Featherlite (NASDAQ:FTHR)
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Featherlite, Inc. (Nasdaq:FTHR), a leading manufacturer
and marketer of specialty aluminum trailers, transporters and luxury
motorcoaches, today reported net income of $1.4 million, or 12 cents
per diluted share, on net sales of $60.4 million for the first quarter
ended March 31, 2006. First quarter net sales rose by $1.8 million, or
3.1 percent, over the same period last year. Net income of $1.4
million in the first quarter of 2006 compares with $1.5 million, or 13
cents per diluted share, in the same period in 2005, a 6.1 percent
decrease. On a consolidated basis, lower first quarter net income was
primarily the result of decreased gross margin percentages in the
coach segment due to changes in the mix of new and used coach sales,
partially offset by decreased operating expenses due to reduced bonus
accruals compared to the same period in 2005.
Trailer segment sales in the first quarter of 2006 increased 5.5
percent over the same period last year as trailer orders remained
strong and price increases and surcharges implemented during the
quarter became effective. Luxury coach sales in the first quarter of
2006 were comparable to the same period last year, with used coach
sales up significantly and new coach sales down approximately the same
amount.
"Both luxury coach and trailer sales leads, one indicator of
potential future sales levels, came in at a record pace during the
first quarter of 2006," according to President and CEO Conrad Clement.
"The Company and the trailer industry continue to experience margin
pressure as aluminum and steel commodity prices rise. The Company is
managing these fluctuations with appropriate product price increases
and surcharges as well as controlling operating expenses, and we
remain cautiously optimistic about the level of business during the
remainder of 2006.
"Later this week the Company will announce the 2007 Featherlite
trailer models at our annual international dealer meeting. The event,
which is open to all 220 Featherlite dealers, will showcase the
boldest product enhancements ever unveiled at Featherlite. We think
this event will continue the escalating interest in Featherlite
trailers in all categories.
"As announced on January 9, 2006, we continue to work with our
financial advisor, Houlihan Lokey Howard & Zukin, to explore
strategic alternatives to enhance shareholder value. We do not intend
to disclose developments with respect to our exploration of strategic
alternatives unless and until a specific transaction is approved by
our board of directors," Clement said.
About Featherlite
With more that 75 percent of its business in the leisure,
recreation and entertainment categories, Featherlite(R), Inc. has
highly diversified product lines offering hundreds of standard model
and custom-designed aluminum specialty trailers, specialized
transporters, mobile marketing trailers and luxury motorcoaches. For
more information about the Company, please visit www.fthr.com.
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*T
Featherlite, Inc.
Condensed Balance Sheets
(Unaudited)
(In thousands)
March 31, Dec 31,
ASSETS 2006 2005
------------ ------------
Current assets
Cash $170 $91
Receivables 8,331 7,178
Refundable income taxes 337 337
Inventories 54,775 55,714
Leased promotional trailers 1,636 1,550
Prepaid expenses 1,412 1,820
Deferred tax asset 1,329 1,329
------------ ------------
Total current assets 67,990 68,019
Property and equipment, net 16,555 16,583
Other assets 3,920 3,199
------------ ------------
$88,465 $87,801
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Wholesale financing and other notes
payable $15,963 $18,923
Current maturities of long-term debt 1,797 1,791
Checks issued not yet presented 3,170 4,419
Accounts payable 4,358 4,384
Motorcoach shell costs payable 6,212 3,142
Accrued liabilities 9,183 8,194
Customer deposits 2,702 2,832
------------ ------------
Total current liabilities 43,385 43,685
Bank line of credit 2,419 2,418
Other long-term debt, net of current
maturities 9,717 10,168
Deferred tax liabilities 1,259 1,259
Other long-term liabilities 32 35
Shareholders' equity 31,653 30,236
------------ ------------
$88,465 $87,801
============ ============
FEATHERLITE, INC
Condensed Statements of Income
(Unaudited)
(In Thousands, except for per share data)
Three months Ended
March 31,
-------------------------
2006 2005
------------ ------------
Net Sales $60,433 $58,587
Cost of Sales 51,156 48,835
------------ ------------
Gross profit 9,277 9,752
Selling and administrative expenses 6,417 6,782
------------ ------------
Income from operations 2,860 2,970
Other income(expense)
Interest (644) (631)
Other, net 34 28
------------ ------------
Total other expense (610) (603)
------------ ------------
Income before taxes 2,250 2,367
Minority interest in subsidiary income - (11)
Provision for income taxes (878) (895)
------------ ------------
Net income $1,372 $1,461
============ ============
Net income per share-
Basic $0.12 $0.13
------------ ------------
Diluted $0.12 $0.13
------------ ------------
Weighted average shares outstanding -
Basic 11,040 10,879
------------ ------------
Diluted 11,680 11,435
------------ ------------
All shares and per share amounts have been restated to reflect the
retroactive effect of the 3 for 2 stock split on May 4, 2005
Certain prior period information has been reclassified to conform to
the presentation in the Company's Annual Report on Form 10-K.
*T
Safe Harbor Statement under the Private Securities Litigation
Reform Act: Certain statements in this release are forward-looking in
nature and relate to trends and events that may affect the Company's
future financial position and operating results. Any statements that
are not based upon historical facts, including the outcome of events
that have not yet occurred and our expectations for future
performance, are forward-looking statements. Statements in this
release regarding expectations of the importance of sales leads on
future sales levels and the effectiveness of price increases and
surcharges on margins are forward-looking statements. In general,
words such as "believe," "estimate," "expect," "intend," "may,"
"could," "will," "plan," "anticipate," and similar words and
expressions identify forward-looking statements. These statements
speak only as of the date of this release, are based on current
expectations, are inherently uncertain, are subject to risks, and
should be viewed with caution. Actual results and experience may
differ materially from the forward-looking statements as a result of
many factors, including but not limited to: the health of the economy
and disposable income for recreational and leisure activities, product
demand and acceptance of products in each segment of the Company's
markets, the need for and impact of product sales price increases,
fluctuations in the price of aluminum, changes in our product sales
mixes, competition, facilities utilization, the availability of
additional capital as may be required to finance any future net
liquidity deficiency, and certain other unanticipated events and
conditions. The risks and uncertainties listed are not the only ones
we face. Additional risks and uncertainties not presently known to us
or that we currently deem immaterial may also affect our business
operations. The Company makes no commitment to update any
forward-looking statement or to disclose any facts, events, or
circumstances after the date hereof that may affect the accuracy of
any forward-looking statement, other than as required by law.