Trans-Industries, Inc. Reports 2004 Second-Quarter and Six-Month
Results ROCHESTER HILLS, Mich., Aug. 16 /PRNewswire-FirstCall/ --
Trans-Industries, Inc. (NASDAQ:TRNI), a manufacturer of bus
lighting systems and information display products, announced
results for the second quarter and six months ending June 30, 2004.
Sales were $7.7 million for the quarter. This represented a decline
of 9.9 percent from sales of $8.5 million for the three months
ended June 30, 2003. This decline was concentrated in the lighting
products business segment and resulted primarily from a decrease in
the level of bus production from that of the previous year.
Moreover, in the current quarter, the Company shipped a limited
number of luggage lofts, which have higher dollar content per bus
than regular lighting products. While sales of digital information
products improved, such sales were insufficient to offset the
decrease in lighting shipments noted above. These same factors
resulted in a sales decrease of $2.0 million, or 11.4 percent, to
$15.2 million for the current period from $17.2 million for the
six-month period ended June 30, 2003. A loss of $2.6 million was
incurred for the quarter, consisting of $344,000 from operations in
addition to $2.3 million from the establishment of an additional
inventory reserve. This inventory reserve resulted from several
factors that impacted the Company's operations during the quarter.
In early March, management changes were effected including the
appointment of a new President and Chief Operating Officer. The
Company's existing product offerings were analyzed and some have
been curtailed, and personnel has been further reduced, thereby
reducing product absorption. In light of a decline in sales during
the second quarter and the changed business direction, it was
determined a portion of the inventory would not be used going
forward. Cost reduction opportunities continued to be emphasized
with formal programs initiated in all cost segments. However,
savings from these programs are not expected to be realized in full
until later in the year as legacy costs in the form of severance
payments continued throughout the quarter. The Company believes its
system for purchasing materials, particularly in the digital
information systems operation, improved in the period as better
utilization of the material requirements production system
initiated last year provided needed information for enhanced
scheduling against available inventory. The Company has been
operating under a forbearance agreement with Comerica Bank, its
present lender until January 2005. Efforts to locate another lender
to replace the Comerica credit have been ongoing and the Company
anticipates finalizing credit arrangements with a new lender by
September 1, 2004. About the Company: The Company is a leading
provider of lighting systems and related components to the mass
transit market as well as a supplier of information hardware and
software solutions on Intelligent Transportation Systems (ITS) and
mass transit projects. ITS utilizes integrated networks of
electronic sensors, signs and software to monitor road conditions,
communicate information to drivers and help transportation
authorities better manage traffic flow across their existing
infrastructures. Forward-Looking Statements: Except for statements
of historical fact, this news release contains certain
forward-looking statements about the Company. Such statements are
subject to significant risks and uncertainties including changes in
economic and market conditions, management of growth, and other
risks noted in the Company's SEC filings, which may cause actual
results to differ materially. We have used words such as "may,"
"will," "expect," "anticipate," "believe," "estimate," "plan,"
"intend," and similar expressions in this press release to identify
forward-looking statements. The Company's actual results may differ
from those set forth in such statements. Significant changes in
economic conditions, regulatory or legislative changes affecting
Trans-Industries, Inc., its competitors, or the markets in which it
is active, or changes in other factors may cause future results to
vary from those expected by the Company. The Company believes any
forward-looking statements it has made are based on current
management expectations and they are subject to risks and
uncertainties. These risks and uncertainties include, but are not
limited to the following: -- The potential inability to close the
refinancing of the Company's bank debt; -- The continued
forbearance by the Company's bank lender of their right to call the
debt now due; -- A further decline of economic conditions in
general and in the mass transit industry in particular; -- Changes
in customer requirements or reduced demand for the Company's
products and services; -- The inability of the Company to
successfully implement its restructuring program in the
informational systems business; -- Competitive factors (including
the introduction or enhancement of competitive products and their
successful introduction into the marketplace); -- Product pricing
decreased and component price increases that may result in
materially reduced gross profit margins for the Company's product;
-- Unforeseen increases in operating expenses; -- The inability to
attract or retain management, sales, or engineering talent; and --
The success of management's decision to change the business
direction. Visit Trans-Industries at
http://www.transindustries.com/ Trans-Industries, Inc. Sales and
Earnings Report (Unaudited) June 30,2004 Second Quarter Ending Six
Months Ending June 30 June 30 2004 2003 2004 2003 Sales $7,697,537
$8,542,959 $15,232,466 $17,192,759 Cost of Sales 7,988,935
5,862,470 13,594,809 11,921,401 Gross Profit (291,398) 2,680,489
1,637,657 5,271,358 Selling, Gen. & Admin. Exp. 2,141,985
2,657,598 4,107,318 5,295,986 Interest 161,068 161,720 323,576
331,769 Restructuring Costs 53,397 0 128,998 272,859 Other (4,280)
(1,999) (11,211) (2,008) Total Expenses 2,352,170 2,817,319
4,548,681 5,898,606 Loss Before Income Taxes (2,643,568) (136,830)
(2,911,024) (627,248) Income Taxes 0 0 0 (17,000) Net Loss
(2,643,568) (136,830) (2,911,024) (610,248) Preferred Dividend
(24,792) 0 (24,792) 0 Net Loss Available to Common Shareholders
$(2,668,360) $(136,830) $(2,935,816) $(610,248) Loss Per Share
Basic $(0.85) $(0.04) $(0.94) $(0.19) *2004, includes set-up of
inventory reserves of $2.3 million Weighted Average Number of
Shares Outstanding 3,139,700 3,139,700 3,139,700 3,139,700
Consolidated Balance Sheet (Unaudited) Second Quarter Ending June
30 Assets: 2004 2003 Total Current Assets $13,162,987 $21,190,924
Net Fixed Assets 3,476,926 3,966,894 Other Assets 159,442 282,523
Total Assets $16,799,355 $25,440,341 Liabilities and Shareholders'
Equity: Total Current Liabilities $13,010,078 $16,367,399 Deferred
Income Taxes 0 458,000 Long Term Debt 292,896 322,816 Shareholders'
Equity 3,496,381 8,292,126 Total Liabilities and Shareholders'
Equity $16,799,355 $25,440,341 Website:
http://www.transindustries.com DATASOURCE: Trans-Industries, Inc.
CONTACT: Kai Kosanke, Chief Financial Officer of Trans-Industries,
+1-248-852-1990
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