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Fountain Powerboat Industries, Inc. Reports Fiscal 2009 Second Quarter and Six-Month Financial Results
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| Symbol | Price | Change |
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| FPB | 0.33 | 0.00 |
WASHINGTON, NC--(MARKET WIRE)--Feb 2, 2009 -- Fountain Powerboat Industries, Inc. (AMEX:FPB - News), a leading manufacturer of high performance sport boats, fish boats and express cruisers, today announced the results of its fiscal 2009 second quarter and six-month period, ended December 31, 2008.
"The recreational fiberglass boating market downturn has continued for three years, with the decline deepening sharply in the quarter ended December 31, 2008," commented Reginald M. Fountain, Jr., Fountain Powerboat Industries Chairman, Chief Executive Officer and President. "The global economic downturn, finance industry collapse and stock market crash had significant detrimental effect on marine markets during the quarter. Retail financing for boats tightened and floor plan financing for boat dealers became very difficult. With dealers reluctant to replenish their inventories and retail sales stymied, orders for off season production became scarce."
Second Quarter Financial Results
-- Net sales for the second quarter of fiscal 2009, ended December 31,
2008, were $5,839,908, compared to net sales of $15,196,038 for the
comparable quarter of fiscal 2008.
-- Gross loss for the quarter was ($1,031,092), compared to a gross
profit of $2,216,271 for the second quarter of fiscal 2008.
-- Operating loss for the quarter was $2,860,691, compared to an
operating loss of $447,076 for the second quarter of fiscal 2008.
-- Net loss for the quarter was $3,178,585, or net loss per share of
$0.73 on a basic and diluted basis, versus a net loss of $765,055, or net
loss per share of $0.16 on a basic and diluted basis, for the second
quarter of fiscal 2008.Six-Month Financial Results
-- Net sales for the first six months of fiscal 2009, ended December 31,
2008, were $23,427,947, compared to net sales of $33,245,468 for the first
six months of fiscal 2008.
-- Gross profit was $1,187,226, compared to gross profit of $4,920,857
for the first six months of fiscal 2008.
-- Operating loss was ($2,511,148), compared to operating income of
$191,393 for the first six months of fiscal 2008.
-- Net loss was $3,096,816, or a loss per share of $0.71 on a basic and
diluted basis, compared to a net loss of $491,676, or a loss per share of
$0.10 on a basic and diluted basis, for the first six months of fiscal
2008.Fountain continued, "We have been in continuous operation for 30 years and have weathered difficult times in our long history, although none have been this challenging. We will weather this downturn as well and come out of this recession stronger than ever. As a leader in the industry -- and in the Fountain Powerboat spirit, we will continue to improve our product lines and strengthen our distribution channels."
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.
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. The potential risks and uncertainties, include, but are not limited to, the cyclical nature of the marine industry and current adverse conditions in the industry, delays and unexpected costs for beginning construction of Baja boats, higher than expected costs to build boats, defects in acquired assets, lower than expected future market demand for Baja boats, the volatile and competitive nature of the industry, the concentration of a substantial percentage of the Company's sales with a few major customers, the loss of, or change in demand from, any of which could have a material impact upon the Company; labor relations at the Company and at its customers and suppliers; and the Company's single-source supply and just-in-time inventory strategies for some critical boat components, including high performance engines, which could adversely affect production if a single-source supplier is unable for any reason to meet the Company's requirements on a timely basis, and changes in domestic and international market conditions and foreign exchange rates. We assume no obligation to update any forward-looking statements to reflect events or circumstances arising after the date hereof. 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).
