FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
( X ) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1996
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to __________
For Quarter Ended Commission File Number
0-14712
Fountain Powerboat Industries, Inc.
(Exact name of registrant as specified in its charter)
Nevada 88-0160250
(State or other jurisdiction (I.R.S. Identification No.)
of incorporation or
organization)
Whichard's Beach Road
P.O. Drawer 457
Washington, NC 27889
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number,including area code:(919)975-2000
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
----- ----
Indicate the number of shares outstanding of each of the
issurer's classes of common stock as of the latest practicable
date.
Class Outstanding at April 30, 1996
Common stock, $.01 par value 3,029,072 shares
<PAGE>
FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
INDEX
PART I. Financial Information. Page No.
Review Report of Independent Certified
Public Accountants........................... 3
Consolidated Balance Sheets - Assets,
March 31, 1996 and June 30, 1995............. 4
Consolidated Balance Sheets - Liabilities &
Shareholders' Equity, March 31, 1996
and June 30, 1995............................ 5
Consolidated Statements of Income -
Three and Nine Months Ended March 31, 1996
and March 31, 1995........................... 6
Consolidated Statements of Cash Flows -
Nine Months Ended March 31, 1996
and March 31, 1995........................... 7 - 8
Notes to Consolidated Financial Statements...... 9 - 13
Management's Discussion and Analysis of
Results of Operations and
Financial Condition..........................14 - 16
PART II. Other Information.
Item 6. Exhibits and Reports on Form 8 and Form 8-K..... 16
Signature....................................... 17
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PRITCHETT, SILER & HARDY, P.C.
CERTIFIED PUBLIC ACCOUNTANTS
430 East 400 South
Salt Lake City, Utah 84111
voice (801) 328-2727 fax (801) 328-1123
To the Board of Directors
FOUNTAIN POWERBOAT INDUSTRIES, INC.
Washington, North Carolina
We have reviewed the accompanying consolidated balance sheet of
Fountain Powerboat Industries, Inc. as of March 31, 1996, and the
related consolidated statements of income and cash flows for the
three and nine months then ended. All information included in
these financial statements is the representation of the management
of Fountain Powerboat Industries, Inc.
We conducted our review in accordance with standards established
by the American Institute of Certified Public Accountants. A
review of interim financial information consists principally of
applying analytical procedures to financial data and making
inquiries of Company personnel responsible for financial and
accounting matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing standards,
the objective of which is the expression of an opinion regarding the
financial statements taken as a whole. Accordingly, we do not
express such an opinion.
Based on our review, we are not aware of any material modifications
that should be made to the consolidated financial statements referred
to above for them to be in conformity with generally accepted
accounting principles.
/s/ Pritchett, Siler & Hardy, P.C.
Pritchett, Siler & Hardy, P.C.
April 30, 1996
- 3 -
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<TABLE>
PART I: Financial Information.
FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
Consolidated Balance Sheets
*** Assets ***
(Unaudited - See Accountants' Review Report)
<CAPTION>
March 31, June 30,
Assets 1996 1995
------------------------------------------ ------------ ------------
<S> <C> <C>
Current assets:
Cash................................... $ 689,395 $ 490,807
Accounts receivable, net (Note 2)...... 2,564,066 1,898,854
Inventories (Note 3)................... 3,364,027 3,407,726
Deferred cost of sales (Note 4)........ 183,393 183,393
Prepaid expenses....................... 174,796 204,947
------------ ------------
Total current assets................... $ 6,975,677 $ 6,185,727
------------ ------------
Property, plant, and equipment............ $ 20,312,604 $ 19,199,743
Less: Accumulated depreciation........... (10,345,442) (9,209,661)
------------ ------------
$ 9,967,162 $ 9,990,082
------------ ------------
Other assets.............................. $ 163,448 $ 158,948
------------ ------------
Total assets.............................. $ 17,106,287 $16,334,757
============ ============
See accompanying Notes to Consolidated Financial Statements.
<FN>
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<TABLE>
FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
Consolidated Balance Sheets
*** Liabilities & Shareholders' Equity ***
(Unaudited - See Accountants' Review Report)
<CAPTION>
March 31, June 30,
Liabilities & Shareholders' Equity 1996 1995
------------------------------------------ ------------ ------------
<S> <C> <C>
Current liabilities:
Note payable........................... $ 1,159,461 $ 534,185
Note payable to shareholder (Note 7)... 170,000 0
Current portion/long-term debt......... 752,916 1,371,554
Accounts payable....................... 1,517,051 1,800,592
Accts. pay. - related parties (Note 7) 12,678 4,769
Accrued expenses....................... 1,399,331 1,152,489
Accrued exp. - related parties (Note 7) 0 0
Customer deposits...................... 365,152 412,809
Allowance for boat repurchases (Note 5) 207,359 207,359
Reserve for warranty expenses (Note 5) 400,000 400,000
Deferred sales (Note 4)................ 197,541 197,541
------------ ------------
Total current liabilities.............. $ 6,181,489 $ 6,081,298
------------ ------------
Long-term debt, less current
portion................................ $ 5,628,395 $ 7,049,049
------------ ------------
Total liabilities......................... $ 11,809,884 $ 13,130,347
------------ ------------
Commitments and contingencies (Note 6)
Shareholders' equity:
Common stock, $.01 par value,
200,000,000 shares authorized,
3,029,072 shares issued (Note 10).... $ 30,291 $ 30,291
Capital in excess of par value......... 9,297,450 9,297,450
Accumulated deficit.................... (3,920,590) (6,012,583)
------------ ------------
$ 5,407,151 $ 3,315,158
Less: Treasury stock...................... 110,748 110,748
------------ ------------
Total Shareholders' equity................ $ 5,296,403 $ 3,204,410
------------ ------------
Total liabilities & shareholders' equity.. $ 17,106,287 $ 16,334,757
============ ============
<FN>
See accompanying Notes to Consolidated Financial Statements.
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<TABLE>
FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
Consolidated Statements of Income
(Unaudited - See Accountants' Review Report)
Three Months Ended Nine Months Ended
-------------------------- --------------------------
<CAPTION>
March 31, March 31, March 31, March 31,
1996 1995 1996 1995
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Net sales................... $ 10,748,665 $ 9,198,707 $ 29,035,656 $ 28,356,363
Cost of sales............... 8,409,285 7,542,456 23,066,399 22,718,590
------------ ------------ ------------ ------------
Gross margin................ $ 2,339,380 $ 1,656,251 $ 5,969,257 $ 5,637,773
Selling expense............. 1,381,367 1,145,493 3,260,534 2,550,166
Selling expense -
related parties (Note 7) 0 0 0 0
General & admin. expense.... 413,526 249,094 1,172,188 924,296
General & admin. expense -
related parties (Note 7) 36,148 26,945 108,502 83,545
------------ ------------ ------------ ------------
Operating income............ $ 508,339 $ 234,719 $ 1,428,033 $ 2,079,766
------------ ------------ ------------ ------------
Other (income)/expense:
Interest expense......... $ 166,445 $ 215,303 $ 570,077 $ 710,591
Interest expense -
related parties (Note 7) 0 0 0 0
Other income, net (Note 9) (161,129) (102,187) (1,234,037) (286,033)
------------ ------------ ------------ ------------
$ 5,316 $ 113,116 $ (663,960) $ 424,558
------------ ------------ ------------ ------------
Net income
before income taxes...... $ 503,023 $ 121,603 $ 2,091,993 $ 1,655,208
Current tax expense (benefit) 0 0 0 0
(Note 8)
Deferred tax expense (benefit) 0 0 0 0
(Note 8)
------------ ------------ ------------ ------------
Net income............... $ 503,023 $ 121,603 $ 2,091,993 $ 1,655,208
============ ============ ============ ============
Net income
per share................ $ .17 $ .04 $ .69 $ .55
============ ============ ============ ============
Weighted average common
shares outstanding.... 3,019,072 3,019,072 3,019,072 3,019,072
============ ============ ============ ============
<FN>
See accompanying Notes to Consolidated Financial Statements.
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<TABLE>
FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
Consolidated Statements of Cash Flows
(Unaudited - See Accountants' Review Report)
Nine Months Ended
--------------------------
<CAPTION>
March 31, March 31,
1996 1995
------------ ------------
<S> <C> <C>
Cash flows from operating activities:
-------------------------------------
Net income/(loss).................................... $ 2,091,993 $ 1,655,208
Adjustments to reconcile net income to net cash
provided/(used) by operating activities:
Depreciation and amortization..................... 1,135,781 1,233,679
(Gain) loss on disposal of property, plant,
and equipment................................ 0 0
(Increase)/decrease in accounts receivable........ (665,212) (1,940,851)
(Increase)/decrease in inventory.................. 43,699 366,691
(Increase)/decrease in prepaid expenses........... 30,151 (95,547)
(Increase)/decrease in other assets............... (4,500) (9,000)
Increase/(decrease) in accounts payable........... (283,541) (2,833,755)
Increase/(decrease) in accounts payable -
related parties............................... 7,909 (12,800)
Increase/(decrease) in accrued expenses........... 246,842 345,192
Increase/(decrease) in accrued expenses -
related parties............................... 0 0
Increase/(decrease) in customer deposits.......... (47,657) (462,802)
Increase/(decrease) in deferred sales/cost........ 0 (226,000)
Increase/(decrease) in allowance for repurchases.. 0 0
------------ ------------
Net cash provided/(used) by operating activities..... $ 2,555,465 $ (1,979,985)
------------ ------------
Cash fows from investing activities:
------------------------------------
Construction of molds, plugs, and other tooling...... $ (600,940) $ (550,923)
Purchases of property, plant, and equipment.......... (511,921) (353,011)
Sales of " " " " .......... 0 0
------------ ------------
Net cash provided/(used) in investing activities..... $ (1,112,861) $ (903,934)
------------ ------------
Cash flows from financing activities:
-------------------------------------
Increase in long-term debt........................... $ 600,000 $ 2,656,576
Repayment of long-term debt.......................... (2,639,292) (417,864)
Note payable, revolving line of credit............... 625,276 497,257
Note payable to shareholder (Note 7)................. 170,000 0
------------ ------------
Net cash provided/(used) in financing activities..... $ (1,244,016) $ 2,735,969
------------ ------------
<FN>
(Continued)
-7-
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<TABLE>
FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
Consolidated Statements of Cash Flows, Continued
(Unaudited - See Accountants' Review Report)
Nine Months Ended
--------------------------
<CAPTION>
March 31, March 31,
1996 1995
------------ ------------
<S> <C> <C>
Net increase/(decrease) in cash......................... $ 198,588 $ (147,950)
Cash at beginning of the year........................... 490,807 675,711
------------ ------------
Cash at end of the period............................... $ 689,395 $ 527,761
============ ============
Supplemental disclosures of cash flow information:
--------------------------------------------------
Cash paid during the period for:
Interest - unrelated parties......................... $ 570,077 $ 710,591
" - related parties (Note 7).................. 0 0
" - capitalized............................... 0 0
------------ ------------
$ 570,077 $ 710,591
============ ============
Income taxes (Note 8)................................ $ 0 $ 0
============ ============
<FN>
See accompanying Notes to Consolidated Financial Statements.
-8-
</TABLE>
<PAGE>
FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
Notes to Consolidated Financial Statements
(Unaudited - See Accountants' Review Report)
1. Basis of Presentation.
Although these statements have been reviewed by our
independent auditors, they are unaudited. The statements reflect
all adjust-ments, in management's opinion, that are necessary to
present fairly the Company's financial position and results of
its operations for the interim periods presented. These
adjustments are, for the most part, of a normal, recurring
nature. It is suggested that this unaudited interim period
financial information be read in conjunction with the Company's
audited financial statements for the fiscal year ended June 30,
1995.
2. Accounts Receivable.
As of March 31, 1996, accounts receivable were $2,564,066 net
of the allowance for bad debts of $30,000. This represents an
increase of $665,212 from the $1,898,854 in net accounts
receivable recorded at June 30, 1995. Of the $2,564,066 balance
at March 31, 1996, $2,156,754 has subsequently been collected as
of April 25, 1996, and the remaining $407,312 is believed to be
fully collectible.
3. Inventories.
Inventories at March 31, 1996 and June 30, 1995 consisted of
the following:
March 31, June 30,
1996 1995
Parts and supplies.................$ 2,967,847 $ 2,707,702
Work-in-process.................... 403,958 704,354
Finished goods..................... 43,808 48,512
Trailers........................... 38,414 37,158
Obsolete inventory reserve......... (90,000) (90,000)
Total..............................$ 3,364,027 $ 3,407,726
============= =============
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FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
Notes to Consolidated Financial Statements
(Unaudited - See Accountants' Review Report)
4. Revenue Recognition.
At fiscal year-end June 30, 1995, the Company deferred the
recognition of revenues amounting to $197,541 (recorded as a
balance sheet liability) and the related cost of sales amounting
to $183,393 (recorded as a balance sheet asset). This had the
effect of reducing the prior year's gross margin on sales and net
income after tax by $235,852 ($0.08 per share). At March 31,
1996, the Company estimated the balances of deferred sales and
deferred cost of sales to be the same as they were at year-end
June 30, 1995. Therefore, there was no effect in the first nine
months on gross margin or net income from a change in these
estimates.
5. Allowance and Qualifying Accounts.
For the nine months ended March 31, 1996, the Company
adjusted its allowance and qualifying accounts as follows:
Balance at Charged to Balance
Beginning Cost and Additions at End
of Period Expense (Deductions) of Period
Allowance for
boat repur-
chases $ 207,359 $ -0- $ -0- $ 207,359
Allowance for
doubtful
accounts 12,869 -0- 17,131 30,000
Allowance for
warranty
claims 400,000 283,178 (283,178) 400,000
Allowance for
inventory
values 90,000 -0- -0- 90,000
---------- ---------- ---------- ---------
Total $ 710,228 $ 283,178 $(266,047) $ 727,359
========== ========== ========== =========
In management's opinion, the balances of the allowance and
qualifying accounts are adequate to provide for all reasonably
anticipated future losses.
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<PAGE>
FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
Notes to Consolidated Financial Statements
(Unaudited - See Accountants' Review Report)
6. Commitments and Contingencies.
The Company makes available through third-party finance
companies floor plan financing for many of its dealers. Sales to
participating dealers are approved by the respective finance
companies. If a participating dealer does not satisfy its
obligations under the floor plan financing agreement in effect
with its commercial lender(s) and boats are subsequently
repossessed by the lender(s), then under certain circumstances
the Company may be required to repurchase the repossessed boats
if it has executed a repurchase agreement with the lender(s). At
March 31, 1996, the Company had a total contingent liability to
repurchase boats in the event of dealer defaults and if
repossessed by the commercial lenders amounting to approximately
$12,000,000. The Company has reserved for the reasonably
anticipated future losses it might incur upon the repossession
and repurchase of boats from commercial lenders. At March 31,
1996, the allowance for losses on boat repurchases was $207,359.
Additionally, the Company regularly pays a portion of
dealers' interest charges for floor plan financing for up to six
months. Such charges amounting to $694,864 for the first nine
months of Fiscal 1996 are included in selling expenses in the
accompanying statement of operations.
7. Transactions with Related Parties.
The Company paid or accrued the following amounts for
services rendered or for interest on indebtedness to related
parties:
Nine Months Ended
------------------------
March 31, March 31,
1996 1995
Eastbrook Apartments - rentals $ 11,790 $ 11,145
R.M. Fountain, Jr. - aircraft
rental 96,712 72,400
----------- -----------
$ 108,502 $ 83,545
=========== ===========
At March 31, 1996, the Company had travel advances and other
receivables from employees in the amount of $28,285, of which
none was due from officers of the Company.
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<PAGE>
FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
Notes to Consolidated Financial Statements
(Unaudited - See Accountants' Review Report)
7. Transactions with Related Parties (Continued).
At March 31, 1996, Mr. R.M. Fountain, Jr., the Company's
Chairman, President, Chief Executive Officer, Chief Operating
Officer, and largest shareholder, advanced $170,000 to the
Company as a temporary working capital loan. The loan is
evidenced by a demand note at 12% interest but is unsecured. The
loan is scheduled to be repaid in regular weekly installments
prior to June 30, 1996.
8. Income Taxes.
The Company has available at March 31, 1996, unused operating
loss carryforwards of approximately $4,700,000 which may be
applied against future taxable income and which expire in various
years through 2009. The amount and ultimate realization of the
benefits from the operating loss carryforwards for income tax
purposes is dependent, in part, upon the tax laws in effect, the
future earnings of the Company, and other future events, the
effects of which cannot be determined. Because of the
uncertainty surrounding the realization of the loss carryforwards
the Company has established a valuation allowance equal to the
tax effect of the loss carryforwards, and, therefore, no deferred
tax asset has been recognized. The net deferred tax assets are
approximately $2,630,820 and the net deferred tax liabilities are
approximately $911,479 as of March 31, 1996, respectively, with
an offsetting valuation allowance of approximately $1,719,341
resulting in a change in the valuation allowance of approximately
$878,637 for the nine month period ended March 31, 1996.
9. Other Non-operating Income.
Included in other non-operating income is a non-recurring
$800,000 discount earned for the early retirement of a long-term,
interest bearing note payable to a vendor. The vendor's
discounting of the note payable was in consideration for early
repayment and for services the Company provided in the
development, promotion, and marketing of the vendor's products in
conjunction with the Company's offshore fishing boat line.
-12-
<PAGE>
FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
Notes to Consolidated Financial Statements
(Unaudited - See Accountants' Review Report)
10. Stock Options.
On June 21, 1995, a special meeting of the shareholders was
held to vote upon the adoption of the 1995 stock option plan.
The new plan as adopted by the shareholders allowed up to 300,000
common stock options to be granted by the Board of Directors to
employees or directors of the Company on either a qulified or non-
qualified basis. Subsequently, on August 4, 1995, the Board
unanimously voted to grant the entire 300,000 stock options
authorized under the 1995 stock option plan to Mr. Reginald M.
Fountain, Jr. at $7.00 per share on a non-qualified basis. None
of the options granted to Mr. Fountain under the 1995 stock
option plan have been exercised.
There are other outstanding stock options for 52,500 shares
under the 1986 Incentive Stock Option Plan and for 80,000 shares
under the special plan of March 23, 1995 for outside directors.
****** END OF FINANCIAL STATEMENTS ******
-13-
<PAGE>
FOUNTAIN POWERBOAT INDUSTRIES, INC. AND SUBSIDIARY
Management's Discussion and Analysis of Results of Operations
and Financial Condition
Results of Operations.
The net profit for the first nine months of Fiscal 1996 was
$2,091,993 ($0.69 per share). This compares to a net profit
amounting to $1,655,208 ($0.55 per share) for the first nine
months of the prior year. The net profit for the third quarter
of Fiscal 1996 was $503,023 ($.17 per share). This compares to a
net profit amounting to $121,603 ($.04 per share) for the third
quarter of the prior year. Included in other non-operating
income for the first nine months is a non-recurring $800,000
discount earned for the early retirement of a long-term, interest
bearing note payable to a vendor. The vendor's discounting of
the note payable was in consideration for early repayment and for
services the Company provided in the development, promotion, and
marketing of the vendor's products in conjunction with the
Company's offshore fishing boat line.
Net sales were $29,035,656 for the first nine months of
Fiscal 1996 as compared to $28,356,363 for the first nine months
of the prior year. Net sales were $10,748,665 for the third
quarter of Fiscal 1996 as compared to $9,198,707 for the third
quarter of the prior year. Unit sales volume for the first nine
months of Fiscal 1996 was 315 boats as compared to 288 boats for
the first nine months of the prior year.
For the first nine months of Fiscal 1996, the gross margin
on sales was $5,969,257 (20.56%) as compared to $5,637,773
(19.88%) for the first nine months of the prior fiscal year. For
the third quarter of Fiscal 1996, the gross margin on sales was
$2,339,380 (21.76%) as compared to $1,656,251 (18.01%) for the
third quarter of the prior fiscal year.
Selling expenses were $3,260,534 for the first nine months
of Fiscal 1996 as compared to $2,550,166 for the first nine
months of last year. Selling expenses were $1,381,367 for the
third quarter of Fiscal 1996 as compared to $1,145,493 for the
third quarter of the prior fiscal year. Most of the increase for
Fiscal 1996 was in magazine advertising and racing expense.
