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HUFFY CORPORATION ANNOUNCES STRONG SECOND QUARTER RESULTS

 DAYTON, Ohio, July 19 /PRNewswire/ -- Huffy Corporation (NYSE: HUF) announced today record net sales of $220.1 million for the quarter ended June 30, 1993, up 22 percent from a year ago. Net earnings for the quarter were $6.9 million, or $.48 per fully diluted share, up 40 percent compared to last year's results of $4.9 million, or $.35 per fully diluted share.
 Net sales for the six months ended June 30, 1993, set a new record at $435.1 million, up 21 percent from the $360.5 million reported for the same period last year. Net earnings for the six months of 1993 were $11.8 million, or $.84 per fully diluted share, up 11 percent from the $10.8 million, or $.76 per fully diluted share reported for the same period last year before restatement to $.22 per fully diluted share to reflect both the cumulative and annual effects of certain accounting changes adopted by the company in 1992.
 Richard L. Molen, president and chief executive officer, commented, "We are extremely pleased with our second quarter earnings of $.48 per common share, a substantial increase over 1992 second quarter per performance. New sales records were established by all three business segments, Recreation and Leisure Time Products, Juvenile Products, and Services for Retail.
 "The rebound in second quarter sales and earnings was led by our Recreation and Leisure Time Products business segment. Huffy Bicycle Company made a strong recovery in sales and earnings due primarily to the popularity of mountain bikes and the continued strong demand for bicycles. Huffy Sports Company posted strong sales and earnings gains on increased volume attributed primarily to new product introductions, particularly portable products. True Temper Hardware Company continues to enjoy strong demand as a result of new product innovations, although margins were still under pressure due to manufacturing inefficiencies. We are encouraged by the progress being made in many areas at True Temper Hardware such as business simplification, implementation of cost reduction programs, and a renewed focus on customer service.
 "The Juvenile Products business segment reported record sales and earnings for the quarter as it continues to benefit from new product introductions and increased market distribution. In the Services for Retail business segment, Washington Inventory Service continues to show solid performance supported by a concentrated focus on cost reduction and administrative effectiveness. Huffy Service First reported strong sales and earnings performance driven by increased volume in the consumer product assembly business due to a strong bicycle market and increased market penetration in the merchandising business."
 Molen concluded, "The first six months of 1993 have been very successful driven by a strong recovery by Huffy Bicycle Company. With the exception of True Temper Hardware, all of our operating companies reported improved sales and earnings for the first six months. Our outlook for the second half of 1993 is positive. True Temper Hardware still has many hurdles to overcome in the near future which will affect short term profitability. However, we continue to be excited about its potential due to the success of current and planned product innovation and strong retail sell through.
 "Continued excellent performance from our other five operating companies and continued support from a strong, increasingly cohesive senior management team will sustain our positive momentum towards 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 STATEMENTS OF EARNINGS
 (Dollars in thousands, except per share data)
 Three Months Ended
 June 30,
 Percent
 1993 1992(B) Change
 Net Sales $220,095 $180,910 22
 Gross Profit 42,033 34,138
 Percent to Net Sales 19.1 pct. 18.9 pct.
 Selling, general and
 administrative 28,145 23,864
 Other income (expenses) (113) 87
 Earnings before interest,
 taxes and cumulative effect
 of accounting changes 13,775 10,361 33
 Interest expense, net 2,330 2,675
 Earnings (loss) before income
 taxes and cumulative effect
 of accounting changes 11,445 7,686 49
 Income taxes (benefit) 4,576 2,943
 Earnings (loss) before
 cumulative effect of
 accounting changes 6,869 4,743 45
 Cumulative effect of accounting
 changes, net of income taxes --- ---
 Net earnings (loss) $ 6,869 $ 4,743 45
 Earnings Per Common Share (A):
 Primary
 Weighted average number
 of common shares 12,806,287 13,107,310
 Earnings per common share
 before cumulative effect
 of accounting changes $ 0.54 $ 0.36
 Cumulative effect of
 accounting changes, net
 of income taxes --- ---
 Net earnings (loss)
 per common share $ 0.54 $ 0.36
 Fully Diluted
 Weighted average number
 of common shares 14,786,944 15,080,665
 Earnings per common share
 before cumulative effect
 of accounting changes $ 0.48 $ 0.34
 Cumulative effect of
 accounting changes, net
 of income taxes --- ---
 Net earnings (loss)
 per common share $ 0.48 $ 0.34
 Six Months Ended
 June 30,
 Percent
 1993 1992(B) Change
 Net Sales $435,094 $360,525 21
 Gross Profit 81,605 71,859
 Percent to Net Sales 18.8 pct. 19.9 pct.
 Selling, general and
 administrative 57,346 50,015
 Other income (expenses) (131) 139
 Earnings before interest,
 taxes and cumulative effect
 of accounting changes 24,128 21,983 10
 Interest expense, net 4,627 5,054
 Earnings (loss) before income
 taxes and cumulative effect
 of accounting changes 19,501 16,929 15
 Income taxes (benefit) 7,723 6,412
 Earnings (loss) before
 cumulative effect of
 accounting changes 11,778 10,517 12
 Cumulative effect of accounting
 changes, net of income taxes --- (7,628)
 Net earnings (loss) $ 11,778 $ 2,889 308
 Earnings Per Common Share (A):
 Primary
 Weighted average number
 of common shares 12,794,266 13,124,757
 Earnings per common share
 before cumulative effect
 of accounting changes $ 0.92 $ 0.80
 Cumulative effect of
 accounting changes, net
 of income taxes --- (0.58)
 Net earnings (loss)
 per common share $ 0.92 $ 0.22
 Fully Diluted
 Weighted average number
 of common shares 14,771,262 15,098,263
 Earnings per common share
 before cumulative effect
 of accounting changes $ 0.84 $ 0.74
 Cumulative effect of
 accounting changes, net
 of income taxes --- (0.58)
 Net earnings (loss)
 per common share $ 0.84 $ 0.22
 (A) Where the assumed conversion of the 7.25 percent Convertible Subordinated Debentures was antidilutive, the per share amounts reported for primary and fully diluted are the same.
 (B) The Consolidated Statements of Earnings for the three months ended June 30, 1992, and the six months ended June 30, 1992, have 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- 7/19/93
 /CONTACT: Pamela J. Whipps, assistant treasurer and manager of investor relations of Huffy Corporation, 513-866-6251/
 (HUF)


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

KL -- CL011 -- 3041 07/19/93 12:19 EDT
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