TulsaLarry

02/10 10:02A (DJ) PRESS RELEASE: Fountain Powerboat Industries, Inc. Reports
Second Quarter Results; Sales Growth Continues in Fiscal Year
Story 4109 (FPWR, I/ENT, I/MRE, I/REC, I/REQ, N/DJN, N/DJWR, N/CAC, N/CNW...)
WASHINGTON, N.C.--(BUSINESS WIRE)--Feb. 10, 2004--Fountain Powerboat
Industries, Inc. (NASDAQ:FPWR), The leading manufacturer of high performance
sport boats, fish boats and express cruisers, announces results for the second
quarter of fiscal 2004 ending December 31, 2003.
Net sales for the quarter were $13,437,796 up from $12,941,227 for the
second quarter of fiscal 2003. Net earnings were $254,718 for the quarter, or
5 cents per share on a basic and diluted basis, compared to net earnings of
$482,459, or 10 cents per share on a basic and diluted basis, for the same
quarter of fiscal 2003.
Net sales for the first six months of fiscal 2004 ended December 31, 2003
were $26,323,028 up from $25,016,213 for the first six months of fiscal 2003,
an increase of 5%. Net loss for the six months was $90,121, or 1 cent per
share on a basic and diluted basis, compared to net earnings of $651,704 for
the first six months of 2003, or 14 cents per share on a basic and diluted
basis.
Operating income for the quarter was $457,053 and for the first six months
of fiscal 2004 year was $567,805.
President and CEO Reginald Fountain says "By expanding and enhancing our
dealer organization and continuing to broaden our product lines we are
experiencing sales growth over our record growth year of fiscal 2003. The
decrease in earnings as compared to the same six months of fiscal 2003 is
primarily attributable to sales model mix, higher promotional and advertising
expenses in the first quarter, and a write-off of $210,344 of unamortized
closing costs of a loan with G.E Capital that was paid from proceeds of an $18
million Bank of America loan during the first quarter. Our earnings
performance improved in the second quarter resulting from an improving sales
model mix and our on-going cost reduction programs became effective."

Safe Harbor for forward-looking statements:

Except for the historical information contained herein, this press release
contains forward-looking statements, including statements containing the words
"planned," "expects," "believes," "strategy," "opportunity," "anticipates" and
similar words. Such forward-looking statements are subject to known and
unknown risks, uncertainties or other factors that may cause the company's
actual results to be materially different from historical results or any
results expressed or implied by such forward-looking statements. We assume no
obligation to update any forward-looking statements to reflect events or
circumstances arising after the date hereof. The potential risks and
uncertainties which could cause actual growth and results to differ materially
include but are not limited to, customer acceptance of the company's services,
products and fee structures, the success of the company's brand development
efforts, the volatile and competitive nature of the industry, and changes in
domestic and international market conditions, and foreign exchange rates.
Further information on the factors and risks that could affect Fountain
Powerboat Industries, Inc. business, financial condition and results of
operations are included under the "Risk Factors" or "Factors Affecting our
Operating Results" sections of Fountain Powerboat Industries, Inc. public
filings with the Securities and Exchange Commission, available at
(http://www.sec.gov).
FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS


For The Three Months For The Six Months
Ended Ended
December 31 December 31
--------------------------------------------------
2003 2002 2003 2002
--------------------------------------------------

NET SALES $13,361,811 $12,941,227 $26,247,043 $25,016,213

COST OF SALES 11,334,711 10,570,853 22,187,762 20,739,887
--------------------------------------------------

Gross Profit 2,027,100 2,370,374 4,059,281 4,276,326

EXPENSES
Selling Expense 1,050,694 1,082,315 2,406,264 1,915,293
Selling Expense-
related parties - - - -
General & Admini-
strative 519,353 431,241 1,085,212 898,254

--------------------------------------------------

Total Expenses 1,570,047 1,513,556 3,491,476 2,813,547

--------------------------------------------------

OPERATING INCOME
(LOSS) 457,053 856,818 567,805 1,462,779

NON-OPERATING INCOME/(EXPENSE)
Other Income
(Expense) (1,962) 1,389 1,097 29,965
Interest Expense (216,032) (214,475) (686,190) (520,676) TOTAL
Non-operating
Income (Expense) (217,994) (213,086) (685,093) (490,711)
--------------------------------------------------

INCOME (LOSS) BEFORE
TAX 239,059 643,732 (117,288) 972,068

CURRENT TAX EXPENSE - - - -

DEFERRED TAXES
(BENEFIT) (15,659) 161,273 (26,997) 320,364
--------------------------------------------------

NET INCOME (LOSS) 254,718 482,459 (90,291) 651,704

EARNINGS (LOSS) PER
SHARE .05 0.10 (.01) 0.14
---------- ---------- ---------- -----------
WEIGHTED AVERAGE
SHARES OUTSTANDING 4,757,608 4,745,108 4,757,608 4,745,108
---------- ---------- ---------- -----------

DILUTED EARNINGS PER
SHARE .05 0.10 (.01) 0.14
---------- ---------- ---------- -----------
DILUTED WEIGHTED
AVERAGE SHARES
OUTSTANDING 4,819,635 4,825,399 4,821,862 4,803,866
---------- ---------- ---------- -----------


CONTACT: Fountain Powerboat Industries, Inc.
Irving Smith, 252-975-2000;
[email protected]

KEYWORD: NORTH CAROLINA

INDUSTRY KEYWORD: SPORTS EARNINGS
SOURCE: Fountain Powerboat Industries, Inc.

(END) Dow Jones Newswires
02-10-04 1002ET

T2x

Reggie should have put his money in CD's.

T2x

Miller

I'll have to look at the financial release. The real questions are; what is his cash balance; does any debt come due this quarter; what are his payable & receivables, what do any footnotes say?