Simula Inc. Reports Orders and Options for First-Quarter 2000
17 April 2000
Simula Inc. Reports Orders and Options for First-Quarter 2000
PHOENIX--April 17, 2000--Simula Inc. (NYSE: SMU) today announced that for the first quarter ended March 31, 2000, new orders and options in its two core business segments were approximately $57 million."Notwithstanding recently announced charges pursuant to the disposal of two subsidiaries," said Donald W. Townsend, president and CEO of Simula Inc., "these numbers indicate that our core businesses are doing well and are positioned for sustainable growth. In light of these new orders and our existing backlog, we remain confident that revenues in 2000 will exceed $100 million, with net income expected to be in the area of $2.5 to $3.0 million."
Of the total in new orders and options, approximately $48 million consisted of new contracts and options/ordering agreements in the Government and Defense segment. Such contracts and options/ordering agreements represent commitments for products that are expected to be delivered within 18 to 36 months of the time the order is placed.
The balance of approximately $9 million consisted of new orders in the Commercial segment, which includes the automotive safety systems division. Orders pursuant to long-term contracts from automotive OEMs (including orders for the company's ITS(R) automotive side impact head protection system) are recognized as new orders to the extent that they are expected to be delivered within a calendar quarter.
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 military and automotive applications. Additional information about the company may be found at www.simula.com.
Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: Projected operating results will be affected by a wide variety of factors that could adversely impact revenues, profitability and cash flows. The company's liquidity and available working capital will be dependent upon cash flow from operations, availability of funds under its credit agreement, and extensions or refinancings of certain indebtedness or, potentially, proceeds from asset sales or licensing.
Other factors pertinent to the company's ability to meet its current and five-year financial projections include its leveraged status and the level and cost of debt; retention of key members of management; reduction of fixed expenses; ability to maintain margins or grow volumes in its automotive segment; success in building strategic alliances with large prime contractors and first tier suppliers to OEMs; competition and competitive pressures on pricing, including pressures from first tier supplier partners; customer order patterns and seasonality; the cyclical nature of the automobile industry and other markets addressed by the company's products; the level and makeup of military expenditures; the costs of legal proceedings; contract mix and shifting production and delivery schedules among the company's two business segments; amount of resources committed to independent research and development from time to time; proof of concept and production validation of certain of the company's new technologies and proposed products; technological changes; the level of orders that are received and can be shipped and invoiced in a quarter; manufacturing capacity and yield; costs of labor, raw materials, supplies, and equipment; reliability of vendor base; and economic conditions in the United States and Worldwide markets.
As used throughout this release, the words "estimate," "anticipate," "expect," "should," "intend," "project," "target," or other expressions that indicate future events identify forward-looking statements that are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results and trends may differ materially. Risks include those described herein and in the company's registration statements and periodic reports filed with the U.S. Securities and Exchange Commission, including the company's most recent Form 10-K.