HUTCHINSON, Kan., May 25 /PRNewswire-FirstCall/ -- Collins Industries, Inc. (OTC:CNSI) today reported results for its Second Quarter of 2006. Sales for the quarter ended April 30, 2006 increased 24% to a record second quarter $75.9 million compared to $61.3 million for the same period last year. The Company's net income increased to a record second quarter $2.5 million ($0.40 per share - diluted) for the quarter ended April 30, 2006 compared to a net loss of $0.07 million ($0.01 per share - diluted) for the same period last year. This income improvement was principally led by increased revenues and gross profits. Sales for the six months ended April 30, 2006 increased 24% to $140.3 million compared to $112.8 million for the same period last year. The net income for the six months ended April 30, 2006 increased $4.9 million to $4.1 million ($0.65 per share - diluted) compared to a net loss of $0.8 million ($0.13 per share - diluted) in the same period last year. This income improvement was principally led by increased revenues and gross profits. The prior year period included nonrecurring expenses for severance costs associated with the retirement of two executives and the restatement of financial statements for fiscal years 2002 and 2003 and interim quarterly statements for 2004, along with substantially increased audit fees for fiscal 2004 financial statements. These nonrecurring expenses totaled $ 1.0 million after tax ($0.16 per share - diluted.) Donald Lynn Collins, President and CEO, said, "Results for the second quarter maintain us on track for a highly successful fiscal 2006 and support our belief that benefits continue to be realized from our investments in technology and engineering." The Company posted a 6% increase in its sales backlog at April 30, 2006 to a record $125.1 million compared to $117.8 million at April 30, 2005. The increased backlog as of April 30, 2006 resulted from increased orders primarily in the Terminal Truck / Road Construction and Bus segments, including $18.6 million of a previously reported $28 million order for terminal trucks from the United States Postal Service received in July 2005, which will be primarily produced and delivered during the remainder of fiscal 2006. The Company will release the 2nd Quarter 2006 financial statements and footnotes to its Company website ( http://www.collinsindustries.com/ ) and to the Pink Sheets website ( http://www.pinksheets.com/ ). Quarterly Dividend The Company also announced that it had declared its thirty-eighth consecutive regular quarterly cash dividend. The dividend will be $0.05 per share, paid to shareholders of record as of June 5, 2006 and will be payable on June 15, 2006. The ex-dividend date will be June 1, 2006. Shareholder Rights Plan The Company also announced today that its Board of Directors has adopted a shareholder rights plan designed to enhance the ability of all of the Company's shareholders to realize the long-term value of their investment in the Company. The rights plan provides that one right will be distributed as a dividend for each outstanding share of common stock of the Company held as of the close of business on June 5, 2006. The rights plan is intended to deter coercive or unfair takeover tactics, prevent an acquirer from gaining control of the Company without offering fair and equal treatment to all of the Company's shareholders and discourage anyone from attempting to put the stock "into play." Each right will initially entitle holders of Company common stock to purchase one one-hundredth of a share of Series A Junior Participating Preferred Stock of the Company at an exercise price of $30.00. Each one-one hundredth of a share of preferred stock is equivalent in voting power to one share of Company common stock and would be paid dividends equal to the dividend paid on each share of common stock. However, following issuance of the rights and prior to the exercise of the rights, no dividends are payable with respect to the rights. The rights generally will be exercisable only if a person or group acquires beneficial ownership of 20% or more of the Company's common stock or commences a tender offer or exchange offer upon consummation of which such person or group would beneficially own 20% or more of the Company's common stock. The rights plan provides that any person or group owning 20% or more of the Company's common stock at the time of adoption of the rights plan will not cause the rights to become exercisable unless such person or group acquires additional Company common stock. In addition, the rights plan includes a "TIDE" provision that provides for the establishment of a committee made up of independent directors to review and evaluate the rights plan at least every three years in order to consider whether the rights plan continues to be in the best interests of the Company, its shareholders and other relevant constituencies of the Company. Lastly, the rights plan includes a qualifying offer exception that permits a person's acquisition of Company common stock without triggering the exercise of the rights if the acquisition is made pursuant to an all-cash tender offer that meets certain criteria. The Company has the power to redeem the rights at a price of $0.01 per right under certain circumstances. Unless earlier redeemed or cancelled by the Company, the rights expire on May 25, 2016. Collins Industries, Inc. is a leading manufacturer of ambulances (including medical attack vehicles, rescue vehicles and fire emergency vehicles), North America's largest producer of Type "A" small school buses, the nation's second largest manufacturer of terminal trucks and a leader in the road construction and industrial sweeper markets. Since 1971, the Company has grown to approximately 1000 employees in six plants comprising over one million combined square feet of manufacturing space. The Company sells its products throughout the United States and abroad. This press release contains historical and forward-looking information. The forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Company believes the assumptions underlying these forward-looking statements are reasonable; however, any of the assumptions could be inaccurate, and therefore, actual results may differ materially from those projected in the forward-looking statements due to certain risks and uncertainties, including, but not limited to, the availability of key raw materials, components and chassis, changes in funds budgeted by Federal, state and local governments, changes in competition, various inventory risks due to changes in market conditions, changes in product demand, substantial dependence on third parties for product quality, interest rate fluctuations, adequate direct labor pools, development of new products, changes in tax and other governmental rules and regulations applicable to the Company, reliability and timely fulfillment of orders and other risks as indicated in the Company's prior filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly release any revisions to any forward-looking statements contained herein to reflect events or circumstances occurring after the date released or to reflect the occurrence of unanticipated events. Financial Summary (In thousands of dollars, except per share amounts) (Unaudited) Three Months Ended Six Months Ended April 30, April 30, 2006 2005 2006 2005 Sales $75,885 $61,294 $140,293 $112,842 Income/(loss) before income taxes 3,947 (154) 6,529 (1,307) Income tax expense/ (benefit) 1,440 (80) 2,420 (530) Net income $2,507 ($74) $4,109 ($777) Earnings per share: Basic $0.43 ($0.01) $0.69 ($0.13) Diluted $0.40 ($0.01) $0.65 ($0.13) Weighted average outstanding common and common equivalent shares: Basic 5,821,875 5,912,738 5,960,760 5,877,815 Diluted 6,212,698 5,912,738 6,337,452 5,877,815 DATASOURCE: Collins Industries, Inc. CONTACT: Cletus Glasener, CFO and Vice President of Finance of Collins Industries, Inc., +1-620-663-5551 Web site: http://www.collinsindustries.com/

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