal of substantially all of the Company's deferred income tax valuation allowance at July 1, 2005, in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with Statement of Financial Accounting Standards No. 109, Accounting for Income Taxes. Commenting on the results, James James, person in the Bible James, in the Gospel of St. Luke, kinsman of St. Jude. The original does not specify the relationship. James, rivers, United States James. Stariha, chief financial officer, said, "Southern Energy's financial position remained strong in the second quarter. We had no debt, a strong cash position, and our working capital increased to $22.7 million from $20.5 million at the end of the second quarter of 2005." Six Months Results For the six months ended June 30, 2006, total net revenues rose 63.2% to $144.2 million compared with $88.4 million in the same period of 2005. The six months ended June 30, 2006 results included approximately $24.5 million in revenues related to Giles Industries. Net income for the first six months of 2006 was $7.2 million, or $0.55 per diluted share, compared with net income of $2.7 million, or $0.21 per diluted share, for the first six months of 2005. Operating income for the six months ended June 30, 2006 increased to $10.0 million, compared to $1.0 million for the six months ended July 1, 2005. The first six months ended June 30, 2006 results included $1.4 million in operating income related to Giles Industries. Our first six months of results for 2006 included a $2.9 million income tax expense compared to the first six months of 2005 results which included an income tax benefit of $1.6 million due to the reversal of substantially all of our valuation allowance on deferred tax assets. About Southern Energy Homes, Inc. Southern Energy Homes, Inc. manufactures homes that are marketed primarily through retailer networks in 24 states. The Company's brands include Southern Energy, Southern Estates, Southern Homes, Southern Energy of Texas and Giles Industries. The SunRay division also manufactures and markets a line of towable trailers under the Smokey brand. The Company's common stock is not registered with the Securities and Exchange Commission, and the Company is not subject to the reporting requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934. Forward-Looking Statements This news release includes forward-looking statements, including without limitation, statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc future operating results, plans and expectations, and the adequacy of the Company's resources to support those plans. Investors are cautioned that such forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially from those in any forward-looking statements, including without limitation: the possibility of problems or unknown factors involving new retailers and suppliers; availability of financing for prospective purchasers of the Company's homes and availability of floor plan financing for retailers; availability and pricing of raw materials; the ultimate financial and operational effects of the recent Giles Industries acquisition and problems and difficulties that may be encountered in integrating new operations into the Company's existing business; the Company's reliance on retailers; ongoing weakness in the manufactured housing Manufactured housing (also known as prefab housing) is a type of housing unit that is largely assembled in factories and then transported to sites of use. In the United States, the term "manufactured home" specifically refers to a house built entirely in a protected market, 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. and seasonal nature of housing markets, and overall economic conditions; the highly competitive nature of the industry and pricing pressures at both the wholesale and retail levels; changes in market demand; concentration of the Company's business in certain regional markets; adverse weather conditions that reduce retail sales; the possibility of plant shutdowns from weather or other causes; availability of labor; federal, state and local regulation of the Company's business; the Company's contingent repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. liabilities with respect to retailer financing; and other risks indicated from time to time in the Company's reports to stockholders and other public statements. Southern Energy Homes is not responsible for updating the information contained in this press release beyond the published date, or for changes made to this document by wire services or Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the services.
A copy of this press release is available at http://www.sehomes.com/.
SOUTHERN ENERGY HOMES, INC.
Unaudited Balance Sheet Highlights
(In thousands)
June 30, 2006 July 1, 2005
ASSETS
Cash and cash equivalents $7,529 $9,548
Current assets 43,240 33,403
Total assets $80,061 $57,298
LIABILITIES AND STOCKHOLDERS' EQUITY
Notes payable $0 $0
Current liabilities 20,536 12,863
Long term debt 0 0
Total liabilities 20,536 12,863
Stockholders' equity $59,525 $44,435
Working capital $22,704 $20,540
SOUTHERN ENERGY HOMES, INC.
Unaudited Financial Highlights
(In thousands, except share and per share data)
Thirteen Weeks Ended
June 30, 2006 July 1, 2005
Net revenues $ 77,339 $ 46,615
Gross profit 15,296 7,016
Operating income 5,291 562
Net income 3,449 2,197
Basic earnings per share: 0.27 0.18
Diluted earnings per share: 0.26 0.17
Weighted average shares outstanding:
Basic 12,755,276 12,289,324
Diluted 13,298,997 12,794,383
Twenty-six Weeks Ended
June 30, 2006 July 1, 2005
Net revenues $144,180 $ 88,370
Gross profit 28,200 13,340
Operating income 9,961 991
Net income 7,154 2,659
Basic earnings per share: 0.57 0.22
Diluted earnings per share: 0.55 0.21
Weighted average shares outstanding:
Basic 12,622,658 12,251,553
Diluted 13,067,471 12,716,770
SOUTHERN ENERGY HOMES, INC.
Summary Operating Facts
Thirteen Weeks Ended
June 30, 2006 July 1, 2005
Wholesale units sold:
External customers 1,910 1,105
Intercompany -- 11
1,910 1,116
Average sales price - wholesale $36,513 $37,794
Floor sections sold 3,257 2,005
Twenty-six Weeks Ended
June 30, 2006 July 1, 2005
Wholesale units sold:
External customers 3,591 2,176
Intercompany 1 25
3,592 2,201
Average sales price - wholesale $36,139 $36,297
Floor sections sold 5,906 3,805
CONTACT: James Stariha, Chief Financial Officer, of Southern Energy Homes, Inc., +1-256-747-8589 Web site: http://www.sehomes.com/ |
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