Lancer (AMEX:LAN)
Historical Stock Chart
From Jun 2019 to Jun 2024
Lancer Reports Unaudited and Unreviewed Results for 2003 and
First Quarter 2004; Lancer Common Stock to Resume Trading
SAN ANTONIO, May 19 /PRNewswire-FirstCall/ -- Lancer Corporation announced
unaudited and unreviewed results of operations for the year ended December 31,
2003 and the quarter ended March 31, 2004.
Form 8-K Filing and Trading of Lancer Shares
Securities regulations require that annual financial statements contained in a
Form 10-K be audited by an independent auditor, and that interim financial
statements contained in a Form 10-Q be reviewed by an independent auditor.
Lancer's independent auditor, BDO Seidman, LLP, has not yet completed its audit
of Lancer's financial statements for the years 2000, 2001, 2002 and 2003, or
its review of applicable quarterly periods, including the first quarter of
2004. Pursuant to the terms agreed upon with the American Stock Exchange to
regain compliance, Lancer has filed the unaudited and unreviewed results of
operations as exhibits to a Form 8-K. Lancer intends to file its Form 10-K and
Form 10-Q when the audit and the review have been completed.
The filing of the Form 8-K does not make Lancer current in its filing
requirements with the Securities and Exchange Commission, and the information
contained in the Form 8-K does not meet the requirements which are set forth
pursuant to Form 10-K or Form 10-Q and should not be interpreted to be a
substitute for the information that would normally be included in such forms.
Lancer notes that the audits and reviews being conducted by the Company's
independent auditor could result in material changes to the information
contained in this news release and the Form 8-K.
Based on Lancer's disclosure in the Form 8-K, the American Stock Exchange has
indicated that it intends to open trading of Lancer's common stock on Thursday,
May 20, 2004.
2003 Operating Results
Sales for the year ended December 31, 2003 were $113.5 million, down 18% from
sales in the same period of 2002. Loss from continuing operations was $1.6
million in 2003, compared to income from continuing operations of $5.6 million
in 2002. Net loss was $1.0 million ($0.11 per share) in 2003, versus net
income of $4.0 million ($0.43 per diluted share) in 2002.
During 2003, sales declined on a local currency basis in each of Lancer's
geographical segments due to generally weak demand for foodservice equipment.
Lancer incurred $2.5 million of costs associated with the investigation
conducted by the Audit Committee of Lancer's Board of Directors and
investigations being conducted by the Securities and Exchange Commission and
the United States Attorney's Office. Additionally, Lancer took a charge of
$1.2 million relating to inventory unlikely to be used as intended in the
production of a customer's beverage dispensing platform. Lancer believes there
are no significant alternative uses for the inventory. If it were to receive
full reimbursement for the inventory in the future, Lancer would recognize
income of approximately $1.2 million. Lancer cannot, however, give assurance
that it will receive such reimbursement. An agreement for reimbursement
received prior to the completion of the 2003 audit would likely cause material
changes in the financial information presented in this news release and the
Form 8-K.
First Quarter 2004 Operating Results
Sales for the three months ended March 31, 2004 were $30.4 million, up 13% from
$26.9 million in the first quarter last year. Net earnings were $0.9 million
($0.10 per diluted share) in the first quarter of 2004, compared to a net loss
of $0.3 million ($0.03 per share) in the same period of 2003.
Sales in the first quarter improved in all regions except Latin America, where
market conditions remain weak. Investigation related expenses were $0.8
million in the first quarter of 2004.
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)
2003 2002 2001
Net sales $113,500 $139,015 $122,745
Cost of sales 84,978 101,925 95,877
Gross profit 28,522 37,090 26,868
Selling, general and
administrative expenses 28,674 27,535 22,235
Operating income (152) 9,555 4,633
Other (income) expense:
Interest expense 409 1,318 3,128
Loss from joint ventures 217 653 296
Minority interest --- (55) (239)
Other income, net 709 (649) (1,049)
1,335 1,267 2,136
Income (loss) from continuing
operations before income taxes (1,487) 8,288 2,497
Income tax expense (benefit):
Current 1,430 1,440 1,319
Deferred (1,348) 1,229 (401)
82 2,669 918
Income (loss) from continuing
operations (1,569) 5,619 1,579
Discontinued operations:
Loss from operations of
discontinued Brazilian subsidiary 196 2,442 268
Income tax benefit (788) (829) (91)
(Income) loss from discontinued
operations (592) 1,613 177
Net (loss) earnings $(977) $4,006 $1,402
Common Shares Outstanding:
Basic 9,356,082 9,326,529 9,127,062
Diluted 9,356,082 9,433,193 9,314,789
Earnings Per Share:
Basic
Earnings (loss) from continuing
operations $(0.17) $0.60 $0.17
Earnings (loss) from discontinued
operations $0.06 $(0.17) $(0.02)
Net earnings (loss) $(0.11) $0.43 $0.15
Diluted
Earnings (loss) from continuing
operations $(0.17) $0.60 $0.17
Earnings (loss) from discontinued
operations $0.06 $(0.17) $(0.02)
Net earnings (loss) $(0.11) $0.43 $0.15
LANCER CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Amounts in thousands, except share data)
Three Months Ended
March 31, March 31,
2004 2003
Net sales $30,356 $26,874
Cost of sales 21,755 21,080
Gross profit 8,601 5,794
Selling, general and
administrative expenses 7,512 6,582
Operating income 1,089 (788)
Other (income) expense:
Interest expense 109 168
(Income) loss from joint ventures (153) 226
Minority interest --- ---
Other income, net (353) (201)
(397) 193
Income (loss) from continuing
operations before income taxes 1,486 (981)
Income tax expense (benefit):
Current 605 (139)
Deferred (63) 168
542 29
Income (loss) from continuing
operations 944 (1,010)
Discontinued operations:
Loss from operations of
discontinued Brazilian subsidiary --- 44
Income tax benefit --- (737)
(Income) loss from discontinued
operations --- (693)
Net earnings (loss) $944 $(317)
Common Shares Outstanding:
Basic 9,367,431 9,345,331
Diluted 9,471,713 9,345,331
Earnings Per Share:
Basic
Earnings (loss) from continuing
operations $0.10 $(0.11)
Earnings from discontinued
operations $--- $0.08
Net earnings $0.10 $(0.03)
Diluted
Earnings (loss) from continuing
operations $0.10 $(0.11)
Earnings from discontinued
operations $--- $0.08
Net earnings $0.10 $(0.03)
LANCER CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(Amounts in thousands)
ASSETS
March 31, December 31,
2004 2003
(Unaudited) (Unaudited)
Assets:
Cash $2,845 $1,129
Net receivables 16,933 14,686
Total inventories 22,817 24,502
Other assets 42,482 42,361
Total assets $85,077 $82,678
LIABILITIES AND SHAREHOLDERS' EQUITY
March 31, December 31,
2004 2003
(Unaudited) (Unaudited)
Liabilities:
Accounts payable $7,849 $7,043
Debt 12,620 12,003
Other liabilities 11,829 11,879
Total liabilities $32,298 $30,925
Minority interest --- ---
Shareholders' equity 52,779 51,753
Total liabilities and shareholders'
equity $85,077 $82,678
DATASOURCE: Lancer Corporation
CONTACT: Scott Adams of Lancer Corporation, +1-210-310-7065
Web site: http://www.lancercorp.com/