Trans-Industries, Inc. Reports Third-Quarter Results ROCHESTER
HILLS, Mich., Nov. 20 /PRNewswire-FirstCall/ -- Trans-Industries,
Inc. , a manufacturer of lighting products for busses, particle
extraction systems, electronic information systems and software
related products for the mass transit, highway and commercial
markets, today announced results for the third quarter and nine
months ended September 30, 2003. Sales for the third quarter were
$8.3 million compared with $7.6 million a year ago. Included in the
2002 third-quarter results was $310,000 in sales from a United
Kingdom subsidiary, which was sold in the first quarter of 2003.
For the nine-month period ending on September 30, 2003, sales were
$25.5 million compared with $24.7 million last year, with $310,000
of these sales for the 2002 period attributed to the operation that
was sold. Excluding these sales, the Company realized volume
increases of approximately 14% for the quarter and 10% for the
nine-month period. Although not readily apparent, a substantial
improvement in operating profitability was achieved during the
third quarter prior to recognition of restructuring and
nonrecurring charges. During the quarter, a plan was implemented to
restore profitability at the information systems business. Costs
associated with this restructuring include, but are not limited to,
employee severance costs and inventory writeoffs as well as legal,
insurance and advisory fees. The plan entailed reducing personnel,
consolidating manufacturing into one plant from two, placing the
Rochester Hills plant on the market for sale, and eliminating
certain product lines. The resultant loss for the quarter amounted
to $1.7 million, or $0.53 per share, compared with a loss of
$678,000, or $0.16 per share, last year. The 2003 quarterly loss
included $361,000 of restructuring costs and an inventory writedown
of $1.1 million. For the nine-month period, a loss of $2.3 million,
or $0.72 per share was incurred, compared with a loss of $140,000,
or $0.04 per share a year ago. The 2003 period included a $272,000
restructuring loss on the sale of an English subsidiary that was
taken in the first quarter, as well as the previously mentioned
charges. The Company continues to be in default on certain
covenants of its bank debt. As a result, the bank has the right,
among other remedies, to demand payment in full of all the
liabilities. Pursuant to an agreement between Trans-Industries and
its current lender, Comerica Bank dated August 1, 2003, Comerica
has agreed to forbear from taking action to collect the liabilities
until December 1, 2003. Although this agreement expires on December
1, 2003, the Company anticipates the bank will extend this
agreement for another 30 days, however, there can be no assurances
of this. The Company has begun negotiations with another lender to
replace Comerica. The proposed new lender has begun its task of due
diligence and after a satisfactory completion of that process, the
Company expects to replace the Comerica debt. The Company has
targeted the end of the year for the completion, however, there can
be no assurance of when, or if, successful completion of any
agreement with this new lender will occur. About the Company The
Company is a leading provider of lighting systems and related
components to the mass transit market as well as a supplier of
information hardware and software solutions on Intelligent
Transportation Systems (ITS) and mass transit projects. ITS
utilizes integrated networks of electronic sensors, signs and
software to monitor road conditions, communicate information to
drivers and help transportation authorities better manage traffic
flow across their existing infrastructures. Forward-Looking
Statements Except for statements of historical fact, this news
release contains certain forward-looking statements about the
Company. Such statements are subject to significant risks and
uncertainties including changes in economic and market conditions,
management of growth, and other risks noted in the Company's SEC
filings which may cause actual results to differ materially. Visit
Trans-Industries at http://www.transindustries.com/ Financial
Tables Follow ... Trans-Industries, Inc. Quarterly Earnings
September 30, 2003 Third Quarter Ending Nine Months Ending
September 30 September 30 2003 2002 2003 2002 Sales $8,310,848
$7,603,082 $25,503,607 $24,658,201 Cost of Sales 7,225,458
5,592,213 19,146,859 17,452,601 Gross Profit 1,085,390 2,010,869
6,356,748 7,205,600 Selling, Gen. & Admin. Exp. 2,227,645
2,518,781 7,523,631 7,307,764 Interest 160,692 163,743 492,461
596,253 Restructuring Costs * 361,124 0 633,983 0 Other (3,355)
(13,663) (5,363) (26,793) Total Expenses 2,746,106 2,668,861
8,644,712 7,877,224 Earnings/(Loss) Before Income Taxes (1,660,716)
(657,992) (2,287,964) (671,624) Income Taxes/(Benefit) 0 (166,000)
(17,000) (532,000) Net Income/(Loss) $(1,660,716) $(491,992)
$(2,270,964) $(139,624) Earnings/(Loss) Per Share Basic $(0.53)
$(0.16) $(0.72) $(0.04) * Restructuring charges incurred for
restructuring Vultron, including the sale of its wholly owned
subsidiary. Weighted Average Number of Shares Outstanding 3,139,737
3,139,737 3,139,737 3,139,737 Consolidated Balance Sheet
(Unaudited) Third Quarter Ending September 30 Assets: 2003 2002
Total Current Assets $17,825,110 $21,071,820 Net Fixed Assets
3,742,306 4,436,213 Other Assets 386,474 236,419 Total Assets
$21,953,890 $25,744,452 Liabilities and Shareholders' Equity: Total
Current Liabilities $14,568,106 $11,939,434 Deferred Income Taxes
458,000 193,000 Long-Term Debt 296,374 3,591,434 Shareholders'
Equity 6,631,410 10,020,584 Total Liabilities and Shareholders'
Equity $21,953,890 $25,744,452 DATASOURCE: Trans-Industries, Inc.
CONTACT: Kai Kosanke, Chief Financial Officer of Trans-Industries,
+1-248-852-1990 Web site: http://www.transindustries.com/
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