Proliance Announces Preliminary 3Q 2008 Results; Final Results to Be Released Thursday
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NEW HAVEN, Conn. October 28, 2008: Proliance International, Inc. (AMEX:PLI), a leading global manufacturer and distributor of aftermarket heat exchange and temperature control products for automotive and heavy-duty applications, today announced preliminary results for the third quarter ended September 30, 2008.
The Company expects net income of $1.4 million, or $0.07 per diluted common share, compared to $129,000, or $0.01 per diluted common share, last year.
Net sales are expected to total approximately $95.4 million compared to approximately $115.3 million in the year ago quarter. The variance reflects the continuing impact of the Company’s change in distribution strategy away from branches for certain products, and the effects of the Southaven casualty event, which also impacted first and second quarter sales this year.
Operating income is expected to increase 35%, to $8.4 million, reflecting the benefit of the Company’s continuing cost reduction program, and expenses related to the Southaven casualty event, net of insurance recoveries, compared to $6.2 million in the year ago quarter, which included a $1.9 million restructuring charge related to changing the Company’s distribution system.
Proliance said it was releasing preliminary results and accelerating issuance of its formal 3Q 2008 news release and accompanying conference call because of recent market activity in its common stock. The Company expects to report final 3Q 2008 results after the market closes this Thursday, October 30, 2008, to be followed by a conference call for investors at 5:00 PM Eastern Time.
Proliance reiterated that it expects full year results to be in line with its previous guidance of adjusted operating income in the range of about $20 million for the full year 2008, excluding one-time costs related to the Southaven casualty event and expenses associated with amendments to the Company’s credit facility.
Despite the delays caused by the turmoil in the capital markets, Proliance continues to make progress toward the refinancing of its current senior debt with the goal of completing a transaction in the fourth quarter of 2008. As previously reported, Proliance has signed a letter of intent with a group of institutional lenders to provide $30 million of mezzanine financing to the Company.
Proliance will host a conference call Thursday, October 30, 2008, at 5 PM ET with Charles E. Johnson, President and CEO, and Arlen F. Henock, CFO, to discuss the results for the third quarter ended September 30, 2008, which will be released after the market closes that Thursday. The call will be accessible live via a webcast on Proliance’s Investor Relations Webcast page at PROLIANCE or INVESTOR. A webcast replay will be available shortly thereafter.