EXHIBIT 99(A)
FOR IMMEDIATE RELEASE CONTACT:
Herman F. Dick, Jr.
(614) 870-5604
CORE MOLDING TECHNOLOGIES REPORTS SECOND QUARTER 2004 RESULTS
COLUMBUS, Ohio - August 17, 2004 - Core Molding Technologies, Inc. (AMEX: CMT)
today announced results for the second quarter and six months ended June 30,
2004.
The Company recorded net income for the second quarter of 2004 of
$1,310,000, or $.13 per basic and diluted share, compared with $969,000, or $.10
per basic and diluted share, in the second quarter of 2003. Total net sales for
the second quarter were $26,607,000 compared with $21,140,000 in the same
quarter of 2003. Product sales for the three months ended June 30, 2004
increased 25 percent to $26,288,000 from $20,975,000 for the similar period in
2003. Tooling sales totaled $319,000 for the second quarter 2004 versus $165,000
for the similar time period in 2003. Revenue from tooling projects is sporadic
in nature and does not represent a recurring trend.
For the first six months of 2004, net income was $1,855,000, or $.19
per basic and diluted share, compared with $1,485,000, or $.15 per basic and
diluted share, in the similar period of 2003. Total net sales for the first six
months of 2004 were $50,848,000 compared with $50,684,000 in the first half of
2003. Product sales for the first six months of 2004 increased 26 percent to
$50,395,000 from $40,038,000 for the similar period in 2003. Tooling sales
totaled $453,000 for the first six months of 2004 versus $10,646,000 for the
similar period in 2003.
"We are pleased with the recovery in many of the markets we serve,
particularly in the trucking industry, which has helped the company better
absorb its fixed cost," said James L. Simonton, president and chief executive
officer. "We have made significant process improvements at our Gaffney facility
and continue to aggressively pursue process improvements that should enable the
plant to return to normal operating levels by the end of the third quarter
2004," Simonton said.
"Even with the continued across-the-board demand increases from the
markets we serve, we anticipate experiencing the normal third quarter seasonal
softness and its downward effect on third quarter earnings resulting from our
customers' planned vacation shutdowns," said Simonton.
As previously announced, Core recently reached a labor agreement with
the International Association of Machinists and Aerospace Workers (IAM) at its
Columbus, Ohio manufacturing
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facility. The agreement, which extends until 2007, enabled the Columbus plant to
return to normal operations on August 16, 2004.
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 Six Months Ended
06/30/04 06/30/03 6/30/04 6/30/03
-------- -------- ------- -------
(as restated) (as restated)
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Product Sales $26,288 $20,975 $50,395 $40,038
Tooling Sales 319 165 453 10,646
------- ------- ------- -------
Net Sales 26,607 21,140 50,848 50,684
Cost of Sales 21,531 16,740 41,792 42,480
------- ------- ------- -------
Gross Margin 5,076 4,400 9,056 8,204
Selling, General and Admin. Expense 2,748 2,383 5,600 4,865
------- ------- ------- -------
Operating Income 2,328 2,017 3,456 3,339
Interest Expense - Net 234 421 470 891
------- ------- ------- -------
Income before Taxes 2,094 1,596 2,986 2,448
Income Tax Expense 784 627 1,131 963
------- ------- ------- -------
Net Income $ 1,310 $ 969 $ 1,855 $ 1,485
======= ======= ======= =======
Net Income per Common Share
Basic $ 0.13 $ 0.10 $ 0.19 $ 0.15
Diluted $ 0.13 $ 0.10 $ 0.19 $ 0.15
Weighted Average Shares Outstanding:
Basic 9,779 9,779 9,779 9,779
======= ======= ======= =======
Diluted 9,889 9,779 9,892 9,779
======= ======= ======= =======
Condensed Balance Sheet
(in thousands)
As of As of
06/30/04 12/31/03
-------- --------
(Unaudited)
Assets
Cash and Investments $ -- $ 346
Accounts Receivable 17,490 12,830
Inventories 5,374 4,852
Other Current Assets 4,691 3,538
Property, Plant & Equipment - net 22,829 23,209
Deferred Tax Asset - net 8,900 9,888
Other Assets 1,462 1,489
------- -------
Total Assets $60,746 $56,152
======= =======
Liabilities and Stockholders' Equity
Current Portion of Long-term Debt $ 1,921 $ 1,906
Current Portion of Long-term Gain 454 454
Accounts Payable 9,337 6,582
Accrued Liabilities 4,589 4,081
Long-term Debt 12,244 12,999
Interest Rate Swap 428 610
Graduated Lease Payments 601 715
Deferred Long-term Gain 875 1,102
Post Retirement Benefits Liability 7,468 6,849
Stockholders' Equity 22,829 20,854
------- -------
Total Liabilities and Stockholders' Equity $60,746 $56,152
======= =======
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