IMPCO Reports Third Quarter Results
CERRITOS, Calif., Nov. 13, 2003 -- IMPCO Technologies, Inc. , today reported results for its third quarter ended September 30, 2003.
For the third quarter of calendar year 2003, IMPCO reported revenues of $18.7 million and operating income of $0.4 million. One time operating expenses, including refinancing costs, totaling $0.2 million unfavorably impacted operating income. Interest expense of $1.6 million, of which $0.5 was primarily associated with debt refinancing activities, resulted in a net loss of $1.2 million or 8 cents per share. The interest expense included $0.9 million of non-cash items related to warrants associated with refinancing activities. Compared to the third quarter of calendar year 2002, IMPCO had revenues of $18.5 million, an operating loss of $0.2 million and a net loss of $1.8 million or 12 cents per share, which included a net loss of $1.3 million or 9 cents per share, from the Quantum discontinued operation that was spun off on July 23, 2002.
For the first three quarters of calendar year 2003 results were $56.6 million in revenues and $2.6 million in operating income. One time operating expenses, mainly attributable to refinancing costs, totaling $0.4 million unfavorably impacted operating income. For the comparable period in calendar year 2002, revenues were $53.4 million in revenues with an operating loss of $1.8 million. IMPCO's calendar year to date 2003 revenues increased $3.2 million, or 6%, while operating income increased $4.4 million, or 244%, compared to the same period in calendar year 2002. Year to date net loss in 2003 was $1.0 million or 6 cents per share and includes $1.5 million of one time operating and financing expenses. For the comparable period in calendar year 2002, the net loss was $11.6 million, or 87 cents per share, which includes a net loss of $10.1 million, or 76 cents per share, from our Quantum discontinued operation.
Robert M. Stemmler, CEO and Chairman, said, "in regard to the third quarter and calendar 2003 year to date performance of the Company, one time operating and financing costs were equivalent to an unfavorable 4 and 9 cents per share per period, respectively, and represented 153% of the loss for the first three quarters of calendar year 2003." He indicated that the remaining one time refinancing costs would be minimal in the fourth quarter. He also mentioned the unfavorable impact the global economic recession and the SARS epidemic had on the transportation market revenues, particularly in Mexico and the Far East, respectively.
Mr. Stemmler further added, "the Company's third quarter performance was noteworthy in that the refinancing of the company and the acquisition of BRC was consummated." BRC, located in Cherasco, Italy has revenues approaching $40 million and is a leader in the growing alternative fuels industry transportation market. He added, "the company made major progress in establishing a leading position as a Tier 1 supplier of emission certified engines, 50 horsepower and above, to the major material handling OEMs." Beginning January 1 2004, the EPA will require off-highway mobile vehicles to have emission certified engines, which meet new stringent federal emission requirements. Mr. Stemmler said, "the Company's strategic plan for expanded growth and profitability is now complete and the Company is very well positioned for major growth in 2004." He stated that the Company currently had a record sales order backlog of $15 million scheduled for delivery in the first quarter of calendar year 2004.
Earnings Call Scheduled for November
IMPCO will host a conference call to discuss financial results on November 13 at 4:30 p.m. ET, 1:30 p.m. PT. All shareholders and other interested parties are invited to dial into the call, which may be accessed by calling 785-832-1523. In order to ensure participation, please dial in 15 minutes prior to the scheduled time. A recording of the call will be available for 24 hours and can be accessed by calling 800-283-4642 or 102-220-0857.
Regarding IMPCO:
IMPCO and BRC design, manufacture, market and supply advanced alternative fuel systems and related products to original equipment manufacturers and to the aftermarket for the mobile, industrial, power generation, and stationary engines market place. Headquartered in Cerritos, California and Cherasco Italy, they have offices in Asia, Europe, Australia and South and North America. More information can be found at IMPCO's web site, http://www.impco.ws/ and at BRC's web site, http://www.brc.it/ .
Except for historical information, the statements, expectations and assumptions contained in the foregoing press release are forward-looking statements. Such forward-looking statements include, but are not limited to, the company's expectations regarding revenues in future periods. Such statements are subject to a number of risks and uncertainties, and actual results could differ materially from those discussed in any forward-looking statement. Readers should consider the risk factors set forth from time to time in the company's SEC reports, including but not limited to those contained in the section entitled "Management's Discussion & Analysis of Financial Condition and Results of Operation - Risk Factors" in its Transition Report on Form 10-K for the period ended December 31, 2002. The company does not undertake to update or revise any of its forward-looking statements even if experience or future changes show that the indicated results or events will not be realized.
For further information, please contact Mr. Dale Rasmussen, Investor Relations, +1-206-315-8242.
