Message #12 From:
Stock News Bot Date: November 7, 2006 10:13:00 AM
MMRK News Mile Marker International, Inc. Announces Third Quarter 2006 Loss
POMPANO BEACH, Fla.--(BUSINESS WIRE)--Mile Marker International, Inc. (OTCBB:MMRK), a specialty vehicle parts
distributor, announced its third quarter 2006 financial results today.
In its Form 10-QSB filing with the U.S. Securities and Exchange
Commission today, Mile Marker International, Inc. reported a net loss of
$492,890, or $0.05 per common share, for the third quarter ended
September 30, 2006, based on sales revenues of $2,816,923. During the
same period in 2005, the Company reported net income of $377,731, or
$0.04 per common share, based on sales of $4,464,747.
Sales revenues were $15,056,197 for the first nine months of 2006,
compared to $17,966,675 for the first nine months of 2005 and
$24,812,219 for the full year of 2005. Net income for the first nine
months of 2006 was $362,378 compared to $2,106,431 for the first nine
months of 2005 and $3,178,267 for the full year of 2005. Fully diluted
earnings per share were $0.04 in the first nine months of 2006, compared
to $0.21 for the first nine months of 2005 and $0.32 for the full year
2005.
Richard Aho, President and CEO of Mile Marker International, Inc., said: “We
are disappointed to report our first significant quarterly loss since
1998. Our commercial sales in the third quarter declined mainly due to
reduced OEM orders, and we did not receive any significant military
orders for replacement winches during this quarter. The timing of such
military orders is intermittent, unpredictable and highly dependant upon
government budgetary priorities and considerations. However, we have
been advised that we should expect to receive several military orders
shortly, which we would try to ship by the end of this year. We
understand that the Fiscal Year 2007 Defense Budget that was signed into
law on September 29th contains $22.9 billion for equipment maintenance,
much of it deferred from this year. While we wait for the military to
ramp up its maintenance program after this year’s
hiatus, we’ve had to invest significant
amounts for inventory, personnel and facilities in order to be able to
fulfill these potential military orders promptly as required by our
contracts. While these costs have adversely affected our financial
results in the short run, we expect to see a substantial benefit from
these investments once we receive significant military purchase orders
from our $47 million order backlog over the next 39 months.”
Included in this release are certain “forward-looking”
statements, involving risks and uncertainties, which are covered by the
safe harbor provisions of the Private Securities Litigation Reform Act
of 1995, including statements regarding the Company’s
financial performance. Such statements are based on management’s
current expectations and are subject to certain factors, risks and
uncertainties that may cause actual results, events and performance to
differ materially from those referred to or implied by such statements.
In addition, actual future results may differ materially from those
anticipated, depending on a variety of factors, sales and earnings
growth, ability to attract and retain key personnel and general economic
conditions, including uncertainties relating to global political
conditions, such as terrorism. Information with respect to important
risk factors that should be considered is contained in the Company’s
Annual Report on Form 10-KSB and its Form 10-QSB as filed with the U.S.
Securities and Exchange Commission. Readers are cautioned not to place
undue reliance on these forward-looking statements, which speak only as
of the date hereof. The Company does not intend to update any of the
forward–looking statements after the date of
this release to conform these statements to actual results or to changes
in its expectations, except as may be required by law.
