Simula Reports 1997 Financial Results
24 March 1998
Simula Reports 1997 Financial Results
Revenues increase 37% to $90.4 million
PHOENIX, March 24 -- Simula, Inc. announced today
its financial results for both the fourth quarter and year ended December 31,
1997.
For 1997, revenues increased 37% to $90.4 million from $65.8 million in
1996. The net loss decreased to ($3.5) million, or ($0.38) per share, from a
net loss of ($10.0) million, or ($1.12) per share for 1996. The 1996 net loss
included the cumulative effect of a change in accounting principle. Excluding
the effect of the change in accounting, the net loss for 1996 was
($6.8) million, or ($0.76) per share.
For the fourth quarter ended December 31, 1997, revenues increased to
$28.9 million from $16.5 million in 1996, an increase of 75%. The net loss
for the fourth quarter of 1997 was approximately ($600,000), or ($0.06) per
share, compared to a net loss of ($4.5) million, or ($0.51) per share, for the
same period in 1996. Results for the quarter and year ended December 31, 1997
include a net gain of approximately $1.3 million ($790,000, or $0.08 per
share, after income tax effect) from real estate transactions.
"Our operating loss for the fourth quarter decreased significantly versus
the operating loss for the third quarter. We believe this quarter to quarter
improvement is indicative of the continuing progress we are making toward
desired financial performance," said Don Townsend, president of Simula, Inc.
"In 1997, as Simula met the demands of two new major markets, commercial
airline passenger seats and automotive inflatable restraints, the company
moved -- almost overnight -- from meeting orders for hundreds of products per
year to supplying thousands of products per day. As a result of the
transition to high volume manufacturing, Simula faced significant challenges
in balancing the demands of rapid growth with financial performance. Simula
successfully satisfied the demands of its markets, although as previously
reported, meeting these demands negatively impacted our 1997 financial
results," commented Mr. Townsend.
In 1997, Simula's accomplishments included:
Records Established: 1997 yielded record revenues for the company, record
number of product units shipped, and a record backlog of $104 million at
year end.
New Product Creating New Market. Simula began delivering the world's first
automotive inflatable side-impact head and neck protection system for
production BMW's.
Breaking through Market Barriers. Simula completed its first full year as
a manufacturer of commercial airliner seats becoming the first supplier in
more than 25 years to successfully enter the commercial airline seating
business, capturing a 5% market share.
Simula, Inc., based in Phoenix, Arizona, USA, is an acknowledged world
leader in transportation safety and energy absorption technology. Its
principal product lines are protective systems including inflatable
restraints, airbags and ballistic armor; high technology energy absorbing
aircraft seating systems, and rail and mass transit seating systems.
Additional information about the company is located on the Internet at
http://www.simula.com.
This press release contains forward-looking statements that involve risks
and uncertainties that may cause the company's actual experience to differ
materially from that anticipated. Estimates are based on reliable information
and past experience. However, operating results are affected by a wide
variety of factors, many of which are beyond the control of the company. The
factors include the levels of orders which are received and can be shipped in
a quarter; whether and when order options are exercised; customer order
patterns and seasonality; contract mix among the company's three business
segments and shifting production and delivery schedules; manufacturing
capacity and yield, costs of labor, raw materials, supplies and equipment;
reliability of vendor base; amount of resources committed to research and
development from time to time; technological changes; competition and
competitive pressures on pricing; and economic conditions in the United States
and worldwide.
SIMULA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
December 31, Year Ended December 31,
1997 1996 1997 1996
Revenue $28,888,051 $16,488,972 $90,421,984 $65,761,957
Cost of revenue 23,178,348 16,679,039 69,861,625 55,239,176
Gross margin 5,709,703 (190,067) 20,560,359 10,522,781
Administrative expenses 6,625,368 6,751,349 22,584,690 19,748,851
Operating loss (915,665) (6,941,416) (2,024,331)
(9,226,070)
Interest expense (1,334,657) (848,562) (5,390,339)
(2,376,607)
Interest income 37,616 313,118 51,711
Other income 1,298,026 1,298,026
Loss before taxes (914,680) (7,789,978) (5,803,526)
(11,550,966)
Income tax benefit 308,000 3,251,000 2,264,000 4,741,000
Loss before cumulative
effect of a change
in accounting principle (606,680) (4,538,978) (3,539,526)
(6,809,966)
Cumulative effect of
a change in accounting
principle (3,239,948)
Net loss $(606,680) $(4,538,978) $(3,539,526)
$(10,049,914)
Per share amounts-Basic
and assuming dilution:
Loss before accounting
change ($0.06) ($0.51) ($0.38) ($0.76)
Cumulative effect of
a change in accounting
principle (0.36)
Net loss ($0.06) ($0.51) ($0.38) ($1.12)
Weighted average shares 9,849,956 8,938,008 9,288,416 8,947,060
SOURCE Simula, Inc.