Universal Automotive Industries Announces Record 4th Quarter Sales
3 April 2000
Universal Automotive Industries Announces Record 4th Quarter Sales Due To Strength of Core Business and Sound Business Decisions
ALSIP, Ill., March 30 Universal Automotive Industries,
Inc. (Nasdaq: UVSL UVSLW) today reported that the Company's 1999 fourth
quarter sales from continuing operations grew 32% to a record $16.836 million
compared to $12.748 million in the same period in 1998. Fourth quarter income
from operations from continuing businesses (excluding a one-time charge of
$101 thousand associated with the move to the new Corporate Distribution
Center) was $223 thousand compared to a loss of $134 thousand for the same
period in 1998. For the full year 1999, sales and income from operations from
continuing businesses (excluding a one-time charge of $160 thousand associated
with the move to the new Corporate Distribution Center) were $67.759 million
and $2.471 million, respectively. This compares to 1998 full year sale and
operating income from continuing businesses of $58.252 million and
$2.235 million, respectively. Net income from continuing operations for the
year ended December 31, 1999 was $1,051 thousand or $0.15 per share compared
to $461 thousand or $0.07 per share for the same 1998 period.
The Company formalized its plan in December 1999 to offer for sale and
ultimately dispose its Hungarian gray iron foundry. The Company's audited
1999 financial statements will treat the Hungarian foundry operation as
discontinued. The Company has requested a standard extension of time to file
its Annual Report on Form 10K as it finalizes estimates of losses on disposal
(including a non-cash write-down of the foundry property and equipment to net
realizable value and losses from operations during the disposal period). The
Company currently estimates the loss from discontinued operations to be
approximately $4.3 million (or $0.63 per share).
The Company's core business has had three consecutive quarters of double
digit sales growth when comparing sales to the same period of the prior year.
The Company believes that this exceptional sales growth is four times greater
then the industry average. The Company has positioned itself as what it
believes to be the most viable alternative to the higher cost, traditional
aftermarket brake parts manufacturers.
"I am pleased with the results from the fourth quarter before the one time
charges," commented Arvin Scott, President and CEO of Universal Automotive
Industries. "Traditionally the fourth quarter is the weakest quarter for the
automotive aftermarket parts industry. The strong revenue and income growth
in our core business, before one-time charges for the fourth quarter, reflects
the industry's acceptance of our Company's business formula." He added that,
"Universal Automotive Industries has great momentum going into 2000 due to the
fact that the primary obstacle to achieving profitability in 1999 was
addressed: the classification of Csepel foundry as a discontinued asset and
absorbing the associated non-cash writedowns. The move to our larger
Corporate Distribution Center during the third quarter has enabled the company
to service greater sales with more efficiency. We are ready to kick butt in
2000!"
This news release contains certain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended, which are intended to
be covered by safe harbors created hereby. Such forward-looking statements
involve known and unknown risks, uncertainties (including those risk factors
referenced in the Company's filings with the Securities and Exchange
Commission), and other factors that 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.
($000s) Quarter Ended Dec. 31, Year Ended Dec. 31,
CONTINUING OPERATIONS 1999 1998 1999 1998
Net Sales:
Brake parts $15,875 $11,559 $61,343 $53,053
Non brake parts 961 1,189 6,416 5,199
Total $16,836 $12,748 $67,759 $58,252
Gross Profit
Normal $3,685 $2,343 $14,380 $12,335
One-time charge for
moving expense 101 0 160 0
Total $3,557 $2,343 $14,220 $12,335
Gross Profit Percent 21.9% 18.4% 21.2% 21.2%
Selling, General and
Administrative Expenses 3,436 2,476 11,909 10,101
Income (Loss) from Operations
from Continuing Businesses 122 (134) 2,311 2,235
Provision for
Lawsuit Settlement 0 0 0 (151)
(Gain) of Sale of Assets (1,153) 0 (1,153) 0
Interest and Other, net 584 478 2,014 2,010
Net Income (Loss) from
Continuing Operations $472 $(209) $1,051 $461
Basic Net Income (Loss) Per
Share from Continuing
Operations $0.07 $(0.03) $0.15 $0.07
Basic Weighted Average
Common Shares
Outstanding 6,789,582 6,769,425