Exhibit 99.1
Featherlite Posts Second-Quarter Profits;
Rebound in Earnings over First Quarter of 2003 Due in Part to Strong
New Coach Sales, Additional Orders for Horse, Livestock Trailers
CRESCO, Iowa--(BUSINESS WIRE)--Aug. 4, 2003--Featherlite, Inc.
(Nasdaq:FTHR), a leading manufacturer and marketer of specialty
aluminum trailers and luxury motorcoaches, today reported net income
of $898,000 on sales of $47.4 million in the second quarter of 2003,
which ended June 30th. This compares with net income of $1.0 million
on sales of $47.6 million in the second quarter of 2002. On a diluted
per share basis, the Company earned 12 cents per share for the second
quarter of 2003 versus 14 cents per share in the same period of 2002.
Featherlite consolidated net sales for the second quarter of 2003 were
essentially flat from the second quarter of 2002.
Featherlite revenues and profits rebounded in the second quarter
following a disappointing first quarter of 2003. The rebound was a
result of improved margins from a more favorable specialty trailer
product mix due to innovative new model enhancements, promotional
programs announced early in the spring and strong sales in the coach
division. Also, the Company successfully continued its cost management
program, resulting in decreased selling and administrative expenses on
a consolidated basis in the second quarter from the same period last
year.
Six months ended June 30, 2003
On a year to date basis, net sales of $89.1 million for the six
months ended June 30, 2003 are $19.2 million (17.7 percent) lower than
2002 net sales of $108.2 million for the same period. Featherlite net
income for the six-month period ending June 30, 2003, was $222,000 or
$.03 cents per diluted share. This compares with a net income of $2.1
million, or a $.30 per share for first six months in 2002.
The decrease in profitability primarily reflects reduced gross
profit as the result of lower sales in both the coach and trailer
segments as soft sales in the third and fourth quarters of 2002 due to
a flat economy continued into the early months of 2003.
As of the end of the second quarter, Featherlite was in compliance
with all financial covenants with its lenders.
Outlook
"Though we remain cautious, we are encouraged by the Company's
improved profitability in the second quarter. Trailers are selling
through to the retail customer at the dealer level, and we are
optimistic that the luxury coach business will continue to improve. We
have reduced fixed expenses in most areas, which enables profitability
with lower sales revenue," Conrad Clement, chairman and chief
executive officer, said. "Despite the economy, we believe we are
gaining market share and are positioned for growth and improved bottom
line performance as consumer confidence increases."
About Featherlite
Featherlite, Inc., is an innovative leader in designing,
manufacturing and marketing high quality aluminum specialty trailers,
transporters and luxury motorcoaches. With more that 75 percent of its
business in the leisure, recreation and entertainment categories,
Featherlite has highly diversified product lines offering hundreds of
standard model and custom-designed aluminum specialty trailers,
specialized transporters, mobile marketing trailers and luxury
motorcoaches.
Featherlite(R) is the "Official Trailer" of NASCAR, Champ Car,
Indy Race League (IRL), SPORTSCAR and World of Outlaws (W.O.O.) and is
a major sponsor of National Hot Rod Association (NHRA). Featherlite
also is sponsor of many equine and livestock events and its products
are displayed in over 1,000 fairs, trade shows, races and other events
throughout North America each year. Through its Featherlite
Vantare'(R) product line, Featherlite is the "Official Luxury
Motorcoach" of NASCAR, IRL, SPORTSCAR, Breeders' Cup Invitational and
the World Billfish Series. For more information about the Company,
please visit Featherlite's website at www.fthr.com/news.
FEATHERLITE, INC
Condensed Statements of Income
(Unaudited)
(In Thousands, except for per share data)
Three months Six months
Ended Ended
June 30, June 30,
--------------- ----------------
2003 2002 2003 2002
------- ------- ------- --------
Net Sales $47,364 $47,624 $89,074 $108,229
Cost of Sales 40,852 39,953 77,425 92,704
------- ------- ------- --------
Gross profit 6,512 7,671 11,649 15,525
Selling and administrative expenses 4,723 5,476 10,252 10,786
Restructure credit (70) - (70) -
--------------------------------
Income from operations 1,859 2,195 1,467 4,739
Other income(expense)
Interest (618) (782) (1,303) (1,593)
Other, net 131 210 277 225
------- ------- ------- --------
Total other expense (487) (572) (1,026) (1,368)
------- ------- ------- --------
Income before taxes 1,372 1,623 441 3,371
Minority interest in subsidiary loss (52) - (52) -
Provision for income taxes 526 600 271 1,247
------- ------- ------- --------
Net income $ 898 $ 1,023 $ 222 $ 2,124
======= ======= ======= ========
Net income per share-
Basic $ 0.14 $ 0.16 $ 0.03 $ 0.33
------- ------- ------- --------
Diluted $ 0.12 $ 0.14 $ 0.03 $ 0.30
------- ------- ------- --------
Weighted average shares outstanding -
Basic 6,535 6,535 6,535 6,535
------- ------- ------- --------
Diluted 7,219 7,112 7,268 6,995
------- ------- ------- --------
Safe Harbor Statement under the Private Securities Litigation
Reform Act: Certain statements in this report, and in the Company's
Form 10-K and other filings with the SEC, are forward-looking in
nature and relate to trends and events that may affect the Company's
future financial position and operating results. Any statement that is
not a historical fact, including those involving estimates,
projections, future trends and the outcome of events that have not yet
occurred, are forward-looking statements. The words "believe,"
"estimate," "expect," "intend," "may," "could," "will," "plan,"
"anticipate," and similar words and expressions are intended to
identify forward-looking statements. These statements speak only as of
the date of this report, are based on current expectations, are
inherently uncertain, are subject to risks, and should be viewed with
caution. Actual results and experience may differ materially from the
forward-looking statements as a result of many factors, including but
not limited to: our ability to receive waivers of financial covenant
violations as necessary, product demand and acceptance of products in
each segment of the Company's markets, fluctuations in the price of
aluminum, competition, facilities utilization, the availability of
additional capital as may be required to finance any future net
liquidity deficiency, and certain other unanticipated events and
conditions. It is not possible to foresee or identify all such
factors. The Company makes no commitment to update any forward-looking
statement or to disclose any facts, events, or circumstances after the
date hereof that may affect the accuracy of any forward-looking
statement, other than as required by law.
CONTACT: Featherlite, Inc., Cresco
John K. Hall, 563-547-6000