Lancer Reports Third Quarter Results
November 05 2004 - 9:15AM
PR Newswire (US)
Lancer Reports Third Quarter Results SAN ANTONIO, Nov. 5
/PRNewswire-FirstCall/ -- Lancer Corporation (AMEX:LAN) announced
results of operations for the third quarter and nine months ended
September 30, 2004. Net sales for the three months ended September
30, 2004 were $31.3 million, up 3% from sales in the third quarter
of 2003. Net earnings in the third quarter were $5.8 million, up
from $0.6 million in the same period of 2003. Earnings per diluted
share were $0.61 in the third quarter of 2004, compared to $0.06 in
the same period last year. In the nine months ended September 30,
2004, net sales were $92.5 million, up 7% from sales in the same
period of 2003. Net earnings in the first three quarters of 2004
were $8.2 million, or $0.86 per diluted share, compared to $0.5
million, or $0.05 per diluted share, in the same period last year.
During the third quarter of 2004, Lancer received $7.0 million from
a settlement relating to a development project. Additionally,
currency exchange rate fluctuations in 2004 had a positive impact
on sales of 2% in the third quarter, and 3% in the nine months.
Christopher D. Hughes, Chief Executive Officer, commented: "Our
business in the third quarter was good in Europe and the
Asia/Pacific region, down slightly in North America, and weak in
Latin America. In addition to the impact of the $7.0 million
settlement, manufacturing cost reductions and improved efficiency
drove our improved profitability." Mr. Hughes continued: "Overall
demand remains somewhat modest as we enter the fourth quarter,
which is often our weakest. Our order levels are relatively firm
this year, however, suggesting that the year-end seasonal revenue
softness may be less pronounced this year than at times in the
past." Lancer Corporation is a leading innovator, manufacturer and
marketer of beverage dispensing systems serving customers
worldwide. Headquartered in San Antonio, Texas, Lancer also
maintains facilities in Mexico, Australia, Belgium, New Zealand and
the United Kingdom. Lancer is a vertically integrated manufacturer
with 2003 sales of $113 million, and employing approximately 1,200
people. Lancer designs and manufacturers a complete range of
fountain soft drink dispensers, frozen beverage dispensers,
dispensing valves, beer dispensing equipment, and an extensive line
of beverage dispensing parts and accessories, which are marketed
through a network of Company sales representatives and authorized
distributors. This press release contains various forward-looking
statements and information, including expectations for sales in the
fourth quarter, that are based on management's belief as well as
assumptions made by and information currently available to
management. Although the Company believes that the expectations
reflected in such forward-looking statements are reasonable, it can
give no assurance that such expectations will prove to have been
correct. Such statements contain certain risks, uncertainty and
assumptions. Should one or more of these risks materialize, or
should underlying assumptions prove incorrect, actual results may
vary materially from those expected. LANCER CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Amounts in
thousands, except share data) Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30, 2004 2003 2004 2003 Net
sales $31,264 $30,237 $92,467 $86,481 Cost of sales 22,368 21,855
64,772 64,615 Gross profit 8,896 8,382 27,695 21,866 Selling,
general and administrative expenses 7,168 7,722 22,560 20,996
Operating income 1,728 660 5,135 870 Other (income) expense:
Interest expense 204 103 457 427 (Income) loss from joint ventures
(571) (427) (824) 60 Settlement proceeds (7,000) --- (7,000) ---
Other income, net 204 20 (115) (206) (7,163) (304) (7,482) 281
Income from continuing operations before income taxes 8,891 964
12,617 589 Income tax expense (benefit): Current 3,189 447 4,747
1,328 Deferred (124) (90) (323) (616) 3,065 357 4,424 712 Income
(loss) from continuing operations 5,826 607 8,193 (123)
Discontinued operations: Loss from operations of discontinued
Brazilian subsidiary --- 40 --- 160 Income tax benefit --- (7) ---
(770) (Income) loss from discontinued operations --- 33 --- (610)
Net earnings $5,826 $574 $8,193 $487 Common Shares Outstanding:
Basic 9,380,558 9,360,893 9,371,993 9,353,912 Diluted 9,506,649
9,431,772 9,480,633 9,460,611 Earnings Per Share: Basic Earnings
(loss) from continuing operations $0.62 $0.07 $0.87 $(0.01)
Earnings (loss) from discontinued operations $--- $(0.01) $---
$0.06 Net earnings $0.62 $0.06 $0.87 $0.05 Diluted Earnings (loss)
from continuing operations $0.61 $0.07 $0.86 $(0.01) Earnings
(loss) from discontinued operations $--- $(0.01) $--- $0.06 Net
earnings $0.61 $0.06 $0.86 $0.05 LANCER CORPORATION CONSOLIDATED
CONDENSED BALANCE SHEETS (Amounts in thousands) ASSETS September
30, December 31, 2004 2003 (Unaudited) Assets: Cash $10,478 $1,129
Net receivables 17,970 14,749 Total inventories 25,365 24,502 Other
assets 38,988 41,898 Total assets $92,801 $82,278 LIABILITIES AND
SHAREHOLDERS' EQUITY September 30, December 31, 2004 2003
(Unaudited) Liabilities: Accounts payable $7,677 $6,609 Debt 9,850
12,003 Other liabilities 15,195 11,703 Total liabilities $32,722
$30,315 Shareholders' equity 60,079 51,963 Total liabilities and
shareholders' equity $92,801 $82,278 Contact: Scott Adams of Lancer
Corporation, +1-210-310-7065. DATASOURCE: Lancer Corporation
CONTACT: Scott Adams of Lancer Corporation, +1-210-310-7065 Web
site: http://www.lancercorp.com/
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