IMPCO TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three and Nine Months Ended September 30, 2002 and 2003
Three Months Ended Nine Months Ended
September 30, September 30,
2002 2003 2002 2003
Revenue $18,529,515 $18,668,834 $53,351,780 $56,581,090
Costs and
expenses:
Cost of revenue 13,344,045 12,863,587 37,639,642 38,247,242
Research and
development
expense 947,737 911,361 3,444,898 2,693,196
Selling, general
and administrative
expense 4,390,568 4,482,246 14,085,308 13,035,986
Total costs and
expenses 18,682,350 18,257,194 55,169,848 53,976,424
Operating income
(loss) (152,835) 411,640 (1,818,068) 2,604,666
Interest expense,
net 295,473 1,551,589 528,160 2,808,209
Loss from continuing
operations before
income taxes and
equity share in
losses of
unconsolidated
affiliates (448,308) (1,139,949) (2,346,228) (203,543)
Equity share in
losses of
unconsolidated
affiliates -- 617,450 -- 617,450
Income tax benefit (65,990) (702,959) (822,621) (328,396)
Loss from continuing
operations before
minority interests (382,318) (1,054,440) (1,523,607) (492,597)
Minority interest in
income of
consolidated
subsidiaries 40,764 185,404 4,562 477,856
Loss from continuing
operations (423,082) (1,239,844) (1,528,169) (970,453)
Loss from
discontinued
operation (1,328,949) -- (10,085,140) --
Net loss $(1,752,031) $(1,239,844) $(11,613,309) $(970,453)
Net loss per share:
Basic:
Loss from
continuing
operations $(0.03) $(0.08) $(0.11) $(0.06)
Loss from
discontinued
operation $(0.09) $-- $(0.76) $--
Net loss $(0.12) $(0.08) $(0.87) $(0.06)
Diluted:
Loss from
continuing
operations $(0.03) $(0.08) $(0.11) $(0.06)
Loss from
discontinued
operation $(0.09) $-- $(0.76) $--
Net loss $(0.12) $(0.08) $(0.87) $(0.06)
Number of shares
used in per share
calculation:
Basic 14,124,373 16,459,191 13,337,112 16,443,423
Diluted 14,124,373 16,459,191 13,337,112 16,443,423
IMPCO TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
December 31, 2002 and September 30, 2003
December 31, September 30,
2002 2003
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $1,995,705 $3,020,881
Restricted cash 1,604,551 655,898
Accounts receivable, net 11,640,872 14,816,478
Inventories:
Raw materials and parts 8,615,852 8,040,510
Work-in-process -- 207,278
Finished goods 8,704,748 7,742,444
Total inventories 17,320,600 15,990,232
Deferred tax assets 1,032,072 1,019,956
Other current assets 1,649,225 3,062,364
Total current assets 35,243,025 38,565,809
Equipment and leasehold improvements:
Dies, molds and patterns 6,342,952 6,443,625
Machinery and equipment 6,317,372 7,099,901
Office furnishings and
equipment 8,462,340 9,001,103
Automobiles and trucks 405,765 402,981
Leasehold improvements 3,400,728 3,473,301
24,929,157 26,420,911
Less accumulated depreciation
and amortization 16,359,200 17,908,350
Net equipment and
leasehold improvements 8,569,957 8,512,561
Net goodwill and intangibles 8,921,254 9,764,961
Deferred tax assets, net 8,404,703 9,582,420
Investment in affiliates 12,777,064 24,610,094
Other assets 2,061,630 3,637,349
Total Assets $75,977,633 $94,673,194
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $5,165,637 $7,465,643
Accrued payroll obligations 2,387,136 2,478,060
Other accrued expenses 2,293,616 4,094,126
Notes payable -- 2,194,500
Current revolving line of
credit 5,860,000 4,359,001
Current maturities of long-term
debt 8,330,568 878,708
Total current liabilities 24,036,957 21,470,038
Term loans -- 17,352,802
Capital leases 101,199 88,127
Other liabilities -- 584,669
Minority interest 2,217,090 2,694,946
Stockholders' equity:
Preferred stock, $.001 par
value, authorized 500,000
shares; none issued and
outstanding at December 31,
2002 and September 30, 2003 -- --
Common stock, $.001 par value,
authorized 100,000,000 shares;
16,972,134
issued and outstanding at
September 30, 2003
(16,433,282 at December 31,
2002) 16,451 16,983
Additional paid-in capital 120,623,910 122,452,452
Shares held in trust (172,525) (158,297)
Accumulated deficit (68,064,964) (69,035,418)
Accumulated other comprehensive
loss (2,780,485) (793,108)
Total stockholders' equity 49,622,387 52,482,612
Total Liabilities
and Stockholders'
Equity $75,977,633 $94,673,194