Prolong Announces Year-End Financial Results
IRVINE, Calif.--March 26, 2002--Prolong International Corporation (AMEX:PRL), (http://www.prolong.com), a consumer products holding company and parent of Prolong Super Lubricants, Inc., manufacturer and marketer of patented consumer automotive, commercial/industrial and household products, announced today a net loss of ($1.0) million, or ($0.04) per share (basic and diluted), on sales of $13.6 million for the year ended December 31, 2001.This compares to a loss of ($1.7) million, or ($0.06) per share (basic and diluted), on sales of $19.1 million for the year ended December 31, 2000. "The less than robust economy in 2001 impacted our sales," said Elton Alderman, President & CEO. "We have taken vigorous steps to bring expenses in line with anticipated revenues, and we expect these reductions to realize their full impact in the year 2002."
Mr. Alderman also stressed that the Company is "redirecting its focus on sales strategies promoting its core lubricant product line. We are reinvigorating our proven, effective marketing style and believe the financial benefits of the measures we have taken will assist our efforts to attain sustained profitability and growth during this year."
Prolong International Corporation reported a net loss of ($0.6) million, or ($0.02) per share (basic and diluted), on sales of $2.7 million for the fourth quarter ended December 31, 2001, compared to a net loss of ($1.3) million, or ($0.04) per share (basic and diluted), on sales of $2.5 million for the comparable quarter in 2000. "The 10% sales increase in the fourth quarter is the result of the beginning of our aggressive strategic marketing efforts," Mr. Alderman said.
Prolong International Corporation (AMEX:PRL), a consumer products holding company headquartered in Irvine, California, through its operating subsidiaries, manufactures, markets and distributes a complete line of patented lubricant and proprietary automotive, commercial/industrial and household products. The Company's products are marketed and sold under the brand name Prolong Super Lubricants(R) and are used in automotive, industrial and consumer applications. Prolong products are sold throughout the United States at major chain stores and auto retailers and in international markets. More information about Prolong International Corporation and its products can be obtained at http://www.prolong.com.
Forward-Looking Statements
Certain statements in this news release that relate to financial results, projections, future plans, events, or performance, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended and involve significant risks and uncertainties, including, but not limited to, the following: competition, cost of components, product concentration and risk of declining selling prices. The Company's actual results could differ materially from those anticipated in such forward-looking statements as a result of a number of factors. These risks and uncertainties, and certain other related factors, are discussed in the Company's Form 10-K, Form 10-Q and other filings with the Securities and Exchange Commission. These forward-looking statements are made as of the date of this release and the company assumes no obligation to update such forward-looking statements.
PROLONG INTERNATIONAL CORPORATION
Consolidated Condensed Statements of Operations
Three Months Ended Year Ended
December 31, December 31,
2001 2000 2001 2000
(unaudited) (unaudited) audited audited
Net sales $2,701,384 $2,451,612 $13,640,667 $19,080,218
Cost of sales 943,819 1,116,857 4,345,451 5,257,600
Gross profit 1,757,565 1,334,755 9,295,216 13,822,618
Selling and marketing
expenses 1,656,710 2,016,211 6,383,438 10,736,048
General and
administrative
expenses 869,220 1,038,871 3,669,122 4,709,504
Other (expenses),
net (133,279) (130,134) (542,342) (526,589)
Income (loss) before
taxes (901,644) (1,850,461) (1,299,686) (2,149,523)
Provision (benefit)
for income taxes (294,206) (572,979) (297,142) (497,245)
Net income (loss) ($607,438) ($1,277,482) ($1,002,544) ($1,652,278)
Net income (loss)
per common share:
Basic ($0.02) ($0.04) ($0.04) ($0.06)
Diluted ($0.02) ($0.04) ($0.04) ($0.06)
Weighted average
common shares:
Basic shares
outstanding 28,453,584 28,438,903 28,442,604 28,442,341
Diluted shares
outstanding 28,453,584 28,438,903 28,442,604 28,442,341
Consolidated Condensed Balance Sheets
December 31, December 31,
2001 2000
audited audited
Assets:
Cash and cash equivalents $466,453 $126,917
Accounts receivable, net 2,485,191 3,245,892
Inventories, net 691,921 970,236
Other current assets 1,054,140 1,453,514
Total current assets 4,697,705 5,796,559
Property and equipment, net 2,879,094 3,193,109
Intangible assets, net 6,558,007 6,529,986
Other assets 2,806,591 2,195,546
Total assets $16,941,397 $17,715,200
Liabilities and stockholders' equity:
Accounts payable $2,647,266 $2,183,482
Accrued expenses and other current
liabilities 470,177 1,663,060
Line of credit 1,728,868 2,050,716
Total current liabilities 4,846,311 5,897,258
Deposits under building sales contract 1,223,265 ---
Notes payable, noncurrent 2,230,359 2,277,130
Total stockholders' equity 8,641,462 9,540,812
Total liabilities and stockholders'
equity $16,941,397 $17,715,200