Collins Industries reports lower 3Q net income

Collins Industries, Inc. reported decreased net income for its third fiscal quarter ending July 31, 2003, compared to the same quarter a year ago. The Company posted net income of $623,685 ($.09 per share -- diluted) for the quarter, down from $1,009,226 ($.15 per share -- diluted) for the same period last year.Sales for the quarter ended July 31, 2003 were $57,581,114 compared to $55,520,258 for the same period last year. Sales revenues of buses and terminal trucks/road construction equipment increased in the third quarter, while ambulance sales revenues were lower due to a large export contract recognized in the third and fourth quarters of fiscal 2002.Income from operations was higher in the third quarter for buses and terminal truck/road construction equipment. Ambulance operating profits were lower due to large lower margin contracts manufactured in the third quarter of fiscal 2003 and lower total gross margins without the fiscal 2002 export revenues. Gross margins from the 2002 export sales were higher than normal due to customer-supplied chassis for these units.Sales for the nine months ended July 31, 2003, increased to $146,997,072 compared to $142,669,730 for the same period in fiscal 2002. Net income for the nine months ended July 31, 2003 was $ 555,107 ($.08 per share -- diluted) compared to $515,240 ($.08 per share -- diluted) in the same period last year.The overall sales increase principally resulted from higher sales of ambulance and terminal truck/road construction products. The overall profit margins realized from the increase in sales were lower primarily due the impact of ambulance operations. The ambulance operating profits were lower principally due to large lower margin contracts manufactured in the third quarter of fiscal 2003 and due to a large export contract in the third and fourth quarters of fiscal 2002.The Company's sales backlog at July 31, 2003 was $52.7 million compared to $58.0 million at July 31, 2002 and $42.2 million at October 31, 2002.Donald Lynn Collins, President and CEO said, "We are pleased buses and terminal truck/construction equipment revenues and profit contributions are improving; however, ambulance results continue at a sluggish pace." Collins added, "We remain concerned about the budget challenges facing federal, state and local public entities."

TAGS: Truck Bodies
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