EXHIBIT 99.1
FOR IMMEDIATE RELEASE
LEXINGTON PRECISION REPORTS THIRD QUARTER RESULTS
NEW YORK, November 17, 2003 -- Lexington Precision Corporation reported a net
loss of $1,963,000, or 41 cents per diluted common share, for the third quarter
ended September 30, 2003, compared to net income of $227,000, or 5 cents per
diluted common share, for the third quarter of 2002.
Net sales for the third quarter of 2003 were $28,294,000, compared to
$32,342,000 for the third quarter of 2002, a decrease of 13%. Net sales of the
Rubber Group decreased by 4% to $24,665,000, while net sales of the Metals Group
decreased by 46% to $3,629,000.
During the third quarter of 2003, income from operations totaled $6,000,
compared to $2,084,000 for the third quarter of 2002. Income from operations at
the Rubber Group decreased to $1,602,000 from $3,099,000. The Metals Group
reported a loss from operations of $976,000, compared to a loss of $424,000 for
the third quarter of 2002. Corporate office expenses increased to $620,000 from
$591,000.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) for the
third quarter of 2003, totaled $2,463,000, compared to EBITDA of $4,954,000 for
the third quarter of 2002, a decrease of 50%. EBITDA for the Rubber Group
decreased from $4,991,000 to $3,334,000, and EBITDA for the Metals Group
decreased from $542,000 to negative $261,000. EBITDA for the Corporate Office
decreased from negative $579,000 to negative $610,000.
Net cash provided by operating activities for the third quarter of 2003 totaled
$4,248,000, compared to $6,380,000 for the third quarter of 2002, a decrease of
33%.
The company reported a net loss of $2,806,000, or 58 cents per diluted common
share, for the first nine months of 2003, compared to a net loss of $1,192,000,
or 25 cents per diluted common share, for the first nine months of 2002.
Net sales for the first nine months of 2003 were $91,550,000, compared to
$95,582,000 for the first nine months of 2002. Net sales of the Rubber Group
increased by 3% to $78,032,000, while net sales of the Metals Group decreased by
32% to $13,518,000.
During the first nine months of 2003, income from operations totaled $2,757,000,
compared to $4,479,000 for the first nine months of 2002. Income from operations
at the Rubber Group decreased to $7,441,000 from $9,038,000. The Metals Group
reported a loss from operations of $2,818,000, compared to a loss of $2,632,000
for the first nine months of 2002. Corporate office expenses decreased to
$1,866,000 from $1,927,000.
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Lexington Precision Corporation
November 17, 2003
For the first nine months of 2003, EBITDA totaled $10,616,000, compared to
$13,378,000 for the first nine months of 2002, a decrease of 21%. EBITDA for the
Rubber Group decreased from $14,877,000 to $12,853,000, and EBITDA for the
Metals Group decreased from $384,000 to negative $400,000. EBITDA for the
Corporate Office improved from negative $1,883,000 to negative $1,837,000.
Net cash provided by operating activities for the first nine months of 2003
totaled $9,105,000, compared to $11,512,000 for the first nine months of 2002, a
decrease of 21%.
Attached to this press release are 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. 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 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 NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
---------------------- ------------------------
2003 2002 2003 2002
---- ---- ---- ----
Net sales $ 28,294 $ 32,342 $ 91,550 $ 95,582
Cost of sales 26,278 28,130 82,518 83,761
-------- -------- --------- ---------
Gross profit 2,016 4,212 9,032 11,821
Selling and administrative expenses 2,010 2,128 6,275 6,733
Plant closure costs - - - 609
-------- -------- --------- ---------
Income from operations 6 2,084 2,757 4,479
Interest expense 1,715 1,978 5,255 5,741
-------- -------- --------- ---------
Income (loss) before income taxes (1,709) 106 (2,498) (1,262)
Income tax provision (benefit) 7 (121) 61 (70)
-------- -------- --------- ---------
Net income (loss) before cumulative effect of change
in accounting principle (1,716) 227 (2,559) (1,192)
Cumulative effect of change in accounting principle 247 - 247 -
-------- -------- --------- ---------
Net income (loss) $ (1,963) $ 227 $ (2,806) $ (1,192)
======== ======== ========= =========
Per share data:
Basic and diluted net income (loss) before
cumulative effect of change in accounting principle $ (0.36) $ 0.05 $ (0.53) $ (0.25)
Cumulative effect of change in accounting principle (0.05) - (0.05) -
======== ======== ========= =========
Basic and diluted net income (loss) applicable to
common stockholders (0.41) 0.05 (0.58) (0.25)
======== ======== ========= =========
Reconciliation of net income (loss) to EBITDA:
Net income (loss) $ (1,963) $ 227 $ (2,806) $ (1,192)
Add back:
Depreciation and amortization 2,457 2,870 7,859 8,899
Interest expense 1,715 1,978 5,255 5,741
Income tax provision 7 (121) 61 (70)
Cumulative effect of change in accounting
principle 247 - 247 -
-------- -------- --------- ---------
EBITDA $ 2,463 $ 4,954 $ 10,616 $ 13,378
======== ======== ========= =========
Net cash provided by operating activities $ 4,248 $ 6,380 $ 9,105 $ 11,512
======== ======== ========= =========
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LEXINGTON PRECISION CORPORATION
SELECT CONSOLIDATED AND SEGMENT FINANCIAL DATA
(IN THOUSANDS)
QUARTER ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
----------------------- -----------------------
2003 2002 2003 2002
---- ---- ---- ----
Net sales:
Rubber Group $ 24,665 $ 25,617 $ 78,032 $ 75,731
Metals Group 3,629 6,725 13,518 19,851
-------- -------- --------- ---------
Total net sales $ 28,294 $ 32,342 $ 91,550 $ 95,582
======== ======== ========= =========
Income (loss) from operations:
Rubber Group $ 1,602 $ 3,099 $ 7,441 $ 9,038
Metals Group (976) (424) (2,818) (2,632)
Corporate Office (620) (591) (1,866) (1,927)
-------- -------- --------- ---------
Total income (loss) from operations 6 2,084 2,757 4,479
-------- -------- --------- ---------
Add back depreciation and amortization included
in income from operations:
Rubber Group 1,732 1,892 5,412 5,839
Metals Group 715 966 2,418 3,016
Corporate Office 10 12 29 44
-------- -------- --------- ---------
Total depreciation and amortization 2,457 2,870 7,859 8,899
-------- -------- --------- ---------
Earnings (loss) before interest, taxes, depreciation,
and amortization (EBITDA):
Rubber Group 3,334 4,991 12,853 14,877
Metals Group (261) 542 (400) 384
Corporate Office (610) (579) (1,837) (1,883)
-------- -------- --------- ---------
Total EBITDA $ 2,463 $ 4,954 $ 10,616 $ 13,378
======== ======== ========= =========
Capital expenditures:
Rubber Group $ 1,651 $ 920 $ 3,870 $ 2,486
Metals Group 64 974 683 1,333
Corporate Office 9 4 11 4
-------- -------- --------- ---------
Total capital expenditures $ 1,724 $ 1,898 $ 4,564 $ 3,823
======== ======== ========= =========
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