IMCO Impco Technologies (MM)

IMPCO Reports Favorable Second Quarter 2004 Results CERRITOS, Calif., August 2 /PRNewswire/ -- IMPCO Technologies, Inc. (NASDAQ:IMCO), today reported results for its second quarter ended June 30, 2004. IMPCO's second quarter fiscal 2004 results were $32.5 million in revenues and $3.0 million in operating income, as compared to $18.3 million in revenues and $1.1 million in operating income in the same period in 2003. Second quarter of fiscal year 2004 revenues increased $14.1 million, or 77%, while operating income increased $1.9 million, or 182%, compared to the same period in 2003. Net income for the second quarter of 2004 was $1.0 million and 5 cents net income per share, compared to a net loss of ($0.2) million and 1 cent net loss per share in the same period in 2003. IMPCO's first half fiscal 2004 results were $61.1 million in revenues and $5.4 million in operating income, as compared to $37.9 million in revenues and $2.2 million in operating income in the first half of 2003. First half fiscal 2004 revenues increased $23.2 million, or 61%, while operating income increased $3.2 million, or 146%, compared to the same period in 2003. Net income for the first half of fiscal 2004 was $1.5 million and 8 cents net income per share, compared to net income of $0.3 million and 2 cents net income per share in the same period in 2003. Robert M. Stemmler, CEO and Chairman, said, "We are very pleased with IMPCO's favorable second quarter and first half results. The profitable growth of our business is the result of our successful efforts to develop new businesses and the growth of our core business due to the improving world economy." Mr. Stemmler mentioned that new business growth from the emission certified fuel and engine system product lines accounted for $17.7 million of the company's $23.2 million first half growth versus the same period last year. He also stated that growth of the traditional core business during the first half was 24% greater than the same period last year. Also mentioned was that the BRC operation in Italy, of which IMPCO has a 50% share, had a strong second quarter and first half. BRC first half sales were $23.2 million. Net income of $1.1 million showed a marked improvement of $1.2 million versus the same period in 2003. Significant growth of the transportation market in Asia and Eastern Europe was a major reason. Mr. Stemmler said that the company expected a normal seasonal slow down during the summer months in the third quarter. He projected third quarter revenues approaching $30 million with an operating income approaching $2.5 million, excluding the unconsolidated BRC operation. He said the company is especially bullish on 2005 anticipating the continued growth of the emission certified engine and fuel system business in the USA and the continued growth of the global transportation markets for IMPCO and BRC brand products. Earnings Call Scheduled for August IMPCO will host a conference call to discuss financial results on Monday, August 2, 2004 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 (888) 562-3379 or (402) 220-1187. 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 Three and Six Months Ended June 30, 2003 and 2004 (In thousands except per share data) Three Months Ended Six Months Ended June 30, June 30, 2003 2004 2003 2004 Revenue $18,340 $32,478 $37,912 $61,081 Costs and expenses: Cost of revenue 12,371 23,881 25,383 44,941 Research and development expense 796 1,059 1,782 2,001 Selling, general and administrative expense 4,121 4,568 8,554 8,738 Total costs and expenses 17,288 29,508 35,719 55,680 Operating Income 1,052 2,970 2,193 5,401 Interest expense, net 1,026 1,504 1,257 2,659 Income from continuing operations before income taxes 26 1,466 936 2,742 Equity share in income of unconsolidated affiliates -- (323) -- (283) Income tax expense 11 581 375 1,015 Income from continuing operations before minority interest 15 1,208 561 2,010 Minority interest in income of consolidated subsidiaries 197 224 292 510 Net income (loss) $(182) $984 $269 $1,500 Net income per share: Basic net income $(0.01) $0.05 $0.02 $0.08 Diluted net income $(0.01) $0.05 $0.02 $0.08 Number of shares used in per share calculation: Basic 16,437 18,592 16,436 18,584 Diluted 16,437 19,620 16,564 19,822 IMPCO TECHNOLOGIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands except share data) December 31, June 30, 2003 2004 (Unaudited) ASSETS Current assets: Cash and cash equivalents $9,524 $5,382 Restricted cash 724 Accounts receivable, net 14,051 25,128 Inventories: Raw materials and parts 9,347 10,808 Work-in-process 277 459 Finished goods 8,275 6,433 Total inventories 17,899 17,700 Deferred tax assets 283 125 Other current assets 1,648 2,269 Total current assets 44,129 50,604 Equipment and leasehold improvements Dies, molds and patterns 6,572 6,944 Machinery and equipment 7,792 7,861 Office furnishings and equipment 8,545 7,890 Automobiles and trucks 402 359 Leasehold improvements 3,597 3,635 26,908 26,689 Less accumulated depreciation and amortization 18,589 18,735 Net equipment and leasehold improvements 8,319 7,954 Net goodwill and intangibles 10,106 9,830 Deferred tax assets, net 9,476 9,371 Investment in affiliates 25,500 25,998 Other assets 3,606 3,651 $101,136 $107,408 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $9,082 $11,082 Accrued payroll obligations 2,762 2,585 Other accrued expenses 4,195 4,033 Current revolving line of credit 5,238 9,028 Current maturities of long-term debt and capital leases 713 695 Total current liabilities 21,990 27,423 Term loans, net of discount 17,617 18,330 Capital leases 95 80 Other liabilities 1,483 1,302 Minority interest 2,822 2,247 Stockholders' equity: Preferred stock, $.001 par value, authorized 500,000 shares; none issued and outstanding at December 31, -- -- 2003 and June 30, 2004 Common stock, $.001 par value, authorized 100,000,000 shares; 18,616,649 outstanding at June 30, 2004 (18,568,721 at December 31, 2003) 19 19 Additional paid-in capital 132,190 132,627 Shares held in treasury (312) (360) Accumulated deficit (74,993) (73,500 Accumulated other comprehensive income (loss) 225 (760) Total stockholders' equity 57,129 58,026 $101,136 $107,408 DATASOURCE: IMPCO Technologies, Inc. CONTACT: Dale Rasmussen, Investor Relations, +1-206-315-8242, for IMPCO Technologies, Inc. Web site: http://www.impco.ws/ http://www.brc.it/

Copyright