NEWS FROM EXHIBIT 99.1
TRANS-INDUSTRIES
Trans-Industries, Inc. - 1780 Opdyke Court - Auburn Hills, MI 48326
- -------------------------------------------------------------------------------
FOR FURTHER INFORMATION:
AT TRANS-INDUSTRIES:
Kai Kosanke
Chief Financial Officer
(248) 364-0400
FOR IMMEDIATE RELEASE
MONDAY, NOVEMBER 14, 2005
TRANS-INDUSTRIES, INC. REPORTS
THIRD - QUARTER 2005 RESULTS
AUBURN HILLS, MICHIGAN - NOVEMBER 14, 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 third quarter ended September 30, 2005.
Sales for the third quarter totaled $6.1 million, a decrease of $765 thousand
compared with $6.9 million for the same period last year. Most of this decline
was attributable to decreased sales of the Company's lighting products, down for
the third quarter of 2005 by approximately $706 thousand compared to the third
quarter of 2004. The reduction in lighting products revenues is a result of
reduced transit bus production, lower demand for the Company's modular parcel
racks, and market acceptance of a competitor's product. A reduction of $85
thousand in humidifier sales is also reflected in the third quarter sales since
assets of the Lobb Company had been sold in June 2005. On this reduced volume,
the Company reported a loss of $l.6 million for the third quarter or $.43 per
share, compared to a profit of $1,8 million, or $.60 per share, for the same
period of 2004. Included in the profit for the third quarter of 2004, was a gain
of $2,378,000 realized on the sale of a manufacturing facility. For the third
quarter of 2005, the Company incurred a number of one-time expenses that
increased the losses for the quarter. These primarily related to the continued
downsizing of Vultron. $882 thousand of expense related to inventory adjustments
consisting of a loss on the auction of obsolete inventory, adjustments to labor
and overhead rates applied to work in process and finished goods inventory, and
an inventory reserve set up as a result of a complete shutdown of the Bad Axe
facility and the resulting slow moving inventory still remaining. $185 thousand
was reserved for anticipated costs associated with the release of employees.
$350 thousand was reserved for the completion of a highway signage contract that
the Company had previously planned on resolving thru more favorable
negotiations. Finally, the Company increased its bad debt reserve by $212
thousand for one specific customer due to the customer's financial condition and
inability to pay vendors.
Sales for the first nine months of 2005 were $17.1 million compared with $22.1
million for the same period last year. This decline in sales included a $2
million reduction in the sales of digital display products. The same market
factors mentioned for the third quarter caused diminished sales volume for the
nine month period ending September 30, 2005. Lower sales revenue resulted in an
operating loss of $2.9 million compared to a loss of $1 million for the same
period last year. The total loss for the 2005 nine-month period was $3.6
million, or $0.94 per share, compared with a loss of $1 million, or $0.34 per
share for the first nine 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)
SEPTEMBER 30, 2005
===============================================================================
THIRD QUARTER ENDING NINE MONTHS ENDING
SEPTEMBER 30 SEPTEMBER 30
------------------------------- ---------------------------------
2005 2004 2005 2004
----------- ----------- ------------ ------------
Sales $ 6,143,112 $ 6,908,580 $ 17,187,962 $ 22,141,046
Cost of Sales 5,315,116 5,142,557 13,781,575 18,737,366
----------- ----------- ------------ ------------
Gross Profit 827,996 1,766,023 3,406,387 3,403,680
Selling, Gen. & Admin. Exp. 1,972,915 2,133,229 5,624,940 6,240,547
Interest 145,794 123,043 386,364 446,619
Restructuring Costs 0 19 0 129,017
Other * 387,283 (2,384,522) 349,223 (2,395,733)
----------- ----------- ------------ ------------
Total Expenses 2,505,992 (128,231) 6,360,527 4,420,450
Earnings/Loss Before Income Taxes (1,677,996) 1,894,254 (2,954,140) (1,016,770)
Income Taxes/Benefit 0 0 0 0
----------- ----------- ------------ ------------
Net Income/Loss (1,677,996) 1,894,254 (2,954,140) (1,016,770)
Preferred Dividend 0 (18,750) (708,461) (43,542)
----------- ----------- ------------ ------------
Net Earnings/(Loss) Available to
Common Shareholders $(1,677,996) $ 1,875,504 $ (3,662,601) $ (1,060,312)
=========== =========== ============ ============
Earnings/Loss Per Share
Basic $ (0.43) $ 0.60 $ (0.94) $ (0.34)
=========== =========== ============ ============
* Includes $2,378,390 gain on the sale of the Vultron building in 2004.
Weighted Average Number of
Shares Outstanding 3,907,260 3,139,737 3,907,260 3,139,737
*******************************************************************************
CONSOLIDATED BALANCE SHEET (UNAUDITED)
THIRD QUARTER ENDING
SEPTEMBER 30
------------------------------------
ASSETS: 2005 2004
- ------- ------------- -------------
Total Current Assets $ 8,956,409 $ 13,746,062
Net Fixed Assets 1,449,855 3,251,545
Other Assets 1,432,197 743,898
------------- -------------
Total Assets $ 11,838,461 $ 17,741,505
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY:
Total Current Liabilities $ 9,973,009 $ 8,867,213
Deferred Income Taxes 0 0
Long-Term Debt 181,415 3,502,406
Shareholders' Equity 1,684,037 5,371,886
------------- -------------
Total Liabilities and Shareholders' Equity $ 11,838,461 $ 17,741,505
============= =============