Exhibit 99
[ZOLTEK logo]
FOR IMMEDIATE RELEASE NASDAQ NMS SYMBOL: "ZOLT"
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ZOLTEK REPORTS STRONG CARBON FIBER GAINS
ST. LOUIS, MISSOURI -- AUGUST 16, 2004 -- Zoltek Companies, Inc.
today reported its second consecutive quarter of significant increases in
carbon fiber sales and improved operating results.
For the three months ended June 30, Zoltek's total revenues were
$17.4 million, compared to $15.8 million in the third quarter of fiscal
2003, an increase of 10%. However, sales of carbon fibers - Zoltek's core
products - were up $3.0 million, or approximately 45%, more than offsetting
a $1.6 million decline in non-core operations (production of acrylic and
nylon fibers for the textile markets at Zoltek's facilities in Hungary). The
increased sales in the carbon fibers and technical fibers business units
resulted in an approximate 30% reduction in the overall operating loss
reported by the Company from a loss of $2.6 million in the third quarter of
2003 to a loss of $1.8 million in the third quarter of 2004.
Also during the third quarter of 2004, the Company experienced its
second sequential quarter of significant growth in customer demand for its
carbon fibers. Sales increased $3.9 and $1.4 million over the first and
second quarters of 2004, respectively. The improved sales in the carbon
fibers segment resulted in an improvement in the overall operating loss
reported by the Company from a loss of $3.2 million in the first quarter to
a loss of $2.5 million in the second quarter to a loss of $1.8 million in
the third quarter of 2004.
For the nine months ended June 30, 2004, Zoltek's total revenues
were $46.6 million, compared to $48.8 million in the corresponding period of
fiscal 2003, a decline of 4%. However, over the first nine months of the
current year, carbon fiber sales were up approximately 15%, which improved
the overall operating loss by 13%.
"Over the past two quarters, we have seen positive and clear
evidence of long-term change in the marketplace for carbon fibers," said
Zsolt Rumy, Zoltek's Chairman and Chief Executive Officer. "The recent
developments are exciting. We are in the early stages of what we believe
will be an extended period of rapid growth in demand for low-cost,
high-performance carbon fibers geared to commercial applications."
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August 16, 2004
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Rumy noted that Zoltek was in the process of starting up five
installed carbon fiber production lines in its Abilene, Texas facility to
supply existing orders and commitments. Zoltek is also planning to make new
additions to capacity in the U.S. and Hungary in 2005 and beyond.
Rumy said that management's efforts to exit non-core businesses
will be accelerated. "We are selling inventory and shutting down capacity in
the nylon fiber operations and exiting from the acrylic textile fiber
business to prepare our acrylic facilities for the manufacturing of
precursor for the carbon fibers. These non-core legacy businesses are the
by-product of an earlier strategic acquisition," Rumy said. "We expect that
winding down these ancillary, unprofitable lines of business ultimately will
have a positive effect on our future results. Even more importantly,
however, we will concentrate all of our efforts in carbon fibers and
technical fibers as we seek to build on our significant recent improvements
in this business on both the top and bottom lines."
Zoltek Companies, Inc. will host a conference call to review third
quarter 2004 results and answer questions on Tuesday, August 24, at 10:00 am
CT. The conference dial-in number is (913) 981-5501. The confirmation code
is 964131. Individuals who wish to participate should dial in 5 to 10
minutes prior to the scheduled start time.
FOR FURTHER INFORMATION CONTACT:
ZSOLT RUMY, CEO OR KEVIN SCHOTT, CFO
3101 MCKELVEY ROAD
ST. LOUIS, MO 63044
(314) 291-5110
This press release contains forward-looking statements, which are based upon
the current expectations of the Company. Because these forward-looking
statements are inherently subject to risks and uncertainties, there are a
number of factors that could cause the Company's plans, actions and actual
results to differ materially. Among these factors are the Company's ability
to: return to operating on a profitable basis; obtain a waiver of its debt
covenants and otherwise comply with its obligations under its credit
agreements; refinance those agreements at their maturity dates; increase
production capacity to meet increased orders on a timely and profitable
basis; manage its excess carbon fiber production capacity and inventory
levels; continue investing in application and market development;
manufacture low-cost carbon fibers and profitably market them at decreasing
price points and penetrate existing, identified and emerging markets, as
well as other matters discussed herein. The timing and occurrence (or
non-occurrence) of transactions and events that determine the future effect
of these factors on the Company, as well as other factors, may be beyond the
control of the Company. The Company undertakes no obligation to update any
forward-looking statement to reflect events or circumstances after the date
of this press release.
Zoltek is an applied technology and materials company. Zoltek's Carbon Fiber
Business Unit is primarily focused on the manufacturing and application of
carbon fibers used as reinforcement material in composites, oxidized acrylic
fibers for heat/fire barrier applications and aircraft brakes, and composite
design and engineering to support the Company's materials business. Zoltek's
Hungarian-based Specialty Products Business Unit manufactures and markets
acrylic fibers, nylon products and industrial materials.
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August 16, 2004
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ZOLTEK COMPANIES, INC.
SUMMARY FINANCIAL RESULTS
(Amounts In Thousands Except Per Share Data)
(Unaudited)
Three Months Ended
June 30
2004 2003
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Net sales...........................................................................$ 17,361 $ 15,847
Cost of sales, excluding available unused capacity costs............................ 15,313 13,934
Available unused capacity costs..................................................... 952 1,481
Application and development costs................................................... 786 865
Operating loss...................................................................... (1,848) (2,586)
Income tax expense.................................................................. 135 101
Net loss............................................................................ (3,538) (3,789)
Net loss per share:
Basic and diluted loss per share...........................................$ (0.22) $ (0.23)
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Weighted average common and
common equivalent shares outstanding............................................... 16,407 16,302
Nine Months Ended
June 30
2004 2003
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Net sales...........................................................................$ 46,619 $ 48,750
Cost of sales, excluding available unused capacity costs............................ 41,853 43,090
Available unused capacity costs..................................................... 3,638 4,238
Application and development costs................................................... 2,290 2,669
Operating loss...................................................................... (7,506) (8,617)
Income tax expense.................................................................. 324 58
Net loss............................................................................ (11,074) (11,242)
Net loss per share:
Basic and diluted loss per share..................................................$ (0.68) $ (0.69)
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Weighted average common and
common equivalent shares outstanding.............................................. 16,353 16,299
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