Fountain Powerboats posts 14 per cent lower sales
By IBI Magazine
Fountain Powerboat Industries Inc today reported a 13.7 per cent decline in sales for its third fiscal quarter ended March 31, 2008. The high-performance builder posted sales of US$14.2 million for the quarter compared to $16.5 million a year ago. The company's net loss for the quarter narrowed to US$1.96 million or US $3.87 million for the same period a year ago. The company said in an SEC filing that the lower sales were due to weak retail demand, and that it intends to keep its 2008 revenues on par with 2007 at about US$68 million. But it does not expect to be profitable for the year. "Sales for the quarter reflect continuing demand for our larger sport and fish boats, as well as our express cruiser line," said Fountain chairman and CEO Reginald Fountain Jr in a press release. "While international sales have increased by approximately 48 per cent, domestic sales of our smaller sport boats and fish boats have declined." According to the SEC filing, Fountain sold 55 boats for the quarter compared to 72 for the same period a year ago. "As of March 31, 2008 the company's confirmed order backlog was approximately $17 million, as compared to an approximately $30 million backlog at March 31, 2007," read the SEC filing. "The number of boats in dealers' inventories at March 31, 2008 was down 7 per cent, as compared to March 31, 2007, and is lower than it has been in the past five years. Boats in dealers' inventory represents approximately 31 weeks of production." The company also said that it expects to manufacture the Baja line of boats, which it acquired from Brunswick Corp in March, for the model 2009 year.
(16 May 2008)
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