WASHINGTON, NC , a leading manufacturer of high performance
sport boats, fish boats and express cruisers, today announced the
results of its fiscal 2008 first quarter ended September 30.
Net Sales
Net sales for the first quarter were $18 million, a 7 percent
decrease when compared to sales of $19.4 for the first quarter of
fiscal 2007.
"We expect revenues for Fiscal 2008 to be flat, at approximately
$68 million, which is an aggressive goal given the weak market for
fiberglass recreational boats," stated Fountain's founder and CEO
Reginald M. Fountain, Jr. "Our revenue for the first quarter is in
line with our goals for the year. While attendance at boat shows
has been down this year our participation has been intense and our
sales at retail at the shows have been encouraging. We are
confident that the introduction of new and enhanced boat models
during Fiscal 2008 will give a boost to our sales," added
Fountain.
Operating Profit/(loss)
Operating profit for the first quarter of Fiscal 2008 was
$638,470, versus an operating loss of ($38,505) for the first
quarter of Fiscal 2007.
"The improvement in operating profit is the result of
improvements in the productivity of the manufacturing operation and
the aggressive cost and expense reduction program that the
Company's management has effected over the past few months,"
commented Fountain's Chief Financial Officer, Irving Smith.
Net Profit/(Loss)
Net profit for the first quarter of Fiscal 2008 was $273,340, or
net earnings per share of $0.06 on a basic and diluted basis,
versus a net loss of ($196,670), or net loss per share of ($0.04)
on a basic and diluted basis, for the first quarter of Fiscal
2007.
About Fountain Powerboats, Inc.
Fountain Powerboats, Inc., a subsidiary of Fountain Powerboat
Industries, Inc., has its executive offices and manufacturing
facilities along the Pamlico River in Beaufort County, North
Carolina. The company designs, manufactures and sells offshore
sport boats, sport fishing boats and express cruisers that target
the segment of the recreational power boat market where speed,
performance, safety and quality are the main criteria for purchase.
These recreational boats are based upon an innovative,
award-winning design enabling world class performance while using
standard reliable power. There are currently 12 buildings located
on 65 acres totaling over 237,000 square feet accommodating 40 to
45 boats in various stages of construction at any one time. The
present plant site can also accommodate up to 300,000 square feet
of additional manufacturing space. The land and buildings are
wholly owned by Fountain Powerboat Industries, Inc. and its
subsidiary, Fountain Powerboats, Inc. For more information, visit
www.fountainpowerboats.com.
SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS:
Except for the historical information contained herein, this
press release contains forward-looking statements, including
statements containing the words "planned," "expects," "believes,"
"strategy," "opportunity," "anticipates" and similar words. Such
forward-looking statements are subject to known and unknown risks,
uncertainties or other factors that may cause the company's actual
results to be materially different from historical results or any
results expressed or implied by such forward-looking statements. We
assume no obligation to update any forward-looking statements to
reflect events or circumstances arising after the date hereof. The
potential risks and uncertainties which could cause actual growth
and results to differ materially include, but are not limited to,
customer acceptance of the company's services, products and fee
structures, the success of the company's brand development efforts,
the volatile and competitive nature of the industry, and changes in
domestic and international market conditions, and foreign exchange
rates. Further information on the factors and risks that could
affect Fountain Powerboat Industries, Inc.'s business, financial
condition and results of operations are included under the "Risk
Factors" or "Factors Affecting Our Operating Results" sections of
Fountain Powerboat Industries, Inc. public filings with the
Securities and Exchange Commission, available at
(http://www.sec.gov).
FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
September 30, June 30,
2007 2007
------------ ------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 781,373 $ 2,379,383
Accounts receivable, net 2,949,453 3,688,986
Inventories 6,635,783 6,645,213
Prepaid expenses 563,869 668,237
------------ ------------
Total Current Assets 10,930,478 13,381,819
Property, Plant & Equipment 49,791,438 49,533,443
Less: Accumulated Depreciation (33,692,793) (33,104,217)
------------ ------------
16,098,645 16,429,226
CASH SURRENDER VALUE LIFE INSURANCE 3,013,130 2,951,010
OTHER ASSETS 522,226 654,890
------------ ------------
TOTAL ASSETS $ 30,564,479 $ 33,416,945
============ ============
FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
September 30, June 30,
2007 2007
------------ -------------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Current maturities - long-term debt $ 771,599 $ 759,290
Notes payable -- 799,333
Accounts payable - trade 2,623,189 2,846,303
Accrued expenses and other liabilities 1,207,824 1,092,908
Dealer incentives 5,133,196 6,342,467
Customer deposits 217,000 879,102
Allowance for boat repurchases 81,977 64,124
Warranty reserve 954,149 941,928
------------ -------------
Total Current Liabilities 10,988,934 13,725,455
LONG-TERM DEBT, less current maturities 15,771,828 15,969,407
OTHER LONG-TERM LIABILITIES 51,883 4,828
DEFERRED TAX LIABILITY -- 80,896
COMMITMENTS AND CONTINGENCIES (Note 5)
------------ -------------
Total Liabilities 26,812,645 29,780,586
STOCKHOLDERS' EQUITY
Common stock, $.01 par value, 200,000,000
shares authorized, 4,844,275 shares issued
and outstanding as of September 30, 2007
and June 30, 2007 48,442 48,442
Additional paid-in capital 10,574,753 10,574,753
Accumulated deficit (6,731,661) (7,005,001)
Less: Treasury stock, at cost 15,000 shares (110,748) (110,748)
Accumulated other comprehensive income
(loss) from interest rate swap (28,952) 128,913
------------ -------------
Total Stockholders' Equity 3,751,834 3,636,359
------------ -------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 30,564,479 $ 33,416,945
============ =============
FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
For the Three Months Ended
--------------------------
September 30, September 30,
2007 2006
------------ ------------
NET SALES $ 18,049,430 $ 19,413,852
COST OF SALES 15,344,844 16,537,935
------------ ------------
Gross Profit 2,704,586 2,875,917
------------ ------------
EXPENSES:
Selling expenses 1,230,167 1,967,096
General and administrative expenses 835,949 947,326
------------ ------------
Total Expenses 2,066,116 2,914,422
------------ ------------
OPERATING INCOME (LOSS) 638,470 (38,505)
------------ ------------
NON-OPERATING INCOME (EXPENSE):
Other income (expense) (101,722) 24
Interest expense (263,368) (239,189)
------------ ------------
Total Non-operating Income (Expense) (365,090) (239,165)
------------ ------------
INCOME (LOSS) BEFORE INCOME TAXES 273,380 (277,670)
INCOME TAX EXPENSE (BENEFIT) 40 (81,000)
------------ ------------
NET INCOME (LOSS) $ 273,340 $ (196,670)
============ ============
BASIC EARNINGS (LOSS) PER SHARE $ .06 $ (.04)
============ ============
WEIGHTED AVERAGE SHARES OUTSTANDING 4,844,275 4,834,275
============ ============
DILUTED EARNINGS (LOSS) PER SHARE $ .06 $ (.04)
============ ============
WEIGHTED AVERAGE SHARES OUTSTANDING ASSUMING
DILUTION 4,848,461 4,834,275
============ ============
For Additional Information: Irving Smith Chief Financial Officer
Fountain Powerboat Industries, Inc. 252.975.7004
ismith@fountainpowerboats.com