Variflex shares skyrocketed last week on much higher volume, gaining almost 47% for the week to close at $5.55 on Friday. The run-up appeared to be due to the impressive results reported for the companys fiscal third quarter, with sales jumping over 55% and profits showing a 145% gain.
The gains came mainly from both the Action Sports and Outdoor categories, while Protective Products backed off in sales for the quarter. The Action Sports increase came primarily from an exclusive in-line skate program VFLX has secured with one of its top customers that will run through 2004. The Outdoor increase was a result of a 64% increase in sales of canopies partially offset by a 3.5% decrease in sales of trampolines. The decrease in Protective Products sales was due largely to the expiration of a license to use the X-Games logo on certain products.
YTD figures for the nine-month period saw a 45% increase in sales, while the Q3 numbers pushed the company into profit territory with $680,000 in net income after showing a $1.8 million loss for the nine-month period a year ago.
