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Fountain Earnings
FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS Year Ended June 30, ________________________________________ 2002 2001 2000 ____________ ____________ ____________ NET SALES $ 37,546,692 $ 46,081,634 $ 57,532,461 COST OF SALES 35,990,833 39,878,136 46,156,464 ____________ ____________ ____________ Gross Profit 1,555,859 6,203,498 11,375,997 ____________ ____________ ____________ EXPENSES: Selling expense 4,758,384 5,955,103 7,370,319 General and administrative 2,035,613 2,691,826 3,260,571 Impairment of long-lived assets 1,182,320 - - ____________ ____________ ____________ Total expenses 7,976,317 8,646,929 10,630,890 ____________ ____________ ____________ OPERATING INCOME (LOSS) (6,420,458) (2,443,431) 745,107 ____________ ____________ ____________ NON-OPERATING INCOME (EXPENSE): Other income 21,512 118,503 106,239 Interest expense (809,571) (700,965) (1,065,514) Gain (loss) on disposal of assets - 500,446 (12,846) Gain on insurance claims from hurricane - 1,107,819 1,065,725 ____________ ____________ ____________ 788,059 1,025,803 93,604 ____________ ____________ ____________ INCOME (LOSS) BEFORE INCOME TAXES (7,208,517) (1,417,628) 838,711 CURRENT TAX EXPENSE (BENEFIT) (717,983) (108,590) - DEFERRED TAX EXPENSE (BENEFIT) 541,059 (409,512) 370,410 ____________ ____________ ____________ INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE EXTRAORDINARY ITEMS (7,031,593) (899,526) 468,301 ____________ ____________ ____________ GAIN ON SETTLEMENT OF LAWSUIT (net of $523,183 in income taxes) - - 790,041 ____________ ____________ ____________ NET INCOME (LOSS) $ (7,031,593) $ (899,526) $ 1,258,342 ____________ ____________ ____________ 2002 2001 2000 ____________ ____________ ____________ BASIC EARNINGS (LOSS) PER SHARE: Continuing operations $ (1.49) $ (.19) $ .10 Gain from lawsuit - - .17 ____________ ____________ ____________ BASIC EARNINGS PER SHARE $ (1.49) $ (.19) $ .27 ____________ ____________ ____________ WEIGHTED AVERAGE SHARES OUTSTANDING 4,732,608 4,732,608 4,732,608 ____________ ____________ ____________ DILUTED EARNINGS PER SHARE: Continuing operations $ (1.49) $ (.19) $ .10 Gain from lawsuit - - .17 ____________ ____________ ____________ DILUTED EARNINGS PER SHARE $ (1.49) $ (.19) $ .27 ____________ ____________ ____________ DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING 4,732,608 4,732,608 4,732,651 ____________ ____________ ____________ |
These tables did not post very well, if you are interested you can read Fountains 10K @:
http://sec.freeedgar.com/displayText.asp?ID=2004757 This report was filed with the S.E.C. today. |
The 10K makes for a very interesting read :eek:
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Ouch! If I'm reading this correctly (a big IF), they lost over $7 million in 2002! That's a lotta boats...
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Havn't read the 10K, but you gotta love the "impairment charge";) :rolleyes: :rolleyes:
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they lost over $7 million in 2002! That's a lotta boats... |
An interesteing note from the 10K ...
1. They sold 231, 330, and 446 boats in the fiscal years 2000, 2001, and 2002 respectively. Quite a drop ... and that's all boats. In sport boats it was 115, 219, and 325 ... which is worse. |
BUT...there stock is up 220% since last year.........I did get out with a postive to the high side
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Looks like a corelation with the performance of the market:eek: :mad:
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1 Attachment(s)
Looks like mk EKG:D
There were definitely some good opportunities to long and short that puppy! Those are huge percentage swings. |
Bajadude:
Keep in mind the Fountain is a low volume stock trading an average of just over 12,000 shares per day. If a person with some serious money decided to play this stock the volume probably would not support large trades, either up or down. You are right about the large swings but I suspect you could only catch those swings with relatively small trades. |
TulsaLarry,
Of course your right. I can't imagine what the bid / ask spread on something like that has been. |
i'm not an accountant, what is an imparment charge?
