Greast quarter for FPB
Fountain Powerboats Announces First Quarter Revenue of $19 Million and $1.3 Million Operating Profit
Thursday November 10, 9:00 am ET
Fourth Consecutive Quarter of Increasing Profitability
WASHINGTON, NC--(MARKET WIRE)--Nov 10, 2005 -- Fountain Powerboat Industries, Inc. (AMEX:FPB - News), a leading manufacturer of high performance sport boats, fish boats and express cruisers, today announced results for the first quarter of fiscal 2006, ended September 30, 2005.
Net sales for the first quarter were $19,157,736, an increase of 14 percent, compared to sales of $16,742,307 for the first quarter of fiscal 2005. The company reported an operating profit of approximately $1,338,424 for the quarter, compared to an operating loss of $99,806 for the first quarter of fiscal 2005. According to Fountain Chief Financial Officer Irving Smith, this is Fountain Powerboat's fourth consecutive quarter of increasing profitability.
Gross profit for the first quarter of fiscal 2006 increased 84 percent to $3,676,114, with a gross profit margin of 19 percent. This compares to a gross profit of $1,993,148, or a gross profit margin of 12 percent, for the first quarter of fiscal 2005. Net income for the quarter was $697,058, or net earnings per share of $0.14 on a basic and diluted basis, compared to a net loss of $373,337, or net loss per share of $0.08 on a basic and diluted basis, for the first quarter of fiscal 2005. The increase in gross profit is attributable to increased productivity and improved efficiencies from the Company's recently upgraded manufacturing operations, along with the mix of boats manufactured.
The Company's balance sheet continues to remain strong, with approximately $3.1 million in cash and cash equivalents and a current ratio of 1.29:1. Shareholders' equity was approximately $7.2 million, a 10 percent increase, compared to the first quarter of fiscal 2005. The Company has $7 million key man life insurance policies on Chief Executive Officer and President, Reginald M. Fountain, Jr., which have a cash surrender value that is immediately available for withdrawal by the Company as a loan, using the cash value as collateral, thus providing additional $2.2 million cash availability.
"We are pleased to announce an outstanding first quarter of increased revenue growth and profitability," said Chief Executive Officer and President Reginald M. Fountain, Jr. "This quarter's results, as well as the tremendous success at our recent dealer meeting, are evidence of the strength of the Fountain brand and strong indicators of a growing demand for Fountain Powerboats within the market."
"With more than 27 models of boats, we look forward to participating in the three major industry extravaganzas, beginning with the Ft. Lauderdale boat show, which was delayed until last week, the New York boat show in January, and the Miami boat show in February," continued Fountain. "The shows generally produce significant revenue for the Company and, when combined with our current backlog of approximately $54 million, of which $15 million represents new orders from our October dealer meeting, we are well on our way toward our pre-stated guidance of $80 million for 2006."
"We are looking forward to another record year," commented Fountain's CFO Irving Smith. "We entered fiscal 2006 with a sales backlog of approximately $52 million and revenue of $19 million for the first quarter of fiscal 2006 and our U.S. markets appear to be relatively unaffected by fuel prices and interest rates. And, while fuel prices historically have been higher in Europe and other parts of the world, the Company's international sales are expected to increase from approximately $2 million in fiscal 2005 to over $8 million in fiscal 2006."
Smith also noted that the Company will be introducing three new boat models, a new 38' Triple Outboard Sport Fish Cruiser, a positive lift 31' Twin Outboard Center Console Fish Boat, and a new 44' Triple or Twin I/O Poker Run Edition Sport Boat for calendar 2006.
