EXHIBIT 99.1
FOR IMMEDIATE RELEASE
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LEXINGTON PRECISION REPORTS SECOND QUARTER RESULTS
NEW YORK, August 18, 2003 -- Lexington Precision Corporation reported a net loss
of $674,000, or 14 cents per diluted common share, for the second quarter ended
June 30, 2003, compared to net income of $207,000, or 4 cents per diluted common
share, for the second quarter of 2002.
Net sales for the second quarter of 2003 were $30,873,000, compared to
$32,996,000 for the second quarter of 2002, a decrease of 6%. Net sales of the
company's Rubber Group increased by 2% to $26,645,000, while net sales of the
Metals Group decreased by 38% to $4,228,000. The net sales of the Metals Group
declined primarily because of the loss of volume because customers were able to
resource several diecast components in lower cost countries and to convert a
high-volume, machined metal component to a stamped metal component.
During the second quarter of 2003, income from operations totaled $1,113,000,
compared to $2,204,000 for the second quarter of 2002. Income from operations at
the Rubber Group decreased to $3,020,000 from $3,449,000. The Metals Group
reported a loss from operations of $1,259,000, compared to a loss of $492,000
for the second quarter of 2002. Corporate office expenses decreased to $648,000
from $753,000.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) for the
second quarter of 2003, totaled $3,744,000, compared to EBITDA of $5,184,000 for
the second quarter of 2002, a decrease of 28%. EBITDA for the Rubber Group
decreased 11% to $4,825,000, while EBITDA for the Metals Group, decreased from
$530,000 to negative $443,000. Corporate office EBITDA improved from negative
$753,000 to negative $638,000.
Net cash provided by operating activities for the second quarter of 2003 totaled
$4,467,000, compared to $3,522,000 for the second quarter of 2002, an increase
of 27%.
The company reported a net loss of $843,000, or 17 cents per diluted common
share, for the first six months of 2003, compared to a net loss of $1,419,000,
or 29 cents per diluted common share, for the first six months of 2002.
Net sales for the first six months of 2003 were $63,256,000, compared to
$63,240,000 for the first six months of 2002. Net sales of the Rubber Group
increased by 7% to $53,367,000, while net sales of the Metals Group decreased by
25% to $9,889,000, primarily due to the factors mentioned above for the second
quarter.
Lexington Precision Corporation
August 18, 2003
During the first six months of 2003, income from operations totaled $2,751,000,
compared to $2,395,000 for the first six months of 2002. Income from operations
at the Rubber Group decreased to $5,839,000 from $5,939,000. The Metals Group
reported a loss from operations of $1,842,000, compared to a loss of $2,208,000
for the first six months of 2003. Corporate office expenses decreased to
$1,246,000 from $1,336,000.
EBITDA for the first six months of 2003, totaled $8,153,000, compared to EBITDA
of $8,424,000 for the first six months of 2002, a decrease of 3%. EBITDA for the
Rubber Group decreased 4% to $9,519,000, while EBITDA for the Metals Group,
improved from negative $158,000 to negative $139,000. Corporate office EBITDA
improved from negative $1,336,000 to negative $1,227,000.
Net cash provided by operating activities for the first six months of 2003
totaled $4,857,000, compared to $5,132,000 for the first six months of 2002, a
decrease of 5%.
Tables setting forth our condensed consolidated statements of operations and
selected consolidated and segment financial data, including information
concerning our cash flows from operations and reconciliations of consolidated
net loss and consolidated income from operations to consolidated EBITDA, are
attached. EBITDA is not a measure of performance under accounting principles
generally accepted in the United States and should not be considered in
isolation or used as a substitute for income from operations, net income, net
cash provided by operating activities, or other operating or cash flow statement
data prepared in accordance with generally accepted accounting principles. We
have presented EBITDA because we believe this measure is used by investors, as
well as our own management, to evaluate the operating performance of our
business, including its ability to incur and to service debt. Our definition of
EBITDA may not be the same as the definition of EBITDA used by other companies.
