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Eckler Industries Inc. reports first quarter FYE 9/30/96.

TITUSVILLE, Fla.--(BUSINESS WIRE)--March 8, 1996--Eckler Industries Inc. (NASDAQ:ECKL), one of the largest after market suppliers of Corvette automotive parts and accessories in the world, reported financial results for its first quarter ended Dec. 31, 1995.

The net loss for the first quarter was $66,716 or $.03 per share as compared to a loss of $191,336 or $.13 per share for the same quarter last year.

Historically, the company posts a first quarter net loss, due to the seasonal nature of the business. The financials reflect a healthy 3% sales increase over the same period last year, notwithstanding the unusually harsh winter, which kept restoration work to a minimum, and going public in November which occupied management's time.

The company reported a net loss applicable to common stock of $607,854 or $.30 per share for the quarter due to a one time non-cash charge to stockholders' equity of $523,032, this charge was forecasted in the company's prospectus for its initial public stock offering which closed on Nov. 15, 1995. The charge was caused by the accretion of the redemption value of the preferred stock issued by the company in September 1995.

According to Ralph Eckler, president and founder of Eckler, the costs of the public offering were higher than anticipated due to the overall complexity of the restructuring that occurred. This resulted in a reduction of net equity. Eckler, in keeping with his personal commitment to maintain stockholders' equity, has elected to contribute 47,000 shares of his Class B common stock to the company. This is equivalent to 94,000 shares of Class A common stock.

Substantially all of the Class A common stock is owned by the public. This will cause a reduction in the total number of shares outstanding, increase the percentage of ownership held by the public shareholders, and increase the net equity and earnings per share of all shareholders. The impact of this contribution of stock will be reflected in the company's second quarter financial results.

Eckler concluded: "This may seem like an unconventional move, but it's my personal pledge to the shareholders that motivates me. Operationally, we exceeded all our projections for the first quarter. Our company is healthy and growing and I see no reason why a one-time technical, non-cash accounting charge should negatively impact shareholder value."

The company is currently enjoying strong second quarter sales. The company's extensive 400 page, four-color catalog was mailed to over 300,000 body shops, dealerships and Corvette enthusiasts worldwide in February, kicking off the company's traditional selling season. This year's catalog is the largest put out by the company, showcasing over 17,000 Corvette automotive parts and accessories, including over 400 new inventory items.

Eckler Industries Inc. is one of the largest after market suppliers of Corvette automotive parts and accessories in the world.

CONTACT: Eckler Industries Inc., Titusville

Patrick Power, 407/269-9680
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Publication:Business Wire
Date:Mar 8, 1996
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