Lowrance Electronics (NASDAQ:LEIX)
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From May 2019 to May 2024
Lowrance Electronics, Inc. (NASDAQ:LEIX) today announced
that fourth quarter sales jumped 59% to a fourth quarter record $43.0
million, compared to sales of $27.0 million for the same quarter of
fiscal 2004. Net income for the fourth quarter ended July 31, 2005,
increased 23% to $2.5 million, or $0.49 per diluted share, compared to
$2.0 million, or $0.51 per diluted share, for the same period in
fiscal 2004. There were 5.1 million diluted shares outstanding in the
fiscal 2005 fourth quarter, compared to 4.0 million diluted shares at
the same time last year.
For the fiscal year ended July 31, 2005, net sales increased 31%
to a record $146.4 million, compared to $111.9 million last year. Net
income increased 8% to a record $9.4 million, or $1.90 per diluted
share, compared to $8.8 million, or $2.20 per diluted share, in fiscal
2004. There were 4.9 million diluted shares outstanding in fiscal
2005, compared to 4.0 million diluted shares in fiscal 2004.
"Record full year and fourth quarter sales reflect the
introduction of over 50 new, leading-edge SONAR, GPS/SONAR combination
and GPS products, supplemented by significant contributions from our
new turn-by-turn automotive GPS product, the award-winning iWay 500C.
As expected, the strong sales for our automotive and hand-held GPS
products, which have lower gross margin percentages than the marine
products, reduced the fiscal 2005 gross margin percentage to 37% of
sales, compared to 42% of sales in fiscal 2004. We believe the high
fourth quarter sales rate for new automotive and hand-held GPS
receivers provides clear evidence this new line of products will
complement our seasonal marine business," said Darrell Lowrance,
president and CEO.
General and administrative expenses increased to support
additional advertising, selling and marketing expenses for our new
iWay 500C and other new GPS and marine products. Lowrance incurred
$0.9 million of costs related to Section 404 reporting under the
Sarbanes-Oxley act, three times the estimates the Company received
from its outside consultants. "We are hopeful that the SEC will
continue to examine this topic and reduce the extreme burden of
Section 404 reporting," said Lowrance.
"We are continuing our strategy to leverage our business through
the introduction of additional new products for the automotive and
handheld GPS markets. Our new product investments in the past year
enabled the strong finish in 2005, and we are excited about the
opportunity to build upon this momentum in fiscal 2006. This strong
growth continued during August with sales increasing more than 37%
over the same month last year," said Lowrance.
About Lowrance Electronics
Lowrance Electronics, Inc. (www.lowrance.com) designs,
manufactures and markets SONAR and GPS products, digital mapping
systems, and accessories under the brand names "Lowrance,"(R) and
"Eagle"(R) Electronics, "Lowrance Automotive(TM)" and "Lowrance
Avionics"(R). These products are used in the following primary product
markets: marine, general consumer (which includes handheld GPS outdoor
recreational use and voice turn-by-turn navigational systems for
aftermarket automotive use) and aviation.
This press release may include certain statements concerning
expectations for the future that are "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Such
forward-looking statements are subject to a variety of known and
unknown risks, uncertainties and other factors that are difficult to
predict and many of which are beyond management's control, including
factors discussed in the Company's Annual Report on Form 10-K and
other documents filed from time to time with the Securities and
Exchange Commission. While the Company makes these statements and
projections in good faith, neither the Company nor its management can
guarantee that anticipated future results will be achieved. The
Company undertakes no obligation to update or revise any
forward-looking statement to reflect new information or events.
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LOWRANCE ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(in thousands, except per share amounts)
Three Months Twelve Months
Ended Ended
July 31, July 31,
2005 2004 2005 2004
NET SALES $43,048 $27,061 $146,369 $111,861
COST OF SALES 28,183 15,528 91,442 64,557
Gross profit 14,865 11,533 54,927 47,304
OPERATING EXPENSES:
Selling and administrative 10,033 7,465 34,650 28,742
Research and development 1,665 1,492 6,306 5,252
Total operating expenses 11,698 8,957 40,956 33,994
Operating income 3,167 2,576 13,971 13,310
OTHER EXPENSES:
Interest 216 131 921 689
Other 94 (18) 174 192
Total other expenses 310 113 1,095 881
INCOME BEFORE INCOME TAXES 2,857 2,463 12,876 12,429
PROVISION FOR INCOME TAXES 348 416 3,464 3,673
NET INCOME $2,509 $2,047 $9,412 $8,756
NET INCOME PER COMMON SHARE
Basic $0.49 $0.54 $1.90 $2.33
Diluted $0.49 $0.51 $1.90 $2.20
WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING
Basic 5,135 3,761 4,949 3,761
Diluted 5,135 3,988 4,949 3,979
DIVIDENDS $1,541 $941 $2,481 $1,881
COMPREHENSIVE INCOME
Net Income $2,509 $2,047 $9,412 $8,756
Foreign currency translation
adjustment, net of tax 51 (14) 261 141
Comprehensive income $2,560 $2,033 $9,673 $8,897
LOWRANCE ELECTRONICS, INC.
CONSOLIDATED BALANCE SHEETS
July 31,
ASSETS 2005 2004
(in thousands)
CURRENT ASSETS:
Cash and cash equivalents $3,792 $1,412
Trade accounts receivable, net 19,908 10,128
Inventories 36,116 23,500
Current deferred income taxes 1,129 1,107
Prepaid income taxes 303 148
Prepaid expenses 3,781 2,362
Total current assets 65,029 38,657
PROPERTY, PLANT AND EQUIPMENT, net 18,519 10,005
OTHER ASSETS 1,500 81
TOTAL ASSETS $85,048 $48,743
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt $438 $1,874
Accounts payable 6,948 6,072
Accrued liabilities:
Compensation and benefits 3,205 3,175
Product costs 2,285 1,968
Accrued taxes 1,255 671
Other 1,718 1,119
Total current liabilities 15,849 14,879
LONG-TERM DEBT, less current
maturities 7,214 6,040
DEFERRED INCOME TAXES 1,134 1,169
STOCKHOLDERS' EQUITY:
Common stock, $.10 par value,
10,000,000 shares authorized,
3,761,196 shares issued and
outstanding at July 31, 2004 and
2003 514 377
Paid-in capital 34,316 7,449
Retained earnings 25,652 18,721
Accumulated other comprehensive
income (loss) 369 108
Total stockholders' equity 60,851 26,655
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $85,048 $48,743
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