NEWS FROM
TRANS-INDUSTRIES
Trans-Industries, Inc. o 2637 S. Adams Road o Rochester Hills, MI 48309
FOR FURTHER INFORMATION:
AT TRANS-INDUSTRIES:
Kai Kosanke
Chief Financial Officer
(248) 852-1990
FOR IMMEDIATE RELEASE
THURSDAY, NOVEMBER 20, 2003
TRANS-INDUSTRIES, INC. REPORTS
THIRD-QUARTER RESULTS
ROCHESTER HILLS, MICHIGAN -- THURSDAY NOVEMBER 20, 2003 - TRANS-INDUSTRIES, INC.
(NASDAQ: TRNI), a manufacturer of lighting products for busses, particle
extraction systems, electronic information systems and software related products
for the mass transit, highway and commercial markets, today announced results
for the third quarter and nine months ended September 30, 2003.
Sales for the third quarter were $8.3 million compared with $7.6 million a year
ago. Included in the 2002 third quarter results was $310,000 in sales from a
United Kingdom subsidiary, which was sold in the first quarter of 2003. For the
nine-month period ending on September 30, 2003, sales were $25.5 million
compared with $24.7 million last year with $310,000 of these sales for the 2002
period attributed to the operation that was sold.
Excluding these sales, the Company realized volume increases of approximately
14% for the quarter and 10% for the nine-month period.
Although not readily apparent, a substantial improvement in operating
profitability was achieved during the third quarter prior to recognition of
restructuring and nonrecurring charges. During the quarter, a plan was
implemented to restore profitability at the information systems business. Costs
associated with this restructuring include, but are not limited to, employee
severance costs and inventory write-offs as well as legal, insurance and
advisory fees. The plan entailed reducing personnel, consolidating manufacturing
into one plant from two, placing the Rochester Hills plant on the market for
sale and eliminating certain product lines. The resultant loss for the quarter
amounted to $1.7 million or $0.53 per share compared with a loss of $678,000, or
$0.16 per share, last year. The 2003 quarterly loss included $361,000 of
restructuring costs and an inventory write down of $1.1 million. For the
nine-month period, a loss of $2.3 million, or $0.72 per share was incurred,
compared with a loss of $140,000 or 0.04 per share a year ago. The 2003 period
included a $272,000 restructuring loss on the sale of English subsidiary that
was taken in the first quarter, as well as the previously mentioned charges.
The Company continues to be in default on certain covenants of its bank debt. As
a result, the bank has the right, among other remedies to demand payment in full
of all the liabilities. Pursuant to an agreement between Trans-Industries and
its current lender, Comerica Bank dated August 1, 2003, Comerica has agreed to
forbear from taking action to collect the liabilities until December 1, 2003.
Although this agreement expires on
December 1, 2003 the Company anticipates the bank will extend this agreement for
another 30 days, however, there can be no assurances of this. The Company has
begun negotiations with another lender to replace Comerica. The proposed new
lender has begun its task of due diligence and after a satisfactory completion
of that process, the Company expects to replace the Comerica debt. The Company
has targeted the end of the year for the completion, however, there can be no
assurance of when, or if, successful completion of any agreement with this new
lender will occur.
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.
VISIT TRANS-INDUSTRIES AT www.transindustries.com
FINANCIAL TABLES FOLLOW.....
TRANS-INDUSTRIES, INC.
QUARTERLY EARNINGS
SEPTEMBER 30, 2003
THIRD QUARTER ENDING NINE MONTHS ENDING
SEPTEMBER 30 SEPTEMBER 30
---------------------------- ----------------------------
2003 2002 2003 2002
---- ---- ---- ----
Sales $ 8,310,848 $ 7,603,082 $ 25,503,607 $ 24,658,201
Cost of Sales 7,225,458 5,592,213 19,146,859 17,452,601
------------ ------------ ------------ ------------
Gross Profit 1,085,390 2,010,869 6,356,748 7,205,600
Selling, Gen. & Admin. Exp 2,227,645 2,518,781 7,523,631 7,307,764
Interest 160,692 163,743 492,461 596,253
Restructuring Costs * 361,124 0 633,983 0
Other (3,355) (13,663) (5,363) (26,793)
------------ ------------ ------------ ------------
Total Expenses 2,746,106 2,668,861 8,644,712 7,877,224
Earnings/Loss Before Income Taxes (1,660,716) (657,992) (2,287,964) (671,624)
Income Taxes/Benefit 0 (166,000) (17,000) (532,000)
------------ ------------ ------------ ------------
Net Income/Loss $ (1,660,716) $ (491,992) $ (2,270,964) $ (139,624)
============ ============ ============ ============
Earnings/Loss Per Share
Basic $ (0.53) $ (0.16) $ (0.72) $ (0.04)
============ ============ ============ ============
* Restructuring charges incurred for restructuring Vultron, including the sale
of it's wholly owned subsidiary.
Weighted Average Number of
Shares Outstanding 3,139,737 3,139,737 3,139,737 3,139,737
CONSOLIDATED BALANCE SHEET (UNAUDITED)
THIRD QUARTER ENDING
SEPTEMBER 30
-------------------------
Assets: 2003 2002
- ------- ---- ----
Total Current Assets $17,825,110 $21,071,820
Net Fixed Assets 3,742,306 4,436,213
Other Assets 386,474 236,419
----------- -----------
Total Assets $21,953,890 $25,744,452
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY:
- -------------------------------------
Total Current Liabilities $14,568,106 $11,939,434
Deferred Income Taxes 458,000 193,000
Long-Term Debt 296,374 3,591,434
Shareholders' Equity 6,631,410 10,020,584
----------- -----------
Total Liabilities and Shareholders' Equity $21,953,890 $25,744,452
=========== ===========