Universal Automotive Reports 2004 Second Quarter Financial Results
August 20 2004 - 8:45AM
PR Newswire (US)
Universal Automotive Reports 2004 Second Quarter Financial Results
ALSIP, Ill., Aug. 20 /PRNewswire-FirstCall/ -- Universal Automotive
Industries, Inc. (NASDAQ:UVSL) today reported financial results for
the second quarter, which include a full quarter of contributions
from the company's acquisition of certain assets from TRW
Automotive, Inc. Sales for the 2004 second quarter, increased 45%
to $25.9 million from $17.8 million in the second quarter of 2003.
The company sustained a net loss of $3.3 million, equal to $0.31
per share, compared with net income of $15,083, or breakeven on a
per share basis, for the 2003 second quarter. Per share
calculations were based on 10.7 million and 12.2 million shares
outstanding for the second quarter of 2004 and 2003, respectively.
"Net sales were substantially higher than in the prior year
quarter. As expected, higher costs associated with the integration
process combined with rising raw materials and freight costs
adversely impacted the bottom line. As a result of industry wide
price increases, our customers accepted price increases in the
month of July, therefore we are able to offset a portion of the
material increases going forward," said Arvin Scott, Universal's
president and chief executive officer. "In an effort to lower
freight costs, enhance service efficiency and help secure new
business, we have begun transitioning certain customer accounts
that were serviced from our Alsip, Illinois distribution center to
our Parsippany, New Jersey distribution center. Also, we have
implemented a number of steps to improve supply chain management,
including changing the forecasting technology to a proven process
and adding seasoned aftermarket professionals, which we expect will
yield significant benefits over the long term. "The major
integration initiatives, which are now behind us, will
significantly improve inventory management, eliminate certain
redundancies and allow the entire organization to operate as one,"
Scott said. "We are going into the third quarter a much improved
company with solid momentum." For the first six months of 2004,
sales increased 50% to $49.2 million from $32.9 million in the same
period a year ago. Net income for the first six months of 2004 was
$4.4 million, equal to $0.32 per diluted share, which includes a
non-operating, non-cash gain of $9.9 million on the valuation of
assets purchased. This compares to a net loss of $959,387, or $0.12
per share, for the first six months of 2003. Per share calculations
were based on 13.8 million and 8.2 million shares outstanding for
the first six months of 2004 and 2003, respectively. Conference
Call Information and Forward-Looking Statements On Friday, August
20, 2004, the company will host a conference call with interested
parties beginning at 9:00 a.m. (ET) to review the results of
operations for the second quarter ended June 30, 2004. Discussion
during the conference call may include forward-looking statements
regarding such topics as, but not limited to, the company's
revenues, margins, operating expenses and any comments the company
may make about its future in response to questions from
participants on the conference call. The conference call may be
heard by any interested party through a live audio Internet
broadcast at http://www.fulldisclosure.com/. For those unable to
listen to the live broadcast, a playback of the webcast will be
available at both Web sites for one year beginning at approximately
11:00 a.m. (ET), August 20, 2004. About Universal Automotive
Industries, Inc. Universal, headquartered in the Chicago area,
specializes in the distribution and manufacture of brake rotors and
other brake parts, under its trademarks UBP - Universal Brake
Parts, Evolution and Ultimate in the United States and Canada and
its proprietary Autospecialty, ValuMaxx and PowerStop brands. The
company also provides TRW-branded brake rotors and drums and
suspension products. This news release contains certain
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, which are intended to
be covered by safe harbors created hereby. Such forward-looking
statements, including, but not limited to, returning the company to
profitability, realizing cost savings, as well as synergies,
operating efficiencies and growth opportunities as a result of the
acquisition of certain assets from TRW Automotive, involve known
and unknown risks, uncertainties (including those risk factors
referenced in the company's filings with the Securities and
Exchange Commission), and other factors that may cause the actual
results, performance or achievements of the company to be
materially different from any future results, performance, or
achievements of the company expressed or implied by such
forward-looking statements. UNIVERSAL AUTOMOTIVE INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (in thousands,
except per share amounts) Three Months Ended June 30, Six Months
Ended June 30, 2004 2003 2004 2003 Net sales $25,889 $17,839
$49,236 $32,856 Cost of sales 23,615 15,203 44,389 28,472 Gross
profit 2,274 2,636 4,847 4,384 Selling, general, and administrative
expenses 4,995 2,375 9,219 4,866 Loss from operations (2,721) 261
(4,372) (482) Other (income)/expense Interest expense 597 249 1,111
488 Gain on valuation of assets purchased -- -- (9,886) -- Other
(4) (4) (13) (11) 593 246 (8,788) 477 Income (loss) before income
taxes (3,314) 15 4,416 (959) Income tax provision -- -- -- -- Net
income (loss) $(3,314) $15 $4,416 $(959) Comprehensive income
(loss): Net income (loss): $(3,314) $15 $4,416 $(959) Earnings
(loss) per share: Basic $(0.31) $0.00 $0.41 $(0.12) Diluted $(0.31)
$0.00 $0.32 $(0.12) Weighted average number of common shares
outstanding: Basic 10,706 8,225 10,706 8,225 Common stock
equivalents resulting from: Conversion of preferred stock -- 3,014
3,014 -- Warrants and options -- 965 87 -- Diluted 10,706 12,204
13,807 8,225 DATASOURCE: Universal Automotive Industries, Inc.
CONTACT: Robert W. Zimmer of Universal Automotive Industries Inc.,
+1-708-293-4050, ext. 227; or Roger S. Pondel of PondelWilkinson
Inc., +1-310-279-5980, for Universal Automotive Industries Inc.
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