Huffy Corporation Announces First Quarter Earnings

First Quarter Highlights

* First Quarter Earnings Meet Expectations

* Company Debt Free with Approximately $20.0 Million in Cash

* Forecast for Year Remains Unchanged



Apr 17, 2001, 01:00 ET from Huffy Corporation

    MIAMISBURG, Ohio, April 17 /PRNewswire/ -- Huffy Corporation (NYSE:   HUF)
 today announced that net earnings for the first quarter were $1.0 million or
 $0.10 per common share, versus a loss of $1.1 million or $0.11 per common
 share for the first quarter of 2000.  Earnings from operations for the first
 quarter were $1.0 million or $0.10 per common share, compared to earnings from
 operations for the same period last year, stated on a comparable basis, of
 $0.5 million or $0.05 per common share, before the reconfiguration,
 discontinued operations, refinancing, and extraordinary charges recorded in
 2000.
     Net sales from continuing operations for the first quarter of 2001 were
 $81.2 million compared to sales of $100.1 million for the first quarter of
 2000, expressed on the same basis, a decrease of 18.8%.  Gross margins for the
 first quarter were 14.3%, a slight decrease from gross margins of 14.8% for
 the same period last year, influenced by slightly lower margins in the bicycle
 and the basketball backboard businesses.  Gross margins at Huffy Service First
 were up by 3.2 points, largely as a result of cost savings initiatives taken
 in late 2000 and earlier this year.
     In commenting on results for the first quarter, Don Graber, Chairman,
 President and CEO, said, "Although we are disappointed by sales for the first
 quarter, we were not surprised.  It was clear in late 2000, particularly
 during the last six weeks, that retail sales were slowing due to weakness in
 the economy.  We had anticipated that this first quarter would be a
 challenging quarter as retailers adjusted their inventories to more acceptable
 levels. However, the actions taken over the past two years have clearly helped
 position Huffy to generate acceptable earnings during economic down cycles and
 to generate stronger earnings in an expanding economy.  These changes are also
 apparent on the balance sheet.  At the end of the quarter, Huffy had no debt
 on its balance sheet and $19.7 million in cash and short-term investments,
 compared to March 31, 2000, at which time Huffy had no cash or investments and
 a combination of long and short term debt totaling $98.7 million.  Although
 net inventories are higher than last year and above forecast levels, with
 lower working capital needs and less capital spending, in the Company's
 current configuration, we do not anticipate any borrowings under the recently
 announced amended revolving credit facility during 2001."
     Graber concluded by saying, "In late March and early April, we have seen
 some isolated signs of improved sell through of durable goods at retail;
 however, it is still too early to say that challenges in the retail sector,
 and in the economy, are behind us.  Although the retail environment may be
 improving, it is very difficult to project the rate of improvement.  However,
 with the restructuring of the Company behind us, a focus on reducing operating
 costs, and a substantial reduction in interest expense, we believe that Huffy
 should deliver another year of solid financial performance in 2001, with
 earnings per share from continuing operations in the $1.00 to $ 1.10 per
 common share range as previously announced.  Finally, our focus on strategic
 alternatives with UBS Warburg continues to be a key corporate priority."
     Huffy Corporation is a leading provider of consumer and retail services
 and the leading supplier of bicycles and home basketball equipment.
     The discussion in this press release contains forward-looking statements
 and is qualified by the cautionary statements contained in the Company's
 report on Form 10-K, dated March 6, 2001.
 
 
                               HUFFY CORPORATION
                      CONSOLIDATED STATEMENTS OF EARNINGS
                 (Dollars in thousands, except per share data)
 
                                                          Quarter Ended
                                                              March 31,
                                                        2001          2000
 
