Exhibit 99-1
LEXINGTON PRECISION CORPORATION
40 East 52nd Street
New York, NY 10022
FOR IMMEDIATE RELEASE
LEXINGTON PRECISION REPORTS FIRST QUARTER RESULTS
NEW YORK, May 18, 2005 — Lexington Precision Corporation reported a net loss of $700,000, or 14 cents per diluted common share, for the first quarter ended March 31, 2005, compared to a net loss of $156,000, or 3 cents per diluted common share, for the first quarter of 2004.
Loss from continuing operations totaled $994,000, or 20 cents per diluted common share, for the first quarter of 2005, compared to income from continuing operations of $103,000, or 2 cents per diluted common share, for the first quarter of 2004. Income from discontinued operations totaled $294,000, or 6 cents per diluted common share, compared to a loss from discontinued operations of $259,000, or 5 cents per diluted common share, for the first quarter of 2004.
Net sales for the first quarter of 2005 were $26,284,000, compared to $30,607,000 for the first quarter of 2004, a decrease of 14%. Net sales of the Rubber Group decreased by 17% to $23,004,000, while net sales of the Metals Group increased by 17% to $3,280,000.
During the first quarter of 2005, income from operations totaled $1,337,000, compared to $2,205,000 for the first quarter of 2004. Income from operations at the Rubber Group decreased to $2,306,000 from $3,542,000. The Metals Group reported a loss from operations of $304,000, compared to a loss of $761,000 for the first quarter of 2004. The loss from operations at the Corporate Office increased to $665,000 from $576,000.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) from continuing operations for the first quarter of 2005, totaled $3,472,000, compared to EBITDA from continuing operations of $4,336,000 for the first quarter of 2004, a decrease of 20%. EBITDA for the Rubber Group decreased to $4,109,000 from $5,282,000, EBITDA for the Metals Group increased to positive $24,000 from negative $380,000, and EBITDA for the Corporate Office decreased to negative $661,000 from negative $566,000. For more information about EBITDA, please see the section of the press release captioned “Notice Relating to Use of Non-GAAP Measures.”
Net cash provided (used) by operating activities of continuing operations for the first quarter of 2005 totaled $(157,000) compared to $471,000 for the first quarter of 2004, a decrease of 133%.
Attached to this press release are tables setting forth our condensed consolidated statements of operations and selected consolidated and segment financial data,
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Lexington Precision Corporation
May 18, 2005
including information concerning our cash flows from operations and reconciliations of income (loss) from continuing operations to EBITDA from continuing operations.
Notice Relating to Use of Non-GAAP Measure
EBITDA is not a measure of performance under U.S. generally accepted accounting principles and should not be considered in isolation or used as a substitute for income from operations, net income, net cash provided by operating activities, or other operating or cash flow statement data prepared in accordance with U.S. generally accepted accounting principles. We have presented EBITDA because this measure is used by investors, as well as our own management, to evaluate the operating performance of our business, including its ability to incur and to service debt. Nevertheless, EBITDA has distinct limitations as compared to a GAAP number such as net income. By excluding interest and tax payments, for example, an investor may not see that both represent a reduction in cash available to the company. Likewise, depreciation and amortization, while non-cash items, represent generally the devaluation of assets that produce revenue for the company. Our definition of EBITDA may not be the same as the definition of EBITDA used by other companies.
Lexington Precision Corporation manufactures rubber and metal components that are used primarily by manufacturers of automobiles, automotive replacement parts, and medical devices.
Contact: Warren Delano, President (212) 319-4657
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