U.S. Automotive Manufacturing, Inc. Announces Financial Results
14 May 1999
U.S. Automotive Manufacturing, Inc. Announces Financial Results for Three Months Ended March 31, 1999NEW YORK, May 14 -- U.S. Automotive Manufacturing, Inc. reported that for the three months ended March 31, 1999, it sustained a loss of $(234,465) or $(.22) per share on net sales of $7,320,955 compared to a loss of $(974,240) or $(.93) per share on net sales of $3,419,873 for the three months ended March 31, 1998. According to Martin Chevalier, the Company's President, "the financial results were an improvement over management's internal projections." He added that "during the three months ended March 31, 1999, the Company doubled its revenues while reducing its loss by approximately seventy-five percent (75%) when compared to the three months ended March 31, 1998." He continued: "Management currently expects the trend of improvement to continue and anticipates that the Company will be profitable for the second quarter of 1999 and for the fiscal year, as a whole." Mr. Chevalier further stated "that based on new and expanded business relationships, the Company currently expects revenues for fiscal year 1999 will exceed $35,000,000." The Company also believes that the last major hurdle in the Company's turnaround is the procurement of new and expanded senior debt financing. The Company's existing senior credit facility expires on July 31, 1999. Management has approached its existing, as well as three additional senior lenders to obtain sufficient financing to fund the Company's anticipated future growth. Such lenders have expressed interest in providing the requested financing. While there can be no guarantee that such a senior credit facility will be obtained, management currently believes that a new and expanded financing will become effective prior to the expiration of its current credit facility. U.S. Automotive Manufacturing, Inc. through its wholly owned subsidiaries, Quality Automotive Company and U.S. Automotive Friction, Inc., manufactures, assembles and distributes new and rebuilt automotive friction products (brake pads, linings and remanufactured brake shoes) to other automotive manufacturers and to the automotive after-market. The Company intends to position itself to compete more formidably in the manufacture and sale of friction materials as well as other "under car" automotive parts through a strategy of both acquisition and internal growth. "Safe Harbor" Statement under the Private Litigation Reform Act of 1995: The statements which are not historical facts contained herein are forward-looking statements that relate to plans for future activities. Such forward-looking information involves a number of important known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements of the Company expressed or implied by such forward-looking statements. Such risks, uncertainties and factors, include, but are not limited to, those relating to the integration of acquired companies, industry competition, possible need for future financing, possible obsolescence of equipment, uncertainty with respect to the Year 2000 effect on the Company and its many suppliers and customers and other risks detailed in the Company's filings with the Securities and Exchange Commission. The words "anticipate", "believe", " expect", "intend", "plan" and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statement, which only speak as of the date the statement was made.