Fountain Powerboat Industries today reported a 61 percent drop in net sales for its fiscal 2009 second quarter due to the continuing downturn in marine sales that accelerated during the quarter ending Dec. 31.
"The global economic downturn, finance industry collapse and stock market crash had [a] significant detrimental effect on marine markets during the quarter,” said Reginald M. Fountain Jr., chairman, CEO and president, in a statement. “Retail financing for boats tightened, and floorplan financing for boat dealers became very difficult. With dealers reluctant to replenish their inventories and retail sales stymied, orders for offseason production became scarce."
Net sales for the second quarter were $5,839,908, compared to net sales of $15,196,038 for the fiscal 2008 quarter. Net loss for the recent quarter was $3,178,585, or net loss of 73 cents per share, versus a net loss of $765,055, or 16 cents per share, for the year-ago quarter.
Net sales for the first six months of fiscal 2009 were $23,427,947, compared to net sales of $33,245,468 for the first six months of fiscal 2008. Net loss was $3,096,816, or 71 cents per share, compared to a net loss of $491,676, or 10 cents per share, for the year-ago period.
Fountain stock had dropped to 14 cents a share, its 52-week low, as of 10:30 this morning.
"We have been in continuous operation for 30 years and have weathered difficult times in our long history, although none have been this challenging," said Fountain.
Today’s report follows last week’s news that the company’s stock will be suspended from trading on NYSE Alternext US, the successor to the American Stock Exchange.
Nevertheless, Fountain said, “We will weather this downturn as well and come out of this recession stronger than ever. We will continue to improve our product lines and strengthen our distribution channels.”