EXHIBIT 99
Contact: Michael B. Perrine
Chief Financial Officer
(512) 347 - 8787 Ext 119
TRAVIS BOATS REPORTS THIRD QUARTER FISCAL 2004 RESULTS
AUSTIN, TEXAS (August 17, 2004) - Travis Boats & Motors, Inc. (Nasdaq/TRVS)
today reported the results of operations for its third quarter of fiscal 2004
and the nine month period ended June 30, 2004.
Results of Operations
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The Company reported net sales of $47.2 million for the three months ended June
30, 2004 versus net sales of $53.1 million for the same quarter of the prior
fiscal year. The Company had 30 stores in operation on June 30, 2004 and 2003,
respectively.
For the quarter ended June 30, 2004, the Company reported that net income
increased by over 100% to $1.2 million ($.27 per basic and $.17 per diluted
share, respectively) from $438,000 ($.10 per basic and $.07 per diluted share,
respectively) in the same quarter of the prior year. The increase in net income
was primarily the result of the Company generating higher gross profit margins
on its boat sales compared to the prior fiscal year's quarter. As previously
disclosed, results in prior fiscal year periods were adversely impacted by the
substantial sell-through of certain aged and discontinued inventories.
During the quarter ended June 30, 2004, the Company improved unit sales volumes
in many of its boat segments, however the increases were not sufficient to
overcome the previously announced elimination of yacht sales and ongoing
transitions in off-shore product. Accordingly, comparable store sales for the
quarter ended June 30, 2004 decreased by 10% versus the prior year. For
comparative purposes, if adjustment is made to net sales in each period for the
elimination of yacht sales and the brand transition in off-shore fishing boats,
comparable store sales increased by 4% for the three months ended June 30, 2004.
For the nine months ended June 30, 2004, the Company reported that its operating
loss was reduced 54% to approximately $2.2 million from $4.8 million in the same
period of the prior year. For the nine months ended June 30, 2004, the Company
reported a net loss of $5.1 million ($1.19 per basic and diluted share) versus a
net loss of $5.1 million ($1.18 per basic and diluted share) for the same period
of the prior year.
Mark Walton, President of Travis Boats, said, "In the June quarter we gained
momentum in sales and margins. Without the margin pressure felt a year ago with
the significant inventory sell-through, the Company has been able to
substantially reduce its operating losses. However, there remains important work
to be done to increase our sales to eliminate our operating losses and improve
our overall working capital position."
Richard Birnbaum, Chairman of Travis Boats said, "While encouraged with our
quarterly profit turnaround and significant operational progress from last year,
the speed of our transformation has been impacted by our capital position. It is
clear that we must improve our sales and cash flows to maximize our potential.
As previously announced, in an effort to accelerate this transformation and
materially improve our capital resources, the Board has recently engaged
Davenport & Company, to assist in exploring options for raising additional
capital. As events or circumstances permit, we will provide further updates."
Travis Boats & Motors, Inc., is a leading multi-state superstore retailer of
recreational boats, motors, trailers and related marine accessories in the
southern United States. The Company operates 30 store locations in Texas,
Arkansas, Oklahoma, Louisiana, Alabama, Tennessee, Mississippi, Georgia and
Florida under the name Travis Boating Center. The Company's website is
www.travisboatingcenter.com.
Travis Boats & Motors, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations (Unaudited)
(in thousands, except share data and store count) Three Months ended Nine Months ended
June 30, June 30,
2004 2003 2004 2003
--------- --------- --------- ---------
Net sales............................................ $ 47,214 $ 53,129 $ 92,621 $ 109,149
Cost of goods sold................................... 36,658 42,136 72,768 87,049
Gross profit......................................... 10,556 10,993 19,853 22,100
Selling, general and administrative.................. 8,058 8,704 20,462 24,682
Store closing expense................................ -- 307 -- 307
Depreciation and amortization........................ 496 598 1,565 1,863
--------- --------- --------- ----------
8,554 9,609 22,027 26,852
Operating income/(loss).............................. 2,002 1,384 (2,174) (4,752)
Interest expense..................................... (699) (872) (2,093) (2,614)
Other income/(expense)............................... (5) 46 72 88
Impairment on sale/leaseback of real estate.......... -- -- (543) --
Profit/(loss) before income taxes.................... 1,298 558 (4,738) (7,278)
Income tax (expense)/benefit......................... -- -- -- 2,533
--------- --------- --------- ----------
Net profit/(loss).................................... 1,298 558 (4,738) (4,745)
Preferred stock dividends............................ 120 120 360 360
--------- --------- --------- ----------
Net profit/(loss) attributable to common shareholders $ 1,178 $ 438 $ (5,098) $ (5,105)
========= ========= ========= ==========
Income/(loss) per share:
Basic income/(loss) per share before preferred
stock dividends................................. 0.30 0.13 (1.10) (1.10)
Preferred stock dividends......................... (0.03) (.03) (0.09) (0.08)
--------- --------- --------- ----------
Basic income/(loss) per share........................ $ 0.27 $ 0.10 $ (1.19) $ (1.18)
========= ========= ========= ==========
Diluted income/(loss) per share before preferred
stock dividends................................. 0.17 0.07 (1.10) (1.10)
Preferred stock dividends......................... -- -- (0.09) (0.08)
Diluted income/(loss) per share...................... $ 0.17 $ 0.07 $ (1.19) $ (1.18)
Weighted average basic common shares outstanding..... 4,299,727 4,313,243 4,299,727 4,324,232
Weighted average diluted common shares outstanding... 8,081,137 8,094,653 4,299,727 4,324,232
Supplemental Data - Unaudited
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Cash................................................. $ 3,244 $ 4,014
Inventory (net)...................................... $ 44,009 $ 39,262
Revolving/Inventory debt............................. $ 44,130 $ 39,136
Stores open at end of period......................... 30 30
Cautionary Statement for purposes of the Safe Harbor Provisions of the 1995
Private Securities Litigation Reform Act. The statements in this document or in
documents incorporated by reference herein that are not historical facts are
forward-looking statements as that term is defined in Section 21E of the
Exchange Act that involve a number of risks or uncertainties. The actual results
of the future events could differ materially from those stated in such
forward-looking statements. Among the factors that could cause actual results to
differ materially are: the impact of seasonality and weather, general economic
conditions and the level of discretionary consumer spending, and the Company's
execution of its business plans to stop operating losses. These and numerous
other risk factors were identified in the Report on Form 10-K/A filed for fiscal
year 2003 and other documents filed of record.