THV Thermoview Industries

LOUISVILLE, Ky., Aug. 23 /PRNewswire-FirstCall/ -- ThermoView Industries, Inc. (AMEX:THV), which designs, manufactures and markets home improvements under the brand name "THV: America's Home Improvement Company," today reported financial results for the second quarter ending June 30, 2005. Revenues for the second quarter in 2005 were approximately $18.4 million, compared to revenues in the same quarter of 2004 of approximately $19.1 million, a decrease of approximately $629,000 or 3.3%. Revenues for the six months ended June 30, 2005 were approximately $32.7 million, a decrease of approximately $1.2 million or 3.6% from revenues of approximately $33.9 million from the same period in 2004. Gross profit fell approximately $587,000 or 6.3% to approximately $8.8 million for the second quarter of 2005 from approximately $9.4 million in the second quarter of 2004. Gross profit in the six months ended June 30, 2005 was approximately $15.1 million, compared to a gross profit of approximately $16.3 million in the same period in 2004, a decrease of approximately $1.2 million or 7.3%. The company incurred an $8 million non-cash charge for impairment of goodwill in the second quarter. Management and the company's auditor's determined that public accounting rules required a reevaluation of the company's recorded goodwill in light of recent results of operations. As a result of that reevaluation, the company incurred the non-cash charge of $8 million to reflect a more accurate valuation. This charge negatively impacted the company's income/(loss) from operations for the quarter. The company will revisit the goodwill valuation on September 30, 2005 as part of its annual evaluation. Historically, the company has employed Mercer Capital in connection with this valuation but did not choose to use them in this instance. Including the non-cash charge for impairment of goodwill, the company reported a loss of $8,146,075 attributable to common shareholders in the second quarter of 2005, compared to a gain of $619,195 in the same period in 2004. For the six months ended June 30, 2005, the company reported a loss of $9,479,651 attributable to common shareholders, compared to a loss of $884,745 for the same period in 2004. "Our decrease in revenue is primarily due to interruptions in our ability to complete installations, which is how we recognize revenue," said Charles L. Smith, CEO and President of ThermoView. "We are satisfied with the continued demand for our products and services, as our backlog is up 15% from the same time last year. We believe we will be able to recover a portion of this lost revenue in the next six months as we continue to install this increased backlog which resulted from installation interruptions over the first six months of the year." Mr. Smith further stated that the company's senior lenders had granted a waiver of the minimum EBITDA covenant violation. Mr. Smith also addressed the charge for impairment of goodwill, indicating that "current results from operations dictated this unscheduled review of goodwill, but the non-cash charge in no way impacts our liquidity. The charge for impairment of goodwill, however, further reduces our shareholder capital deficiency, impacting our plan with the American Stock Exchange to regain compliance with continued listing standards." Lastly, Company officials reported that its financial consultant, Crutchfield Capital Corporation, has located several interested parties for financing solutions to the company's long-term liquidity concerns. Among the possible solutions are: financial restructuring through an infusion of capital; a buyout of the senior lenders' positions by an investment group; sale of part or all of the company's assets to a strategic buyer, either with or without judicial approval; or, an internal voluntary restructuring by all stakeholders. Negotiations with interested parties remain ongoing, and the company expects to have a more definitive view of its direction in the next sixty to ninety days. ThermoView's August 23 conference call and webcast ThermoView will hold a webcast at 2:00 p.m. EDT on August 23, 2005 to allow securities analysts and shareholders the opportunity to hear management discuss the company's quarterly results and update progress on current operational and administrative initiatives. Live audio of the conference call can be accessed from http://www.thv.com/, or http://www.vcall.com/CEPage.asp?ID=94067. First time listeners should visit http://www.vcall.com/ in advance to download and install any necessary audio software. About ThermoView Industries, Inc. ThermoView is a national company that designs, manufactures, markets and installs high-quality replacement windows and doors as part of a full-service array of home improvements for residential homeowners. ThermoView's common stock is listed on the American Stock Exchange under the ticker symbol "THV." Additional information on ThermoView Industries is available at http://www.thv.com/. Safe harbor statement Statements in this news release that are not descriptions of historical facts are forward-looking statements that are subject to risks and uncertainties. Words such as "expect," "intends," "believes," "plans," "anticipates" and "likely" also identify forward-looking statements. All forward-looking statements are based on current facts and analyses. Actual results may differ materially from those currently anticipated due to a number of factors including, but not limited to our history of operating losses, anticipated future losses, competition, future capital needs, the need for market acceptance, dependence upon third parties, disruption of vital infrastructure, general economic downturn and intellectual property rights. All forward-looking statements are made pursuant to the Securities Litigation Reform Act of 1995. Additional information on factors that may affect the business and financial results of the Company can be found in filings of the Company with the Securities and Exchange Commission. Contacts: David A. Anderson, Chief Financial Officer, ThermoView Industries, Inc., 502-968-2020. ThermoView Industries, Inc. Condensed Consolidated Statements of Operations (Unaudited) For the three months For the six months ended June 30, ended June 30, 2004 2005 2004 2005 Revenues $19,110,765 $18,482,171 $33,949,906 $32,738,897 Cost of revenues earned 9,750,022 9,708,999 17,617,122 17,605,546 Gross profit 9,360,743 8,773,172 16,332,784 15,133,351 Selling, general and administrative expenses 7,901,823 8,184,970 15,382,421 15,155,137 Impairment of goodwill - 8,000,000 - 8,000,000 Depreciation expense 228,303 204,602 440,901 407,953 Amortization expense 12,982 168 25,964 336 Income (loss) from operations 1,217,635 (7,616,568) 483,498 (8,430,075) Equity in earnings (loss) of joint venture (1,164) 8,394 (4,499) 10,215 Interest expense (600,067) (543,034) (1,368,718) (1,070,811) Interest income 4,634 5,133 10,195 11,020 Income (loss) before income taxes 621,038 (8,146,075) (879,524) (9,479,651) Income tax expense 1,843 - 5,221 - Net income (loss) attributable to common stockholders $619,195 $(8,146,075) $(884,745) $(9,479,651) Basic income (loss) per common share: Net Income (loss) attributable to common stockholders $0.07 $(0.89) $(0.10) $(1.03) Diluted income (loss) per common share: Net income (loss) attributable to common stockholders $0.06 $(0.89) $(0.10) $(1.03) DATASOURCE: ThermoView Industries Inc. CONTACT: David A. Anderson, Chief Financial Officer, ThermoView Industries, Inc., +1-502-968-2020 Web site: http://www.thv.com/

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