JMIH Jupiter Marine International Holdings Inc (CE)

Jupiter Marine International Holdings, Inc. (OTCBB: JMIH): Fiscal 2005 Highlights -- Sales increased 11.7% to a record $11.5 million -- Gross profit up 13.5% to $2.9 million -- Net income applicable to common shareholders up 15.3% to $387,000, or $.02 per diluted share -- Strong six-month order backlog at July 30, 2005 -- 38' Forward Seating model now in full production -- Working capital of $847,000 at July 30, 2005 and no long-term debt Jupiter Marine International Holdings, Inc. (OTCBB: JMIH), a designer, manufacturer and marketer of a diverse mix of high quality sportfishing boats under the Jupiter(TM) brand name, today announced financial results for the fourth quarter and fiscal year-ended July 30, 2005 (see attached tables). Carl Herndon, Jupiter Marine's President, stated, "Fiscal 2005 was a period of tremendous progress for Jupiter Marine, as the Company achieved record sales for the sixth consecutive year, the highest annual net income in our history and introduced the new 38' Forward Seating Model, which is now in full production. Consumer demand for our outboard product line remains high, as we entered fiscal 2005 with a six-month order backlog. We feel that our broad-based success is driven by superior customer service, effective marketing, and brand recognition by a customer base that repeatedly turns to Jupiter for boats that incorporate quality performance, features and comforts." Net sales for fiscal 2005 increased 11.7% to $11.5 million from $10.3 million last year. The Company sold 88 boats during fiscal year 2005 versus 93 in fiscal 2004. The introduction of the new 38' Forward Seating model into the product line decreased the unit count for the year but contributed to the overall dollar sales increase. Gross profit increased 13.5% to $2.9 million, or 25% of net sales, from $2.5 million, or 24.6% of net sales, last year. This is the result of a shift to more profitable boats, better utilization of overhead and improved materials management, offsetting the rising cost of petroleum based products, such as the resins used in the production of Jupiter's boats. Net income applicable to common shareholders increased 15.3% to $387,000, or $0.02 per diluted share, on approximately 16.2 million diluted shares outstanding, from net income of $335,000, or $0.03 per diluted share, on approximately 11.9 million diluted shares outstanding, in fiscal 2004. Net sales for the fiscal 2005 fourth quarter increased 3.8% to $3.1 million from $3.0 million in the same period last year. Gross profit was $695,000, or 22.1% of net sales, from $715,000, or 23.7% of net sales, in the year earlier period. Lower gross profit in the fourth quarter was largely due to higher raw material costs, including petroleum based resin and fiberglass products. The Company incurred slightly higher professional, legal and marketing expenses in the fourth quarter of fiscal 2005. Additionally, the Company decided during the fourth quarter of fiscal year 2005, that it would no longer allocate production capacity to manufacture its lower margin 35' Inboard, the 27' Cuddy Cabin and the 27' Open models. As a result, the Company reported a non-recurring $99,000 provision for loss on disposition of assets, compared to no such expense in the fiscal fourth quarter of 2004. As a result of these factors, the net loss for the fiscal 2005 fourth quarter was $82,000, or less than $.01 per diluted share on approximately 16.2 million diluted shares outstanding, versus a net loss of $60,000, or less than $.01 per diluted share on approximately 11.9 million diluted shares outstanding, in the same period last year. Mr. Herndon concluded, "We continue to monitor our operating margins closely given rising fuel prices and the effect of recent hurricanes on the economy within our marketplace. We have been able to offset the increased cost of materials through the selling of higher margin boats, price increases and more efficient manufacturing processes. There can be no assurances that selling prices can continue to increase in the future without a drop off in unit sales. However, we continue to see strong consumer demand for our outboard product line, especially our new 38' Forward Seating Model. We expect that sales of this new 38-footer to be a primary contributor to our growth in the coming year, and look forward to the future with confidence." The Company also noted that none of its employees located in the areas impacted by Hurricane Wilma received any injuries. Additionally, Jupiter's manufacturing facilities in Port Everglades, FL, received minimal damage. While there was a delay in the production line the week of the hurricane, the Company does not believe that the general overall impact of this storm will have an adverse financial impact on its sales or results of operations. Financial Position Jupiter Marine's balance sheet at July 30, 2005 is highlighted by a current ratio of 1.7:1; working capital of $847,000 compared to working capital of $743,000 at July 31, 2004; and no long-term debt. About Jupiter Marine International Holdings, Inc. Jupiter Marine designs, manufactures and markets high quality sportfishing boats designed to run at high speeds in offshore sea conditions while providing passengers with a smooth, comfortable, dry ride. The center console product line includes the 31' Open, 31' Forward Seating, 31' Cuddy and Jupiter 38' Forward Seating model. The Company's website is www.jupitermarine.com. This press release may contain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The matters discussed in this press release include statements regarding the intent, belief or current expectations of the Company, its directors or its officers with respect to the future operating performance of the Company. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those in the forward-looking statements as a result of various factors. -0- *T Jupiter Marine International Holdings, Inc. Consolidated Statements of Operations Three Months Ended Year ended Year ended July 30, July 31, July 30, July 31, 2005 2004 2005 2004 NET SALES $3,128,800 $3,015,132 $11,463,235 $10,260,684 COST OF SALES 2,434,261 2,299,940 8,594,446 7,733,922 ---------------------- ------------------------ GROSS PROFIT 694,539 715,192 2,868,789 2,526,762 ---------------------- ------------------------ OPERATING EXPENSES: Selling and marketing 150,222 93,070 485,820 352,035 General and administrative 430,902 466,580 1,423,899 1,303,483 Depreciation and amortization 89,631 58,241 309,408 255,506 ---------------------- ------------------------ Total operating expenses 670,755 617,891 2,219,127 1,911,024 ---------------------- ------------------------ OTHER INCOME (EXPENSE): Interest expense (16,216) (16,552) (66,763) (77,073) Other expense - loan guarantee - (146,601) (91,000) (146,601) Impairment of assets (99,490) (99,490) - Other income (expense) 10,851 6,094 28,134 16,485 ---------------------- ------------------------ Total other income (expense) (104,855) (157,059) (229,119) (207,189) NET INCOME BEFORE INCOME TAXES (81,071) (59,758) 420,543 408,549 INCOME TAX EXPENSE - - - - NET INCOME (81,071) (59,758) 420,543 408,549 Dividends on preferred stock (1,219) - (34,197) (73,719) NET INCOME APPLICABLE TO COMMON SHAREHOLDERS $(82,290) $(59,758) $386,346 $334,830 ====================== ======================== Basic and diluted net income per common share Basic $(0.01) $(0.01) $0.03 $0.04 ====================== ======================== Diluted $(0.01) $(0.01) $0.02 $0.03 ====================== ======================== Weighted average number of shares of common stock outstanding Basic 14,693,321 9,020,364 14,693,321 9,020,364 Diluted 16,237,277 11,853,424 16,237,277 11,853,424 Jupiter Marine International Holdings, Inc. Condensed Consolidated Balance Sheet July 30, 2005 July 31, 2004 Current Assets $2,092,268 $1,796,155 Total Assets $3,180,669 $2,718,486 Current Liabilities $1,245,597 $1,053,189 Total Liabilities $1,245,597 $1,509,248 Shareholders' Equity $1,935,072 $1,209,238 *T