Simula Inc. Reports Third-Quarter Results
10 November 1999
Simula Inc. Reports Third-Quarter Results
PHOENIX--Nov. 10, 1999--Simula Inc. Wednesday announced financial results for the third quarter ended Sept. 30, 1999.Revenues from continuing operations for the three months ended Sept. 30, 1999 were $33.2 million compared to revenues from continuing operations of $23.7 million for the comparable period in 1998, an increase of 40%. Net income from continuing operations was $1,033,731, or $0.09 per basic and diluted common share, compared to a net loss from continuing operations of $559,150, or $0.06 loss per basic common share, in the third quarter of 1998.
For the nine months ended Sept. 30, 1999, revenues from continuing operations were $99.1 million compared to revenues from continuing operations of $72.0 million for the comparable period in 1998, an increase of 38%. Net income from continuing operations was $2,233,729, or $0.20 per basic and diluted common share, compared to net income from continuing operations of $172,505, or $0.02 per basic and diluted common share, in the first nine months of 1998.
The Company also announced that it has retained nationally recognized financial advisors and is implementing a program to address its short-term and long-term liquidity needs and debt structure.
Donald W. Townsend, President and CEO of Simula, added that management is pleased that for the third consecutive quarter the Company was profitable in each of its operating segments. In the first and second quarters of 1999, the Company reported net income from continuing operations of, respectively, $484,269 and $715,729, or $0.04 and $0.06 per diluted common share.
Simula, Inc. is a leader in developing and commercializing protective systems and energy absorption technologies that safeguard human lives. Products include advanced occupant seating and restraint systems for commercial airline, military and automotive applications. Additional information may be found at www.simula.com.
SIMULA, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Nine Months Ended
September 30, September 30,
1999 1998 1999 1998
Revenue $33,169,131 $23,680,404 $99,123,530 $71,962,001
Cost of revenue 23,468,135 18,197,029 72,043,888 53,880,615
Gross margin 9,700,996 5,483,375 27,079,642 18,081,386
Administrative
expenses 6,278,521 5,138,051 18,272,771 14,225,832
Operating income 3,422,475 345,324 8,806,871 3,855,554
Interest expense (1,711,125) (1,326,708) (5,119,728) (3,730,358)
Interest income 11,381 48,234 35,586 163,309
Earnings (loss)
before taxes and
discontinued
operations 1,722,731 (933,150) 3,722,729 288,505
Income tax expense (689,000) 374,000 (1,489,000) (116,000)
Earnings (loss)
from continuing
operations 1,033,731 (559,150) 2,233,729 172,505
Discontinued operations:
Loss from dis-
continued operations,
net of tax -- -- -- (2,156,388)
Estimated loss on
disposal, net of tax -- -- -- (4,680,000)
Net earnings (loss) 1,033,731 (559,150) 2,233,729 (6,663,883)
Dividends on
preferred stock 93,834 -- 205,039 --
Net earnings (loss)
available for
common share-
holders $ 939,897 $ (559,150) $ 2,028,690 $(6,663,883)
Earnings (loss) per
common share
- Basic:
Earnings (loss)
from continuing
operations $ 0.09 $ (0.06) $ 0.20 $ 0.02
Discontinued
operations:
Loss from dis-
continued oper-
ations,
net of tax $ -- $ -- $ -- $ (0.22)
Estimated loss
on disposal,
net of tax $ -- $ -- $ -- $ (0.47)
Net earnings
(loss) $ 0.09 $ (0.06) $ 0.20 $ (0.67)
Earnings (loss) per
common share
- Diluted:
Earnings from
continuing
operations $ 0.09 $ -- $ 0.20 $ 0.02
Discontinued
operations:
Loss from dis-
continued oper-
ations,
net of tax $ -- $ -- $ -- $ (0.21)
Estimated loss
on disposal,
net of tax $ -- $ -- $ -- $ (0.46)
Net earnings
(loss) $ 0.09 $ -- $ 0.20 $ (0.65)
Weighted average
shares - basic 10,301,721 9,880,703 10,090,510 9,868,452
Weighted average
shares - diluted 11,647,949 -- 11,055,451 10,102,547