General and administrative expenses were $1,280,690 for the
first nine months of Fiscal 1996 as compared to $1,007,841 for
the first nine months of last year. General and administrative
expenses were $449,674 for the third quarter of Fiscal 1996 as
compared to $276,039 for the third quarter of last year. Most of
the increase for Fiscal 1996 is for additional executive
compensation and increased travel expense.
-14-
<PAGE>
Interest expense for the first nine months of Fiscal 1996
was $570,077 as compared to $710,591 for the first nine months of
last year. Interest expense for the third quarter of Fiscal 1996
was $166,445 as compared to $215,303 for the third quarter of
last year. The decrease in interest expense is due to lesser
overall indebtedness and to a lesser rate paid on indebtedness to
a major supplier.
Other non-operating income for the first nine months and the
third quarter of fiscal 1996 includes a non-recurring $800,000
discount earned for the early retirement of a long-term, interest
bearing note payable to a vendor. The vendor's discounting of
the note payable was in consideration for early repayment and for
services the Company provided in the development, promotion, and
marketing of the vendor's products in conjunction with the
Company's offshore fishing boat line.
Financial Condition.
The Company's cash flows for the first nine months of Fiscal
1996 are summarized as follows:
Net cash provided by operating activities...$ 2,555,465
" " used in investing activities....... (1,112,861)
" " used in financing activities....... (1,244,016)
Net increase in cash........................$ 198,588
===========
This net increase compared to a $147,950 net decrease for
the first nine months of the prior fiscal year.
Cash used in the first nine months of Fiscal 1996 to acquire
additional property, plant, and equipment (investing activity)
amounted to $1,112,861 of which $600,940 was for plugs, molds,
and other product tooling.
For the remainder of Fiscal 1996 and beyond, the Company
expects to generate sufficient cash from operating activities in
order to meet its needs and obligations. Management believes
that the Company's sales and production volume will continue to
grow with a commesurate increase in net earnings and cash flow.
Most of the Company's cash resources will be used to maintain and
improve its plant and equipment, for new product tooling, and to
repay existing indebtedness. The Company does not expect to pay
any dividends to shareholders for the forseeable future.
-15-
<PAGE>
During Fiscal 1995, MetLife Capital Corporation agreed to
amend the Company's financial ratio requirements. The Company is
now in compliance with the new MetLife financial ratio
requirements and expects to remain in compliance with the ratio
requirements. The Company has made timely payment of all amounts
owed to MetLife and none of the indebtedness to MetLife, or any
other parties, is in arrears.
PART II. Other Information.
ITEM 6: Exhibits and Reports on Form 8 and Form 8-K.
(a) No Amendments on Form 8 were filed by the
Registrant during the first nine months of Fiscal
1996.
(b) No Current Reports on Form 8-K were filed by the
Registrant during the first nine months of Fiscal
1996.
-16-
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act
of 1934, Registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
FOUNTAIN POWERBOAT INDUSTRIES, INC.
(Registrant)
By: /S/ Allan L. Krehbiel Date: May 1, 1996
Allan L. Krehbiel
Vice President, Chief Financial
Officer, and Designated Principal
Accounting Officer
-17-
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-START> JUL-01-1995
<PERIOD-END> MAR-31-1996
<CASH> 689
<SECURITIES> 0
<RECEIVABLES> 2,594
<ALLOWANCES> 30
<INVENTORY> 3,364
<CURRENT-ASSETS> 6,976
<PP&E> 20,313
<DEPRECIATION> 10,345
<TOTAL-ASSETS> 17,106
<CURRENT-LIABILITIES> 6,181
<BONDS> 5,628
0
0
<COMMON> 30
<OTHER-SE> 5,266
<TOTAL-LIABILITY-AND-EQUITY> 17,106
<SALES> 29,036
<TOTAL-REVENUES> 29,036
<CGS> 23,066
<TOTAL-COSTS> 23,066
<OTHER-EXPENSES> 4,541
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 570
<INCOME-PRETAX> 2,092
<INCOME-TAX> 0
<INCOME-CONTINUING> 2,092
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,092
<EPS-PRIMARY> .69
<EPS-DILUTED> 0
</TABLE>
