Fountain reports profitable fourth quarter

WASHINGTON, N.C. – Despite the industry downturn, net sales at Fountain Powerboat Industries, Inc. (FPB), a manufacturer of high performance fish boats, express cruisers and sport boats, were up for the fourth quarter ended June 30, leading to a profitable period, the company reported in a recent statement.

Net sales for the fourth quarter of fiscal 2008 were $20,734,513, compared to net sales of $19,907,661 for the fourth quarter of fiscal 2007.

Gross profit for the fourth quarter of fiscal 2008 was $3,380,523, with a gross profit margin of approximately 16.3 percent, versus a gross profit of $3,749,583, with a gross profit margin of approximately 18.8 percent, for the fourth quarter of fiscal 2007, the company reported. Net income was $258,305 versus net income of $535,059 for the fourth quarter of fiscal 2007.

For the entirely of fiscal 2008, Fountain reported net sales of $68,202,620, compared to net sales of $68,829,987 for fiscal 2007.

Gross profit for the year was $9,402,572, with a gross profit margin of approximately 13.8 percent, versus a gross profit of $9,108,088, with a gross profit margin of approximately 13.2 percent, for fiscal 2007. Net loss for fiscal 2008 was ($2,199,828) versus net loss of ($5,046,286) for fiscal 2007.

"The decline in sales of the fiberglass recreational boat market has affected the segments of the market in which Fountain's boats are sold for the past two years," commented Fountain Chief Financial Officer Irving L. Smith. "Maintaining approximately the same level of revenue in this declining market was primarily the result of focused sales activities and promotions guided by specific goals and objectives."

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"We are maintaining market share in the sport boat segment, and experienced improvement in the express cruiser segment in fiscal 2008," said Fountain Chairman, CEO and President Reginald M. Fountain, Jr. "The international market continues to grow, while the domestic market declines, and our international sales increased by 28 percent in fiscal 2008. We expect the Baja by Fountain product line to be a positive contributor to our revenue in fiscal 2009."

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