Collins Industries Posts Record Second Quarter 2006 Results, Declares Dividend and Adopts Shareholder Rights Plan
May 25 2006 - 5:13PM
PR Newswire (US)
HUTCHINSON, Kan., May 25 /PRNewswire-FirstCall/ -- Collins
Industries, Inc. (OTC:CNSI) today reported results for its Second
Quarter of 2006. Sales for the quarter ended April 30, 2006
increased 24% to a record second quarter $75.9 million compared to
$61.3 million for the same period last year. The Company's net
income increased to a record second quarter $2.5 million ($0.40 per
share - diluted) for the quarter ended April 30, 2006 compared to a
net loss of $0.07 million ($0.01 per share - diluted) for the same
period last year. This income improvement was principally led by
increased revenues and gross profits. Sales for the six months
ended April 30, 2006 increased 24% to $140.3 million compared to
$112.8 million for the same period last year. The net income for
the six months ended April 30, 2006 increased $4.9 million to $4.1
million ($0.65 per share - diluted) compared to a net loss of $0.8
million ($0.13 per share - diluted) in the same period last year.
This income improvement was principally led by increased revenues
and gross profits. The prior year period included nonrecurring
expenses for severance costs associated with the retirement of two
executives and the restatement of financial statements for fiscal
years 2002 and 2003 and interim quarterly statements for 2004,
along with substantially increased audit fees for fiscal 2004
financial statements. These nonrecurring expenses totaled $ 1.0
million after tax ($0.16 per share - diluted.) Donald Lynn Collins,
President and CEO, said, "Results for the second quarter maintain
us on track for a highly successful fiscal 2006 and support our
belief that benefits continue to be realized from our investments
in technology and engineering." The Company posted a 6% increase in
its sales backlog at April 30, 2006 to a record $125.1 million
compared to $117.8 million at April 30, 2005. The increased backlog
as of April 30, 2006 resulted from increased orders primarily in
the Terminal Truck / Road Construction and Bus segments, including
$18.6 million of a previously reported $28 million order for
terminal trucks from the United States Postal Service received in
July 2005, which will be primarily produced and delivered during
the remainder of fiscal 2006. The Company will release the 2nd
Quarter 2006 financial statements and footnotes to its Company
website ( http://www.collinsindustries.com/ ) and to the Pink
Sheets website ( http://www.pinksheets.com/ ). Quarterly Dividend
The Company also announced that it had declared its thirty-eighth
consecutive regular quarterly cash dividend. The dividend will be
$0.05 per share, paid to shareholders of record as of June 5, 2006
and will be payable on June 15, 2006. The ex-dividend date will be
June 1, 2006. Shareholder Rights Plan The Company also announced
today that its Board of Directors has adopted a shareholder rights
plan designed to enhance the ability of all of the Company's
shareholders to realize the long-term value of their investment in
the Company. The rights plan provides that one right will be
distributed as a dividend for each outstanding share of common
stock of the Company held as of the close of business on June 5,
2006. The rights plan is intended to deter coercive or unfair
takeover tactics, prevent an acquirer from gaining control of the
Company without offering fair and equal treatment to all of the
Company's shareholders and discourage anyone from attempting to put
the stock "into play." Each right will initially entitle holders of
Company common stock to purchase one one-hundredth of a share of
Series A Junior Participating Preferred Stock of the Company at an
exercise price of $30.00. Each one-one hundredth of a share of
preferred stock is equivalent in voting power to one share of
Company common stock and would be paid dividends equal to the
dividend paid on each share of common stock. However, following
issuance of the rights and prior to the exercise of the rights, no
dividends are payable with respect to the rights. The rights
generally will be exercisable only if a person or group acquires
beneficial ownership of 20% or more of the Company's common stock
or commences a tender offer or exchange offer upon consummation of
which such person or group would beneficially own 20% or more of
the Company's common stock. The rights plan provides that any
person or group owning 20% or more of the Company's common stock at
the time of adoption of the rights plan will not cause the rights
to become exercisable unless such person or group acquires
additional Company common stock. In addition, the rights plan
includes a "TIDE" provision that provides for the establishment of
a committee made up of independent directors to review and evaluate
the rights plan at least every three years in order to consider
whether the rights plan continues to be in the best interests of
the Company, its shareholders and other relevant constituencies of
the Company. Lastly, the rights plan includes a qualifying offer
exception that permits a person's acquisition of Company common
stock without triggering the exercise of the rights if the
acquisition is made pursuant to an all-cash tender offer that meets
certain criteria. The Company has the power to redeem the rights at
a price of $0.01 per right under certain circumstances. Unless
earlier redeemed or cancelled by the Company, the rights expire on
May 25, 2016. Collins Industries, Inc. is a leading manufacturer of
ambulances (including medical attack vehicles, rescue vehicles and
fire emergency vehicles), North America's largest producer of Type
"A" small school buses, the nation's second largest manufacturer of
terminal trucks and a leader in the road construction and
industrial sweeper markets. Since 1971, the Company has grown to
approximately 1000 employees in six plants comprising over one
million combined square feet of manufacturing space. The Company
sells its products throughout the United States and abroad. This
press release contains historical and forward-looking information.
The forward-looking statements are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
The Company believes the assumptions underlying these
forward-looking statements are reasonable; however, any of the
assumptions could be inaccurate, and therefore, actual results may
differ materially from those projected in the forward-looking
statements due to certain risks and uncertainties, including, but
not limited to, the availability of key raw materials, components
and chassis, changes in funds budgeted by Federal, state and local
governments, changes in competition, various inventory risks due to
changes in market conditions, changes in product demand,
substantial dependence on third parties for product quality,
interest rate fluctuations, adequate direct labor pools,
development of new products, changes in tax and other governmental
rules and regulations applicable to the Company, reliability and
timely fulfillment of orders and other risks as indicated in the
Company's prior filings with the Securities and Exchange
Commission. The Company undertakes no obligation to publicly
release any revisions to any forward-looking statements contained
herein to reflect events or circumstances occurring after the date
released or to reflect the occurrence of unanticipated events.
Financial Summary (In thousands of dollars, except per share
amounts) (Unaudited) Three Months Ended Six Months Ended April 30,
April 30, 2006 2005 2006 2005 Sales $75,885 $61,294 $140,293
$112,842 Income/(loss) before income taxes 3,947 (154) 6,529
(1,307) Income tax expense/ (benefit) 1,440 (80) 2,420 (530) Net
income $2,507 ($74) $4,109 ($777) Earnings per share: Basic $0.43
($0.01) $0.69 ($0.13) Diluted $0.40 ($0.01) $0.65 ($0.13) Weighted
average outstanding common and common equivalent shares: Basic
5,821,875 5,912,738 5,960,760 5,877,815 Diluted 6,212,698 5,912,738
6,337,452 5,877,815 DATASOURCE: Collins Industries, Inc. CONTACT:
Cletus Glasener, CFO and Vice President of Finance of Collins
Industries, Inc., +1-620-663-5551 Web site:
http://www.collinsindustries.com/
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