FORT LAUDERDALE, Fla. - Business is so good for Jupiter Marine International Holdings, Inc. (OTCBB: JMIH) that the company needs to expand its boat builder operation, according to a company statement issued Friday.
The sportfishing company reported record results for the first quarter of 2006,
"We continue to make strides in improving all aspects of Jupiter's operations, including double-digit revenue growth in the first quarter,” said Carl Herndon, Jupiter Marine's president. “The response from our customers and dealers has been positive over the past year, and the Jupiter 38-foot has performed up to management's high expectations. Consumer demand for our entire outboard product line also remains high, as our order backlog has remained stable at six months despite an active hurricane season in Florida, our primary market."
Jupiter's net sales for the first quarter of fiscal 2006 increased 13.7 percent to $3.1 million from $2.8 million in the same period last year, largely due to increased sales of the Jupiter 38-foot model.
Gross profit in the first quarter of fiscal 2006 was $779,507, or 24.9 percent of net sales, as compared to $695,137, or 25.2 percent of net sales, in the comparable period last year. Gross margins have remained stable despite rising raw materials costs, due to a 2006 model price increase and better utilization of overhead, according to the company.
Net income applicable to common shareholders increased 19.1 percent in the first quarter of fiscal 2006 to $220,762, or $0.01 per diluted share, on approximately 17.6 million diluted shares outstanding, from net income of $185,272, or $0.01 per diluted share, on approximately 15.1 million diluted shares outstanding, in the first quarter of fiscal 2005.
"While we are excited about the growth of our company and strong financial results, we are closely monitoring general economic conditions, and rising energy and raw materials costs,” warned Herndon. “Although we are, through a variety of initiatives, proactively addressing the impact of these costs on our operations, there can be no assurances that we can continue to compensate for these increases without an adverse affect on our operating results."
New manufacturing facility to be based in Palmetto
Jupiter has executed a lease agreement dated December 6, 2005 for approximately 54,000 square feet of manufacturing facilities in Palmetto, Fla., the company reported. The facilities consist of three buildings on approximately eight acres of land.
The company expects to incur expenses of up to $1.5 million in 2006 for a variety of start-up and operational costs, largely related to inventory, new boat molds, equipment and miscellaneous expenses. Jupiter also anticipates hiring up to 75 additional employees over the next twelve months at its new facility. It is anticipated that funds for these costs will be provided from operations and an increase in the company's credit line, the company added.
Jupiter anticipates commencement of operations at the Palmetto facility within 30 days. The company intends to manufacture its new 29-foot Forward Seating Center Console model and the 31-foot Open and Cuddy Cabin models in Palmetto. Other models will remain in production at the Fort Lauderdale facility.
"One of our primary goals over the past three years has been to increase our production capability to accommodate higher volume,” said Herndon. “We are currently operating at near-full capacity at our Fort Lauderdale facilities, and we expect that the company's gradual expansion to Palmetto could potentially double the number of boats we manufacture. In addition, Jupiter now has manufacturing facilities strategically placed on Florida's coasts. We feel that the Palmetto facility will greatly enhance our position in a highly competitive marketplace, and be instrumental to the company's growth in the coming years."
Jupiter's new facility is located at 1101 12th Avenue East, Palmetto, Florida 34221.
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