IMPCO Reports Favorable Third Quarter 2004 Results CERRITOS,
Calif., Nov. 4 /PRNewswire-FirstCall/ -- IMPCO Technologies, Inc.
(NASDAQ:IMCO), today reported results for its third quarter ended
September 30, 2004. IMPCO's third quarter fiscal 2004 results were
$30.1 million in revenues and $2.4 million in operating income, as
compared to $18.7 million in revenues and $0.4 million in operating
income in the same period in 2003. Third quarter of fiscal year
2004 revenues increased $11.4 million, or 61%, while operating
income increased $2.0 million, or 500%, compared to the same period
in 2003. Net income for the third quarter of 2004 was $0.5 million
and 3 cents net income per share, compared to a net loss of ($1.2)
million and 8 cents net loss per share in the same period in 2003.
IMPCO's nine month fiscal 2004 results were $91.2 million in
revenues and $7.8 million in operating income, as compared to $56.6
million in revenues and $2.6 million in operating income in the
comparable nine month period of 2003. Nine month fiscal 2004
revenues increased $34.6 million, or 61%, while operating income
increased $5.2 million, or 200%, compared to the same period in
2003. Net income for the nine months of fiscal 2004 was $2.0
million and 10 cents net income per share, compared to a net loss
of ($1.0) million and 6 cents net loss per share in the same period
in 2003. Mr. Robert Stemmler, Chairman and CEO said that, "the
third quarter's favorable results and the YTD outstanding
performance of the company were due to underlying strengths which
have been built into IMPCO over the past two years." He added,
"these strengths include a leading position in the rapidly
expanding emission controlled off-highway industrial market in the
U.S., a leading position in the large overseas motor vehicle
market, and the low operating expenses of all USA and international
business units." Commenting on the growth of the industrial market,
Mr. Stemmler stated, "the industrial market was responsible for the
company's revenue growth YTD and represents a 116% improvement over
the same period last year." In regard to the new emission
controlled off-highway business in the U.S., Mr. Stemmler cited
that it was the major factor for the growth of the industrial
market with YTD revenues of $29.4 million. Referring to the
international motor vehicle market, Mr. Stemmler said that the net
income contribution from our joint venture partner, BRC, has also
been a major factor in the company's performance. He said, "Our 50%
unconsolidated subsidiary, which is a leader in the global motor
vehicle market, is having an outstanding year through growth in the
European Union, Eastern Europe, India and South American regions.
BRC revenues, which are not consolidated into IMPCO, have increased
39% to $38.7 million in the first three quarters of this year in
comparison to the same period in CY03." Mr. Stemmler said that
IMPCO's past efforts to reduce operating costs and improve
efficiency was also an indirect contributor to the favorable
results of the company. He said third quarter YTD SG&A costs
were approximately the same as last year and noted that this was
accomplished despite added expenses of approximately $200,000 which
were primarily due to implementation of the Sarbanes Oxley
requirements. As a percent of sales SG&A was 14.6% third
quarter YTD versus 24% last year. Mr. Stemmler referred those
interested in the acquisition of the remaining 50% of BRC to review
IMPCO's October 25, 2004 8-K filing on the subject. Earnings Call
Scheduled for November IMPCO will host a conference call to discuss
financial results on Thursday, November 4, 2004 at 4:30 p.m. EST,
1:30 p.m. PST. All shareholders and other interested parties are
invited to dial into the call, which may be accessed by calling
(706) 679-3125. 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)
642-1687 or (706) 645-9291, reference conference code #1868575.
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 of IMPCO, +1-206-315-8242. IMPCO TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Unaudited Three and
Nine Months Ended September 30, 2003 and 2004 (In thousands except
per share data) Three Months Ended Nine Months Ended September 30,
September 30, 2003 2004 2003 2004 Revenue $18,669 $30,064 $56,581
$91,146 Costs and expenses: Cost of revenue 12,864 21,933 38,247
66,874 Research and development expense 911 1,189 2,693 3,190
Selling, general and administrative expense 4,482 4,542 13,036
13,279 Total costs and expenses 18,257 27,664 53,976 83,343
Operating Income 412 2,400 2,605 7,803 Interest expense, net 1,552
1,504 2,808 4,163 Income from operations before income taxes
(1,140) 896 (203) 3,640 Equity share in (income) loss of
unconsolidated affiliates 617 (435) 617 (718) Income tax expense
(benefit) (703) 483 (328) 1,499 Income from operations before
minority interest (1,054) 848 (492) 2,859 Minority interest in
income of consolidated subsidiaries 185 343 478 853 Net income
(loss) $(1,239) $505 $(970) $2,006 Net income (loss) per share:
Basic net income (loss) $(0.08) $0.03 $(0.06) $0.11 Diluted net
income (loss) $(0.08) $0.03 $(0.06) $0.10 Number of shares used in
per share calculation: Basic 16,459 18,617 16,443 18,595 Diluted
16,459 19,478 16,443 19,704 IMPCO TECHNOLOGIES, INC. CONDENSED
CONSOLIDATED BALANCE SHEETS (In thousands except share data)
December 31, September 30, 2003 2004 (Unaudited) ASSETS Current
assets: Cash and cash equivalents $9,524 $6,781 Restricted cash 724
Accounts receivable, net 14,051 27,094 Inventories: Raw materials
and parts 9,347 10,220 Work-in-process 277 270 Finished goods 8,275
6,344 Total inventories 17,899 16,834 Deferred tax assets 283 129
Other current assets 1,648 2,145 Total current assets 44,129 52,983
Equipment and leasehold improvements Dies, molds and patterns 6,572
7,160 Machinery and equipment 7,792 7,967 Office furnishings and
equipment 8,545 7,949 Automobiles and trucks 402 415 Leasehold
improvements 3,597 3,667 26,908 27,158 Less accumulated
depreciation and amortization 18,589 19,282 Net equipment and
leasehold improvements 8,319 7,876 Net goodwill and intangibles
10,106 9,901 Deferred tax assets, net 9,476 9,058 Investment in
affiliates 25,500 26,532 Other assets 3,606 3,539 $101,136 $109,889
LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts
payable $9,082 $10,241 Accrued payroll obligations 2,762 2,833
Other accrued expenses 4,195 4,423 Current revolving line of credit
5,238 9,943 Current maturities of long-term debt and capital leases
713 399 Total current liabilities 21,990 27,839 Term loans, net of
discount 17,617 18,968 Capital leases. 95 164 Other liabilities
1,483 1,330 Minority interest 2,822 2,638 Stockholders' equity:
Preferred stock, $.001 par value, authorized 500,000 shares; none
issued and outstanding at December 31, 2003 and September 30, 2004
-- -- Common stock, $.001 par value, authorized 100,000,000 shares;
18,616,649 outstanding at September 30, 2004 (18,568,721 at
December 31, 2003) 19 19 Additional paid-in capital 132,190 132,780
DATASOURCE: IMPCO CONTACT: Mr. Dale Rasmussen, Investor Relations
of IMPCO Technologies, Inc., +1-206-315-8242 Web site:
http://www.impco.ws/
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