Redline reports first quarter loss
Redline Performance Products, Inc. (AMEX:RED), San Diego, Calif., reported a loss of $2.3 million for its fiscal 2004 first quarter ended June 30, 2003, or 86 cents per share, versus a net loss of $649,000, or 46 cents per share, for the same period last year.
As a development stage company, Redline reported no revenues for the three-month periods ended June 30, 2003, and June 30, 2002. Since inception, Redline’s operations have focused on the design, engineering, development and marketing of its initial product, the 800 Revolt snowmobile. The company said it expects to introduce the 800 Revolt snowmobile in time for the 2003-2004 snowmobile season.
The increased net loss for the fiscal 2004 first quarter is due primarily to higher interest expense, higher selling, general and administrative expenses, and increased research and development costs, the company said. Interest expense in the first quarter of fiscal 2004 was approximately $1.5 million.
Beginning in the current fiscal 2004 second quarter, interest expense going forward is expected to be minimal since substantially all of the company's long and short term debt has been repaid with the proceeds generated from the completion in May 2003 of its initial public offering.
At June 30, 2003, Redline's cash position was $3.0 million versus cash of $37,300 at March 31, 2003, and the company had no long-term debt.
Mark A. Payne, president and CFO of Redline, said the company expects to introduce the 800 Revolt in time for the upcoming snowmobile season. Payne said the company anticipates identifying a company to assemble the Revolt within the next 60 days.
For details, see www.1redline.com.
Twomey named chairman
(Nasdaq:ACAT), Thief River Falls, Minn, said Christopher A. Twomey, president and CEO, has been elected chairman of the board, effective immediately. Twomey succeeds William J. Ness, who retired as board chair and now serves as vice chairman of the board. In addition, the board elected Kenneth J. Roering as lead director. Twomey became Arctic Cat’s president and CEO in 1986. During that time, the company's annual revenues have grown from $25.5 million to $577 million in fiscal 2003.
Meanwhile, Arctic declared a regular quarterly cash dividend of six cents per share of common and class B common stock. The dividend is payable Sept. 2, 2003, to shareholders of record on Aug. 18, 2003.
Bell Recreational gains
(AMEX:BI) has reported net revenues for the 2003 second quarter ended June 30, 2003, of $39.4 million, compared with $41.3 million in the prior-year period. Bell reported net income of $220,000, or three cents per diluted share, compared with $438,000, or five cents per diluted share, in the second quarter of 2002.
Bell’s Recreational Products Group (RPG) posted basically flat sales of $14.0 million for the three months ended June 30, 2003, compared with $14.1 million in the prior-year period. Operating income increased 11% to $941,000 from $850,000 in the 2002 second quarter, reflecting slightly reduced selling and administrative expenses during the period.
For the first six months of 2003, Recreational Products recorded operating income of $1.0 million, up from $925,000 in the same period last year, on sales of $24.6 million, up from $23.9 million in the same period in 2002.
Cycle Country has sales increase
Cycle Country Accessories Corp. (AMEX:ATC), Milford, Iowa, manufacturer of ATV accessories, reported a 35% increase in revenues for the third quarter ended June 30, 2003, but a decline in net earnings of $32,398.
Net earnings for the third quarter were $58,816, or two cents per share, on revenues of $3,085,955. That compares with earnings of $91,214, or three cents per share, on revenues of $3,704,019, for the same period in 2002. Third quarter results include revenues of $105,701 and gross profit of $46,853 from the newly-acquired Weekend Warrior lawn and garden subsidiary. Weekend Warrior did not make a contribution to Cycle Country in the third quarter of 2002.
Third quarter earnings this year were reduced by approximately $52,500 in one-time registration costs for listing on the American Stock Exchange, the company said.
The revenue increase during the third quarter was mainly attributable to stronger demand for several core ATV products, including snowplow blade sales of approximately $480,000 and greater mower unit sales of $103,000.
Revenues for the nine months ended June 30, 2003 increased $911,356, or 9.8%, to $10,232,570 from $9,321,214 for the comparable months in 2002. Net income for nine months of 2003 was $268,887, or seven cents per share, down from $395,963, or 11 cents per share, in the same nine months of 2002.
“The first nine months of our fiscal year has set the stage for what we believe will be the best fourth quarter in the company's history,” said Ron Hickman, president and CEO. “Our profit margins should show noticeable improvements with planned price increases now coming into effect for these new standard products and several other ATV accessories.”
Featherlite 2q Profit declines
Featherlite, Inc. (Nasdaq:FTHR), a Cresco, Iowa, manufacturer and marketer of specialty aluminum trailers and luxury motorcoaches, reported net income of $898,000 on sales of $47.4 million in the second quarter ended June 30, 2003. 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.
Net sales of $89.1 million for the six months ended June 30, 2003, are $19.2 million (17.7%) 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 three cents per diluted share. This compares with a net income of $2.1 million, or 30 cents per share for first six months in 2002.
As of the end of the second quarter, Featherlite was in compliance with all financial covenants with its lenders.