Champion Parts Reports 4th Quarter and Year-End Results; New $14 Million Credit Facility to Aid Marketing Product Development and External Growth Opportunities

Apr 04, 2001, 01:00 ET from Champion Parts, Inc.

    HOPE, Ark., April 4 /PRNewswire/ -- Champion Parts, Inc. (OTC/BB: CREB)
 today reported net sales of $4,627,000 for the fourth quarter ended
 Dec. 31, 2000, compared to $6,830,000 in the same quarter last year.  Net
 income was $719,000, or $0.20 per share, in the quarter, compared to $728,000,
 or $0.20 per share, for the same period in 1999.
     For the year 2000, the company reported net sales of $22,245,000, compared
 to $28,567,000 in 1999.  Net income was $1,464,000, or $0.40 per share,
 compared to $1,731,000, or $0.47 per share in 1999.
     Champion maintained profits through year-end, despite significantly lower
 carburetor sales.  The company noted carburetor sales, in 1999, were augmented
 by unusually large new stocking orders from retail customers that were not
 repeated in 2000.
     The company also encountered a "soft market with automotive O.E.M.
 customers," but experienced a "modest 5.2% gain with its heavy-duty starters,
 alternators, generators and water pumps to agricultural equipment customers."
 Sales of constant velocity joint products for the year 2000 were "essentially
 level," compared to 1999. The market for constant velocity assemblies is
 expected to grow as an increasing number of front wheel drive vehicles enter
 prime repair age.
     Fourth quarter results included a net gain of $753,000 from the sale of
 the company's half interest in an automotive engine remanufacturer, which
 failed to yield acceptable returns.
     The company also noted that it has recently closed its Fresno, Calif.
 distribution center and is considering the consolidation of its manufacturing
 facilities.  "We have not lost focus on improving existing operations," said
 Jerry A. Bragiel, president and chief executive officer, "and we must continue
 aggressive cost cutting measures as appropriate, in an overall soft market for
 replacement parts.  Our objective is enhancing shareholder value while
 improving product quality and service to our customers," he added.
     The company recently closed on a new $14 million credit facility, reducing
 its borrowing rate and significantly increasing available capital. "The new
 credit facility allows us to pursue our plans for growth through market
 expansion for existing products, introduction of new products and acquisition
 opportunities," Bragiel concluded.
     Champion Parts remanufactures fuel system components, front wheel drive
 assemblies, and underhood electrical and mechanical products for the passenger
 car and light truck, agricultural, heavy-duty truck and marine parts
 aftermarket.
 
 
                              CHAMPION PARTS, INC.
                              Consolidated Results
 
                             Unaudited                       Audited
                      Fourth Quarter Ending                Year Ending
                  Dec. 31, 2000  Dec. 31, 1999    Dec. 31, 2000  Dec. 31, 1999
 
     Net Sales     $ 4,627,000    $ 6,830,000      $22,245,000    $28,567,000
 
     Costs and Expenses:
       Cost of
        products
        sold         3,987,000      5,493,000       18,598,000     23,711,000
       Selling,
        distribution
        & admin        561,000        546,000        2,391,000      2,704,000
     Total costs
      and expenses   4,548,000      6,039,000       20,989,000     26,415,000
 
     Operating income   79,000        791,000        1,256,000      2,152,000
 
     Non-operating (income)/expense:
       (Gain) on the
        disposal of
        assets              --             --          (26,000)            --
       (Gain) on the
        sale of
        investments   (753,000)            --         (753,000)            --
       Interest
        expense        126,000         75,000          556,000        539,000
       Other non-
        operating
        (income)       (68,000)        (8,000)         (85,000)       (86,000)
     Total non-operating
      (income)/
      expense         (695,000)        67,000         (308,000)       453,000
 
     Earnings before
      extraordinary (gain)
      and income taxes 774,000        724,000        1,564,000      1,699,000
 
     Income Taxes/
      (Benefit)         55,000         (4,000)         100,000         27,000
 
     Earnings before
      extraordinary
      gain             719,000        728,000        1,464,000      1,672,000
 
     Extraordinary gain     --             --               --         59,000
 
     Net Income    $   719,000    $   728,000      $ 1,464,000    $ 1,731,000
 
     Weighted Average Common Shares
      Outstanding at December 31, 2000:
       Basic         3,655,266      3,655,266        3,655,266      3,655,266
       Diluted       3,689,190      3,687,544        3,689,190      3,687,544
 
     Earnings Per Common Share - Basic:
 
       Earnings before
        extraordinary gain
        per common
        share           $ 0.20         $ 0.20           $ 0.40         $ 0.45
 
       Extraordinary
        gain per share    0.00           0.00             0.00          (0.02)
 
       Net income per
        common share    $ 0.20         $ 0.20           $ 0.40         $ 0.47
 
     Earnings Per Common Share-Diluted:
 
       Earnings before
        extraordinary gain
        per common
        share           $ 0.20         $ 0.20           $ 0.40         $ 0.45
 
       Extraordinary gain
        per share         0.00           0.00             0.00          (0.02)
 
