Collins Industries, Inc. reported that sales for the third quarter (ending July 31) increased 11% to a record third quarter $89.2 million, compared to $80.6 million for the same period last year.
The Company's net income increased in the third quarter to $3.5 million ($0.56 per share - diluted) for the quarter, compared to $1.6 million ($0.26 per share - diluted) for the same period last year. This income improvement was principally led by increased revenues and gross profits.
Sales for the nine months ended July 31 increased 19% to $229.5 million, compared to $193.4 million for the same period last year. The net income for the nine months increased to $7.6 million ($1.20 per share - diluted) from $0.90 million ($0.14 per share - diluted) in the same period last year. This income improvement was principally led by increased revenues and gross profits. The prior year period included nonrecurring expenses for severance costs associated with the retirement of two executives and the restatement of financial statements for fiscal years 2002 and 2003 and interim quarterly statements for 2004, along with substantially increased audit fees for fiscal 2004 financial statements. These nonrecurring expenses totaled $1.29 million after tax ($0.21 per share - diluted.)
Donald Lynn Collins, President and CEO, said, "Results for the third quarter maintain us on track for a highly successful fiscal 2006 and support our belief that benefits continue to be realized from our investments in technology and engineering. As earlier announced, we are currently engaged in a process of exploring a sale of the company."
The company's sales backlog at July 31 was $109.9 million, compared to $116.0 million at July 31, 2005. The backlog included $11.8 million of a previously reported $28 million order for terminal trucks from the United States Postal Service received in July 2005, which will be primarily produced and delivered by November.
In addition, the company announced that it had declared its 39th consecutive regular quarterly cash dividend. The dividend will be $0.05 per share, paid to shareholders of record as of September 6, and will be payable on September 15. The ex-dividend date will be September 1. The Company has paid a quarterly cash dividend for the past 38 consecutive quarters, exclusive of special dividends paid in 1998, 2000 and 2001.