EXHIBIT 99.1
DRAFT: 08/15/05
LOGO OMITTED
PRESS RELEASE
For further information contact:
Edward F. Ruttenberg
Phone: (412) 422-2377
Fax: (412) 422-2378
Release No: 2005-15
(BW) (NY-AMERICAN-LOCKER-GROUP) (NASDAQ:ALGIE) AMERICAN LOCKER GROUP
INCORPORATED ANNOUNCES RESULTS FOR SECOND QUARTER OF 2005 AND RETURN OF TRADING
SYMBOL TO "ALGI"
BUSINESS EDITOR
JAMESTOWN, NY- (BUSINESS WIRE) August 15, 2005. American Locker Group
Incorporated announced that it filed its Quarterly Report on Form 10-Q for its
fiscal quarter ended June 30, 2005. The operating results for the second quarter
of 2005 reflect a partial quarter of revenues from the Company's long-term
contract with the United States Postal Service (USPS) for polycarbonate and
aluminum Cluster Box Units (CBUs), which was not renewed by USPS and expired on
May 31, 2005. The Company expects that its sales and operating results will
decline substantially in subsequent quarters of 2005 as compared to the first
and second quarters, as a result of the loss of the USPS as a customer. In
addition, the Company recorded restructuring charges of $1,158,000 in the second
quarter of 2005.
In the second quarter of 2005, the Company recorded consolidated net sales of
$8,986,422, a decrease from $10,254,164, or 12.4%, over the second quarter of
2004. The Company's consolidated net sales for the six months ended June 30,
2005 were $18,146,642, which represents a decline of 8.4% from the consolidated
net sales of $19,808,471 for the comparable period in 2004. The decrease in net
sales was attributable primarily to a decline in plastic postal sales to the
USPS, which was offset by a modest increase in metal locker and postal sales to
the private market. Plastic locker sales were $3,736,000 in the second quarter
of 2005 versus $5,345,000 in the same period of 2004, a decline of 30.1%,
whereas metal locker and metal postal sales for the second quarter of 2005 were
$5,250,000 compared to $4,909,000 in the same period of 2004, or an increase of
7.0%. The Company reported a net loss of $375,527 in the second quarter of 2005
and a net loss of $6,072,558 for the six months ended June 30, 2005, after a
first quarter write-down of goodwill of $6,155,204, as compared to net income of
$450,165 and $1,080,985, respectively, in the same periods of 2004. Loss per
share on a diluted basis
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was $0.25 per share in the second quarter of 2005 and $3.96 per share in the six
months ended June 30, 2005, down from earnings per share on a diluted basis of
$0.29 and $0.69, respectively, in the comparable periods of 2004.
Edward F. Ruttenberg, the Company's Chairman and Chief Executive Officer,
stated, "The Company is continuing the difficult process of implementing the
restructuring plan adopted by the Board of Directors in May of this year. To
date, the Company has eliminated three satellite sales offices and has reduced
its executive, administrative and sales staff by 11 persons. The Company has
also begun the process of relocating its headquarters to its facilities in
Grapevine, Texas, and I now am working full-time in Grapevine. I am very pleased
that John Harris, Harold Rabin, Mary Stanford and James Vanasek recently joined
the Company's Board of Directors and are contributing to the Company's efforts
to continue the implementation of the restructuring plan."
The Company also announced that the Nasdaq Listing Qualifications Panel that
was considering the Company's continued listing determined that the Company was
in compliance with Nasdaq's continued listing requirements following the
Company's filing of its Annual Report on Form 10-K for its fiscal year ended
December 31, 2004 and its Quarterly Report on Form 10-Q for its fiscal quarter
ended March 31, 2005. Accordingly, the Panel determined to continue the listing
of the Company's common stock on The Nasdaq National Market. Effective at the
opening of business on August 10, 2005, the Company's trading symbol was changed
back to "ALGI" from "ALGIE", which had been the trading symbol since the opening
of business on April 21, 2005.
The matters discussed in this press release which contain forward-looking
statements, including without limitation, statements relating to the Company's
plans, strategies, objectives, expectations, intentions and adequacy of
resources, are made pursuant to the Safe Harbor Provisions of the Private
Securities Litigation Reform Act of 1995. Investors are cautioned that such
forward-looking statements involve certain known and unknown risks, some of
which are beyond the Company's control, including, among others, risks related
to (i) the Company's plans, strategies, objectives, expectations, and
intentions, which are subject to change at any time at the discretion of the
Company, (ii) the successful implementation of the Company's restructuring plan,
including a significant reduction of annual selling, general and administrative
expenses, the relocation of the Company's headquarters in Texas, and the
restructuring of its bank debt on terms acceptable to its lenders, (iii) new
product development by the Company, (iv) the Company's liquidity and capital
resources, (v) the Company's competition, and (vi) other risks and
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uncertainties indicated from time to time in the Company's filings with the
Securities and Exchange Commission. The Company's actual results could differ
materially from those expressed in any forward-looking statement made by or on
the Company's behalf. In light of these risks and uncertainties, there can be no
assurance that the forward-looking information will, in fact, prove to be
accurate. The Company has undertaken no obligation to publicly update or revise
any forward-looking statements, whether as a result of new information, future
events or otherwise.
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