     Net sales                                        $81,243      $100,068
      Gross profit                                     11,635        14,762
        % to net sales                                   14.3%         14.8%
     Selling, general and administrative expenses      10,043        12,895
     Plant closure & manufacturing reconfiguration          0         1,718
     Operating income                                   1,592           149
     Other expense
       Interest expense, net                             406          1,969
       Other                                            (417)           (12)
         Total                                           (11)         1,957
     Earnings (loss) before income taxes               1,603         (1,808)
     Income tax expense (benefit)                        609           (687)
     Net earnings (loss) from continuing operations      994         (1,121)
     Discontinued operations:
       Income from discontinued operations,
         net of income tax expense $508.                  --            829
       Net earnings (loss) before extraordinary item    $994          ($292)
     Extraordinary loss, net of income tax benefit
       of $519                                            --           (848)
         Net earnings (loss)                            $994        ($1,140)
     Earnings per common share:
       Weighted average number of
         common shares                            10,368,848     10,164,583
     DILUTED:
       Earnings from operations                        $0.10          $0.05
       Loss from reorganization and refinancing        $0.00         ($0.16)
       Earnings (loss) from continuing operations      $0.10         ($0.11)
       Earnings from discontinued operations           $0.00          $0.08
       Loss from extraordinary charges                 $0.00         ($0.08)
       Net earnings (loss) per common share            $0.10         ($0.11)
 
 
     BALANCE SHEET HIGHLIGHTS (Dollars in thousands, except per share data)
 
 
                                     March 31,      December 31,   March 31,
                                       2001            2000          2000
 
     Cash and cash equivalents       $19,679          $4,334            $0
     Receivables, net                 53,716          79,811        79,143
     Inventories                      41,278          43,324        26,808
     Prepaid expenses and other
       expenses                       29,124          28,344        33,410
     Net assets of discontinued
       operations                          0               0        44,580
         Total current assets        143,797         155,813       183,941
     Property, plant and
       equipment, net                 11,908          12,680        18,298
     Intangibles and others           11,900          12,000        28,629
         Total assets               $167,605        $180,493      $230,868
 
     Notes payable and current
       portion of long-term debt          $0         $17,656       $45,224
     Accounts payable and accruals    69,280          63,736        67,508
     Income taxes and other            7,354           8,278         5,767
         Total current liabilities    76,634          89,670       118,499
     Long-term debt                        0               0        53,469
     Other liabilities                16,830          17,692        22,398
     Shareholders' equity             74,141          73,131        36,502
         Total liabilities and
           shareholders' equity     $167,605        $180,493      $230,868
     Equity per common share
       outstanding                     $7.24           $7.15         $3.59
     Working capital ratio               1.9             1.7           1.6
 
 

SOURCE Huffy Corporation
    MIAMISBURG, Ohio, April 17 /PRNewswire/ -- Huffy Corporation (NYSE:   HUF)
 today announced that net earnings for the first quarter were $1.0 million or
 $0.10 per common share, versus a loss of $1.1 million or $0.11 per common
 share for the first quarter of 2000.  Earnings from operations for the first
 quarter were $1.0 million or $0.10 per common share, compared to earnings from
 operations for the same period last year, stated on a comparable basis, of
 $0.5 million or $0.05 per common share, before the reconfiguration,
 discontinued operations, refinancing, and extraordinary charges recorded in
 2000.
     Net sales from continuing operations for the first quarter of 2001 were
 $81.2 million compared to sales of $100.1 million for the first quarter of
 2000, expressed on the same basis, a decrease of 18.8%.  Gross margins for the
 first quarter were 14.3%, a slight decrease from gross margins of 14.8% for
 the same period last year, influenced by slightly lower margins in the bicycle
 and the basketball backboard businesses.  Gross margins at Huffy Service First
 were up by 3.2 points, largely as a result of cost savings initiatives taken
 in late 2000 and earlier this year.
     In commenting on results for the first quarter, Don Graber, Chairman,
 President and CEO, said, "Although we are disappointed by sales for the first
 quarter, we were not surprised.  It was clear in late 2000, particularly
 during the last six weeks, that retail sales were slowing due to weakness in
 the economy.  We had anticipated that this first quarter would be a
 challenging quarter as retailers adjusted their inventories to more acceptable
 levels. However, the actions taken over the past two years have clearly helped
 position Huffy to generate acceptable earnings during economic down cycles and
 to generate stronger earnings in an expanding economy.  These changes are also
 apparent on the balance sheet.  At the end of the quarter, Huffy had no debt
 on its balance sheet and $19.7 million in cash and short-term investments,
 compared to March 31, 2000, at which time Huffy had no cash or investments and
 a combination of long and short term debt totaling $98.7 million.  Although
 net inventories are higher than last year and above forecast levels, with
 lower working capital needs and less capital spending, in the Company's
 current configuration, we do not anticipate any borrowings under the recently
 announced amended revolving credit facility during 2001."
     Graber concluded by saying, "In late March and early April, we have seen
 some isolated signs of improved sell through of durable goods at retail;
 however, it is still too early to say that challenges in the retail sector,
 and in the economy, are behind us.  Although the retail environment may be
 improving, it is very difficult to project the rate of improvement.  However,
 with the restructuring of the Company behind us, a focus on reducing operating
 costs, and a substantial reduction in interest expense, we believe that Huffy
 should deliver another year of solid financial performance in 2001, with
 earnings per share from continuing operations in the $1.00 to $ 1.10 per
 common share range as previously announced.  Finally, our focus on strategic
 alternatives with UBS Warburg continues to be a key corporate priority."
     Huffy Corporation is a leading provider of consumer and retail services
 and the leading supplier of bicycles and home basketball equipment.
     The discussion in this press release contains forward-looking statements
 and is qualified by the cautionary statements contained in the Company's
 report on Form 10-K, dated March 6, 2001.
 
