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 IMPCO TECHNOLOGIES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS Three Months and Fiscal Year Ended December 31, 2002 and 2003 In Thousands of Dollars Three Months Ended 12 Months Fiscal Ended Year Ended December 31, December 31, 2002 2003 2002 2003 (Unaudited) (Unaudited) Revenue $15,038 $18,159 $68,390 $74,740 Costs and expenses: Cost of revenue 10,861 13,533 48,502 51,780 Research and development expense 1,113 1,110 4,558 3,803 Selling, general and administrative expense 3,958 6,602 18,043 19,638 Total costs and expenses 15,932 21,245 71,103 75,221 Operating loss (894) (3,086) (2,713) (481) Interest expense, net 463 1,230 991 4,039 Loss from continuing operations before income taxes and equity share in losses of unconsolidated affiliates (1,357) (4,316) (3,704) (4,520) Equity share in losses of unconsolidated affiliates -- 490 -- 1,107 Income tax expense 23,532 997 22,709 668 Loss from continuing operations before minority interests (24,889) (5,803) (26,413) (6,295) Minority interest in income (loss) of consolidated subsidiaries (87) 127 (82) 605 Loss fromcontinuing Loss from discontinued operation (167) -- (10,252) -- Net Loss $(24,969) $(5,930) $(36,583) $(6,900) Net loss per share: Basic: Loss from continuing operations $(1.66) $(0.34) $(1.92) $(0.41) Loss from discontinued operation $(0.01) $-- $(0.75) $-- Net loss $(1.67) $(0.34) $(2.66) $(0.41) Diluted: Loss from continuing operations $(1.66) $(0.34) $(1.92) $(0.41) Loss from discontinued operation $(0.01) $-- $(0.75) $-- Net loss $(1.67) $(0.34) $(2.66) $(0.41) Number of shares used in per share calculation: Basic 14,952 17,240 13,744 16,643 Diluted 14,952 17,240 13,744 16,643 IMPCO TECHNOLOGIES, INC. CONSOLIDATED BALANCE SHEETS As of December 31, 2002 and 2003 In Thousands of Dollars December 31, December 31, 2002 2003 ASSETS Current assets: Cash and cash equivalents $1,996 $9,524 Restricted cash 1,604 724 Accounts receivable, net 11,641 14,051 Inventories: Raw materials and parts 8,616 9,347 Work-in-process -- 277 Finished goods 8,705 8,275 Total inventories 17,321 17,899 Deferred tax assets 1,032 283 Other current assets 1,649 1,648 Current assets from discontinued operation -- -- Total current assets 35,243 44,129 Equipment and leasehold improvements: Dies, molds and patterns 6,343 6,572 Machinery and equipment 6,317 7,792 Office furnishings and equipment 8,462 8,545 Automobiles and trucks 406 402 Leasehold improvements 3,401 3,597 24,929 26,908 Less accumulated depreciation and amortization 16,359 18,589 Net equipment and leasehold improvements 8,570 8,319 Net goodwill and intangibles 8,921 10,106 Deferred tax assets, net 8,405 9,476 Investment in affiliates 12,777 25,500 Other assets 2,062 3,606 Non-current assets from discontinued operation -- -- Total Assets $75,978 $101,136 IMPCO TECHNOLOGIES, INC. CONSOLIDATED BALANCE SHEETS-CONTINUED As of December 31, 2002 and 2003 In Thousands of Dollars December 31, December 31, 2002 2003 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $5,166 $9,082 Accrued payroll obligations 2,387 2,762 Other accrued expenses 2,294 4,195 Current revolving line of credit 5,860 5,238 Current maturities of long-term debt and capital leases 8,331 713 Current liabilities from discontinued operations -- -- Total current liabilities 24,038 21,990 Term loans -- 17,617 Capital leases 101 95 Non-current liabilities from discontunued operation -- -- Other liabilities -- 1,483 Minority interest 2,217 2,822 Stockholders' equity: Preferred stock, $.001 par value, authorized 500,000 shares; none issued and outstanding at December 31, 2002 and 2003 Common stock, $.001 par value, authorized 100,000,000 shares 16,433,282 issued and outstanding at December 31, 2002; 18,568,721 issued and outstanding at December 31, 2003 16 19 Additional paid-in capital 120,624 132,190 Shares held in treasury (173) (312) Accumulated deficit (68,065) (74,993) Accumulated other comprehensive income (loss) (2,780) 225 Total stockholders' equity 49,622 57,129 Total Liabilities and Stockholders' Equity $75,978 $101,136 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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