NEWS RELEASE
Collins Industries Contact: Kent Tyler
15 Compound Drive Corporate VP of Sales & Marketing
Hutchinson, Kansas 67502-4349 620-663-5551
For Immediate Release
December 20, 2005
/CORRECTION -- COLLINS INDUSTRIES, INC./
In the news release, Collins Industries, Inc. (OTC: COLL) Posts Fourth Quarter
2005 Results, issued yesterday, December 19, by Collins Industries, Inc., over
PR Newswire, the years listed in the table headings were incorrectly reversed by
PR Newswire. Complete, corrected release follows:
Collins Industries Posts Fourth Quarter 2005 Results
Hutchinson, Kansas, December 19, 2005 ...... Collins Industries, Inc. (OTC:
COLL) today reported results for FY 2005. Sales for the quarter ended October
31, 2005 increased 31% to $76.0 million compared to $58.0 million for the same
period last year.
The Company's net income increased 69% to $1.37 million ($0.21 per share -
diluted) for the quarter ended October 31, 2005 compared to net income of $0.81
million ($0.13 per share - diluted) for the same period last year. This income
improvement was principally led by increased revenues and gross profits.
Sales for the twelve months ended October 31, 2005 increased 29% to $269.4
million compared to $208.2 million for the same period last year. The net income
for the twelve months ended October 31, 2005 was $2.24 million ($0.36 per share
- - diluted) compared to $2.33 million ($0.38 per share - diluted) in the same
period last year. The net income for the twelve months ended October 31, 2005
was affected by nonrecurring expenses for the severance costs associated with
the retirement of two executives and 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 $1.3 million after tax ($0.21 per share -
diluted).
Donald Lynn Collins, President and CEO, said, "Considering the significant
disruption in fiscal 2005 from management changes and work related to the
restatement of fiscal 2004 financial statements, we are pleased our company
operating results represent continued improvement in productivity of our
businesses." He stated further, "Municipal and school district budgets continue
to be under pressure, however, we are pleased with our sales backlog and our
positions in the markets we serve."
The Company posted a 51% increase in its sales backlog at October 31, 2005 to
$103.7 million compared to $68.5 million at October 31, 2004. The increased
backlog at October 31, 2005 resulted from increased orders primarily in the
Terminal Truck / Road Construction and Bus segments, including a $28 million
order for terminal trucks from the United States Postal Service, which will be
primarily produced in fiscal 2006.
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 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 Twelve Months Ended
October 31, October 31,
----------------------------------- --------------------------------
2005 2004 2005 2004
---------------- --------------- --------------- -------------
Sales $75,989 $57,974 $269,449 $208,203
======= ======= ======== ========
Income before income taxes 2,358 1,421 3,761 3,861
Income tax expense 990 610 1,520 1,530
--- --- ----- -----
Net income $1,368 $811 $2,241 $2,331
====== ==== ====== ======
Earnings per share:
Basic $0.22 $0.14 $0.37 $0.40
Diluted $0.21 $0.13 $0.36 $0.38