Lexington Precision Corporation manufactures rubber and metal components that
are used primarily by manufacturers of automobiles, automotive replacement
parts, and medical devices.
Contact: Warren Delano, President (212) 319-4657
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LEXINGTON PRECISION CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
QUARTER ENDED SIX MONTHS ENDED
JUNE 30 JUNE 30
------------------------ -------------------------
2003 2002 2003 2002
---- ---- ---- ----
Net sales $ 30,873 $ 32,996 $ 63,256 $ 63,240
Cost of sales 27,587 28,356 56,240 55,632
--------- --------- --------- ---------
Gross profit 3,286 4,640 7,016 7,608
Selling and administrative expenses 2,173 2,349 4,265 4,604
Plant closure costs - 87 - 609
--------- --------- --------- ---------
Income from operations 1,113 2,204 2,751 2,395
Interest expense 1,760 1,967 3,540 3,763
--------- --------- --------- ---------
Income (loss) before income taxes (647) 237 (789) (1,368)
Income tax provision 27 30 54 51
--------- --------- --------- ---------
Net income (loss) $ (674) $ 207 $ (843) $ (1,419)
========= ========= ========= =========
Basic and diluted net income (loss) available to
Common stockholders $ (0.14) $ 0.04 $ (0.17) $ (0.29)
========= ========= ========= =========
Weighted average number of common shares
outstanding 4,828 4,828 4,828 4,828
========= ========= ========= =========
Reconciliation of net income (loss) to EBITDA:
Net income (loss) $ (674) $ 207 $ (843) $ (1,419)
Add back:
Depreciation and amortization 2,631 2,980 5,402 6,029
Interest expense 1,760 1,967 3,540 3,763
Income tax provision 27 30 54 51
--------- --------- --------- ---------
EBITDA $ 3,744 $ 5,184 $ 8,153 $ 8,424
========= ========= ========= =========
Net cash provided by operating activities $ 4,467 $ 3,522 $ 4,857 $ 5,132
========= ========= ========= =========
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LEXINGTON PRECISION CORPORATION
SELECT CONSOLIDATED AND SEGMENT FINANCIAL DATA
(IN THOUSANDS)
QUARTER ENDED SIX MONTHS ENDED
JUNE 30 JUNE 30
------------------------- --------------------------
2003 2002 2003 2002
---- ---- ---- ----
Net sales:
Rubber Group $ 26,645 $ 26,161 $ 53,367 $ 50,114
Metals Group 4,228 6,835 9,889 13,126
--------- --------- --------- ---------
Total net sales $ 30,873 $ 32,996 $ 63,256 $ 63,240
========= ========= ========= =========
Income (loss) from operations:
Rubber Group $ 3,020 $ 3,449 $ 5,839 $ 5,939
Metals Group (1,259) (492) (1,842) (2,208)
Corporate office (648) (753) (1,246) (1,336)
--------- --------- --------- ---------
Total income (loss) from operations 1,113 2,204 2,751 2,395
--------- --------- --------- ---------
Add back depreciation and amortization included
in income from operations:
Rubber Group 1,805 1,947 3,680 3,947
Metals Group 816 1,022 1,703 2,050
Corporate office 10 11 19 32
--------- --------- --------- ---------
Total depreciation and amortization 2,631 2,980 5,402 6,029
--------- --------- --------- ---------
Earnings (loss) before interest, taxes, depreciation,
and amortization (EBITDA):
Rubber Group 4,825 5,396 9,519 9,886
Metals Group (443) 530 (139) (158)
Corporate office (638) (742) (1,227) (1,304)
--------- --------- --------- ---------
Total EBITDA $ 3,744 $ 5,184 $ 8,153 $ 8,424
========= ========= ========= =========
Capital expenditures:
Rubber Group $ 1,392 $ 903 $ 2,219 $ 1,566
Metals Group 443 244 619 359
Corporate office - - 2 -
--------- --------- --------- ---------
Total capital expenditures $ 1,835 $ 1,147 $ 2,840 $ 1,925
========= ========= ========= =========
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