Top Source Reports Improved Fiscal 1999 Third Quarter Results
5 August 1999
Top Source Reports Improved Fiscal 1999 Third Quarter Results
Business Editors
PALM BEACH GARDENS, Fla.--Aug. 4, 1999--Top
Source Technologies, Inc. (AMEX: TPS) reported net income of $237,175
or $.01 per share for the third fiscal quarter ended June 30, 1999,
compared to a net loss of ($1,150,151) or ($.04) per share for the
same period in 1998. Included in net income for the third fiscal
quarter of 1999 and included in the net loss for the same quarter in
1998 are one-time gains of $664,384 and $1,030,435, respectively,
relating to the sale of minority interests in the Company's automotive
subsidiary, Top Source Automotive, Inc. ("TSA"). On a comparable
basis, excluding a one-time severance expense charge of $1,085,587
during the fiscal quarter ended June 30, 1998, the loss from
operations for the third fiscal quarter ended June 30, 1999 was
$187,205, compared to a loss of $845,512 for the same period one year
ago.
David Natan, Top Source Technologies, Inc.'s Vice President and
Chief Financial Officer stated, "In the first fiscal quarter, we had a
cash loss from operating activities of approximately $765,000. During
the second quarter, this loss improved to $398,000, and in the third
quarter, we generated positive cash flow from operating activities of
approximately $44,000."
Will Willis, President and Chief Executive Officer, commented,
"We continue to focus our energies on increasing MotorCheck On-Site
Oil Analyzer ("OSA") revenues. So far in fiscal 1999, OSA revenues are
approximately $1,230,000 compared to $330,000 during the same period
in fiscal 1998. With the previously announced potential sale of TSA to
Onkyo America, Inc. ("Onkyo"), we will have the financial resources to
improve upon and accelerate OSA growth."
Top Source Technologies, Inc. develops, assembles, and markets
sophisticated technologies including the patented MotorCheck(TM)
On-Site Analyzer, "an oil analysis mini-lab in a box," and proprietary
Overhead Sound Systems.
Forward-Looking Statements
The statements discussed in this press release relating to the
Company's expectation that it anticipates closing the TSA transaction
with Onkyo and accelerating OSA growth are forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. The results
anticipated by this forward-looking statement may not occur. Important
factors that could cause actual results to differ materially from this
forward-looking statement include the successful completion of due
diligence by Onkyo, unexpected legal accounting and other deal point
issues that could delay or prevent the signing of an agreement, the
continued reliability of the OSA technology over an extended period of
time, and the Company's ability to market OSAs. Investors should also
consider information contained in documents filed by the Company with
the Securities and Exchange Commission.
-0-
*T
TOP SOURCE TECHNOLOGIES, INC.
FINANCIAL TABLE
(Unaudited)
----------------------------------------------------------------------
Three Months Ended Nine Months Ended
June 30, June 30,
-----------------------------------------------
1999 1998 1999 1998
-----------------------------------------------
Total revenues $2,858,094 $2,665,138 $7,542,647 $9,281,904
Loss from operations (187,205) (1,931,099) (1,360,809) (3,113,621)
Income/(loss)
before income taxes and
extraordinary item(a) 494,134 (1,036,930) 636,851 (2,411,998)
State income tax expense 4,422 (4,242) (33,078) (41,242)
Income/(loss) before
extraordinary item(a) 498,556 (1,041,172) 603,773 (2,453,240)
Extraordinary
item - gain from
the extinguishment
of debt - - 158,745 -
Dividends and
discounts related to
preferred stock (261,381) (108,979) (870,719) (108,979)
Net income (loss)
available to
common shareholders $ 237,175 $(1,150,151) $(108,201) $(2,562,219)
========= =========== ========== ===========
Income (loss)
per share:
Income (loss)
per share before
Extraordinary item:
Basic $ 0.01 $ (0.04) $ (0.01) $ (0.09)
======= ======== ======== ========
Diluted $ 0.01 $ (0.04) $ (0.01) $ (0.09)
======= ======== ======== ========
Extraordinary item:
Basic $ - $ - $ 0.01 $ -
===== ===== ======= =====
Diluted $ - $ - $ 0.01 $ -
===== ===== ======= ======
Net income (loss):
Basic $ 0.01 $ (0.04) $ 0.00 $ (0.09)
====== ======== ======= ========
Diluted $ 0.01 $ (0.04) $ 0.00 $ (0.09)
====== ======== ======= ========
Weighted average number of
common shares
outstanding
- basic 29,332,915 28,274,627 29,033,103 28,164,897
========== ========== ========== ==========
Weighted average number of
common shares and dilutive
potential common shares
outstanding
- diluted 29,332,915 28,274,627 29,033,103 28,164,897
========== ========== ========== ==========
(a) Includes gain relating to the sale of a minority interest in the
Company's TSA subsidiary of $664,384 and $2,327,254 for the three
and nine months ended June 30, 1999 and $1,030,435 for the three
and nine months June 30, 1998.