Lund International Announces Q1 1998 Net Sales and Results
12 May 1998
Lund International Holdings, Inc. Announced First Quarter 1998 Net Sales and Results of Operations
ANOKA, Minn., May 12 -- Lund International Holdings, Inc.
, announced net sales and results of operations for the first
quarter of 1998, ended March 31, 1998. The financial results for the quarter
ended March 31, 1998 include the results of operations of Deflecta-Shield
Corporation, acquired by Lund on December 30, 1997.
Net sales for the first quarter were $27,185,000, compared to $10,441,000
for the same period in 1997. In connection with the Deflecta-Shield
acquisition, Lund increased its sales of bug shields and running boards as it
gained a larger market presence in these lines. The Company also gained new
product categories such as aluminum products and heavy-duty truck accessories,
areas in which Lund realized the largest percentage of growth for the quarter.
Additionally, Lund enhanced its presence in the OEM market, where it obtained
a large portion of its sales for the quarter through Deflecta-Shield's
subsidiaries, Autotron and Belmor.
Gross profit margins for the first quarter were 29.3%, compared to 33.8%
for the same period last year. In connection with the Deflecta-Shield
acquisition, Lund recorded a Deflecta-Shield purchase accounting adjustment
which increased cost of goods sold in 1998 $572,000, or 2.1% of net sales.
Competitive pricing programs and specials, specifically in the Company's bug
shield product category, also had a negative impact on gross margins for the
quarter.
Lund incurred a net loss for the quarter ended March 31, 1998 of $261,000,
or $.05 per share (basic and diluted basis), compared to a net income of
$467,000, or $.11 per share, for the same period in 1997.
William J. McMahon, President and Chief Executive Officer, stated that,
"The acquisition of Deflecta-Shield has added the critical mass necessary to
successfully compete in this dynamic industry. While the initial costs and
distractions associated with a merger of this magnitude are considerable, the
opportunities for growth are tremendous. Our market channels now encompass
the heavy truck and OEM segments. Our product offering now includes aluminum
and suspension applications. In short, Lund offers the broadest line
available through a greatly expanded distribution channel.
"The consolidation process is well underway. The synergistic
opportunities which we defined earlier are now being implemented and will help
improve margins as we reduce costs, although we do not expect to see the full
benefits of the consolidation until 1999."
Statements made in this press release relating to future financial
results, the effects of the acquisition, company operations, trends and market
analysis, among others, and statements which use the words "believe",
"anticipate", "expect", or similar words, are forward-looking statements made
under the Private Securities Litigation Reform Act of 1995. These statements
involve risks and uncertainties which could cause results to differ materially
from those anticipated. Among the factors that could cause anticipated
results to differ materially are the following: inability to obtain expected
efficiencies, or to obtain them in a timely manner; consumer preference
changes; risk of expansion into new distribution channels; delays in
designing, developing, testing or shipping of products; increased competition;
general economic developments and trends; developments and trends in the light
truck and automotive accessory market; sales of heavy trucks, which are
cyclical; the timely development and introduction of competitive new products
by the Company and acceptance of those products; and increased costs. This is
not an exhaustive list and the Company may supplement this list in future
filings or releases or in connection with the making of forward-looking
statements.
LUND INTERNATIONAL HOLDINGS, INC.
CONDENSED CONSOLIDATED
INCOME STATEMENTS
(Unaudited)
(in thousands, except per share data)
Three months ended
March 31,
1998 1997
Net sales $27,185 $10,441
Cost of goods sold 19,221 6,911
Gross profit 7,964 3,530
Operating expenses
General and administrative 2,567 1,132
Selling and marketing 3,276 1,477
Research and development 756 326
Amortization of intangibles 581 31
Total operating expenses 7,180 2,966
Income from operations 784 564
Other income, net (1,291) 64
(Loss) income before income taxes (507) 628
Income tax (benefit) expense (246) 161
Net (loss) income $(261) $467
Basic and diluted net
(loss) income per share $(0.05) $0.11
Weighted average common shares 5,263 4,374
Weighted average common and common equivalent shares 5,263 4,394
LUND INTERNATIONAL HOLDINGS, INC.
CONDENSED CONSOLIDATED
BALANCE SHEETS
(Unaudited)
(in thousands)
March 31, December 31,
1998 1997
ASSETS
Current assets $46,821 $52,465
Non-current assets
Property and equipment, net 20,699 20,621
Intangibles, net 68,189 68,778
Other assets, net 2,390 2,163
Total assets $138,099 144,027
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $16,275 $25,007
Long-term liabilities 59,554 56,506
Stockholders' equity 62,270 62,514
Total liabilities and stockholders' equity $138,099 $144,027
SOURCE Lund International Holdings, Inc.