Contact: Kent Tyler For Immediate Release
Vice President Marketing May 12, 2005
(620) 663-5551
Collins Industries Completes Workers' Compensation Investigation
Hutchinson, Kansas - Collins Industries, Inc. (Nasdaq: "COLLE"), announced today
that its audit committee has completed an investigation of the Company's
reserves for future workers' compensation costs, and have recommended revised
procedures for establishing workers' compensation reserves. The Board of
Directors has approved the recommendations.
The Company is working closely with its outside auditor, KPMG, to complete the
audit of its restated financial statements. The investigation findings, required
adjustments to workers' compensation reserves, and all other requested
information have been furnished to its auditor. Additional audit procedures
related to the restatement are near completion. The audit cannot be completed,
however, until the Company has filled its chief financial officer vacancy, and
the CFO is able to provide typical management representations to KPMG.
Separately, the Company has announced the hiring of a chief financial officer
who will assume his position May 23, 2005.
William R. Patterson, Chairman of the Audit Committee stated, "Our investigation
has been very thorough and we feel it has confirmed the overall integrity of our
accounting process at the highest level." He continued, "We believe there are no
other significant issues at this time and anticipate completion of the audit,
and the filing of delinquent Securities and Exchange Commission filings, as soon
as the next 45 days."
Donald Lynn Collins, President and CEO, said, "Our orders received continue at a
record pace and we believe the outlook is positive for future operations." He
continued, "I am very pleased to report to our shareholders and employees that
our products are being very well received in the marketplace and we continue to
benefit from our investments in capital expenditures to lower our costs and
improve the quality of products delivered to our customers."
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 900 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.
For more information on Collins Industries, Inc., visit Collins Industries,
Inc.'s website at http://www.collinsind.com.
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Collins Industries, Inc. • 15 Compound Drive • Hutchinson, Kansas 67502-4349
• www.collinsind.com
