IMCO Impco Technologies (MM)

IMPCO Reports Favorable First Quarter 2004 Results CERRITOS, Calif., May 5 /PRNewswire-FirstCall/ -- IMPCO Technologies, Inc. , today reported results for its first quarter ended March 31, 2004. IMPCO's first quarter fiscal 2004 results were $28.6 million in revenues and $2.4 million in operating income as compared to $19.6 million in revenues and $1.1 million in operating income in the same period in the prior fiscal year. First quarter of fiscal year 2004 revenues increased $9.0 million, or 46%, while operating income increased $1.3 million, or 113%, compared to the same period in 2003. Net income in the first quarter of 2004 was $0.5 million and 3 cents per share, equal to the same period in 2003. Robert M. Stemmler, CEO and Chairman, said, "IMPCO's favorable first quarter financial performance is primarily the result of our efforts to develop growth from new businesses which complement our capabilities and the reduction of operating expenses by streamlining our operations. The growth of our EPA emission certified fuel system and engine business for off-highway motor vehicles was the major reason for our first quarter record revenues. Also contributing was the continued growth of our core products which began the second half of last year due to the rebound of the global economy." He also added that operating expenses were reduced by $300,000 compared to the same period in 2003 and that the company's current booked orders of $32 million were 156% greater than for the same period in 2003. Continuing, Mr. Stemmler stated, "We think that the second quarter will continue the upward trend with revenues approaching $30 million and with our operating income approaching $3 million." Earnings Call Scheduled for May IMPCO will host a conference call to discuss financial results on May 5 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) 832-1508. 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) 945-0804. IMPCO and BRC design, manufacture, market and supply advanced alternative fuel systems and related products for the transportation, industrial and power generation markets. 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 side, 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 and trends in the global economy and environmental regulation that impact our business from time to time. 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. Accordingly, you should not construe statements of anticipated performance or planned courses of action as assurances or promises, and note that our statements of expectations are based on information currently available to management. Factors that could cause actual results to differ materially from our forward-looking statements include, among other factors, prevailing market and global economic conditions; changes in environmental regulations that impact the demand for our products; our ability to manage our leverage and address operating covenant restrictions relating to our indebtedness; our ability to negotiate and comply with waivers pertaining to existing loan covenant defaults; the company's ability to design and market advanced fuel metering, fuel storage and electronic control products; the company's ability to meet OEM specifications; and the level and success of the company's development programs with OEMs. Readers also should consider the risk factors set forth from time to time in our 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 Annual Report on Form 10-K for the fiscal year 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, please contact Mr. Dale Rasmussen, Investor Relations, +1-206-315-8242. IMPCO TECHNOLOGIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Unaudited (In thousands except per share data) Three Months Ended March 31, 2003 2004 Revenue $ 19,572 $ 28,603 Costs and expenses: Cost of revenue 13,013 21,060 Research and development expense 986 942 Selling, general and administrative expense 4,432 4,170 Total costs and expenses 18,431 26,172 Operating income 1,141 2,431 Interest expense, net 231 1,155 Income from continuing operations before income taxes 910 1,276 Equity share in loss of unconsolidated affiliates -- 40 Income tax expense 364 434 Income from continuing operations before minority interest 546 802 Minority interest in income of consolidated subsidiaries 95 286 Net income $ 451 $ 516 Net income per share: Basic net income $ 0.03 $ 0.03 Diluted net income $ 0.03 $ 0.03 Number of shares used in per share calculation: Basic 16,434 18,576 Diluted 16,517 19,986 IMPCO TECHNOLOGIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands except share data) December 31, March 31, 2003 2004 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 9,524 $ 9,144 Restricted cash 724 388 Accounts receivable, net 14,051 24,561 Inventories: Raw materials and parts 9,347 11,259 Work-in-process 277 397 Finished goods 8,275 6,965 Total inventories 17,899 18,621 Deferred tax assets 283 293 Other current assets 1,648 1,329 Total current assets 44,129 54,336 Equipment and leasehold improvements Dies, molds and patterns 6,572 6,911 Machinery and equipment 7,792 7,825 Office furnishings and equipment 8,545 8,030 Automobiles and trucks 402 399 Leasehold improvements 3,597 3,642 26,908 26,807 Less accumulated depreciation and amortization 18,589 18,531 Net equipment and leasehold improvements 8,319 8,276 Net goodwill and intangibles 10,106 10,075 Deferred tax assets, net 9,476 9,476 Investment in affiliates 25,500 25,631 Other assets 3,606 4,048 $ 101,136 $ 111,842 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 9,082 $ 14,767 Accrued payroll obligations 2,762 2,745 Other accrued expenses 4,195 3,806 Current revolving line of credit 5,238 9,675 Current maturities of long-term debt and capital leases 713 629 Total current liabilities 21,990 31,622 Term loans, net of discount 17,617 17,817 Capital leases 95 96 Other liabilities 1,483 1,335 Minority interest 2,822 3,159 Stockholders' equity: Preferred stock, $.001 par value, authorized 500,000 shares; none issued and outstanding at December 31, 2003 and March 31, 2004 -- -- Common stock, $.001 par value, authorized 100,000,000 shares; 18,584,149 outstanding at March 31, 2004 (18,568,721 at December 31, 2003) 19 19 Additional paid-in capital 132,190 132,290 Shares held in treasury (312) (360) Accumulated deficit (74,993) (74,485) Accumulated other comprehensive income 225 349 Total stockholders' equity 57,129 57,813 $ 101,136 $ 111,842 DATASOURCE: IMPCO Technologies, Inc. CONTACT: Dale Rasmussen, Investor Relations, +1-206-315-8242, , for IMPCO Technologies, Inc. Web site: http://www.brc.it/ Web site: http://www.impco.ws/

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