my bad.

Mike,
Maybe not. From a published report...

Struggling Fountain slashes worker benefits

In an effort to reduce costs and reverse two years of operating losses, Fountain Powerboat Industries Inc. has joined the growing list of small companies cutting employee health benefits.
“We do not expect anyone to celebrate the changes we are making — they required some difficult decisions,” the company told employees in an Aug. 1 letter from president and CEO Reggie Fountain, and director of human resources Carol Price. Fountain, himself, has taken an 85-percent pay cut, the letter points out, as the company struggles to survive.
Price this morning acknowledged that benefits have been reduced, but she says none has been eliminated.
“I would rather leave a little bit on the table and be able to add it back later,” she said “I will fight tooth and nail when things pick back up to add these things back.”
The Washington, N.C.-based boatbuilder blames the slow economy and a reduction in orders for an operating loss of almost $4 million for the fiscal year ended June 30. In fiscal 2001 Fountain reported a loss of $900,000. The company is reorganizing its sales and operations processes to improve both sales and the efficiency of the operation.
However, none of the steps taken to this point goes far enough, the company said.
“We need substantial increases in sales and dramatic reductions in the cost of operations at Fountain to continue as a business,” Fountain and Price wrote in the letter.
According to the letter, the company’s medical and prescription drug costs increased more than 23 percent in 2001. That trend is expected to continue. As a result, the company increased employee contributions from $10 to $30 a week for single coverage. The boatbuilder says the effect on take-home pay will be less than $20 per week because it’s paid with pre-tax dollars.
The annual deductible for the company’s prescription drug plan also was raised from $50 to $100, with coverage reduced to 50 percent of the cost instead of 80 percent. Finally, the life insurance death benefit was reduced to $25,000 from $50,000.
Despite the reduced benefits, Fountain said the company remains committed to its employees. He said Fountain Powerboat continues to pay an average of $3 more per hour than other employers in the area, and will continue to offer a 401(k) plan with a 50-cent match per dollar.
“We need you, and we want to continue to offer the best pay and benefits we can,” the letter states. “We do not want to lay off workers or shut this business down so we are making responsible and necessary changes.”
Fountain is one of many small companies across the country forced to cut benefits because of rising costs and a sluggish economy. A recent survey by the Kaiser Family Foundation and the Health Research and Educational Trust, found that many workers are now paying more while benefits erode. The survey found a 12.7-percent increase in monthly premiums from 2001 to 2002. It was the second consecutive year of double-digit increases, and the largest increase since premiums rose 14 percent in 1990.

— Melanie Winters
[email protected]

By the way.....
 

I think I read on this board recently that Mercury High Performance Divisions biggest recreational boat customer is now....

...Cigarette. :eek:

Gordo, that's interesting that Reggie is releasing the almost four million dollar loss for this last fiscal year when in fact he has yet to file his 4th quarter and fiscal year 02 numbers.

Gordo,

I can't bash Fountain for the reduction in the company paid insurance benefits. Insurance costs have absolutly gone out of control for business owners. Not just Health care but all insurance costs. I don't know what kind of Health insurance they provide but to ask the enmployee to contribute $30/week does not seem out of line. As far as prescriptions go, again paying $100/ yr deductable isn't too bad. Picking up half of a persons prescription bill isn't bad either.

As a business owner we pay 100% for our employees health insurance for a very good BC/BS policy that includes dental and prescriptions which costs us $366/mo/employee. We pay 65% of the cost of the employee's family members coverage. Over this past year with NO claims our General liability insurance has risen 4 fold. Combine that with Workmans Comp premiums and we are talking many many Tens of thousands of dollars per year. We are a small company with less than 10 employees. We do what we can. Insurance costs will be the downfall of many companies in this country I'm afraid. :(

Usually I keep my mouth shut but.....
 

I had something to get off my chest. We've seen this time and time again. All it is boiling down to is CA$H. How much to you want to spend to be the biggest and the fastest. A person can go out a spend more money than I will make in ten years on a boat, and be the biggest and baddest. He can go out and run 110 in 8ft slop and think nobody can touch him, until this other boat goes by him at 115. All because that guy spent a little more CA$H.

Personally, I don't want to run 110 in 8ft waves. I want to come home that night not pi$$ing blood with blown out knees. Plus I would like to see my boat in one piece and not in some shop for the rest of the summer while I sit here and read about everyone's weekend(no offense to those with project boats or having trouble getting your boat back). I'll just sit back and wait for someone who needs to be pulled in because they broke something. That is like taking your new Ferrari and driving 100mph through a mall parking lot with speed bumps every 20ft. Somethings bound to break.

I have nothing against fountains or any other boat. I pretty much like them all. It is nice to see different ones. Fountain just doesn't happen to fit my style and what I want.

Now Reggie is another story...... I mean DDDDDDAAAAAAMMMMMNNNNN Reggie. Take some of that advertising budget and go to the mall. Eddie Bauer and the Gap are nice stores and they make nice clothing. And just because the buttons and zippers go to the top doesn't mean the have to be done that way. Oh and the comb over, man you aint foolin anyone.

you so smart
 

Man, you guys know a hell of a lot about Fountain and his company...too bad you don't know jack about his boats.
Your missing out on the best part...:p

Larry,
I don't make em up, I just pass em on to you'all. It's a published article, so maybe somebody has an inside line?

Playn posted;
"I can't bash Fountain for the reduction in the company paid insurance benefits'.
You're right. Actually, it really wasn't intended as a "Fountain Bash", but making the point that maybe Fountain isn't doing as good as maybe Mike Merola indicated. I'm not trying to hack on Mike by any means. I honestly don't know how many boats Reggie turned out last year. But, since Reggie has also been trimming down his employee numbers, it would seem that things at Fountain may not be all that "right".

B4M,
I've seen a pic of your boat. Beautiful ride. Fact is, I've been in a few Fountains. I've driven a few Fountains. I've raced against a few Fountains. I've beaten a few of em, I've been beaten by a few of em. I don't remember Jack driving any of them, but it's always hard to tell under an orange helmet.
Like I said before, I have nothing against Fountain boats. They are a damned GOOD boat. BUT, and It's purely my opinion, but they're not all that and a side of biggie fries like Reggie would have us all believe in his ads and interviews.

Marketing genius?
 

I'm not about to argue the fact, however, announcing your company is in danger of folding doesn't seem to be the best way to entice people to buy. Who wants to spend that kind of money only to have the company disappear? The threat of closing the doors at Fountain has been going on for some time now. It's amazing to me that anyone would buy a new Fountain for that reason alone.
I know Fountain a public company and its financial condition is a matter of public record. I wouldn't highlight it, though.
I guess it's the nature of the offshore beast that many manufacturers are not guaranteed tomorrow.

Newsflash....
 

Cigwillie makes 500th post about REGGIE FOUNTAIN!



:rolleyes: