EX-99.1 3 l02687aexv99w1.txt EXHIBIT 99.1 EXHIBIT 99.1 FOR IMMEDIATE RELEASE --------------------- LEXINGTON PRECISION REPORTS SECOND QUARTER RESULTS NEW YORK, August 18, 2003 -- Lexington Precision Corporation reported a net loss of $674,000, or 14 cents per diluted common share, for the second quarter ended June 30, 2003, compared to net income of $207,000, or 4 cents per diluted common share, for the second quarter of 2002. Net sales for the second quarter of 2003 were $30,873,000, compared to $32,996,000 for the second quarter of 2002, a decrease of 6%. Net sales of the company's Rubber Group increased by 2% to $26,645,000, while net sales of the Metals Group decreased by 38% to $4,228,000. The net sales of the Metals Group declined primarily because of the loss of volume because customers were able to resource several diecast components in lower cost countries and to convert a high-volume, machined metal component to a stamped metal component. During the second quarter of 2003, income from operations totaled $1,113,000, compared to $2,204,000 for the second quarter of 2002. Income from operations at the Rubber Group decreased to $3,020,000 from $3,449,000. The Metals Group reported a loss from operations of $1,259,000, compared to a loss of $492,000 for the second quarter of 2002. Corporate office expenses decreased to $648,000 from $753,000. Earnings before interest, taxes, depreciation, and amortization (EBITDA) for the second quarter of 2003, totaled $3,744,000, compared to EBITDA of $5,184,000 for the second quarter of 2002, a decrease of 28%. EBITDA for the Rubber Group decreased 11% to $4,825,000, while EBITDA for the Metals Group, decreased from $530,000 to negative $443,000. Corporate office EBITDA improved from negative $753,000 to negative $638,000. Net cash provided by operating activities for the second quarter of 2003 totaled $4,467,000, compared to $3,522,000 for the second quarter of 2002, an increase of 27%. The company reported a net loss of $843,000, or 17 cents per diluted common share, for the first six months of 2003, compared to a net loss of $1,419,000, or 29 cents per diluted common share, for the first six months of 2002. Net sales for the first six months of 2003 were $63,256,000, compared to $63,240,000 for the first six months of 2002. Net sales of the Rubber Group increased by 7% to $53,367,000, while net sales of the Metals Group decreased by 25% to $9,889,000, primarily due to the factors mentioned above for the second quarter. Lexington Precision Corporation August 18, 2003 During the first six months of 2003, income from operations totaled $2,751,000, compared to $2,395,000 for the first six months of 2002. Income from operations at the Rubber Group decreased to $5,839,000 from $5,939,000. The Metals Group reported a loss from operations of $1,842,000, compared to a loss of $2,208,000 for the first six months of 2003. Corporate office expenses decreased to $1,246,000 from $1,336,000. EBITDA for the first six months of 2003, totaled $8,153,000, compared to EBITDA of $8,424,000 for the first six months of 2002, a decrease of 3%. EBITDA for the Rubber Group decreased 4% to $9,519,000, while EBITDA for the Metals Group, improved from negative $158,000 to negative $139,000. Corporate office EBITDA improved from negative $1,336,000 to negative $1,227,000. Net cash provided by operating activities for the first six months of 2003 totaled $4,857,000, compared to $5,132,000 for the first six months of 2002, a decrease of 5%. Tables setting forth our condensed consolidated statements of operations and selected consolidated and segment financial data, including information concerning our cash flows from operations and reconciliations of consolidated net loss and consolidated income from operations to consolidated EBITDA, are attached. EBITDA is not a measure of performance under accounting principles generally accepted in the United States and should not be considered in isolation or used as a substitute for income from operations, net