Fountain Powerboats sees second quarter growth
WASHINGTON, N.C. – Net sales for the second quarter of fiscal 2004 – ending December 31 – were up for Fountain Powerboat Industries, Inc., compared to the same period the year before, the company said last week.
The boat manufacturer’s net sales for the quarter were $13,437,796 up from $12,941,227 for the second quarter of fiscal 2003. Net earnings were $254,718 for the quarter, or 5 cents per share on a basic and diluted basis, compared to net earnings of $482,459, or 10 cents per share on a basic and diluted basis, for the same quarter of fiscal 2003.
Net sales for the first six months of fiscal 2004, ended December 31, were $26,323,028 up from $25,016,213 for the first six months of fiscal 2003, an increase of 5 percent. Net loss for the six months was $90,121, or 1 cent per share on a basic and diluted basis, compared to net earnings of $651,704 for the first six months of 2003, or 14 cents per share on a basic and diluted basis.
Operating income for the quarter was $457,053 and for the first six months of fiscal 2004 year was $567,805.
“By expanding and enhancing our dealer organization and continuing to broaden our product lines we are experiencing sales growth over our record growth year of fiscal 2003,” said Reginald Fountain, the company’s president and CEO. “The decrease in earnings as compared to the same six months of fiscal 2003 is primarily attributable to sales model mix, higher promotional and advertising expenses in the first quarter, and a write-off of $210,344 of unamortized closing costs of a loan with G.E Capital that was paid from proceeds of an $18 million Bank of America loan during the first quarter.
“Our earnings performance improved in the second quarter, resulting from an improving sales model mix and our on-going cost reduction programs became effective,” he added.
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