Lancer (AMEX:LAN)
Historical Stock Chart
From Jun 2019 to Jun 2024
Lancer Reports Fourth Quarter Results
SAN ANTONIO, March 7 /PRNewswire-FirstCall/ -- Lancer Corporation (AMEX:LAN)
announced results of operations for the fourth quarter and year ended December
31, 2004.
Net sales for the three months ended December 31, 2004 were $31.8 million, up
18% from sales in the fourth quarter of 2003. Record fourth quarter net
earnings of $1.9 million in 2004 compared favorably to a net loss of $1.3
million in the same period of 2003. Earnings per diluted share were $0.20 in
the fourth quarter of 2004, versus a loss per share of $0.14 in the fourth
quarter of 2003.
For the year ended December 31, 2004, net sales were $124.2 million, a 9%
increase from sales in 2003. Net earnings in 2004 were $10.1 million, or $1.06
per diluted share, compared to a net loss of $0.8 million, or $0.09 per share
in 2003.
Currency exchange rate fluctuations had a positive impact on sales of 2% in the
fourth quarter, and 3% in the full year. Additionally, Lancer received $7.0
million during the third quarter of 2004 from a settlement relating to a joint
development project with a customer. The $7.0 million is included in other
income in Lancer's Consolidated Statement of Operations for the twelve months
ended December 31, 2004.
Christopher D. Hughes, Chief Executive Officer, commented: "We made
considerable progress in 2004. Our sales growth reflected improvement in our
markets, along with contributions from new products. During 2004, we continued
to strengthen our manufacturing results through cost reductions and improved
efficiency, which resulted in higher profit margins. Additionally, our
financial position is strong. We ended the year with $5.2 million of cash and
no borrowings under our bank credit facility."
Lancer Corporation is a leading innovator, manufacturer and marketer of
beverage dispensing systems serving customers worldwide. Headquartered in San
Antonio, Texas, Lancer also maintains facilities in Mexico, Australia, Belgium,
New Zealand and the United Kingdom. Lancer is a vertically integrated
manufacturer that employs approximately 1,200 people. Lancer designs and
manufacturers a complete range of fountain soft drink dispensers, frozen
beverage dispensers, dispensing valves, beer dispensing equipment, and an
extensive line of beverage dispensing parts and accessories, which are marketed
through a network of Company sales representatives and authorized distributors.
This press release contains various forward-looking statements and information
that are based on management's belief as well as assumptions made by and
information currently available to management. Although the Company believes
that the expectations reflected in such forward-looking statements are
reasonable, it can give no assurance that such expectations will prove to have
been correct. Such statements contain certain risks, uncertainty and
assumptions. Should one or more of these risks materialize, or should
underlying assumptions prove incorrect, actual results may vary materially from
those expected.
LANCER CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except share data)
Three Months Ended Twelve Months Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2004 2003 2004 2003
Net sales $ 31,781 $ 27,019 $ 124,249 $ 113,500
Cost of sales 22,745 19,786 87,518 84,401
Gross profit 9,036 7,233 36,731 29,099
Selling, general and
administrative expenses 6,340 7,617 28,900 28,613
Other operating (income)
expenses --- 1,076 127 1,132
Operating income (loss) 2,696 (1,460) 7,704 (646)
Other income (expense):
Interest income (expense) (42) 97 (499) (329)
Income (loss) from
joint ventures 283 (158) 1,107 (217)
Other income (expense),
net (423) (237) 6,819 23
(182) (298) 7,427 (523)
Income (loss) from
continuing operations
before income taxes 2,514 (1,758) 15,131 (1,169)
Income tax expense 607 201 5,031 190
Income (loss) from
continuing operations 1,907 (1,959) 10,100 (1,359)
Discontinued operations
Income (loss) from
operations of
discontinued
Brazilian subsidiary --- 36 --- (196)
Income tax benefit
(expense) --- (740) --- 788
Income (loss) from
discontinued operations --- (704) --- 592
Net earnings (loss) $ 1,907 $ (1,255) $ 10,100 $ (767)
Common Shares Outstanding:
Basic 9,437,441 9,360,903 9,388,444 9,356,082
Diluted 9,577,709 9,360,903 9,503,582 9,356,082
Earnings Per Share:
Basic
Earnings (loss) from
continuing operations $ 0.21 $ (0.21) $ 1.08 $ (0.15)
Income from
discontinued
operations $ --- $ 0.07 $ --- $ 0.06
Net earnings (loss) $ 0.21 $ (0.14) $ 1.08 $ (0.09)
Diluted
Earnings (loss) from
continuing operations $ 0.20 $ (0.21) $ 1.06 $ (0.15)
Earnings from
discontinued
operations $ --- $ 0.07 $ --- $ 0.06
Net earnings (loss) $ 0.20 $ (0.14) $ 1.06 $ (0.09)
LANCER CORPORATION
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
ASSETS
December 31, December 31,
2004 2003
Assets:
Cash $ 5,196 $ 1,129
Net current receivables 18,344 16,016
Total inventories 24,495 24,502
Other assets 37,452 40,631
Total assets $ 85,487 $ 82,278
LIABILITIES AND SHAREHOLDERS' EQUITY
December 31, December 31,
2004 2003
Liabilities:
Accounts payable $ 7,555 $ 6,609
Debt 1,477 11,003
Other liabilities 13,440 12,703
Total liabilities $ 22,472 $ 30,315
Minority interest --- ---
Shareholders' equity 63,015 51,963
Total liabilities and shareholders' equity $ 85,487 $ 82,278
DATASOURCE: Lancer Corporation
CONTACT: Scott Adams of Lancer Corporation, +1-210-310-7065
Web site: http://www.lancercorp.com/