EXHIBIT 99.1
CONTACT: Leonard Carr
Sr. Vice President
713-783-8200
lcarr@tidelmail.com
FOR IMMEDIATE RELEASE
TIDEL AMENDS SENIOR REVOLVING CREDIT LINE WITH JP MORGAN CHASE
HOUSTON, TEXAS -- December 21, 2001 -- Tidel Technologies, Inc. (Nasdaq: ATMS)
today announced that it has amended its Senior Revolving Credit Facility with JP
Morgan Chase. The amendment restores Tidel's compliance with the provisions of
the agreement and revises the terms to better address the present needs of the
company. The amended facility, among other things:
- Allows for borrowings up to $7,000,000 at the prime rate, currently
4.75%;
- Adjusts the borrowing base to permit greater concentrations of
eligible accounts receivable from certain customers;
- Increases the maximum amount of eligible inventory includable in the
borrowing base from $2,500,000 to $3,500,000; and
- Modifies certain financial covenants with respect to tangible net
worth requirements and interest coverage ratios to better relate to
the current financial position of the company.
James T. Rash, Chairman and CEO, stated, "Prior to the amendment, Tidel was not
in compliance with certain covenants under the facility primarily due to the
establishment of reserves for losses related to Credit Card Center during the
quarter ended June 30, 2001. The amendment restores this working capital
facility to good standing and provides availability for future borrowings.
Presently there is approximately $4,700,000 outstanding under the facility,
compared to $5,200,000 at June 30, 2001."
He added, "We continue to work closely with the holders of our 6% Subordinated
Convertible Debentures to resolve outstanding issues and restructure the
obligations."
Tidel Technologies, Inc. is a manufacturer of automated teller machines and cash
security equipment designed for specialty retail marketers. To date, Tidel has
sold more than 30,000 retail ATMs and 115,000 retail cash controllers in the
U.S. and 36 other countries. More information about the company and its products
may be found on the Internet at www.tidel.com.
"SAFE HARBOR" DISCLAIMER UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995: THIS PRESS RELEASE CONTAINS FORWARD-LOOKING STATEMENTS, INCLUDING
STATEMENTS AS TO ANTICIPATED OR EXPECTED RESULTS, BELIEFS, OPINIONS, AND FUTURE
FINANCIAL PERFORMANCE. THE FORWARD-LOOKING STATEMENTS ARE BASED ON CURRENT
EXPECTATIONS AND ASSUMPTIONS AND INVOLVE RISKS AND UNCERTAINTIES THAT MAY CAUSE
THE COMPANY'S ACTUAL EXPERIENCE TO DIFFER MATERIALLY FROM THAT ANTICIPATED.
ESTIMATES ARE BASED ON RELIABLE INFORMATION AND PAST EXPERIENCE. HOWEVER,
OPERATING RESULTS ARE
AFFECTED BY A WIDE VARIETY OF FACTORS, MANY OF WHICH ARE BEYOND THE CONTROL OF
THE COMPANY. FACTORS INCLUDE, BUT ARE NOT LIMITED TO, THE LEVELS OF ORDERS WHICH
ARE RECEIVED AND CAN BE SHIPPED IN A QUARTER; CUSTOMER ORDER PATTERNS AND
SEASONALITY; COSTS OF LABOR, RAW MATERIALS, SUPPLIES AND EQUIPMENT;
TECHNOLOGICAL CHANGES; COMPETITION AND COMPETITIVE PRESSURES ON PRICING; AND
ECONOMIC CONDITIONS IN THE UNITED STATES AND WORLDWIDE. ADDITIONALLY, FACTORS
AND RISKS AFFECTING OPERATING RESULTS INCLUDE THOSE DESCRIBED IN THE COMPANY'S
REGISTRATION STATEMENTS AND PERIODIC REPORTS FILED WITH THE U.S. SECURITIES AND
EXCHANGE COMMISSION.
