Lancer (AMEX:LAN)
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Lancer Reports Second Quarter Results
SAN ANTONIO, Aug. 12 /PRNewswire-FirstCall/ -- Lancer Corporation (AMEX:LAN)
announced results of operations for the second quarter and six months ended
June 30, 2004.
Net sales for the three months ended June 30, 2004 were $31.7 million, up 8%
from sales in the second quarter of 2003. Net earnings for the second quarter
were $1.4 million, compared to $0.2 million in the same period last year.
Second quarter earnings per diluted share rose to $0.15 in 2004 from $0.02 in
2003.
In the six months ended June 30, 2004, net sales were $61.2 million, up 9% from
sales in the same period of 2003. Net earnings in the first half of 2004 were
$2.4 million, or $0.25 per diluted share, compared to a loss of $0.1 million,
or $0.01 per share, in the first half of 2003.
During the second quarter of 2004, sales growth was centered in the Europe and
Asia/Pacific regions. Currency fluctuations added 2% to sales in the quarter.
The higher sales, plus manufacturing cost reductions and the benefits of higher
factory output, caused most of the improvement in profitability during the
second quarter of 2004. Professional fees in the second quarter of 2004 rose
$0.8 million from the second quarter of 2003, driven by the cost of the
re-audit of financial statements for prior years.
Christopher D. Hughes, Chief Executive Officer, commented: "Business was good
in the Europe and Asia/Pacific regions during the second quarter, but demand
was generally flat in North America. We are, however, seeing a growing number
of orders for our Flavor Select line of fountain dispensers from convenience
retailers in North America. Our Lancer FBD joint venture is also enjoying
widespread acceptance of its line of frozen beverage dispensers.
"I am pleased with the solid improvement in our second quarter performance.
Our focus on manufacturing costs and efficiency is beginning to pay off, and
that focus will continue as we develop new sales opportunities."
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 with 2003 sales of $113 million, and employing 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 AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Amounts in thousands, except share data)
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2004 2003 2004 2003
Net sales $31,696 $29,370 $61,203 $56,244
Cost of sales 21,499 21,680 42,404 42,760
Gross profit 10,197 7,690 18,799 13,484
Selling, general and
administrative expenses 7,880 6,692 15,392 13,274
Operating income 2,317 998 3,407 210
Other (income) expense:
Interest expense 144 156 253 324
(Income) loss from joint
ventures (100) 261 (253) 487
Other income, net 34 (25) (319) (226)
78 392 (319) 585
Income (loss) from
continuing operations
before income taxes 2,239 606 3,726 (375)
Income tax expense (benefit):
Current 953 1,020 1,558 881
Deferred (136) (694) (199) (526)
817 326 1,359 355
Income (loss) from
continuing operations 1,422 280 2,367 (730)
Discontinued operations:
Loss from operations of
discontinued Brazilian
subsidiary --- 76 --- 120
Income tax benefit --- (26) --- (763)
(Income) loss from
discontinued operations --- 50 --- (643)
Net earnings (loss) $1,422 $230 $2,367 $(87)
Common Shares Outstanding:
Basic 9,367,893 9,353,706 9,367,662 9,349,542
Diluted 9,460,049 9,449,974 9,465,302 9,349,542
Earnings Per Share:
Basic
Earnings (loss) from
continuing operations $0.15 $0.03 $0.25 $(0.08)
Earnings from discontinued
operations $--- $(0.01) $--- $0.07
Net earnings $0.15 $0.02 $0.25 $(0.01)
Diluted
Earnings (loss) from
continuing operations $0.15 $0.03 $0.25 $(0.08)
Earnings from discontinued
operations $--- $(0.01) $--- $0.07
Net earnings $0.15 $0.02 $0.25 $(0.01)
LANCER CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(Amounts in thousands)
ASSETS
June 30, December 31,
2004 2003
(Unaudited) (Unaudited)
Assets:
Cash $4,689 $1,129
Net receivables 17,716 14,749
Total inventories 24,962 24,502
Other assets 41,515 41,898
Total assets $88,882 $82,278
LIABILITIES AND SHAREHOLDERS' EQUITY
June 30, December 31,
2004 2003
(Unaudited) (Unaudited)
Liabilities:
Accounts payable $9,191 $6,609
Debt 13,235 12,003
Other liabilities 12,788 11,703
Total liabilities $35,214 $30,315
Minority interest --- ---
Shareholders' equity 53,668 51,963
Total liabilities and shareholders' equity $88,882 $82,278
CONTACT: Scott Adams of Lancer Corporation, +1-210-310-7065.
DATASOURCE: Lancer Corporation
CONTACT: Scott Adams of Lancer Corporation, +1-210-310-7065
Web site: http://www.lancercorp.com/