       Net income per
        common share    $ 0.20         $ 0.20           $ 0.40         $ 0.47
 
 

SOURCE Champion Parts, Inc.
    HOPE, Ark., April 4 /PRNewswire/ -- Champion Parts, Inc. (OTC/BB: CREB)
 today reported net sales of $4,627,000 for the fourth quarter ended
 Dec. 31, 2000, compared to $6,830,000 in the same quarter last year.  Net
 income was $719,000, or $0.20 per share, in the quarter, compared to $728,000,
 or $0.20 per share, for the same period in 1999.
     For the year 2000, the company reported net sales of $22,245,000, compared
 to $28,567,000 in 1999.  Net income was $1,464,000, or $0.40 per share,
 compared to $1,731,000, or $0.47 per share in 1999.
     Champion maintained profits through year-end, despite significantly lower
 carburetor sales.  The company noted carburetor sales, in 1999, were augmented
 by unusually large new stocking orders from retail customers that were not
 repeated in 2000.
     The company also encountered a "soft market with automotive O.E.M.
 customers," but experienced a "modest 5.2% gain with its heavy-duty starters,
 alternators, generators and water pumps to agricultural equipment customers."
 Sales of constant velocity joint products for the year 2000 were "essentially
 level," compared to 1999. The market for constant velocity assemblies is
 expected to grow as an increasing number of front wheel drive vehicles enter
 prime repair age.
     Fourth quarter results included a net gain of $753,000 from the sale of
 the company's half interest in an automotive engine remanufacturer, which
 failed to yield acceptable returns.
     The company also noted that it has recently closed its Fresno, Calif.
 distribution center and is considering the consolidation of its manufacturing
 facilities.  "We have not lost focus on improving existing operations," said
 Jerry A. Bragiel, president and chief executive officer, "and we must continue
 aggressive cost cutting measures as appropriate, in an overall soft market for
 replacement parts.  Our objective is enhancing shareholder value while
 improving product quality and service to our customers," he added.
     The company recently closed on a new $14 million credit facility, reducing
 its borrowing rate and significantly increasing available capital. "The new
 credit facility allows us to pursue our plans for growth through market
 expansion for existing products, introduction of new products and acquisition
 opportunities," Bragiel concluded.
     Champion Parts remanufactures fuel system components, front wheel drive
 assemblies, and underhood electrical and mechanical products for the passenger
 car and light truck, agricultural, heavy-duty truck and marine parts
 aftermarket.
 
 
                              CHAMPION PARTS, INC.
                              Consolidated Results
 
                             Unaudited                       Audited
                      Fourth Quarter Ending                Year Ending
                  Dec. 31, 2000  Dec. 31, 1999    Dec. 31, 2000  Dec. 31, 1999
 
     Net Sales     $ 4,627,000    $ 6,830,000      $22,245,000    $28,567,000
 
     Costs and Expenses:
       Cost of
        products
        sold         3,987,000      5,493,000       18,598,000     23,711,000
       Selling,
        distribution
        & admin        561,000        546,000        2,391,000      2,704,000
     Total costs
      and expenses   4,548,000      6,039,000       20,989,000     26,415,000
 
     Operating income   79,000        791,000        1,256,000      2,152,000
 
     Non-operating (income)/expense:
       (Gain) on the
        disposal of
        assets              --             --          (26,000)            --
       (Gain) on the
        sale of
        investments   (753,000)            --         (753,000)            --
       Interest
        expense        126,000         75,000          556,000        539,000
       Other non-
        operating
        (income)       (68,000)        (8,000)         (85,000)       (86,000)
     Total non-operating
      (income)/
      expense         (695,000)        67,000         (308,000)       453,000
 
     Earnings before
      extraordinary (gain)
      and income taxes 774,000        724,000        1,564,000      1,699,000
 
     Income Taxes/
      (Benefit)         55,000         (4,000)         100,000         27,000
 
     Earnings before
      extraordinary
      gain             719,000        728,000        1,464,000      1,672,000
 
     Extraordinary gain     --             --               --         59,000
 
     Net Income    $   719,000    $   728,000      $ 1,464,000    $ 1,731,000
 
     Weighted Average Common Shares
      Outstanding at December 31, 2000:
       Basic         3,655,266      3,655,266        3,655,266      3,655,266
       Diluted       3,689,190      3,687,544        3,689,190      3,687,544
 
     Earnings Per Common Share - Basic:
 
       Earnings before
        extraordinary gain
        per common
        share           $ 0.20         $ 0.20           $ 0.40         $ 0.45
 
       Extraordinary
        gain per share    0.00           0.00             0.00          (0.02)
 
       Net income per
        common share    $ 0.20         $ 0.20           $ 0.40         $ 0.47
 
     Earnings Per Common Share-Diluted:
 
       Earnings before
        extraordinary gain
        per common
        share           $ 0.20         $ 0.20           $ 0.40         $ 0.45
 
       Extraordinary gain
        per share         0.00           0.00             0.00          (0.02)
 
       Net income per
        common share    $ 0.20         $ 0.20           $ 0.40         $ 0.47
 
 SOURCE  Champion Parts, Inc.