AUSTIN, Texas – Travis Boats & Motors, Inc. (Nasdaq: TRVS today reported that its operating loss was reduced 45 percent for the quarter ended March 31, to approximately $833,000 from $1.5 million in the same quarter of 2003, according to a company press release today.
The boat and motor retailer’s net loss was $2.2 million ($.51 per basic and diluted share) versus a net loss of $1.8 million ($.43 per basic and diluted share) for the same quarter of the prior year, Travis said.
But the increase to the net loss was the result of the company not recording an income tax benefit in the current quarter pursuant to Statement of Financial Accounting Standards ("SFAS") No. 109 and from its recognition of a non-cash sale/leaseback impairment expense pursuant to SFAS No. 98, according to the release.
“We’ve worked diligently to reduce our operating losses,” said Travis Boats’ Michael Perrine in a telephone interview this morning.
Travis has completed several sale/leaseback transactions since September of 2003 that have collectively resulted in a financial statement gain, and also provided cash proceeds of approximately $1.5 million, net of debt repayments, the company reported.
For the six months ended March 31, Travis said its operating loss was reduced 31 percent to approximately $4.2 million from $6.1 million in the same period of the prior year, and the company reported a net loss of $6.3 million ($1.46 per basic and diluted share) versus a net loss of $5.5 million ($1.28 per basic and diluted share) for the same period of the prior year.
"Our ongoing expense reductions and improved margins have enabled us to reduce our operating loss by 45 percent in the second quarter. However, I am disappointed that we have not yet hit consistent sales traction in all stores,” said Richard Birnbaum, chairman of Travis Boats. “We continue to focus on our marketing, in-store experience and supply chain initiatives as a means to improve sales. Although we continue to feel some pain because of the product transition, our supply chain initiatives have significantly improved our ordering process, overall inventory management and in-stock levels compared to last year.”
The company reported net sales of $32.1 million for the three months ended March 31, 2004 versus net sales of $38.1 million for the same quarter of the prior fiscal year. The company had 30 and 34 stores in operation on March 31, 2004 and 2003, respectively, according to the release.
March sales broken out
Travis said that due to significant new brand transitions including offshore fishing boats and the elimination of yacht sales it decided to separately disclose March sales in its release.
Comparable store sales for the month of March 2004 increased by 11 percent compared to the previous year, the company said.
“Notwithstanding March results, we continue to feel the impact of this significant transition and the impact to net sales for the three month period ended March 31, 2004 from yachts and off-shore fishing boats was a decrease of approximately $3.7 million versus the same quarter of the prior fiscal year,” the company said.
This led to offsetting declines in comparable stores sales for January and February and resulted in a decline of 11 percent in comparable store sales for the three months ended March 31, 2004, according to the company.
“For comparative purposes, if adjustment is made for yacht sales and the major new brand transition in off-shore fishing boats, comparable store sales were flat for the three months ended March 31, 2004,” Travis said in its release.