Exhibit 99.1
WILLIAMS CONTROLS ANNOUNCES CHANGE IN TAX VALUATION TREATMENT
PORTLAND, Ore., Dec. 27 /PRNewswire-FirstCall/ -- Williams Controls, Inc.
(the "Company") (OTC: WMCO) today announced its has reassessed the amount of
the previously disclosed reversal of the valuation allowance on certain
deferred tax assets taken to income rather than credited to equity. The
reassessment increases the amount of income tax benefit recognized in the
statement of operations for the fourth quarter and year ended September 30,
2004, by $1,972,000 but does not impact the assets, liabilities or total
shareholders' deficit reflected on the balance sheet, the operating income
(loss) or the cash flows of the Company.
ABOUT WILLIAMS CONTROLS
Williams Controls is a designer, manufacturer and integrator of sensors
and controls for the motor vehicle industry. For more information, please
visit the Company's website at www.wmco.com.
The statements included in this news release concerning predictions of
economic performance and management's plans and objectives constitute forward-
looking statements made pursuant to the safe harbor provisions of Section 21E
of the Securities Exchange Act of 1934, as amended, and Section 27A of the
Securities Act of 1934, as amended. These forward looking statements are
based on management's assumptions and projections, and are sometimes
identifiable by use of the words, "expect to," "plan," "will," "believe" and
words of similar predictive nature. Because management's assumptions and
projections are based on anticipation of future events, you should not place
undue emphasis on forward-looking statements. You should anticipate that our
actual performance may vary from these projections, and variations may be
material and adverse. You should not rely on forward-looking statements in
evaluating an investment or prospective investment in our stock, and when
reading these statements you should consider the uncertainties and risks that
could cause actual results to differ materially from the forward-looking
statements. Factors which could cause or contribute to such differences
include, but are not limited to, factors detailed in the Securities and
Exchange Commission filings of the Company; economic downturns affecting the
operations of the Company or any of its business operations, competition, and
the ability of the Company to successfully identify and implement any
strategic alternatives. The forward-looking statements contained in this
press release speak only as of the date hereof and the Company disclaims any
intent or obligation to update these forward-looking statements.
Williams Controls, Inc.
Consolidated Statements of Operations
(Dollars in thousands, except share and per share amounts)
Three Three Twelve Twelve
months months months months
ended ended ended ended
9/30/04 9/30/03 9/30/04 9/30/03
------------- ------------- ------------- -------------
(unaudited) (unaudited) (unaudited) (unaudited)
Net sales $ 15,908 $ 13,886 $ 58,050 $ 51,302
Cost of sales 10,424 11,015 39,234 40,326
Gross margin 5,484 2,871 18,816 10,976
Research and development
expense 806 849 3,042 3,575
Selling expense 291 374 1,192 1,367
Administration expense 1,502 1,609 4,864 5,199
Gain on settlement with
customer -- -- -- (951)
Operating income from
continuing operations 2,885 39 9,718 1,786
Interest expense - Series B
Preferred Stock dividends
and accretion 863 731 3,245 731
Interest and other (income)
expenses, net (453) 73 (152) 316
Loss on extinguishment of
debt 19,770 -- 19,770 --
Income (loss) from continuing
operations before income
taxes (17,295) (765) (13,145) 739
Income tax benefit (9,402) (5) (9,265) (305)
Net income (loss) from
continuing operations (7,893) (760) (3,880) 1,044
Discontinued operations (111) 148 178 108
Net income (loss) (7,782) (908) (4,058) 936
Preferred dividends and
accretion for Series B
Preferred Stock -- -- -- (2,011)
Net income (loss) allocable
to common shareholders $ (7,782) $ (908) $ (4,058) $ (1,075)
Earnings per share
information:
Loss per common share from
continuing operations
- basic $ (0.34) $ (0.04) $ (0.18) $ (0.05)
Income (loss) per common
share from discontinued
operations - basic 0.01 (0.01) (0.01) (0.00)
Net loss per common share
- basic $ (0.33) $ (0.05) $ (0.19) $ (0.05)
Weighted common shares
outstanding - basic 23,275,809 20,125,492 21,867,137 20,104,986
Loss per common share
from continuing
operations - diluted $ (0.34) $ (0.04) $ (0.18) $ (0.05)
Income (loss) per common
share from discontinued
operations - diluted 0.01 (0.01) (0.01) (0.00)
Net loss per common share
- diluted $ (0.33) $ (0.05) $ (0.19) $ (0.05)
Weighted common shares
outstanding - diluted 23,275,809 20,125,492 21,867,137 20,104,986
Williams Controls, Inc.
Consolidated Balance Sheets
(Dollars in thousands)
Sept. 30, Sept. 30,
2004 2003
----------- -----------
(unaudited) (unaudited)
Assets
Current Assets:
Cash and cash equivalents $ 2,482 $ 101
Trade accounts receivable, net 8,193 7,015
Other accounts receivable 424 7,185
Inventories, net 3,777 4,053
Deferred income taxes 2,116 --
Prepaid expenses and other current assets 290 330
Total current assets 17,282 18,684
Property, plant and equipment, net 5,402 5,647
Deferred income taxes 7,247 --
Other assets, net 1,194 576
Total assets $ 31,125 $ 24,907
Liabilities and Shareholders' Deficit
Current Liabilities:
Accounts payable $ 4,084 $ 4,027
Accrued expenses 4,969 6,698
Current portion of employee benefit obligations 1,240 2,098
Current portion of long-term debt and capital
leases 3,454 4,658
Total current liabilities 13,747 17,481
Long-term Liabilities:
Long-term debt and capital lease obligations 16,640 402
Employee benefit obligations 7,440 8,095
Other long-term liabilities 333 --
Mandatory redeemable Convertible Series B
Preferred Stock, net -- 16,072
Shareholders' Deficit:
Preferred stock (Series A and A-1) -- 1
Common stock 466 201
Additional paid-in capital 35,960 22,224
Accumulated deficit (37,458) (33,400)
Treasury stock (377) (377)
Other Comprehensive Loss - Pension liability
adjustment (5,626) (5,792)
Total shareholders' deficit (7,035) (17,143)
Total liabilities and shareholders'
deficit $ 31,125 $ 24,907
SOURCE Williams Controls, Inc.
-0- 12/27/2004
/CONTACT: Dennis E. Bunday, Executive Vice President and Chief Financial
Officer of Williams Controls, Inc., +1-503-684-8600/
/Web site: http://www.wmco.com /
(WMCO)