TORRANCE, CA — Edelbrock Corp. has reported sales and earnings for its fiscal 2004 fourth quarter and year, which ended on June 30.
For the quarter, which ended on June 30, revenues totaled $38,030,000 as compared to revenues of $32,678,000 in the same period of fiscal 2003. Net income for the fourth quarter of fiscal 2004 was $1,320,000, or 24 cents per diluted share, compared to net income of $709,000, or 13 cents per diluted share, for the fourth quarter of fiscal 2003. The company said results for the quarter reflected professional fees and similar costs associated with the proposed “going-private” transaction totaling $496,000.
For the year, which ended on June 30, revenues totaled $125,980,000 compared to revenues of $115,225,000 in fiscal 2003. Net income for fiscal 2004 was $3,979,000, or 72 cents per diluted share, compared to net income of $2,970,000, or 54 cents per diluted share, for fiscal 2003. Results for the year reflected gains on the sale of real estate assets totaling $445,000 (approximately $282,000 or $0.05 per diluted share, after tax) and professional fees related to the proposed “going-private” transaction totaling $496,000.
Edelbrock attributed its increase in sales for both the fourth quarter and fiscal 2004 to improvements in the national economy, favorable weather conditions that encouraged enthusiasts to perform desired upgrades, and continued strong customer acceptance of the Edelbrock brand and products, reinforced by the company’s marketing program. Despite Edelbrock’s strong performance in the fiscal 2004 periods, however, management noted that earnings growth continued to be hampered by continuing increases in worker’s compensation, utilities, and overall insurance costs.
Edelbrock reported that revenues for the fourth quarter were strong across a broad range of product categories. Sales of Edelbrock’s high-performance aluminum automotive cylinder heads rose $1.4 million, or 32.1 percent over the year-ago period, while sales of Edelbrock’s aluminum automotive intake manifolds improved $1.2 million, or 17.2 percent. Other lines that made notable contributions to Edelbrock’s quarterly sales growth included its popular automotive carburetors, up 4.7 percent; exhaust systems, up 20 percent; and shock absorbers rose 7.8 percent for the quarter. Edelbrock also received a $798,000, or 49.6 percent quarterly sales increase from its Russell Performance Products division. The Edelbrock Russell brand is a leading provider of performance plumbing and brake lines which includes street legal brake lines, oil lines, fuel lines, and filters for both automotive and motorcycle use, as well as other products for domestic and imported vehicles. In addition, Edelbrock reported an increase in third party casting work at its aluminum foundry, sales from which improved $263,000, or 25.9 percent from the fourth quarter of 2003.
Edelbrock reported that selling, general and administrative (SG&A) expense, as a percentage of revenues, decreased to 28 percent for the fourth quarter of fiscal 2004 from 29 percent in the year-ago period. Overall, SG&A increased 12.3 percent, or $1.2 million, to $10.7 million for the fourth quarter of fiscal 2004 compared to $9.5 million for the year-ago period. The quarterly and year-to-year increase in SG&A was primarily attributable to increased commissions, other variable selling expenses associated with higher revenues, and professional fees and similar costs associated with the proposed “going-private” transaction. Research and development (R&D) expenses for the fourth quarter of fiscal 2004 increased 5.1 percent, or $61,000, over the year-ago period, totaling $1.2 million. As a percent of revenues, R&D expenses decreased to 3.3 percent for the fourth quarter of fiscal 2004 from 3.6 percent in the same quarter of fiscal 2003.
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