JMIH Jupiter Marine International Holdings Inc (CE)

Jupiter Marine International Holdings, Inc. (OTCBB:JMIH) 3Q FY 2005 Highlights Compared to 3Q FY 2004 -- Revenue increased 6.2% to $3.0 million -- Gross margin rose to 25.8% of net sales from 24.1% -- Net income applicable to common shareholders up 12.8% to $202,000, or $.01 per diluted share -- Company delivers the first of its new 38' Forward Seating Model Jupiter Marine International Holdings, Inc. (JMIH.OB), a designer, manufacturer and marketer of a diverse mix of high quality sportfishing boats under the Jupiter(TM) brand name, today announced financial results for the third quarter and nine months-ended April 30, 2005 (see attached tables). Net sales for the third quarter of fiscal 2005 increased 6.2% to $3.0 million from $2.8 million in the same period last year. Increased sales were due to continued high demand for the Company's outboard product line. Gross profit in the third quarter of fiscal 2005 increased 13.4% to $763,000, or 25.8% of net sales, from $673,000, or 24.1% of net sales, in the same period last year. The Company achieved these gains despite the rising price of raw materials, such as the petroleum-based resin used in assembling Jupiter's boats. Jupiter offset these risings costs by implementing a price increase in January 2005, utilizing alternative materials, improving manufacturing efficiencies and better utilizing overhead. Net income applicable to common shareholders in the third quarter of fiscal 2005 increased 12.8% to $202,000, or $.01 per diluted share, on approximately 16.0 million diluted shares outstanding, from $179,000, or $.01 per diluted share, on approximately 12.5 million diluted shares outstanding, in the third quarter of fiscal 2004. Net sales for the first nine months of fiscal 2005 increased 15% to $8.3 million from $7.2 million in the same period last year. Gross profit increased 20% to $2.2 million, or 26.1% of net sales, from $1.8 million, or 25.0% of net sales, in the year earlier period. Higher sales and gross profit for the first nine months of fiscal 2005 were due primarily to the reasons cited above. The Company reported net income applicable to common shareholders for the first nine months of fiscal 2005 of $469,000, or $.03 per diluted share on approximately 15.6 million diluted shares outstanding, versus $395,000, or $.03 per diluted share on approximately 11.9 million diluted shares outstanding, in the same period last year. Carl Herndon, Jupiter Marine's President, stated, "We have always placed a premium on introducing new and innovative boats that fulfill the desires of our active fishing and cruising customers. In response to customer demand for a boat that is larger than our 31' models, we designed the Jupiter 38', a stylish, yet rugged, model that incorporates the quality performance, features and comforts that Jupiter owners have come to expect. We are pleased to announce that in April 2005, one of our dealers delivered our first Jupiter 38' to a retail owner. We have been receiving steady orders for the vessel since its introduction in February 2005, and expect to be in full production on this model by the middle of the fourth quarter. This runs concurrent with the continued high demand of our existing models, as our order backlog remains strong at approximately six months." Financial Position Jupiter Marine's balance sheet at April 30, 2005 is highlighted by a current ratio of 1.97:1; working capital of $1.1 million compared to working capital of $743,000 at July 31, 2004; and a debt-to-equity ratio of 0.81:1 compared to 1.25:1 at July 31, 2004. In addition, Jupiter Marine has a $500,000 revolving line of credit, of which $380,000 was available at April 30, 2005. About Jupiter Marine International Holdings, Inc. Jupiter Marine designs, manufactures and markets high quality sportfishing boats designed to run at high speeds in offshore sea conditions while providing passengers with a smooth, comfortable, dry ride. The center console product line includes the 31' Open, 31' Forward Seating, 31' Cuddy, 27' Open and the 27' Forward Seating models in addition to the all new Jupiter 38' Forward Seating model. This press release may contain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The matters discussed in this press release include statements regarding the intent, belief or current expectations of the Company, its directors or its officers with respect to the future operating performance of the Company. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those in the forward-looking statements as a result of various factors. -0- *T Jupiter Marine International Holdings, Inc. Consolidated Statements of Operations (Unaudited) Three Months Ended Nine Months Ended ------------------------ ----------------------- April 30, May 1, April 30, May 1, 2005 2004 2005 2004 ----------- ----------- ----------- ----------- NET SALES $ 2,963,254 $ 2,790,337 $ 8,334,435 $ 7,245,552 COST OF SALES 2,199,905 2,116,967 6,160,185 5,433,982 ----------- ----------- ----------- ----------- GROSS PROFIT 763,349 673,370 2,174,250 1,811,570 ----------- ----------- ----------- ----------- OPERATING EXPENSES: Selling and marketing 155,592 84,585 335,598 258,965 General and administrative 314,827 297,113 992,997 836,903 Depreciation and amortization 75,353 78,664 219,777 197,265 ----------- ----------- ----------- ----------- Total operating expenses 545,772 460,362 1,548,372 1,293,133 ----------- ----------- ----------- ----------- OTHER INCOME (EXPENSE): Interest expense (17,199) (20,886) (50,547) (60,521) Other expense - loan guarantee - - (91,000) - Other income 6,953 6,132 18,027 10,391 ----------- ----------- ----------- ----------- Total other income (expense) (10,246) (14,754) (123,520) (50,130) ----------- ----------- ----------- ----------- NET INCOME BEFORE INCOME TAXES 207,331 198,254 502,358 468,307 INCOME TAX EXPENSE (744) -- (744) -- ----------- ----------- ----------- ----------- NET INCOME 206,587 198,254 501,614 468,307 Dividends on preferred stock (4,870) (19,497) (32,978) (73,719) ----------- ----------- ----------- ----------- NET INCOME APPLICABLE TO COMMON SHAREHOLDERS $ 201,717 $ 178,757 $ 468,636 $ 394,588 =========== =========== =========== =========== BASIC AND DILUTED NET INCOME PER COMMON SHARE Basic $ 0.01 $ 0.02 $ 0.03 $ 0.04 =========== =========== =========== =========== Diluted $ 0.01 $ 0.01 $ 0.03 $ 0.03 =========== =========== =========== =========== WEIGHTED AVERAGE NUMBER OF SHARES OF COMMON STOCK OUTSTANDING Basic 14,496,911 9,460,718 14,092,921 8,885,218 =========== =========== =========== =========== Diluted 16,013,087 12,461,974 15,609,097 11,886,474 =========== =========== =========== =========== Jupiter Marine International Holdings, Inc. Condensed Consolidated Balance Sheet April 30, 2005 July 31, 2004 (Unaudited) Current Assets $ 2,130,766 $ 1,796,155 Total Assets $ 3,454,066 $ 2,718,486 Current Liabilities $ 1,080,187 $ 1,053,189 Total Liabilities $ 1,545,923 $ 1,509,248 Shareholders' Equity $ 1,908,143 $ 1,209,238 *T