IMCO Impco Technologies (MM)

IMPCO Reports Third Quarter Results CERRITOS, Calif., Nov. 13 /PRNewswire-FirstCall/ -- IMPCO Technologies, Inc. , today reported results for its third quarter ended September 30, 2003. For the third quarter of calendar year 2003, IMPCO reported revenues of $18.7 million and operating income of $0.4 million. One time operating expenses, including refinancing costs, totaling $0.2 million unfavorably impacted operating income. Interest expense of $1.6 million, of which $0.5 was primarily associated with debt refinancing activities, resulted in a net loss of $1.2 million or 8 cents per share. The interest expense included $0.9 million of non-cash items related to warrants associated with refinancing activities. Compared to the third quarter of calendar year 2002, IMPCO had revenues of $18.5 million, an operating loss of $0.2 million and a net loss of $1.8 million or 12 cents per share, which included a net loss of $1.3 million or 9 cents per share, from the Quantum discontinued operation that was spun off on July 23, 2002. For the first three quarters of calendar year 2003 results were $56.6 million in revenues and $2.6 million in operating income. One time operating expenses, mainly attributable to refinancing costs, totaling $0.4 million unfavorably impacted operating income. For the comparable period in calendar year 2002, revenues were $53.4 million in revenues with an operating loss of $1.8 million. IMPCO's calendar year to date 2003 revenues increased $3.2 million, or 6%, while operating income increased $4.4 million, or 244%, compared to the same period in calendar year 2002. Year to date net loss in 2003 was $1.0 million or 6 cents per share and includes $1.5 million of one time operating and financing expenses. For the comparable period in calendar year 2002, the net loss was $11.6 million, or 87 cents per share, which includes a net loss of $10.1 million, or 76 cents per share, from our Quantum discontinued operation. Robert M. Stemmler, CEO and Chairman, said, "in regard to the third quarter and calendar 2003 year to date performance of the Company, one time operating and financing costs were equivalent to an unfavorable 4 and 9 cents per share per period, respectively, and represented 153% of the loss for the first three quarters of calendar year 2003." He indicated that the remaining one time refinancing costs would be minimal in the fourth quarter. He also mentioned the unfavorable impact the global economic recession and the SARS epidemic had on the transportation market revenues, particularly in Mexico and the Far East, respectively. Mr. Stemmler further added, "the Company's third quarter performance was noteworthy in that the refinancing of the company and the acquisition of BRC was consummated." BRC, located in Cherasco, Italy has revenues approaching $40 million and is a leader in the growing alternative fuels industry transportation market. He added, "the company made major progress in establishing a leading position as a Tier 1 supplier of emission certified engines, 50 horsepower and above, to the major material handling OEMs." Beginning January 1 2004, the EPA will require off-highway mobile vehicles to have emission certified engines, which meet new stringent federal emission requirements. Mr. Stemmler said, "the Company's strategic plan for expanded growth and profitability is now complete and the Company is very well positioned for major growth in 2004." He stated that the Company currently had a record sales order backlog of $15 million scheduled for delivery in the first quarter of calendar year 2004. Earnings Call Scheduled for November IMPCO will host a conference call to discuss financial results on November 13 at 4:30 p.m. ET, 1:30 p.m. PT. All shareholders and other interested parties are invited to dial into the call, which may be accessed by calling 785-832-1523. In order to ensure participation, please dial in 15 minutes prior to the scheduled time. A recording of the call will be available for 24 hours and can be accessed by calling 800-283-4642 or 102-220-0857. Regarding IMPCO: IMPCO and BRC design, manufacture, market and supply advanced alternative fuel systems and related products to original equipment manufacturers and to the aftermarket for the mobile, industrial, power generation, and stationary engines market place. Headquartered in Cerritos, California and Cherasco Italy, they have offices in Asia, Europe, Australia and South and North America. More information can be found at IMPCO's web site, http://www.impco.ws/ and at BRC's web site, http://www.brc.it/ . Except for historical information, the statements, expectations and assumptions contained in the foregoing press release are forward-looking statements. Such forward-looking statements include, but are not limited to, the company's expectations regarding revenues in future periods. Such statements are subject to a number of risks and uncertainties, and actual results could differ materially from those discussed in any forward-looking