Lancer (AMEX:LAN)
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Lancer Reports Third Quarter Results
SAN ANTONIO, Nov. 5 /PRNewswire-FirstCall/ -- Lancer Corporation (AMEX:LAN)
announced results of operations for the third quarter and nine months ended
September 30, 2004.
Net sales for the three months ended September 30, 2004 were $31.3 million, up
3% from sales in the third quarter of 2003. Net earnings in the third quarter
were $5.8 million, up from $0.6 million in the same period of 2003. Earnings
per diluted share were $0.61 in the third quarter of 2004, compared to $0.06 in
the same period last year.
In the nine months ended September 30, 2004, net sales were $92.5 million, up
7% from sales in the same period of 2003. Net earnings in the first three
quarters of 2004 were $8.2 million, or $0.86 per diluted share, compared to
$0.5 million, or $0.05 per diluted share, in the same period last year.
During the third quarter of 2004, Lancer received $7.0 million from a
settlement relating to a development project. Additionally, currency exchange
rate fluctuations in 2004 had a positive impact on sales of 2% in the third
quarter, and 3% in the nine months.
Christopher D. Hughes, Chief Executive Officer, commented: "Our business in
the third quarter was good in Europe and the Asia/Pacific region, down slightly
in North America, and weak in Latin America. In addition to the impact of the
$7.0 million settlement, manufacturing cost reductions and improved efficiency
drove our improved profitability."
Mr. Hughes continued: "Overall demand remains somewhat modest as we enter the
fourth quarter, which is often our weakest. Our order levels are relatively
firm this year, however, suggesting that the year-end seasonal revenue softness
may be less pronounced this year than at times in the past."
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,
including expectations for sales in the fourth quarter, 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
(Unaudited)
(Amounts in thousands, except share data)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2004 2003 2004 2003
Net sales $31,264 $30,237 $92,467 $86,481
Cost of sales 22,368 21,855 64,772 64,615
Gross profit 8,896 8,382 27,695 21,866
Selling, general and
administrative expenses 7,168 7,722 22,560 20,996
Operating income 1,728 660 5,135 870
Other (income) expense:
Interest expense 204 103 457 427
(Income) loss from joint
ventures (571) (427) (824) 60
Settlement proceeds (7,000) --- (7,000) ---
Other income, net 204 20 (115) (206)
(7,163) (304) (7,482) 281
Income from continuing
operations
before income taxes 8,891 964 12,617 589
Income tax expense (benefit):
Current 3,189 447 4,747 1,328
Deferred (124) (90) (323) (616)
3,065 357 4,424 712
Income (loss) from
continuing operations 5,826 607 8,193 (123)
Discontinued operations:
Loss from operations of
discontinued
Brazilian subsidiary --- 40 --- 160
Income tax benefit --- (7) --- (770)
(Income) loss from
discontinued operations --- 33 --- (610)
Net earnings $5,826 $574 $8,193 $487
Common Shares Outstanding:
Basic 9,380,558 9,360,893 9,371,993 9,353,912
Diluted 9,506,649 9,431,772 9,480,633 9,460,611
Earnings Per Share:
Basic
Earnings (loss) from
continuing operations $0.62 $0.07 $0.87 $(0.01)
Earnings (loss) from
discontinued operations $--- $(0.01) $--- $0.06
Net earnings $0.62 $0.06 $0.87 $0.05
Diluted
Earnings (loss) from
continuing operations $0.61 $0.07 $0.86 $(0.01)
Earnings (loss) from
discontinued operations $--- $(0.01) $--- $0.06
Net earnings $0.61 $0.06 $0.86 $0.05
LANCER CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(Amounts in thousands)
ASSETS
September 30, December 31,
2004 2003
(Unaudited)
Assets:
Cash $10,478 $1,129
Net receivables 17,970 14,749
Total inventories 25,365 24,502
Other assets 38,988 41,898
Total assets $92,801 $82,278
LIABILITIES AND SHAREHOLDERS' EQUITY
September 30, December 31,
2004 2003
(Unaudited)
Liabilities:
Accounts payable $7,677 $6,609
Debt 9,850 12,003
Other liabilities 15,195 11,703
Total liabilities $32,722 $30,315
Shareholders' equity 60,079 51,963
Total liabilities and shareholders'
equity $92,801 $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/