TransPro, Inc. Reports First Quarter Results
NEW HAVEN, Conn.--May 10, 2001--TransPro, Inc. today announced results for the first quarter ended March 31, 2001.Sales from continuing operations for the first quarter of 2001 were $45,563,000, compared with $48,430,000 in the first quarter of 2000. The loss from continuing operations for the first quarter of 2001, before a loss on debt extinguishment, was $3,208,000, or $0.49 per diluted common share, compared with a loss from continuing operations of $2,156,000, or $0.33 per diluted common share, excluding plant closure costs, in the year ago period. In the first quarter of 2001, the Company reported an after-tax extraordinary charge of $380,000, equivalent to $0.06 per diluted share, related to the Company's previously announced debt refinancing. In the prior year's first quarter, the Company reported an after-tax charge of $506,000, equivalent to $0.08 per diluted share, for the closure of the Company's Houston, Texas regional radiator manufacturing plant and the consolidation of the Company's Santa Fe Springs, California distribution facility into its Memphis, Tennessee facility. Including this charge, the loss from continuing operations for the first quarter of 2000 was $2,661,000, or $0.41 per diluted share. The net loss for the first quarter of 2001 was $3,588,000, or $0.55 per diluted common share, compared with a net loss of $2,221,000, or $0.34 per diluted common share in the first quarter of 2000.
In the first quarter of 2001, sales of Aftermarket Heating and Cooling Systems products were $38,185,000 compared with $36,755,000 in the year ago period reflecting higher unit sales of radiators, particularly to the Company's large retail customers. Sales of OEM Heat Transfer Systems products were $7,378,000 compared with $11,675,000 in the year ago period, primarily due to the continued weakness in the overall heavy-duty truck market.
Consolidated gross profit from continuing operations for the 2001 first quarter was $8,055,000 compared with $9,689,000 a year ago. As a percentage of sales, gross margin from continuing operations was 17.7% in this year's first quarter versus 20.0% in the prior year's first quarter. In the Aftermarket Heating and Cooling Systems segment, gross margins were affected by lower manufacturing cost absorption, as a result of the planned decrease in production levels to reduce inventories. In response to the competitive Aftermarket environment, prices for our products were lower compared with last year, further reducing margins. In the OEM Heat Transfer Systems segment, lower sales and production volumes caused by the weak heavy-duty truck market contributed to the decrease in gross margins.
Selling, General and Administrative ("S,G&A") expenses from continuing operations declined 3% to $11,352,000 in the first quarter of 2001 from $11,739,000 in the first quarter of 2000, reflecting lower personnel costs and lower professional fees at the corporate office.
Commenting on the quarter, Charles Johnson, newly elected President and Chief Executive Officer, stated, "Many of the factors affecting our business in the fourth quarter of 2000 continued into 2001. TransPro maintained low production levels in all our product lines consistent with our previously stated objective of reducing inventories. In addition, the heavy- duty truck market remains depressed. These factors negatively affected gross profit margins in the first quarter."
Mr. Johnson concluded, "Since arriving at TransPro on March 19, I have spearheaded a campaign to restore the Company to acceptable levels of profitability in the medium term. Our near term tactical actions will be to continue to reduce inventories and non-essential assets to maximize cash generation with which to repay debt, evaluate all our products and services to ensure that we are competitive and profitable across our businesses, properly align all our products with the optimal manufacturing facility or purchase strategy, and ensure that the necessary information systems are in place to manage the business. We believe the result of these initiatives will allow TransPro to demonstrate progress points during 2001 as we drive towards a return to profitability in 2002."
TransPro, Inc. is a manufacturer and supplier of heating and cooling systems and components for a variety of Aftermarket and OEM automotive, truck and industrial applications.
FORWARD-LOOKING STATEMENTS
Statements included in this news release, which are not historical in nature, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Company's Annual Report on Form 10-K contains certain detailed factors that could cause the Company's actual results to materially differ from forward-looking statements made by the Company. In particular, statements relating to the future financial performance of the Company are subject to business conditions and growth in the general economy and automotive and truck business, the impact of competitive products and pricing, changes in customer product mix, failure to obtain new customers or retain old customers or changes in the financial stability of customers, changes in the cost of raw materials, components or finished products and changes in interest rates.
