HOPE, Ark., Apr. 19 /PRNewswire-FirstCall/ -- Champion Parts, Inc. , remanufacturer of automotive parts, today announced net sales of $3,127,000 for the fourth quarter ended Dec. 31, 2006, compared to $4,523,000 in the comparable period of 2005. The company reported a net loss of $269,000, or $0.08 per share in the quarter, compared to a net loss of $242,000, or $0.07 per share in the same period of 2005.
For the year 2006, the company reported net sales of $18,061,000, compared to $21,651,000. The company had net income of $10,000, or $0.00 per share, compared to $37,000, or $0.01 per share for the same period in 2005.
Jerry A. Bragiel, president and chief executive officer, said, "While the company remained profitable for the year, its results were negatively impacted by weaker sales."
The executive noted that its late 2006 year-end acquisition of the carburetor business of Tomco will be fully reflected in the current 2007 year and will afford the company with increased revenues and expected profit margins generated from remanufactured carburetors. Champion will now benefit greatly from Tomco's widely diversified and loyal customer base who have relied on Tomco's excellence of product and demonstrated devotion to service. In 2005, Tomco reported $9.5 million in carburetor sales.
The company also said it is continuing to pursue other new products and market opportunities and diversification.
About Champion
Champion Parts remanufactures fuel system components, air conditioning compressors, front wheel drive assemblies, and other underhood electrical and mechanical products for the passenger car and light truck, agricultural, heavy-duty truck and marine parts aftermarket.
Certain forward-looking statements in this press release involve various risks and uncertainties, including, without limitation, those statements relating to the impact of future sales, pursuit of new product and market opportunities, diversification, and favorable profit margins. These statements are forward-looking statements within the meaning of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. Although the company believes that its forward-looking statements are reasonable, there are no assurances that such statements will prove to be correct. Attention is directed to the discussion of risks and uncertainties contained in the Management's Discussion and Analysis of Operations - Factors Which May Affect Future Results and Business - Risk Factors sections of the company's Form 10-K and other reports filed with the Securities and Exchange Commission.
CHAMPION PARTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME (CONDENSED)
FOR THE PERIODS ENDED
Twelve Months Twelve Months
Dec. 31, 2006 Dec. 31, 2005
Net Sales $18,061,000 $21,651,000
Costs and Expenses:
Cost of Products Sold 15,290,000 18,625,000
Selling, Distribution & Administrative 2,081,000 2,437,000
Total Costs and Expenses 17,371,000 21,062,000
Operating Income 690,000 589,000
Non-Operating (Income)/Expense
Interest Expense 621,000 582,000
Other Non-Operating (Income) 68,000 (113,000)
Total Non-Operating Expense 689,000 469,000
Net Income (Loss) Before Income Taxes 1,000 119,000
Income Taxes (9,000) 82,000
Net Income (Loss) $10,000 $37,000
Weighted Average Common Shares
Outstanding
Basic 3,655,266 3,655,266
Diluted 3,736,060 3,736,060
Earnings Per Common Share-Basic
Net Income Per Common Share-Basic $0.00 $0.01
Earnings Per Common Share-DilutedNet Income Per Common Share-Diluted $0.00 $0.01
Three Months Three Months
Dec. 31, 2006 Dec. 31, 2005
Net Sales $3,127,000 $4,523,000
Costs and Expenses:
Cost of Products Sold 2,668,000 3,892,000
Selling, Distribution & Administrative 505,000 736,000
Total Costs and Expenses 3,173,000 4,628,000
Operating Income (46,000) (105,000)
Non-Operating (Income)/Expense
Interest Expense 177,000 132,000
Other Non-Operating (Income) 76,000 (24,000)
Total Non-Operating Expense 253,000 108,000
Net Income (Loss) Before Income Taxes (299,000) (214,000)
Income Taxes (30,000) 28,000
Net Income (Loss) $(269,000) $(242,000)
Weighted Average Common Shares
Outstanding
Basic 3,655,266 3,655,266
Diluted 3,736,060 3,736,060
Earnings Per Common Share-Basic
Net Income Per Common Share-Basic ($ 0.08) ($ 0.07)
Earnings Per Common Share-Diluted
Net Income Per Common Share-Diluted ($ 0.07) ($ 0.06)