Fountain reports double-digit sales growth

WASHINGTON, N.C. – Fountain Powerboat Industries, Inc.’s sales increased 18.7 percent for the fourth quarter and 13.5 percent for fiscal year 2004, ended June 30, the company reported in a press release today.

Sales for fiscal 2004 were $59,642,766 as compared to sales of $52,557,084 for fiscal 2003. Operating earnings for fiscal 2004 were $2,465,371 as compared to $2,089,110 in operating earnings for fiscal 2003, an increase of 18 percent. Net earnings were $1,312,170, or $.28 per share as compared with fiscal 2003 net earnings of $879,996, or $.19 per share, a 49-percent increase.

Sales for the fourth quarter of fiscal 2004 were $17,605,074, an increase of $2,774,647, as compared to sales of $14,830,427 for the fourth quarter of fiscal 2003. Operating earnings were $860,104 and net earnings were $675,092, or $.14 per share.

The company attributed its increase in sales to an improving economy, strong sales at retail, introduction of new boat models and strengthening of the dealer network. Fountain’s firm order backlog was $39 million at June 30, 2004 as compared to a backlog of $7.6 million at June 30, 2003.

“Our sales have been strong throughout the 2004 year, our backlog is at an all-time high, and we are positioning for significant growth in sales going forward by redesigning and increasing our already broad line of boat models and increasing the efficiency and production of our factory,” said Fountain President and CEO Reginald M. Fountain, Jr. “This was our 25th anniversary year, and we are leveraging our investment of those years of research and development and technology advancement to expand our product line at minimal costs.”

New development

Fountain is in the process of developing several new fish-boat models, to be introduced in the 2005 fiscal year, to give it a more predominant presence in the active fish boat market, and has also undertaken a significant model redesign and new model introduction of sport boats to enhance what it calls its “flag ship” product line.

The company has also begun a project to enhance the process flow and efficiency of the factory. A new ventilation and dust collection system is being installed that meets the “best engineering controls” criteria of the Air Quality MACT standard and OSHA work place environment regulations.

The project will be completed and operational in November of 2004 and will facilitate cost reduction and increased production, according to the company.

“The factory renovation in progress will boost our productivity and efficiency to provide capacity for our planned growth in sales,” Fountain, Jr. said.

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