statement. Readers should consider the risk factors set forth from time to time in the company's SEC reports, including but not limited to those contained in the section entitled "Management's Discussion & Analysis of Financial Condition and Results of Operation - Risk Factors" in its Transition Report on Form 10-K for the period ended December 31, 2002. The company does not undertake to update or revise any of its forward-looking statements even if experience or future changes show that the indicated results or events will not be realized. For further information, please contact Mr. Dale Rasmussen, Investor Relations, +1-206-315-8242. IMPCO TECHNOLOGIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three and Nine Months Ended September 30, 2002 and 2003 Three Months Ended Nine Months Ended September 30, September 30, 2002 2003 2002 2003 Revenue $18,529,515 $18,668,834 $53,351,780 $56,581,090 Costs and expenses: Cost of revenue 13,344,045 12,863,587 37,639,642 38,247,242 Research and development expense 947,737 911,361 3,444,898 2,693,196 Selling, general and administrative expense 4,390,568 4,482,246 14,085,308 13,035,986 Total costs and expenses 18,682,350 18,257,194 55,169,848 53,976,424 Operating income (loss) (152,835) 411,640 (1,818,068) 2,604,666 Interest expense, net 295,473 1,551,589 528,160 2,808,209 Loss from continuing operations before income taxes and equity share in losses of unconsolidated affiliates (448,308) (1,139,949) (2,346,228) (203,543) Equity share in losses of unconsolidated affiliates -- 617,450 -- 617,450 Income tax benefit (65,990) (702,959) (822,621) (328,396) Loss from continuing operations before minority interests (382,318) (1,054,440) (1,523,607) (492,597) Minority interest in income of consolidated subsidiaries 40,764 185,404 4,562 477,856 Loss from continuing operations (423,082) (1,239,844) (1,528,169) (970,453) Loss from discontinued operation (1,328,949) -- (10,085,140) -- Net loss $(1,752,031) $(1,239,844) $(11,613,309) $(970,453) Net loss per share: Basic: Loss from continuing operations $(0.03) $(0.08) $(0.11) $(0.06) Loss from discontinued operation $(0.09) $-- $(0.76) $-- Net loss $(0.12) $(0.08) $(0.87) $(0.06) Diluted: Loss from continuing operations $(0.03) $(0.08) $(0.11) $(0.06) Loss from discontinued operation $(0.09) $-- $(0.76) $-- Net loss $(0.12) $(0.08) $(0.87) $(0.06) Number of shares used in per share calculation: Basic 14,124,373 16,459,191 13,337,112 16,443,423 Diluted 14,124,373 16,459,191 13,337,112 16,443,423 IMPCO TECHNOLOGIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) December 31, 2002 and September 30, 2003 December 31, September 30, 2002 2003 (unaudited) ASSETS Current assets: Cash and cash equivalents $1,995,705 $3,020,881 Restricted cash 1,604,551 655,898 Accounts receivable, net 11,640,872 14,816,478 Inventories: Raw materials and parts 8,615,852 8,040,510 Work-in-process -- 207,278 Finished goods 8,704,748 7,742,444 Total inventories 17,320,600 15,990,232 Deferred tax assets 1,032,072 1,019,956 Other current assets 1,649,225 3,062,364 Total current assets 35,243,025 38,565,809 Equipment and leasehold improvements: Dies, molds and patterns 6,342,952 6,443,625 Machinery and equipment 6,317,372 7,099,901 Office furnishings and equipment 8,462,340 9,001,103 Automobiles and trucks 405,765 402,981 Leasehold improvements 3,400,728 3,473,301 24,929,157 26,420,911 Less accumulated depreciation and amortization 16,359,200 17,908,350 Net equipment and leasehold improvements 8,569,957 8,512,561 Net goodwill and intangibles 8,921,254 9,764,961 Deferred tax assets, net 8,404,703 9,582,420 Investment in affiliates 12,777,064 24,610,094 Other assets 2,061,630 3,637,349 Total Assets $75,977,633 $94,673,194 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $5,165,637 $7,465,643 Accrued payroll obligations 2,387,136 2,478,060 Other accrued expenses 2,293,616 4,094,126 Notes payable -- 2,194,500 Current revolving line of credit 5,860,000 4,359,001 Current maturities of long-term debt 8,330,568 878,708 Total current liabilities 24,036,957 21,470,038 Term loans -- 17,352,802 Capital leases 101,199 88,127 Other liabilities -- 584,669 Minority interest 2,217,090 2,694,946 Stockholders' equity: Preferred stock, $.001 par value, authorized 500,000 shares; none issued and outstanding at December 31, 2002 and September 30, 2003 -- -- Common stock, $.001 par value, authorized 100,000,000 shares; 16,972,134 issued and outstanding at September 30, 2003 (16,433,282 at December 31, 2002) 16,451 16,983 Additional paid-in capital 120,623,910 122,452,452 Shares held in trust (172,525) (158,297) Accumulated deficit (68,064,964) (69,035,418) Accumulated other comprehensive loss (2,780,485) (793,108) Total stockholders' equity 49,622,387 52,482,612 Total Liabilities and Stockholders' Equity $75,977,633 $94,673,194 DATASOURCE: IMPCO CONTACT: Mr. Dale Rasmussen, Investor Relations for IMPCO, +1-206-315-8242 Web site: http://www.brc.it/ Web site: http://www.impco.ws/

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