EXHIBIT 99(A)
FOR IMMEDIATE RELEASE CONTACT:
Herman F. Dick, Jr.
(614) 870-5604
CORE MOLDING TECHNOLOGIES REPORTS FIRST QUARTER 2004 RESULTS
COLUMBUS, Ohio - May 6, 2004 - Core Molding Technologies, Inc. (AMEX: CMT) today
announced results for the first quarter ended March 31, 2004.
Net income for the quarter was $545,000, or $.06 per basic and $.05 per
diluted share, compared with net income of $515,000, or $.05 per basic and
diluted share, in the first quarter of 2003. Total net sales for the first
quarter of 2004 were $24,241,000 compared with $29,544,000 in the same quarter
of 2003. Net sales of the company's products increased 26% to $24,107,000 from
$19,063,000, for the similar period in 2003. Tooling sales for the quarter were
$134,000 compared with $10,481,000 in the first quarter of 2003. Revenue from
tooling projects is sporadic in nature and does not represent a recurring trend.
Gross margin was approximately 16.4% of sales for the three months
ended March 31, 2004, compared with 12.9% for the three months ended March 31,
2003. The increase in gross margin, as a percentage of sales from the prior
year, was due to a combination of many factors, but primarily a result of the
dilutive effect of tooling project revenue, which have traditionally had lower
margins compared to sales of sheet molding composite (SMC) and molded products.
Product margins were also positively impacted in the three months ended March
31, 2004 by the favorable effect of sales volume on fixed costs.
"We are encouraged that the anticipated recovery in many of the markets
we serve appears to be firmly materializing, particularly in the trucking
industry. As a supplier to many heavy and medium truck manufacturers, we are
seeing an across the board increase in the demand for products that we provide,"
said James L. Simonton, president and chief executive officer. "Even with an
improving economic outlook, we remain committed to our focus on product quality,
lean manufacturing and market diversification."
The company also benefited from reduced net interest expenses of
$236,000 for the three months ended March 31, 2004, compared with $ 470,000 for
the three months ended March 31, 2003 as a result of the December 2003
refinancing of debt. In addition, selling, general and administrative expenses
("SG&A") totaled $2,853,000 for the first quarter of 2004, compared
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with $2,482,000 for the same period in 2003 and were primarily impacted by an
increase in professional fees and outside services largely associated with the
previously announced Gaffney inventory misstatement.
"We are also beginning to see the positive effects of the process
improvements at our Gaffney facility, although we do not expect that the plant
will be functioning at normal levels until at least the end of the second
quarter 2004," Simonton said. "Our Columbus facility performed well in the first
quarter. Our Matamoros plant continues to perform consistently and began several
new molding and assembly programs in the same period."
Core Molding Technologies, Inc. is a compounder of sheet molding
composites (SMC) and molder of fiberglass reinforced plastics. The Company's
processing capabilities include the compression molding of SMC, vacuum assisted
resin infusion molding, spray up and hand lay up processes. The Company produces
high quality fiberglass reinforced, molded products and SMC materials for varied
markets, including medium and heavy-duty trucks, automobiles, personal
watercraft and other commercial products. Core Molding Technologies, with its
headquarters in Columbus, Ohio, operates plants in Columbus, Gaffney, South
Carolina, and Matamoros, Mexico.
This press release contains certain forward-looking statements within the
meaning of the federal securities laws. As a general matter, forward-looking
statements are those focused upon future plans, objectives or performance as
opposed to historical items and include statements of anticipated events or
trends and expectations and beliefs relating to matters not historical in
nature. Such forward-looking statements involve known and unknown risks and
are subject to uncertainties and factors relating to Core Molding
Technologies' operations and business environment, all of which are difficult
to predict and many of which are beyond Core Molding Technologies' control.
These uncertainties and factors could cause Core Molding Technologies' actual
results to differ materially from those matters expressed in or implied by
such forward-looking statements.
Core Molding Technologies believes that the following factors, among others,
could affect its future performance and cause actual results to differ
materially from those expressed or implied by forward-looking statements made
in this press release: business conditions in the plastics, transportation,
watercraft and commercial product industries; general economic conditions in
the markets in which Core Molding Technologies operates; dependence upon four
major customers as the primary source of Core Molding Technologies' sales
revenues; recent efforts of Core Molding Technologies to expand its customer
base; failure of Core Molding Technologies' suppliers to perform their
contractual obligations; the availability of raw materials; inflationary
pressures; new technologies; competitive and regulatory matters; labor
relations; the loss or inability of Core Molding Technologies to attract key
personnel; the availability of capital; the ability of Core Molding
Technologies to provide on-time delivery to customers, which may require
additional shipping expenses to ensure on-time delivery or otherwise result
in late fees; risk of cancellation or rescheduling of orders; and
management's decision to pursue new products or businesses which involve
additional costs, risks or capital expenditures.
# # #
SEE ATTACHED FINANCIALS
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CORE MOLDING TECHNOLOGIES, INC.
CONDENSED INCOME STATEMENT
(in thousands, except per share data)
THREE MONTHS ENDED
03/31/04 03/31/03
(AS RESTATED)
-------- -------------
(UNAUDITED) (UNAUDITED)
Product Sales $24,107 $19,063
Tooling Sales 134 10,481
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Net Sales 24,241 29,544
Cost of Sales 20,260 25,740
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Gross Margin 3,981 3,804
Selling, General and Admin. Expense 2,853 2,482
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Operating Income 1,128 1,322
Interest Expense - Net 236 470
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Income before Taxes 892 852
Income Tax Expense 347 337
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Net Income $ 545 $ 515
======= =======
Net Income per Common Share
Basic $ 0.06 $ 0.05
Diluted $ 0.05 $ 0.05
Weighted Average Shares Outstanding:
Basic 9,779 9,779
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Diluted 9,903 9,779
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CONDENSED BALANCE SHEET
(in thousands)
<Table>
<Caption>
AS OF AS OF
03/31/04 12/31/03
-------- --------
(UNAUDITED)
ASSETS
Cash and Investments $ -- $ 346
Accounts Receivable 16,937 12,830
Inventories 5,316 4,852
Other Current Assets 4,287 3,538
Property, Plant & Equipment - net 23,219 23,209
Deferred Tax Asset - net 9,747 9,888
Other Assets 1,475 1,489
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Total Assets $60,981 $56,152
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current Portion of Long-term Debt $ 1,916 $ 1,906
Accounts Payable 9,111 6,582
Line of Credit 1,291 --
Accrued Liabilities and Other 5,767 5,250
Long-term Debt 12,675 12,999
Interest Rate Swap 946 610
Deferred Long-term Gain 988 1,102
Post Retirement Benefits Liability 7,110 6,849
Stockholders' Equity 21,177 20,854
------- -------
Total Liabilities and Stockholders' Equity $60,981 $56,152
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