TORRANCE, CA — Edelbrock Corp. has reported sales and earnings for the first quarter of its 2005 fiscal year, which ended on Sept. 25.
For the first quarter, Edelbrock reported that revenues decreased 5.9 percent to $26,032,000 from revenues of $27,658,000 in the same period a year ago. Net income for the quarter was $350,000, or 6 cents per diluted share, compared to net income of $467,000, or 9 cents per diluted share, for the first quarter of fiscal 2004. The company said results for the quarter reflected professional fees and other costs totaling $179,000 associated with the pending “going-private” transaction proposed by Edelbrock’s chairman, president and CEO Vic Edelbrock, in April.
The company attributed the decrease in revenues for the first quarter primarily to timing of sales orders in connection with its “VIP” dating program whereby certain customers are offered orders that ship by the end of Edelbrock’s second quarter with extended credit terms. In addition, Edelbrock said revenues were impacted by the stagnant economy, the higher price of gasoline and uncertainty related to the national election.
Edelbrock reported that for the first quarter sales of aluminum automotive intake manifolds decreased by $678,000, or 11.1 percent, and sales of automotive carburetors decreased by $630,000, or 6.9 percent. While revenues for the first quarter declined across a majority of Edelbrock product lines, revenues remained strong in such lines as fuel injection which increased by $248,000, or 60.5 percent, and shocks which increased by $104,000, or 11.5 percent.
Edelbrock reported that selling, general and administrative (SG&A) expense, as a percentage of sales, increased to 30.9 percent for the first quarter of fiscal 2005 from 30.2 percent in the year-ago period. Overall, SG&A decreased 3.7 percent, or $311,000 over the year-ago period from $8,344,000 to $8,033,000, for the first quarter of fiscal 2005. The quarterly decrease in SG&A was primarily attributable to lower commissions and other variable selling expenses associated with lower revenues, offset by professional fees and similar costs associated with the pending “going-private” transaction. Research and development (R&D) expenses for the first quarter of fiscal 2005 decreased 6.7 percent, or $60,000 over the year-ago period, from $894,000 to $837,000. As a percentage of revenues, R&D expenses remained unchanged at 3.2 percent for both periods.
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