Williams Controls Adjusts Second Quarter 2004 Results
PORTLAND, Ore., May 13, 2004 -- Williams Controls, Inc. today announced that it has revised the earnings for the second quarter ended March 31, 2004 that were announced in the May 3, 2004 press release. The revision is the result of a reserve added to cover the anticipated expense resulting from the Company entering into an agreement under the Oregon Department of Environmental Quality's voluntary program subsequent to the end of the fiscal quarter, but before the Company's 10-Q was filed for the second quarter of 2004, to investigate pollution at the Company's Portland, Oregon facility. The revision reduced Net income allocable to common shareholders by $250,000, or $.01 per common share for both the three months and six months ended March 31, 2004.
ABOUT WILLIAMS CONTROLS
Williams Controls is a designer, manufacturer and integrator of sensors and controls for the motor vehicle industry. For more information, you can find Williams Controls on the Internet at www.wmco.com.
The statements included in this news release concerning predictions of economic performance and management's plans and objectives constitute forward- looking statements made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1934, as amended. These forward looking statements are based on management's assumptions and projections, and are sometimes identifiable by use of the words, "expect to," "plan," "will," "believe" and words of similar predictive nature. Because management's assumptions and projections are based on anticipation of future events, you should not place undue emphasis on forward-looking statements. You should anticipate that our actual performance may vary from these projections, and variations may be material and adverse. You should not rely on forward-looking statements in evaluating an investment or prospective investment in our stock, and when reading these statements you should consider the uncertainties and risks that could cause actual results to differ materially from the forward-looking statements. Factors which could cause or contribute to such differences include, but are not limited to, factors detailed in the Securities and Exchange Commission filings of the Company; economic downturns affecting the operations of the Company or any of its business operations, competition, and the ability of the Company to successfully identify and implement any strategic alternatives. The forward-looking statements contained in this press release speak only as of the date hereof and the Company disclaims any intent or obligation to update these forward-looking statements.
Williams Controls, Inc.
Consolidated Statements of Operations
(Dollars in thousands, except share and per share amounts)
Three Three Six Six
months months months months
ended ended ended ended
3/31/04 3/31/03 3/31/04 3/31/03
(unaudited) (unaudited) (unaudited) (unaudited)
Net sales $14,477 $13,054 $27,015 $25,035
Cost of sales 10,016 10,792 18,712 19,770
Gross margin 4,461 2,262 8,303 5,265
Research and
development expense 768 978 1,378 1,751
Selling expense 288 335 562 663
Administration expense 1,297 1,258 2,176 2,438
Gain on settlement
with customer -- (951) -- (951)
Operating income from
continuing operations 2,108 642 4,187 1,364
Interest income (1) (21) (1) (21)
Interest expense -
Series B Preferred
Stock dividends and
accretion 791 -- 1,560 --
Interest expense - Debt 18 158 39 327
Other (income)
expense, net -- (50) (5) (141)
Income from continuing
operations before
income taxes 1,300 555 2,594 1,199
Income tax expense
(benefit) 54 - 94 (300)
Net income from
continuing operations 1,246 555 2,500 1,499
Discontinued Operations 84 (70) 248 (21)
Net income 1,162 625 2,252 1,520
Preferred dividends
and accretion of
Series B Preferred
Stock -- (662) -- (1,311)
Net income (loss)
allocable to common
shareholders $1,162 $(37) $2,252 $209
Earnings per share
information:
Income (loss) per
common share from
continuing
operations - basic $0.06 $0.00 $0.12 $0.01
Income (loss) per
common share from
discontinued
operations - basic 0.00 0.00 (0.01) 0.00
Net income (loss)
per common share
- basic $0.06 $0.00 $0.11 $0.01
Weighted average
common shares
outstanding
- basic 21,051,728 20,125,492 20,586,079 20,091,942
Income (loss) per
common share from
continuing
operations - diluted $0.04 $0.00 $0.07 $0.01
Income (loss) per
common share from
discontinued
operations - diluted 0.00 0.00 (0.01) 0.00
Net income (loss)
per common share
- diluted $0.03 $0.00 $0.07 $0.01
Weighted average
common shares
outstanding
- diluted 56,039,412 20,125,492 55,059,478 33,914,669
Williams Controls, Inc.
Consolidated Balance Sheets
(Dollars in thousands)
March 31, September 30,
2004 2003
(unaudited) (unaudited)
Assets
Current Assets:
Cash and cash equivalents $4,425 $101
Trade accounts receivable, net 8,039 7,015
Other receivables 419 7,185
Inventories, net 3,969 4,053
Prepaid expenses and other current assets 561 330
Total current assets 17,413 18,684
Property, plant and equipment, net 5,307 5,647
Other assets, net 559 576
Total assets $23,279 $24,907
Liabilities and Stockholders' Deficit
Current Liabilities:
Accounts payable $4,387 $4,027
Accrued expenses 6,196 8,796
Current portion of long-term debt and
capital leases 331 4,658
Total current liabilities 10,914 17,481
Long-term debt and capital lease obligations 234 402
Employee benefit obligations 7,313 8,095
Mandatory redeemable Convertible Series B
Preferred Stock, net 17,632 16,072
Shareholders' Deficit:
Preferred stock (Series A and A-1) 1 1
Common stock 230 201
Additional paid-in capital 24,434 22,224
Accumulated deficit (31,148) (33,400)
Treasury Stock (377) (377)
Other Comprehensive Loss - Pension
liability adjustment (5,792) (5,792)
Shareholder note receivable (162) --
Total shareholders' deficit (12,814) (17,143)
Total liabilities and shareholders' deficit $23,279 $24,907