TRANSPRO, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except for per share data)
(Unaudited)
Three Months Ended
March 31,
2001 2000
---- ----
Sales $45,563 $48,430
Cost of Sales 37,508 38,741
---------- ----------
Gross Margin 8,055 9,689
Selling, General and Administrative Expenses 11,352 11,739
---------- ----------
(Loss) from Continuing Operations Before
Plant Closure Costs, Interest, Taxes
and Extraordinary Item (3,297) (2,050)
Plant Closure Costs -- 795
---------- ----------
(Loss) from Continuing Operations Before
Interest, Taxes and Extraordinary Item (3,297) (2,845)
Net Interest Expense 1,171 1,335
---------- ----------
(Loss) from Continuing Operations Before Taxes
and Extraordinary Item (4,468) (4,180)
Income Tax (Benefit) (1,260) (1,519)
---------- ----------
(Loss) from Continuing Operations Before
Extraordinary Item (3,208) (2,661)
Income from Discontinued Operations, Net of Tax -- 440
---------- ----------
(Loss) Before Extraordinary Item (3,208) (2,221)
(Loss) on Debt Extinguishment, Net of Tax (380) --
---------- ----------
Net (Loss) ($3,588) ($2,221)
========== ==========
(Loss) from Continuing Operations
per Common Share:
Basic and Diluted ($0.49) ($0.41)
========== ==========
Earnings from Discontinued Operations
Per Common Share:
Basic and Diluted -- $0.07
========== ==========
(Loss) on Debt Extinguishment
per Common Share:
Basic and Diluted ($0.06) --
========== ==========
Net (Loss)
per Common Share:
Basic and Diluted ($0.55) ($0.34)
========== ==========
Average Common Shares Outstanding
Basic and Diluted 6,579 6,573
========== ==========
TRANSPRO, INC.
SUPPLEMENTARY STATEMENTS OF OPERATIONS INFORMATION
(Amounts in thousands)
(Unaudited)
Three Months Ended
March 31,
2001 2000
---- ----
Revenues
Aftermarket Heating and Cooling Systems $38,185 $36,755
OEM Heat Transfer Systems 7,378 11,675
---------- ----------
Consolidated Totals $45,563 $48,430
========== ==========
Income (Loss) from Continuing Operations Before
Interest,Taxes and Extraordinary Item
Aftermarket Heating and Cooling Systems ($1,566) ($898)
OEM Heat Transfer Systems (1,436) (118)
Plant Closure Costs -- (795)
---------- ----------
Segment Totals (3,002) (1,811)
Corporate Expenses (295) (1,034)
---------- ----------
Consolidated Totals ($3,297) ($2,845)
========== ==========
TRANSPRO, INC.
SUPPLEMENTARY STATEMENTS OF OPERATIONS INFORMATION
(Amounts in thousands, except for per share data)
(Unaudited)
Three Months Ended
March 31,
2001 2000
---- ----
Basic and Diluted (Loss) per Common Share:
From Continuing Operations Before Plant
Closure Costs and Extraordinary Item ($0.49) ($0.33)
Plant Closure Costs -- (0.08)
---------- ----------
From Continuing Operations Before
Extraordinary Item ($0.49) ($0.41)
========== ==========
Depreciation and Amortization $1,456 $1,615
========== ==========
TRANSPRO, INC.
BALANCE SHEET HIGHLIGHTS
(Amounts in thousands)
March 31, December 31,
2001 2000
(Unaudited)
Accounts Receivable, Net $31,155 $34,154
Inventories $74,259 $75,286
Net Property, Plant and Equipment $25,938 $26,711
Goodwill, Net $6,769 $6,869
Total Assets $150,212 $156,263
Revolving Credit Debt $34,539 $39,680
Current Portion of Long Term Debt $884 $--
Long Term Debt $8,267 $4,658
Total Liabilities $82,422 $84,786
Stockholders' Equity $67,790 $71,477
Capital Expenditures $583 $5,355