Exhibit 99.1
Cox Technologies, Inc. Reports Fiscal 2003 Financial Results
BELMONT, N.C.--(BUSINESS WIRE)--Aug. 5, 2003--Cox Technologies,
Inc. (COXT.OB) reported a net income of $110,448 or less than $.01 per
share on revenues of $8,773,852 for the fiscal year ended April 30,
2003, as compared to a net loss of $5,163,046 or $.20 per share on
revenues of $8,627,103 for the fiscal year ended April 30, 2002.
During the fourth quarter of fiscal 2002, the Company recognized an
impairment loss of $2,696,000 related to goodwill associated with the
acquisition of Vitsab, AB and another impairment loss of $842,000
related to a piece of high-speed Vitsab(R) production equipment.
Without these one-time adjustments, the net loss for fiscal 2002 would
have been $1,625,000 or $.06 per share.
Kurt C. Reid, Co-Chief Executive Officer stated, "revenues from
sales increased by approximately 2% or $146,749 over fiscal 2002. As a
whole, both unit sales and selling prices remained relatively flat in
fiscal 2003. While holding the line on sales, the Company has been
able to reduce its cost of sales through reductions in labor costs and
related fringe benefits, lower raw material costs and lower cost of
units purchased from an offshore manufacturer."
Mr. Reid noted that, "the Company is benefiting from the efforts
of management and employees to reduce costs and expenses in all
aspects of the business. These efforts have translated into positive
cash flow provided by operating activities of $590,381 in fiscal 2003
as compared to negative cash flow used in operating activities of
($356,522) for fiscal 2002. Also, the Company was able to reduce its
indebtedness by a net amount of $999,120 during 2003." Mr. Reid
further stated, "our bank debt is now being amortized in monthly
installments through July 2006 which will add to our ability to plan
for the future."
Cox Technologies is engaged in the business of producing and
distributing transit temperature recording instruments, both
domestically and internationally. These graphic transit recorders are
marketed under the trade name Cox Recorders and produce a record that
is documentary proof of temperature conditions. The Company also
produces and markets Vitsab(R) "smart label" technology.
Statements contained in this document, which are not historical in
nature, are forward-looking within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking statements
are subject to risks and uncertainties that may cause future results
to differ materially from those set forth in such forward-looking
statements. Cox Technologies undertakes no obligation to update
forward-looking statements to reflect events or circumstances after
the date hereof. Such risks and uncertainties with respect to Cox
Technologies include, but are not limited to, its ability to
successfully implement internal performance goals, performance issues
with suppliers, regulatory issues, competition, the effect of weather
on customers, exposure to environmental issues and liabilities,
variations in material costs and general and specific economic
conditions. From time to time, Cox Technologies may include
forward-looking statements in oral statements or other written
documents.
SELECTED FINANCIAL DATA
Twelve Months
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Periods Ended April 30, 2003 2002
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Income Statement Items:
- ----------------------------------------------
Sales revenues $8,773,852 $8,627,103
------------------------
Cost of sales 4,917,048 5,436,181
General and administrative 2,045,839 2,540,680
Selling 1,057,109 1,260,652
Depreciation, depletion and amortization 340,300 678,962
Loss on impairment - 3,537,597
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8,360,296 13,454,072
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Income (loss) from operations 413,556 (4,826,969)
Other income (expense) 151,150 189,185
Interest expense (454,258) (525,262)
------------------------
Income (loss) before income taxes 110,448 (5,163,046)
Provision for income taxes - -
------------------------
Net income (loss) $110,448 ($5,163,046)
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Weighted average common shares outstanding 27,907,224 25,360,071
Basic and diluted net income (loss) per share ($.00) ($.20)
========================
Balance Sheet Items:
- ----------------------------------------------
Assets:
Current assets $2,811,230 $2,753,151
Property and equipment, net 505,688 1,064,628
Patents 114,845 148,796
Other 80,438 105,816
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$3,512,201 $4,072,391
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Liabilities and Stockholder's Equity:
Current liabilities $822,726 $3,144,001
Long-term debt 4,189,893 3,233,913
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5,012,619 6,377,914
Stockholder's equity (1,500,418) (2,305,523)
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$3,512,201 $4,072,391
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Cash Flow Items:
- ----------------------------------------------
Net income (loss) $110,448 ($5,163,046)
Add - Non cash items 512,778 4,171,281
Change in assets and liabilities ( 32,845) 635,243
------------------------
Net cash provided by (used in) operating
activities 590,381 (356,522)
Net cash provided by investing activities 70,189 3,041
Net cash provided by (used in) financing
activities ( 340,040) 485,490
Effect of exchange rate changes on cash 35,577 40,413
------------------------
Net increase in cash and cash equivalents $356,107 $172,422
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CONTACT: Cox Technologies, Inc.
Kurt C. Reid, 704-825-8146