THV Thermoview Industries

ThermoView Industries Inc. Reports Fourth Quarter and 2003 Financial Results * Company restructured long-term debt LOUISVILLE, Ky., March 31 /PRNewswire-FirstCall/ -- ThermoView Industries, Inc. , one of the nation's largest full-service home improvement remodeling companies, today reported financial results for the fourth quarter and the 2003 calendar year. ThermoView, headquartered in Louisville, sells and installs replacement windows, doors and other home improvements to residential consumers in 17 states. President and CEO Charles L. Smith said the company accomplished goals in many important areas during 2003 despite a decline in revenue, including reducing overhead, maximizing purchasing efficiencies, restructuring long-term debt, streamlining corporate operations, developing new products and unified branding for its subsidiaries. "While our financial results for 2003 were disappointing, we have continued progress toward our long term goal of transforming ThermoViewinto the largest full service home improvement company in the United States," said Smith. Calendar year 2003 results Revenues declined from $86.4 million in 2002 to $70.1 million in 2003 due to numerous external factors such as national recession, harsh winter in the first quarter of 2003, the war in Iraq and the federal "do not call" legislation. "2003 was, without a doubt, a very difficult year yet we did improve our efficiencies. The continued drop in revenue was a result of factors outside of our control," said Smith. The net loss attributable to common stockholders in 2003 was $1.8 million, or $.20 per share. In 2002, the net loss attributable to common stockholders was $30.2 million, or $3.33 per basic share, reflecting a $30 million non-cash charge to comply with an accounting rule requiring the write-off of impaired goodwill. Selling, general and administrative expenses (SG&A) continue to decrease. SG&A were $33 million in 2003 versus $39 million in 2002. $1.4 million of this reduction was due to cost saving initiatives. There were 9.2 million basic average weighted shares outstanding in 2003, and 9.1 million in 2002. Fourth quarter 2003 vs. a year-ago Revenues for the fourth quarter of 2003 were $16.5 million, compared with $19.8 million for the last quarter of 2002. In addition to the external factors mentioned above, multiple subsidiaries were affected by the implementation of the federal "do not call" regulations and internal restructuring in the fourth quarter. For the fourth quarter of 2003, the company reported net loss attributable to common stockholders of $1.2 million, or 20 cents per share. In the year- earlier fourth quarter, the company reported a net income attributable to common stockholders of $77,435, or 1 cent per share. Fourth quarter 2003 net loss is directly related to loss of revenue during that period. Selling, general and administrative expenses were 12 percent lower in the fourth quarter of 2003, as compared with the same quarter in 2002, due to lower sales volumes as well as cost savings initiatives. Depreciation and amortization expense foe 2003 was relatively constant compared to 2002. The 2003 fourth quarter financials include ThermoView's 40 percent interest in a joint venture manufacturing operation with Royal Group Technologies. ThermoView's equity in the earnings was $86,000 for the quarter. Smith said ThermoView's priorities for 2004 include: * Refining our advertising and marketing models to enhance sales. * Rolling out of the technologically superior Compozit window to all of our retailers. * Opening a number of streamlined, efficient, retail showrooms in smaller communities as a means of increasing sales volumes. * Expansion of our manufacturing facility to provide windows to more of our retail locations * Completion of the Master Job Tracking System and enhancement of our best practices model for our companies operations. * Completion of the loan finder software systems as a means of locating ready financing sources for our customers. "I believe a more efficient THV will emerge in 2004. As external factors improve THV, with very modest top line growth can drive bottom line earnings," said Smith. 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 theAmerican Stock Exchange under the ticker symbol "THV." Additional information on ThermoView Industries is available at http://www.thermoviewinc.com/ . 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: Jeffrey L. Fisher CFO, ThermoView Industries, Inc. ( http://www.thermoviewinc.com/ ) 502-968-2020 ThermoView Industries, Inc. Consolidated Statements of Operations Quarter Ended Year Ended 12/31/2002 12/31/2003 12/31/2002 12/31/2003 Revenues $19,762,054 $16,466,635 $86,359,078 $70,079,811 Cost of revenues earned 9,997,885 8,907,517 43,328,652 36,331,468 Gross profit 9,764,169 7,559,118 43,030,426 33,748,343 Selling, general and administrative expenses 8,659,721 7,910,253 38,953,057 33,092,857 Unusual charges (credits) -- -- -- (796,000) Depreciation expense 217,461 179,105 986,476 785,034 Amortization expense 2,782 12,982 73,630 36,094 Income (loss) from operations 884,205 (543,222) 3,017,263 630,358 Equity in earnings of joint venture 92,791 86,589 141,355 44,900 Interest expense (603,971) (596,490) (2,604,841) (2,529,141) Interest expense on mandatorily redeemable preferred stock -- (129,929) -- (297,219) Interest income 8,000 4,458 59,174 25,432 Income (loss) before income taxes 381,025 (1,178,594) 612,951 (2,125,670) Income tax expense (benefit) 57,289 534 (45,000) 47,573 Net income (loss) before cumulative effect of an accounting change 323,736 (1,179,130) 657,951 (2,173,243) Cumulative effect of an accounting change - charge for impairment of goodwill -- -- (30,000,000) -- Net income (loss) 323,736 (1,179,130) (29,342,049) (2,173,243) Less non-cash preferred stock dividends (246,301) -- (880,914) (472,494) Plus benefit of Series D redemption -- -- -- 796,000 Net income (loss) attributable to common stockholders $77,435 $(1,179,129) $(30,222,963) $(1,849,737) Basic income (loss) per common share: Income (loss) attributable to common stockholders before cumulative effect of an accounting change $0.01 $(0.13) $(.02) $(0.20) Cumulative effect of an accounting change -- -- (3.31) -- Net income (loss) attributable to common stockholders $0.01 $(0.13) $(3.33) $(0.20) Diluted income (loss) per common share: Income (loss) attributable to common stockholders before cumulative effect of an accounting change $0.01 $(0.13) $(.02) $(0.20) Cumulative effect of an accounting change -- -- (3.31) -- Net income (loss) attributable to common stockholders $0.01 $(0.13) $(3.33) $(0.20) Weighted average shares outstanding- basic 9,190,059 9,190,059 9,069,092 9,190,059 Weighted average shares outstanding- diluted 10,006,121 9,190,059 9,069,092 9,190,059 DATASOURCE: ThermoView Industries Inc. CONTACT: Jeffrey L. Fisher, CFO, ThermoView Industries, Inc., +1-502-968-2020 Web site: http://www.thermoviewinc.com/

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