Tables Follow
FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, June 30,
2008 2008
------------ ------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 1,125,010 $ 1,445,270
Accounts receivable, net 2,913,457 4,283,791
Inventories 8,398,152 7,942,384
Prepaid expenses 535,363 631,108
------------ ------------
Total Current Assets 12,971,982 14,302,553
Property, Plant & Equipment 53,628,438 54,777,765
Less: Accumulated Depreciation (34,995,456) (35,455,637)
------------ ------------
18,632,982 19,322,128
------------ ------------
CASH SURRENDER VALUE LIFE INSURANCE 3,489,062 3,374,413
OTHER ASSETS 362,601 325,566
------------ ------------
TOTAL ASSETS $ 35,456,627 $ 37,324,660
============ ============
FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, June 30,
2008 2008
------------ ------------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Current maturities - long-term debt $ 16,362,009 $ 809,738
Notes payable 3,804,419 3,075,606
Accounts payable - trade 3,892,427 4,791,853
Accrued expenses and other liabilities 642,981 1,264,079
Dealer incentives 5,122,351 5,618,766
Customer deposits 834,500 304,999
Allowance for boat repurchases 171,235 78,787
Warranty reserve 827,158 860,199
------------ ------------
Total Current Liabilities 31,667,080 16,804,027
OTHER LONG-TERM LIABILITIES 4,828 4,828
LONG-TERM DEBT, less current maturities 7,226,000 20,428,948
------------ ------------
Total Liabilities 38,887,908 37,237,803
STOCKHOLDERS' EQUITY
Common stock, $.01 par value, 200,000,000
shares authorized, 4,844,275 shares issued
and outstanding as of December 31, 2008
and June 30, 2008 48,442 48,442
Additional paid-in capital 10,574,753 10,574,753
Accumulated deficit (12,301,645) (9,204,829)
Less: Treasury stock, at cost, 483,091
shares as of December 31, 2008 and 483,091
shares as of June 30, 2008 (981,223) (981,223)
Accumulated other comprehensive income from
interest rate swap (771,608) (350,286)
------------ ------------
Total Stockholders' Equity (Deficit) (3,431,281) 86,857
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 35,456,627 $ 37,324,660
============ ============
FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months
Ended
--------------------------
December 31, December 31,
2008 2007
------------ ------------
NET SALES $ 5,839,908 $ 15,196,038
COST OF SALES 6,871,000 12,979,767
------------ ------------
Gross Profit (1,031,092) 2,216,271
------------ ------------
EXPENSES:
Selling 973,620 1,665,104
General and administrative 855,979 998,243
------------ ------------
Total Expenses 1,829,599 2,663,347
------------ ------------
OPERATING INCOME (LOSS) (2,860,691) (447,076)
------------ ------------
NON-OPERATING INCOME (EXPENSE):
Other 2,829 (15,708)
Interest (320,723) (302,271)
------------ ------------
Total Non-operating (Expense) (317,894) (317,979)
------------ ------------
LOSS BEFORE INCOME TAXES (3,178,585) (765,055)
NET LOSS $ (3,178,585) $ (765,055)
============ ============
BASIC EARNINGS (LOSS) PER SHARE $ (.73) $ (.16)
============ ============
WEIGHTED AVERAGE SHARES OUTSTANDING 4,361,184 4,791,974
============ ============
DILUTED EARNINGS (LOSS) PER SHARE $ (.73) $ (.16)
============ ============
WEIGHTED AVERAGE SHARES OUTSTANDING ASSUMING
DILUTION 4,361,184 4,791,974
============ ============
FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
For the Six Months Ended
--------------------------
December 31, December 31,
2008 2007
------------ ------------
NET SALES $ 23,427,947 $ 33,245,468
COST OF SALES 22,240,721 28,324,611
------------ ------------
Gross Profit 1,187,226 4,920,857
------------ ------------
EXPENSES:
Selling expenses 2,027,578 2,895,272
General and administrative expenses 1,670,796 1,834,192
------------ ------------
Total Expenses 3,698,374 4,729,464
------------ ------------
OPERATING INCOME (LOSS) (2,511,148) 191,393
------------ ------------
NON-OPERATING INCOME (EXPENSE):
Other 24,287 (117,430)
Interest (609,955) (565,639)
------------ ------------
Total Non-operating (Expense) (585,668) (683,069)
------------ ------------
LOSS BEFORE INCOME TAXES (3,096,816) (491,676)
NET LOSS $ (3,096,816) $ (491,676)
============ ============
BASIC EARNINGS (LOSS) PER SHARE $ (.71) $ (.10)
============ ============
WEIGHTED AVERAGE SHARES OUTSTANDING 4,361,184 4,810,624
============ ============
DILUTED EARNINGS (LOSS) PER SHARE $ (.71) $ (.10)
============ ============
WEIGHTED AVERAGE SHARES OUTSTANDING ASSUMING
DILUTION 4,361,184 4,810,624
============ ============
Contact:
FOR ADDITIONAL INFORMATION CONTACT:
Irving L. Smith
Chief Financial Officer
252.975.7004
ismith@foutainpowerboats.com
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