Trans-Industries, Inc. Reports 2004 Third-Quarter and Nine-Month
Results ROCHESTER HILLS, Mich., Nov. 11 /PRNewswire-FirstCall/ --
Trans-Industries, Inc. (NASDAQ:TRNI), a manufacturer of lighting
products for buses, particle extraction systems, electronic
information systems and software related products for the mass
transit, highway and commercial markets, today announced results
for the third quarter and nine months ended September 30, 2004.
Sales were $6.9 million for the quarter, a decline of 17 percent
from sales of $8.3 million for the three months ended September 30,
2003. A sales decline was evident in all product areas with
significant slowness realized among information systems and
lighting products. Declines in these areas were realized due to
capital expenditure deferrals by highway departments, as well as by
commercial purchasers of information systems, while shipments of
lighting products were affected by a reduced level of bus
production that persisted throughout the quarter and most of the
year. Due in large measure to these market factors, sales for the
nine months ended September 30, 2004 were $22.1 million, or 13
percent below those of last year when they amounted to $25.5
million for the same nine-month period of 2003. Net income for the
quarter was $1.9 million, or $.60 per share, compared with a loss
during last year's third quarter of $1.7 million, or $.53 per
share. This profit, however, resulted solely from a gain of $2.3
million on the sale of a plant vacated by the information systems
business. From operations, a loss of $490,000 was incurred.
Included in the $1.7 million loss for the third quarter of 2003 was
$361,000 of restructuring costs and $1.1 million of charges for an
inventory writedown. The net loss for the nine months ended
September 30, 2004 was $1.1 million, or $.34 per share, compared
with a loss of $2.3 million, or $.72 per share, the prior year. The
2004 period included an inventory writedown of $2.3 million taken
in the second quarter and a $2.4 million gain on the sale of the
vacated plant noted above taken in the third quarter. Last year's
period included an inventory writedown and restructuring costs of
$1.4 million, resulting is a loss of $2.3 million for the nine
months ended September 30, 2003. A substantial improvement of the
balance sheet was realized during the third quarter. Cash from the
sale of the information systems plant plus the infusion of $1.5
million from the sale of subordinated convertible debt enabled the
Company to reduce debt and improve working capital. On August 18,
2004, the Company closed refinancing with Huntington National Bank.
The Company used the proceeds from the refinancing to repay its
former lender, Comerica Bank, in full. The new loan agreement with
Huntington National Bank includes a mortgage on its real estate for
$2 million. The mortgage is a five-year note, amortized over 10
years with monthly payments of $16,667.67 and a final balloon
payment of $1 million due at maturity. Interest on the mortgage is
at 1.75 percent over the bank's prime lending rate. Additionally,
the Company obtained a $6 million line of credit secured by all of
the Company's assets. The credit line is a three-year facility with
an interest rate of 1.25 percent over the bank's prime lending
rate. About the Company The Company is a leading provider of
lighting systems and related components to the mass transit market
as well as a supplier of information hardware and software
solutions on Intelligent Transportation Systems (ITS) and mass
transit projects. ITS utilizes integrated networks of electronic
sensors, signs and software to monitor road conditions, communicate
information to drivers and help transportation authorities better
manage traffic flow across their existing infrastructures.
Forward-Looking Statements Except for statements of historical
fact, this news release contains certain forward-looking statements
about the Company. Such statements are subject to significant risks
and uncertainties including changes in economic and market
conditions, management of growth, and other risks noted in the
Company's SEC filings which may cause actual results to differ
materially. Visit Trans-Industries at
http://www.transindustries.com/ Trans-Industries, Inc. Sales and
Earnings Report (Unaudited) September 30, 2004 Third Quarter Ending
Nine Months Ending September 30 September 30 2004 2003 2004 2003
Sales $6,908,580 $8,310,848 $22,141,046 $25,503,607 Cost of Sales
5,142,557 7,225,458 18,737,366 19,146,859 Gross Profit 1,766,023
1,085,390 3,403,680 6,356,748 Selling, Gen. & Admin. Exp.
2,133,229 2,227,645 6,240,547 7,523,631 Interest 123,043 160,692
446,619 492,461 Restructuring Costs 19 361,124 129,017 633,983
Other (2,384,522) (3,355) (2,395,733) (5,363) Total Expenses
(128,231) 2,746,106 4,420,450 8,644,712 Earnings/(Loss) Before
Income Taxes 1,894,254 (1,660,716) (1,016,770) (2,287,964) Income
Taxes/(Benefit) 0 0 0 (17,000) Net Income/(Loss) 1,894,254
(1,660,716) (1,016,770) (2,270,964) Preferred Dividend (18,750) 0
(43,542) 0 Net Earnings/(Loss) Available to Common Shareholders
$1,875,504 $(1,660,716) $(1,060,312) $(2,270,964) Earnings/(Loss)
Per Share Basic $0.60 $(0.53) $(0.34) $(0.72) * Includes $2,378,390
gain on the sale of the Vultron building. Weighted Average Number
of Shares Outstanding 3,139,737 3,139,737 3,139,737 3,139,737
Consolidated Balance Sheet (Unaudited) Third Quarter Ending
September 30 Assets: 2004 2003 Total Current Assets $13,746,062
$17,825,110 Net Fixed Assets 3,251,545 3,742,306 Other Assets
743,898 386,474 Total Assets $17,741,505 $21,953,890 Liabilities
and Shareholders' Equity: Total Current Liabilities $10,633,880
$14,568,106 Deferred Income Taxes 0 458,000 Long-Term Debt
1,735,739 296,374 Shareholders' Equity 5,371,886 6,631,410 Total
Liabilities and Shareholders' Equity $17,741,505 $21,953,890
DATASOURCE: Trans-Industries, Inc. CONTACT: Kai Kosanke, Chief
Financial Officer of Trans-Industries, Inc., +1-248-364-0400 Web
Site: http://www.transindustries.com/
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