NEWS FROM EXHIBIT 99.1
TRANS-INDUSTRIES
Trans-Industries, Inc. - 1780 Opdyke Ct. - Auburn Hills, MI 48326
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FOR FURTHER INFORMATION:
AT TRANS-INDUSTRIES:
Kai Kosanke
Chief Financial Officer
(248) 364-0400
FOR IMMEDIATE RELEASE
MONDAY AUGUST 15, 2005
TRANS-INDUSTRIES, INC. REPORTS
SECOND-QUARTER 2005 RESULTS
AUBURN HILLS, MICHIGAN - AUGUST 15, 2005 - TRANS-INDUSTRIES, INC. (NASDAQ:
TRNI), a leading manufacturer of interior bus lighting products, electronic
information systems and software, plus dust extraction systems and related
components for the mass transit and highway markets, today announced results for
the second quarter ended June 30, 2005.
Sales for the second quarter totaled $5.8 million compared with $7.7 million for
the same period last year. Most of this decline was attributable to decreased
sales of the Company's lighting products and its digital display products. On
this reduced volume, the Company reported an operating loss of $399,000. In
addition to this operating loss, the Company declared and paid dividends of
$675,000 on its Series A and B Preferred Stock. Approximately $560,000 of the
payment was for dividends in arrears. The total loss for the quarter, inclusive
of the dividend payments, was $1.1 million or $0.32 per share compared with a
loss of almost $2.7 million or $0.85 per share, for the comparable quarter last
year. The 2004 loss included establishment of a $2.3 million inventory reserve.
The reduction in lighting products revenues was a result of reduced transit bus
production, lower demand for the Company's modular parcel racks, and market
acceptance of a competitor's product. Reduced sales of digital display products
were primarily attributable to reduced sales of overhead highway signs. Sales of
dust abatement equipment recorded a moderate increase of $96,000 for the second
quarter of 2005 compared with the same quarter of 2004.
Sales for the first six months of 2005 were $11.0 million compared with $15.2
million for the same period last year. This resulted in an operating loss of
$1.3 million. In addition to this operating loss, the Company declared and paid
dividends of $708,000 on its Series A and B Preferred Stock. The total loss for
the 2005 six-month period, inclusive of the dividend payments, was $2.0 million,
or $0.60 per share, compared with a loss of $2.9 million, or $0.94 per share for
the first six months of 2004.
The Company continues to focus on improving profitability and cash flow by
reducing corporate management expenses, matching the workforce size to sales
volumes, and reducing fixed costs through manufacturing plant consolidations.
The Company's strategic market refocusing has begun to create some new orders
and new customers.
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.
SALES AND EARNINGS REPORT (UNAUDITED)
JUNE 30, 2005
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<Table>
<Caption>
SECOND QUARTER ENDING SIX MONTHS ENDING
JUNE 30 JUNE 30
------------------------------ ------------------------------
2005 2004 2005 2004
------------ ------------ ------------ ------------
Sales $ 5,775,667 $ 7,697,537 $ 11,044,850 $ 15,232,466
Cost of Sales 4,291,018 7,988,935 8,466,459 13,594,809
------------ ------------ ------------ ------------
Gross Profit 1,484,649 (291,398) 2,578,391 1,637,657
Selling, Gen. & Admin. Exp 1,782,273 2,141,985 3,652,025 4,107,318
Interest 119,746 161,068 240,570 323,576
Restructuring Costs 0 53,397 0 128,998
Other (18,070) (4,280) (38,060) (11,211)
------------ ------------ ------------ ------------
Total Expenses 1,883,949 2,352,170 3,854,535 4,548,681
Earnings/(Loss) Before Income Taxes (399,300) (2,643,568) (1,276,144) (2,911,024)
Income Taxes 0 0 0 0
------------ ------------ ------------ ------------
Net Income/ (Loss) (399,300) (2,643,568) (1,276,144) (2,911,024)
Preferred Dividend (674,745) (24,792) (708,461) (24,792)
------------ ------------ ------------ ------------
Net Loss Available to common
shareholders $ (1,074,045) $ (2,668,360) $ (1,984,605) $ (2,935,816)
============ ============ ============ ============
Earnings\ (Loss) Per Share
Basic $ (0.32) $ (0.85) $ (0.60) $ (0.94)
============ ============ ============ ============
Weighted Average Number of
Shares Outstanding 3,312,136 3,139,737 3,312,136 3,139,737
</Table>
********************************************************************************
CONSOLIDATED BALANCE SHEET (UNAUDITED)
<Table>
<Caption>
SECOND QUARTER ENDING
JUNE 30
-----------------------------
ASSETS: 2005 2004
------------ ------------
Total Current Assets $ 10,659,033 $ 13,162,987
Net Fixed Assets 1,548,849 3,476,926
Other Assets 1,678,865 159,442
------------ ------------
Total Assets $ 13,886,747 $ 16,799,355
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY:
Total Current Liabilities $ 11,095,446 $ 13,010,078
Deferred Income Taxes 0 0
Long Term Debt 178,415 292,896
Shareholders' Equity 2,612,886 3,496,381
------------ ------------
Total Liabilities and Shareholders' Equity $ 13,886,747 $ 16,799,355
============ ============
</Table>