IMCO Impco Technologies (MM)

IMPCO Reports Fiscal 2003 Fourth Quarter and Fiscal Year 2003 Financial Results CERRITOS, Calif., March 22 /PRNewswire-FirstCall/ -- IMPCO Technologies, Inc. today reported financial results for its fiscal 2003 fourth quarter and fiscal year 2003 ended December 31, 2003. For the fourth quarter of fiscal year 2003, IMPCO reported revenues of $18.2 million and an operating loss of $3.1 million. One time operating expenses including $0.9 million of inventory and accounts receivable adjustments and$0.6 million of organizational and refinancing expenses, unfavorably impacted operating income. Start-up expenses for the new emission certified engine business accounted for an additional $0.4 million of expenses. Net loss for the period was $5.9 million or $.34 per share. This included $0.6 million of one time refinancing costs and non-cash items related to warrants associated with refinancing activities and a $0.5 million charge from our unconsolidated BRC S.r.l. operations in Italy which was primarily due to inventory and accounts receivable adjustments. Interest expenses increased to $1.2 million for the fourth quarter 2003 versus $0.5 million for the comparable quarter in 2002. Compared to the fourth quarter of 2002, IMPCO had revenues of $15.0 million, an operating loss of $0.9 million and a net loss of $25.0 million or $1.67 per share; which included a net loss of $4.7 million or $.37 per share from the Quantum discontinued operation that was spun off on July 2, 2002 which includes an increase in the valuation for deferred income taxes of $24.0 million. For fiscal year 2003, IMPCO reported revenues of $74.7 million, a $6.4 million increase over 2002, and an operating loss of $0.5 million. One time operating expenses, mainly attributable to one time refinancing expenses and organizational reductions of $1.1 million, and $0.9 million of inventory and accounts receivable adjustments and $0.4 million of start-up expenses unfavorably impacted operating income. Net loss in 2003 of $6.9 million or $.41 per share includes $1.3 million ($.07/share) of one time refinancing costs including non-cash warrants, and $1.1 million ($.06/share) in inventory and accounts receivable charges from unconsolidated operations. Interest expenses in 2003 was $4.0 million versus $1.0 million in 2002. In comparison, 2002 revenues were $68.4 million with an operating loss of $2.7 million and a net loss of $36.6 million or $2.58 per share, including a $24.0 million charge or $1.75 per share loss to increase the valuation allowance for deferred income taxes, and a $10.3 million charge or $.80 per share loss from the Quantum discontinued operation. Robert M. Stemmler, CEO and Chairman of the Board said, "In 2003, IMPCO successfully accomplished a number of objectives which positioned the company for future growth and profitability. In our industrial market we sold our first emission certified fuel systems and engines in the fourth quarter. This new business resulted from the new stringent United States EPA emission regulations imposed on off-highway vehicles and will grow significantly in 2004. We also positioned the company for future growth in our expanding global transportation markets by consummating our 50% purchase of BRC S.r.l. in Italy. We restructured and strengthened our balance sheet by raising $41 million through debt refinancing and an equity offering." In regard to the financial performance of the company, Mr. Stemmler indicated that he felt much progress was made to lead thecompany to a profitable financial performance in 2004. The one time $4.8 million of operating and start-up expenses and refinancing charges taken in 2003, were necessary to position the company for profitable operations in 2004. He also stated, "In regard to the first quarter of 2004, IMPCO expects strong revenues in the mid twenty million dollar range and a positive net income." Earnings Call Scheduled for March 22, 2004: IMPCO will host a conference call to discuss financial results on March 22at 4:30 p.m. Eastern Time, 1:30 p.m. Pacific Time. All shareholders and other interested parties are invited to dial into the call, which may be accessed by calling (785) 832-1508. 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) 934-7776 or (402) 220-6983. 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 contained in the section entitled "Management's Discussion & Analysis of Financial Conditions on Results of Operations -- Risk Factors" in its Annual Report on Form 10-K for the period ended December 31, 2003. 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 contact Mr. Dale Rasmussen, Investor Relations: Email: Phone: +1-206-315-8242 Fax: +1-206-315-8301 DATASOURCE: IMPCO CONTACT: Mr. Dale Rasmussen, Investor Relations of IMPCO, +1-206-315-8242, fax +1-206-315-8301, Web site: http://www.impco.ws/ http://www.brc.it/

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