Fountain Powerboat Sees 3Q Earns Of
14c/Shr Vs. Yr-Ago Loss
By Ann Carrns
ATLANTA (Dow Jones)--Fountain Powerboat Industries Inc. (FPWR)
expects to report better fiscal third-quarter results this year than last, said
Chairman Reginald M. Fountain Jr.
The maker of high-end fiberglass power boats sees net income for the three
months ended March 31 at about $712,000, or 14 cents a diluted share,
compared with a year-earlier loss of $418,171, or 8 cents. Last year's
figure is adjusted for a stock split.
The company attributed the loss last year to start-up and development costs
for a subsidiary it since disbanded.
Fountain said the expected improvement in the latest quarter is due to
increased sales of bigger, higher-margin boats, greater manufacturing
efficiency and growing benefits from the company's investment in vertical
integration. Fountain Powerboat produces most of the components for its
boats, including gas tanks and steering systems.
The results are encouraging, the executive said, because the third quarter is
historically the company's weakest, due to low seasonal demand for speed
boats. Fountain Powerboat typically runs major promotions during the third
quarter, but sales come in the fourth quarter - April, May and June - in
anticipation of summer.
The Washington, N.C., company expects to finish fiscal 1998, which ends
June 30, with sales in excess of $52 million, only about 3% more than
1997's $50.5 million. However, it forecasts a 20% sales increase for fiscal
1999.
Fountain's power boats range in price from $40,000 to more than $1
million. Customers include former President George Bush, who just bought
a 31-foot sport fishing boat.
In the fiscal fourth quarter, the company expects to introduce a 65-foot
sport yacht that will sell for $2 million. Plans originally called for the "super
cruiser" be available in February, Fountain said, but technological
requirements delayed its delivery.
-Ann Carrns; 201-938-5099
The future looks brighter. |
