At 72 years old and $20k a month he couldnt swallow his pride? Genius. That's what investors want to put money in, an egomaniac 72 year old that looks like hell..............and those kids of his, there's some apples that fell far from the tree.......
See he is bad at math, yesterday he said he's sold 991 million and just 24 hours later over a billion. Hell whats 9-10 million bucks.
I am no huge Fountain fan of his pleasure boats but it's hard to knock what he's done in racing, being an x motorcycle road racer at just the club level, what I spent to know I had what I needed to be able to win the final 3 years was more than I spent on my Nortech and I have nothing to show for it other than a busted up body a bunch of trophies and pictures and some stories thats it.
What do you think the % of what the company made he spent on racing? I bet the bean counters had a fit. I am sure it was listed as advertising. "So Reggie last year you spent 10 million on advertising last year" $hit and it cost even more when you have to get real smart guys to find ways to bend the rule book a little too.
Hate to see anybody anybody go though this, Would have been nice if one of the George Bush's would have given him the heads up on the economy when they were ordering their boats.
Seems he has enough ego still to not go jump off a cliff. The only reason I could see at another start up would be if he had the dream of leaving the or now A company to his kids. I do wish him luck, I see him being more like Mark Mcmanus now but more like 10-15 real nice boats a year in the 35-50 foot range and 300k and up. More than likely just go fast too at least for a while.
Spoke with Reggie a few times this year. The man loves his boats. I'll take the first 40 race you build. Little R Fountain? Good luck Jr. Smitty
Last edited by Wazzup Racing; 12-12-2010 at 12:00 AM.
SEC filings reveal a company with shrinking sales and heavy SG&A costs of about 11% that absorbed most of the available gross profit margin (even in good years ) of about 12-16%. Net profit margin in 2008 was -3%, 2007 -7% and 2006 at 3%.
Selling expense – Selling related expenses were $2,027,578 for the six months ended December 31, 2008, as compared to $2,895,272 for the six months ended December 31, 2007, a reduction of $867,694 or 30%. The decrease was primarily attributable to marketing and sales staff reductions and the reduction of expenses related to the Company’s support of off-shore racing and fishing programs, advertising and promotion expenses and sales force expenses.
Cash consumption accelerated as inventory built.....
The use of cash attributable to Operating activities in the current period, $2,342,338, is primarily attributable to:
Net loss of $3,096,816, generated by the ongoing operations of the Company. Net loss reflects non-cash depreciation expense of $1,323,618 during the period.
Inventories increased $534,995. This use of cash is due, in part, to building a stock of boats at the Company’s retail subsidiary, Fountain Dealers’ Factory Super Store.
Gross profit – Gross profit for the six months ended December 31, 2008 was $1,187,226, 5.1% of net sales, as compared to $4,920,857, 14.8% of net sales, for the six months ended December 31, 2007. The decrease in gross profit is primarily attributable to reduced fixed cost absorption because of lower volume of sales.
General and administrative expenses – General and administrative expenses were $1,670,796 for the six months ended December 31, 2008, as compared to $1,834,192 for the six months ended December 31, 2007. The decrease was primarily attributable to salary and staff reductions.
Fountain Powerboat Industries, Inc. Income Statement
All amounts in millions of US Dollars except per share amounts.
Jun 08 Jun 07 Jun 06
Revenue 68.2 68.8 79.2
Cost of Go 58.8 59.7 66.2
Gross Profit 9.4 9.1 13.1
Gross Margin13.8% 13.2% 16.5%
SG&A Expense 10.5 11.9 10.8
Depreciation 2.4 2.3 2.1
Operating Income (1.1) (2.7) 2.3
Operating Margin -1.6% -4% 2.9%
Nonoperating Income (0.1) (0.0) (0.0)
Nonoperating Expenses -- -- --
Income Before Taxes (2.2) (3.8) 1.1
Income Taxes -- 1.3 (1.3)
Net Income After Taxes (2.2) (5.0) 2.4
Continuing Operations (2.2) (5.0) 2.4
Discontinued Operations -- -- --
Total Operations (2.2) (5.0) 2.4
Total Net Income (2.2) (5.0) 2.4
Net Profit Margin -3.2% -7.3% 3%
his personal fortune I'm sure has been well protected from the business losses if not smokescreened where there actually was personal financial liability
while yours as an employee, or buyer of one of too many, a boat of sliding inconsistant quality, or an investor...well we know it didn't turn out so well for you
Skewed bought-out racing isn't the only reason he's so many's hero.
respect bottom design/speed accomplishments? sure, I'll give you that.
but to those who put more worship than simply just that in this guy, well...gotta wonder a bit about your own character.
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