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EXHIBIT 20
CONTACT:
James C. Dodd, CFO Philip Bourdillon/Eugene Heller
Simula, Inc. Silverman Heller Associates
602-631-4005 310-208-2550
SIMULA, INC. REPORTS ADDITIONAL CHARGE
AGAINST 1999 FINANCIAL RESULTS
PHOENIX, ARIZONA -- APRIL 14, 2000 -- SIMULA, INC. (NYSE: SMU) today announced
that it has filed its 1999 Form 10-K, which had been extended to allow auditors
time to complete their review of the Company's financial statements.
These audited financial statements reflect an additional charge of approximately
$4.3 million against fourth-quarter and year-end 1999 results. The charge --
which stems from the Company's determination that an additional adjustment to
income was appropriate to reflect the risk and uncertainty of the timely
recovery of the entire principle and interest from Notes received in the sale of
the assets of a former subsidiary, Coach and Car Equipment Company -- was not
included in the unaudited results presented by the Company in a news release
dated March 29, 2000. The Company said that, notwithstanding the current charge
which reduces the carrying value of the Notes to zero, the sales contract
remains fully enforceable, and any future recoveries on the Notes will be
accounted for following the cost recovery method of accounting.
The Company's audited financial statements reflect a net loss for the quarter of
<$25.1 million>, or <$2.36> per share, on revenues of $32.3 million, compared to
a net loss of <$21.0 million>, or <$2.12> per share, on revenues of $28.7
million in the three months ended December 31, 1998. The net loss also reflects
a previously announced restructuring charge of $18.3 million (pre-tax)
occasioned by the sale of substantially all the assets of Airline Interiors (a
subsidiary engaged in the manufacture of 16g commercial airliner seats), a loss
from discontinued operations of $7.2 million, and an income tax benefit of $9.9
million.
-- more --
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SIMULA REPORTS ADDITIONAL CHARGE AGAINST 1999 FINANCIAL RESULTS / 3
For the year, the Company's audited financial statements reflect a net loss of
<$23.1 million>, or <$2.26> per share, on revenues of $131.4 million compared to
a net loss of <$27.7 million>, or <$2.80> per share, on revenues of $100.1
million in 1998.
Simula, Inc. is a leader in developing and commercializing protective systems
and energy absorption technologies that safeguard human lives. Products include
advanced occupant seating and restraint systems for military and automotive
applications. Additional information on Simula, Inc. may be found at
www.simula.com.
Statements made in this news release, including forward-looking statements
concerning the enforceability of the contract with the buyer of Coach and Car
Equipment Corporation and the status of any future recoveries on the Notes
received in the sale, are made pursuant to the safe harbor provisions of the
Securities Litigation Reform Act of 1995. Such statements involve risks and
uncertainties that may cause results to differ materially from those set forth
in such statements. Other factors that may cause actual results to differ from
anticipated results include those described in the Company's registration
statements and periodic reports filed with the U.S. Securities and Exchange
Commission, including the Company's most recent Form 10-K.
(Audited Financial Statements Follow)
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SIMULA, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED TWELVE MONTHS ENDED
DECEMBER 31 DECEMBER 31
----------------------------- ------------------------------
1999 1998 1999 1998
------------ ------------ ------------- -------------
Revenue $ 32,268,896 $ 28,682,677 $ 131,392,426 $ 100,644,678
Cost of revenue 30,940,241 31,843,231 102,984,129 85,723,846
------------ ------------ ------------- -------------
.............
Gross margin 1,328,655 (3,160,554) 28,408,297 14,920,832
Administrative expenses 8,406,533 6,194,931 26,679,304 20,420,763
Restructuring Charge 18,377,239 -- 18,377,239 --
------------ ------------ ------------- -------------
Operating income (25,455,117) (9,355,485) (16,648,246) (5,499,931)
Interest expense (2,161,963) (1,532,145) (7,246,105) (5,099,194)
------------ ------------ ------------- -------------
Earnings (loss) before taxes and discontinued operations (27,617,080) (10,887,630) (23,894,351) (10,599,125)
Income tax benefit 9,926,000 3,902,000 8,437,000 3,786,000
------------ ------------ ------------- -------------
Earnings (loss) from continuing operations (17,691,080) (6,985,630) (15,457,351) (6,813,125)
Discontinued operations:
Loss from discontinued operations, net of tax -- (163,000) -- (2,319,388)
Estimated loss on disposal, net of tax (7,238,109) (13,896,000) (7,238,109) (18,576,000)
------------ ------------ ------------- -------------
Extraordinary loss on early extinguishment of debt, net of
tax (151,295) -- (151,295) --
------------ ------------ ------------- -------------
Net earnings (loss)
(25,080,484) (21,044,630) (22,846,755) (27,708,513)
Dividends on preferred stock
74,497 -- 279,536 --
------------ ------------ ------------- -------------
Net earnings (loss) available for common shareholders $(25,154,981) $(21,044,630) $ (23,126,291) $ (27,708,513)
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Earnings (loss) per common share - Basic:
Earnings (loss) from continuing operations $ (1.67) $ (0.70) $ (1.54) $ (0.69)
Discontinued operations:
Loss from discontinued operations, net of tax $ -- $ (0.02) $ -- $ (0.23)
Estimated loss on disposal, net of tax $ (0.68) $ (1.40) $ (0.71) $ (1.88)
Earnings (loss) from early extinguishment of debt, net $ (0.01) $ -- $ (0.01) $ --
of tax
============ ============ ============= =============
Net earnings (loss) $ (2.36) $ (2.12) $ (2.26) $ (2.80)
============ ============ ============= =============
Weighted average shares - basic
10,649,753 9,915,391 10,230,720 9,880,283