income, net cash provided by operating activities, or other operating or cash flow statement data prepared in accordance with generally accepted accounting principles. We have presented EBITDA because we believe this measure is used by investors, as well as our own management, to evaluate the operating performance of our business, including its ability to incur and to service debt. Our definition of EBITDA may not be the same as the definition of EBITDA used by other companies. Lexington Precision Corporation manufactures rubber and metal components that are used primarily by manufacturers of automobiles, automotive replacement parts, and medical devices. Contact: Warren Delano, President (212) 319-4657 - 2 - LEXINGTON PRECISION CORPORATION CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
QUARTER ENDED SIX MONTHS ENDED JUNE 30 JUNE 30 ------------------------ ------------------------- 2003 2002 2003 2002 ---- ---- ---- ---- Net sales $ 30,873 $ 32,996 $ 63,256 $ 63,240 Cost of sales 27,587 28,356 56,240 55,632 --------- --------- --------- --------- Gross profit 3,286 4,640 7,016 7,608 Selling and administrative expenses 2,173 2,349 4,265 4,604 Plant closure costs - 87 - 609 --------- --------- --------- --------- Income from operations 1,113 2,204 2,751 2,395 Interest expense 1,760 1,967 3,540 3,763 --------- --------- --------- --------- Income (loss) before income taxes (647) 237 (789) (1,368) Income tax provision 27 30 54 51 --------- --------- --------- --------- Net income (loss) $ (674) $ 207 $ (843) $ (1,419) ========= ========= ========= ========= Basic and diluted net income (loss) available to Common stockholders $ (0.14) $ 0.04 $ (0.17) $ (0.29) ========= ========= ========= ========= Weighted average number of common shares outstanding 4,828 4,828 4,828 4,828 ========= ========= ========= ========= Reconciliation of net income (loss) to EBITDA: Net income (loss) $ (674) $ 207 $ (843) $ (1,419) Add back: Depreciation and amortization 2,631 2,980 5,402 6,029 Interest expense 1,760 1,967 3,540 3,763 Income tax provision 27 30 54 51 --------- --------- --------- --------- EBITDA $ 3,744 $ 5,184 $ 8,153 $ 8,424 ========= ========= ========= ========= Net cash provided by operating activities $ 4,467 $ 3,522 $ 4,857 $ 5,132 ========= ========= ========= =========
- 3 - LEXINGTON PRECISION CORPORATION SELECT CONSOLIDATED AND SEGMENT FINANCIAL DATA (IN THOUSANDS)
QUARTER ENDED SIX MONTHS ENDED JUNE 30 JUNE 30 ------------------------- -------------------------- 2003 2002 2003 2002 ---- ---- ---- ---- Net sales: Rubber Group $ 26,645 $ 26,161 $ 53,367 $ 50,114 Metals Group 4,228 6,835 9,889 13,126 --------- --------- --------- --------- Total net sales $ 30,873 $ 32,996 $ 63,256 $ 63,240 ========= ========= ========= ========= Income (loss) from operations: Rubber Group $ 3,020 $ 3,449 $ 5,839 $ 5,939 Metals Group (1,259) (492) (1,842) (2,208) Corporate office (648) (753) (1,246) (1,336) --------- --------- --------- --------- Total income (loss) from operations 1,113 2,204 2,751 2,395 --------- --------- --------- --------- Add back depreciation and amortization included in income from operations: Rubber Group 1,805 1,947 3,680 3,947 Metals Group 816 1,022 1,703 2,050 Corporate office 10 11 19 32 --------- --------- --------- --------- Total depreciation and amortization 2,631 2,980 5,402 6,029 --------- --------- --------- --------- Earnings (loss) before interest, taxes, depreciation, and amortization (EBITDA): Rubber Group 4,825 5,396 9,519 9,886 Metals Group (443) 530 (139) (158) Corporate office (638) (742) (1,227) (1,304) --------- --------- --------- --------- Total EBITDA $ 3,744 $ 5,184 $ 8,153 $ 8,424 ========= ========= ========= ========= Capital expenditures: Rubber Group $ 1,392 $ 903 $ 2,219 $ 1,566 Metals Group 443 244 619 359 Corporate office - - 2 - --------- --------- --------- --------- Total capital expenditures $ 1,835 $ 1,147 $ 2,840 $ 1,925 ========= ========= ========= =========
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