 
                               HUFFY CORPORATION
                      CONSOLIDATED STATEMENTS OF EARNINGS
                 (Dollars in thousands, except per share data)
 
                                                          Quarter Ended
                                                              March 31,
                                                        2001          2000
 
     Net sales                                        $81,243      $100,068
      Gross profit                                     11,635        14,762
        % to net sales                                   14.3%         14.8%
     Selling, general and administrative expenses      10,043        12,895
     Plant closure & manufacturing reconfiguration          0         1,718
     Operating income                                   1,592           149
     Other expense
       Interest expense, net                             406          1,969
       Other                                            (417)           (12)
         Total                                           (11)         1,957
     Earnings (loss) before income taxes               1,603         (1,808)
     Income tax expense (benefit)                        609           (687)
     Net earnings (loss) from continuing operations      994         (1,121)
     Discontinued operations:
       Income from discontinued operations,
         net of income tax expense $508.                  --            829
       Net earnings (loss) before extraordinary item    $994          ($292)
     Extraordinary loss, net of income tax benefit
       of $519                                            --           (848)
         Net earnings (loss)                            $994        ($1,140)
     Earnings per common share:
       Weighted average number of
         common shares                            10,368,848     10,164,583
     DILUTED:
       Earnings from operations                        $0.10          $0.05
       Loss from reorganization and refinancing        $0.00         ($0.16)
       Earnings (loss) from continuing operations      $0.10         ($0.11)
       Earnings from discontinued operations           $0.00          $0.08
       Loss from extraordinary charges                 $0.00         ($0.08)
       Net earnings (loss) per common share            $0.10         ($0.11)
 
 
     BALANCE SHEET HIGHLIGHTS (Dollars in thousands, except per share data)
 
 
                                     March 31,      December 31,   March 31,
                                       2001            2000          2000
 
     Cash and cash equivalents       $19,679          $4,334            $0
     Receivables, net                 53,716          79,811        79,143
     Inventories                      41,278          43,324        26,808
     Prepaid expenses and other
       expenses                       29,124          28,344        33,410
     Net assets of discontinued
       operations                          0               0        44,580
         Total current assets        143,797         155,813       183,941
     Property, plant and
       equipment, net                 11,908          12,680        18,298
     Intangibles and others           11,900          12,000        28,629
         Total assets               $167,605        $180,493      $230,868
 
     Notes payable and current
       portion of long-term debt          $0         $17,656       $45,224
     Accounts payable and accruals    69,280          63,736        67,508
     Income taxes and other            7,354           8,278         5,767
         Total current liabilities    76,634          89,670       118,499
     Long-term debt                        0               0        53,469
     Other liabilities                16,830          17,692        22,398
     Shareholders' equity             74,141          73,131        36,502
         Total liabilities and
           shareholders' equity     $167,605        $180,493      $230,868
     Equity per common share
       outstanding                     $7.24           $7.15         $3.59
     Working capital ratio               1.9             1.7           1.6
 
 SOURCE  Huffy Corporation