Travis Boats receives $5.3 million loan
HACKENSACK, N.J. — Dealership chain Travis Boats & Motors Inc. has obtained a $5.3 million loan from Kennedy Funding of Hackensack, N.J., a direct private lender, to recoup working capital that was used by Travis to repay outstanding real estate loans, the Kennedy firm announced yesterday.
Since March, Travis has used $1.7 million to repay four real estate loans from Hibernia Bank of New Orleans, said Richard Birnbaum, chairman of the Austin, Texas-based boat dealership company.
Travis will use the funds from Kennedy to refinance several other real estate loans or pursue sale/leaseback options to improve its working capital, Birnbaum added.
“As a major player in the retail boat industry, Travis Boats & Motors represents a sound lending investment,” said Joseph Wolfer, a Kennedy principal. “The loan is secured by first mortgages on seven retail stores in Michigan and the south.”
“Although Travis operates in a highly competitive retail market and offers products of a highly seasonal nature which are influenced by weather conditions and the general economy,” Wolfer explained, “we are confident that the company’s quality inventory, customer service and strong retail store network will continue to yield solid growth.”
Travis, a Nasdaq Stock Market-listed company, has struggled financially lately, reporting a net loss of $16.8 million on sales of $176.5 million during its fiscal year 2002, which ended September 30.
The company reported a net profit of $438,000 on sales of $53.1 million during the third quarter of its fiscal year 2003, which ended last June 30. However, during the nine months ended June 30, it reported a net loss of $5.1 million on sales of $109.1 million. Travis sold $18.6 million worth of aged inventory at reduced prices and lower gross profit margins during the February through August portion of this year, the Kennedy firm added.
Travis operates a total of 35 stores in Alabama, Arkansas, Florida, Georgia, Louisiana, Michigan, Mississippi, Oklahoma, Tennessee and Texas.
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— Jeff Kurowski