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what is an imparment charge? Some times it relates to plant and equipment In this case, not sure what it is, but the 10K says "after additional expense of $1,182,320 for impairment of long-lived assets in Fiscal 2002." Basically something is no longer worth what they previoulsy said it was. |
the 10k is vague....won't go into what the writedown was from. There probably isn't much stock out there to borrow, but with those financials tied with the current economy...what a short opportunity;)
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maybe left overs from 2001????
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The impairment charge came from molds and race boats:
During Fiscal 2002, the Company recorded a loss on impairment of $1,112,320 in accordance with SFAS No. 121 "Accounting for Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed of" on certain molds and racing boats to adjust the respective assets to their net realizable value. |
Ooops....I thought that said Fountain Earings.....thought Reggie had come out of the closet. By the 10k though, maybe he should hide in one for a while....
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thanks guys, i'm smarter today than yesterday!!!!
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The Key Data IMO.
Current Assets: $26,534,696 Total Liabilities: $22,565,994 Net Sales: $37,546,692 Cost Of Sales: $35,990,833 Net Income (Loss) $ (7,031,593) Jan |
what would you guys rate the financial condition of this company? is it reversable? or are they in a 20 foot hole with a 6 foot ladder? i'm not looking for a "death watch", but i think that all potential fountain buyers might be wise to consider the possiblity of owning an "orphan". does reggie still own over 50% of the company? just wondering if somebody could stage a takeover?
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Yeah, Its called a buyout...Mercury Marine owned by Brunswick.
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why would mercury want fountain? don't beat me here, but i never heard that fountain has been all that profitable?do you guys think it's going to sit well with reggies ego:p to have to answer to a bunch of investor types all day? you would think mercury would have bought cigarette, after all cig. is THE name i would want. and this economy, how smart is it to buy a financially struggling company, sorry i do not see that many benifits:(
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Fountain Powerboats is in major debt with Mercury Marine.
I thought I heard that the lease on Lake-X was done and Mercury wants Fountain because of their location. As for Cigarette...Skip has his hands full straightning that mess he bought into. |
Back4more,I believe you are correct on all points. Lake X,unfortunately,will soon be history. The Palmico River might fit in.
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Did you look to see who was on the Board of Directors @ Fountain? There are some local yokals and then you have:
Anthony J.-------Executive Vice 1999 Our executive officer since Romersa ------- President, August 1998; previously (56) ------ Chief Operating served as Director of ----- Officer Planning - Marine Operations ------- and Director for Brunswick Corp., Lake Forest, IL (1986-1998) Mark L. ---------- Director 1992 Owner of Spencer Spencer ------------ Communications (advertising (46) --------------- and public relations firm), Montrose, CA; from 1976-1987, employed by Powerboat Magazine, serving as Executive Editor from 1981- 1987; commentator for ESPN covering the boating industry since 1985 David L. Woods Director 2001 Co-owner and manager, Woods & (43) McCauley, LLC, dba Pier 57 Boat Sales and Service, Counce TN (boat sales and service) These guys would have influence over any buyout. |
Been talking about a buyout forever now. Will happen when the price is right and Reggie wants it to happen. Which may be soon, may be never. Speculation is just that.
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buyout when reggie wants it to happen? how many years can he lose 7 million? do you think next year is going to be any better with the economy tanking. seems to me ,although i'm not an accountant, that fin. statement doesn't look like they can afford another year like last:(
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When the banks turn off the spicket is when the chapter 11 will happen:rolleyes: Reggie will only be a spectator at that time because GE capital and the other creditors will be in TOTAL control of Fountains fate. ;)
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jdnca1,
fill me in , chapter 11, is that reorganization or liquidation? how can you sell boats at those prices and not make money:rolleyes: , how will powerboat make it without his ad cash every month?:p |
11 is reorginization. It's called to many incentives and giving away your margins to keep the production lines going :rolleyes:
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BTW...Reggie owns a lot more than just Fountain Powerboats.
He's very bussiness savvy...thats why its publicly traded, OPM. |
looks like the "marketing genius" better think quick:p you guys know i'm not the biggest r.f. fan , but his company going down is not something you like to hear:(
seems to me , it's a vicious circle, advertise less(no 6 pages in this month powerboat) sell less boats, make less money |
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