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HUFFY CORPORATION ANNOUNCES FIRST QUARTER EARNINGS IN LINE WITH COMPANY EXPECTATIONS

 DAYTON, Ohio, April 16 /PRNewswire/ -- Huffy Corporation (NYSE: HUF) announced today record sales for the first quarter ended March 31, 1993. Net sales were $214,999,000, surpassing last year's record of $179,615,000 by $35,384,000. Net earnings for the quarter were $4,909,000, or $.35 per fully diluted share, which was moderately lower than the $5,881,000, or $.41 per fully diluted share, reported for the same period last year before restatement to a net loss of $.14 per common share to reflect both the cumulative and annual effects of certain accounting changes adopted by the company in 1992.
 Harry A. Shaw III, chairman and chief executive officer, commented, "We are pleased with our first quarter earnings of $.35 per common share which met our expectations. We are encouraged by the strong demand for our products and services demonstrated by the record sales levels achieved in all three of our business segments, Recreation and Leisure Time Products, Juvenile Products and Services for Retail."
 Commenting further on operating results, Richard L. Molen, president and chief operating officer, said, "With the exception of the True Temper Hardware Company, all of our operating companies met or exceeded last year's earnings levels.
 "In the Recreation and Leisure Time Products segment, Huffy Bicycles and Huffy Sports improved earnings performance on increased volume associated with strong demand. True Temper Hardware continues to experience margin pressures as a result of a shift in product mix and manufacturing inefficiencies from new product introductions. However, True Temper is making steady progress toward becoming a profitable contributor to the corporation.
 "Earnings in the Juvenile Products segment continued at record levels. This excellent performance was a result of higher margin product mix. In the Services for Retail segment, Washington Inventory Service reported operating results above last year's record first quarter, reflecting significant sales growth and continued benefit from successful cost reduction programs. Huffy Service First reported improved performance over the same period one year ago. Increased sales volume and cost reductions associated with organizational restructuring accounted for the improved operating results."
 Shaw concluded, "As we enter the second quarter, our peak sales period, orders for our products and services remains strong. We anticipate a stable bike market at 1992 levels. True Temper Hardware will continue to experience short term profit volatility which will affect our results. However, all five of our other operating companies are performing well, and we anticipate that second quarter performance will be significantly improved over 1992 results. Our outlook for the year remains positive and we expect a solid 1993 performance for Huffy Corporation."
 Huffy Corporation is a diversified manufacturer and supplier of bicycles, basketball backboards, lawn and garden tools, juvenile products and inventory, assembly and merchandising services.
 CONSOLIDATED STATEMENT OF EARNINGS
 (Dollars in thousands, except per share data)
 Three Months Ended
 March 31,
 Percent
 1993 1992(B) Change
 Net sales $214,999 $179,615 20
 Gross profit 39,572 37,721
 Percent to net sales 18.4 pct. 21.0 pct.
 Selling, general and
 administrative expenses 29,201 26,151
 Other income (expense) (18) 52
 Earnings before interest
 taxes and cumulative
 effect of accounting
 changes 10,353 11,622 (11)
 Interest expense, net 2,297 2,379
 Earnings (loss) before income
 taxes and cumulative effect
 of accounting changes 8,056 9,243 (13)
 Income taxes (benefit) 3,147 3,469
 Earnings (loss) before
 cumulative effect of
 accounting changes 4,909 5,774 (15)
 Cumulative effect of
 accounting changes, net of
 income taxes --- (7,628)
 Net earnings (loss) $ 4,909 ($1,854)
 Earnings per common share:(A)
 Primary
 Weighted average number
 of common shares 12,782,245 13,250,865
 Earnings per common share
 before cumulative effect
 of accounting changes $0.38 $0.43
 Cumulative effect of
 accounting changes, net of
 income taxes --- ($0.59)
 Net earnings (loss) per
 common share $0.38 ($0.14)
 Fully Diluted
 Weighted average number
 of common shares 14,755,580 15,224,523
 Earnings per common share
 before cumulative effect
 of accounting changes $0.35 $0.40
 Cumulative effect of
 accounting changes, net of
 income taxes --- ($0.59)
 Net earnings (loss) per
 common share $0.35 ($0.14)
 (A) -- Where the assumed conversion of the 7.25 percent Convertible Subordinated Debentures was antidilutive, the per share amounts reported for primary and fully dilutive are the same.
 (B) -- The Consolidated Statement of Earnings for the three months ended March 31, 1992 has been restated to reflect the adoption of SFAS No. 106 and SFAS No. 109 in the fourth quarter of 1992, effective Jan. 1, 1992.
 -0- 4/16/93
 /CONTACT: Pamela J. Whipps, assistant treasurer and manager of investor relations, Huffy Corporation, 513-866-6251/
 (HUF)


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

AR -- CL005 -- 6663 04/16/93 10:24 EDT
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Date:Apr 16, 1993
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