EXHIBIT 99.1
NEWS FROM
TRANS-INDUSTRIES
Trans-Industries, Inc. o 2637 S. Adams Road o Rochester Hills, MI 48309
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FOR FURTHER INFORMATION:
AT TRANS-INDUSTRIES:
Kai Kosanke
Chief Financial Officer
(248) 852-1990
FOR IMMEDIATE RELEASE
WEDNESDAY, APRIL 14, 2004
TRANS-INDUSTRIES, INC. REPORTS
FOURTH QUARTER AND YEAR-END 2003 RESULTS
ROCHESTER HILLS, MICHIGAN -- APRIL 14, 2004, - TRANS-INDUSTRIES, INC. (NASDAQ:
TRNI), a manufacturer of bus lighting systems and information display products,
announced results for the fourth quarter and the year ended December 31, 2003.
Sales, as shown on the accompanying table, were $8,217,849 for the quarter, a
decline of 17.1% from the year ago quarter of $9,909,181. While lighting
products maintained the volume level of the year ago quarter, the drop in
electronic and mechanical information systems volume represented virtually the
entire sales decline for the period. For the year as whole, sales were down
approximately $846,000 to $33.7 million with $1.6 million of lost volume due to
the sale of the English subsidiary, which was sold, during the early part of
2003.
For the fourth quarter of 2003, losses were $1,490,126, or $.47 per share,
compared to losses of $1,204,020, or $.38 per share, for the same period a year
ago.
A continuing review of the Company's capabilities and assets led to
restructuring and refinancing efforts starting in mid-year, with particular
emphasis during the fourth quarter. These moves resulted in management changes
in the information systems business. Restructuring charges in the form of
severance costs and consulting charges in the amount of $198,000 were incurred
as a result of these changes. In addition to the above charges, the fourth
quarter of 2003 was adversely affected by an increase in health care costs, a
complete write-down of the company's deferred tax assets, and a reversal of
almost $800,000 of revenue due to customers failure to take delivery of product
in the fourth quarter, even though payment had been received for most of the
product. These additional expenses for the quarter approximated $1,145,000.
For the year ended December 31, 2003, the company posted a loss of $3,761,090,
or $1.20 per share, compared to a loss of $1,343,644, or $0.43 per share, for
the prior year. Restructuring charges of approximately $832,000 are included in
the 2003 results, as well as the fourth quarter expenses of $1,145,000 noted
above. Ongoing restructuring and refinancing efforts continues into 2004 with
emphasis on profit improvement in all areas of the business. Moreover, certain
steps have been taken to refinance debt and improve liquidity; notably, an
equity infusion of $1.5 million represented by convertible preferred stock
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was realized in March and a purchase agreement for the sale of the information
systems plant, soon to be vacated, was signed in March.
The Company continues to operate under a forbearance agreement with Comerica
Bank, its present lender, until January 2005. Meanwhile, efforts continue to
locate another lender to replace the Comerica credit. Indications of interest
have been received but no assurance can be made as to the successful completion
of financing by year-end.
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.....
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TRANS-INDUSTRIES, INC.
SALES AND EARNINGS REPORT (UNAUDITED)
DECEMBER 31, 2003
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FOURTH QUARTER ENDING TWELVE MONTHS ENDING
DECEMBER 31 DECEMBER 31
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2003 2002 2003 2002
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Sales $ 8,217,849 $ 9,909,181 $ 33,721,456 $ 34,567,382
Cost of Sales 6,137,775 7,713,388 25,284,634 25,165,989
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Gross Profit 2,080,074 2,195,793 8,436,822 9,401,393
Selling, Gen. & Admin. Exp 2,710,393 2,521,725 10,234,024 9,829,489
Interest 169,419 68,474 661,880 664,727
Impairment Loss* 0 450,000 0 450,000
Restructuring Costs 197,879 0 831,862 0
Other (55,491) (7,386) (60,854) (34,179)
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Total Expenses 3,022,200 3,032,813 11,666,912 10,910,037
Earnings Before Income Taxes (942,126) (837,020) (3,230,090) (1,508,644)
Income Taxes 548,000 367,000 531,000 (165,000)
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Net Income $ (1,490,126) $ (1,204,020) $ (3,761,090) $ (1,343,644)
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Earnings Per Share $ (0.47) $ (0.38) $ (1.20) $ (0.43)
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Weighted Average Number of
Shares Outstanding 3,139,737 3,139,737 3,139,737 3,139,737
*Impairment loss reconized relates to sale of U.K. assets in March 2003.
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CONSOLIDATED BALANCE SHEET (UNAUDITED)
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FOURTH QUARTER ENDING
DECEMBER 31
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ASSETS: 2003 2002
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Total Current Assets $17,224,345 $21,551,418
Net Fixed Assets 3,611,304 4,116,723
Other Assets 328,868 235,021
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Total Assets $21,164,517 $25,903,162
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LIABILITIES AND SHAREHOLDERS' EQUITY:
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Total Current Liabilities $15,713,505 $13,065,056
Deferred Income Taxes 0 483,000
Long Term Debt 296,669 3,446,981
Shareholders' Equity 5,154,343 8,908,125
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Total Liabilities and Shareholders' Equity $21,164,517 $25,903,162
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