8-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported) April 6, 2006

Lexington Precision Corporation

(Exact Name of Registrant as Specified in Its Charter)

Delaware

(State or Other Jurisdiction of Incorporation)

0-3252	22-1830121
(Commission File Number)	(IRS Employer Identification No.)
40 East 52nd Street, New York, NY	10022
(Address of Principal Executive Offices)	(Zip Code)

(212) 319-4657

(Registrant’s Telephone Number, Including Area Code)

(Former Name or Former Address, if Changed Since Last Report)

     Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

     o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

     o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

     o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

     o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

EX-99.1 Press Release

Section 2 — Financial Information

     Item 2.02 Results of Operations and Financial Condition.

     The information in this Form 8-K, including Exhibit 99.1 attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and shall not be incorporated by reference into any filing of Lexington Precision Corporation (the “Company”) under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

     On April 6, 2006, the Company issued a press release announcing financial results for the quarter and year ended December 31, 2005. A copy of the press release is attached hereto as Exhibit 99.1.

     The press release discusses a non-GAAP financial measure known as earnings before interest, taxes, depreciation, amortization, and other non-operating items of income and expense (“EBITDA”). EBITDA is not a measure of performance under U.S. generally accepted accounting principles (“GAAP”) 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 GAAP. EBITDA is referenced in the attached press release and elsewhere in the Company’s financial reporting because investors and the Company’s management use this measure to evaluate the operating performance of the Company, including the Company’s ability to service debt. In the press release, the Company has provided quantitative reconciliations of EBITDA to income (loss) from operations and net income (loss), two GAAP financial measures.

Section 9 — Financial Statements and Exhibits

     Item 9.01 Financial Statements and Exhibits.

     Exhibit 99.1 Press release dated April 6, 2006

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	LEXINGTON PRECISION CORPORATION
		(Registrant)
	/s/ Dennis J. Welhouse
	Name:	Dennis J. Welhouse
	Title:	Senior Vice President and
		Chief Financial Officer
Date: April 6, 2006

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EX-99.1

Exhibit 99-1

LEXINGTON PRECISION CORPORATION
40 East 52^nd Street
New York, NY 10022

FOR IMMEDIATE RELEASE

LEXINGTON PRECISION REPORTS FOURTH QUARTER AND YEAR RESULTS

NEW YORK, April 6, 2006 — Lexington Precision Corporation reported a net loss of $1,654,000, or 34 cents per diluted common share, for the fourth quarter ended December 31, 2005, compared to net income of $3,183,000, or 65 cents per diluted common share, for the fourth quarter of 2004.

The loss from continuing operations totaled $1,426,000, or 29 cents per diluted common share, for the fourth quarter of 2005, compared to income from continuing operations of $3,750,000, or 76 cents per diluted common share, for the fourth quarter of 2004. The loss from continuing operations for the fourth quarter of 2005 included a pre-tax gain of $571,000 on the sale of a vacant manufacturing facility in LaGrange, Georgia. Income from continuing operations for the fourth quarter of 2004 included a pre-tax gain of $5,346,000 from the repurchase of $8,264,000 principal amount of the company’s 12% Senior Subordinated Notes. The loss from discontinued operations totaled $228,000, or 5 cents per diluted common share, for the fourth quarter of 2005, compared to a loss from discontinued operations of $567,000, or 11 cents per diluted common share, for the fourth quarter of 2004. The loss from discontinued operations for the fourth quarter of 2004 included a pre-tax impairment charge of $667,000 to write down the carrying value of plant and equipment.

Net sales for the fourth quarter of 2005 were $21,762,000, compared to $24,392,000 for the fourth quarter of 2004, a decrease of 11%. Net sales of the Rubber Group decreased by 11% to $18,902,000, while net sales of the Metals Group decreased by 10% to $2,860,000.

During the fourth quarter of 2005, income from operations totaled $524,000, compared to $364,000 for the fourth quarter of 2004. Income from operations at the Rubber Group decreased to $1,380,000 from $1,463,000. The Metals Group reported a loss from operations of $301,000, compared to a loss from operations of $656,000 for the fourth quarter of 2004. The loss from operations at the Corporate Office increased to $555,000 from $443,000.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) from continuing operations for the fourth quarter of 2005, totaled $2,549,000, compared to EBITDA from continuing operations of $2,493,000 for the fourth quarter of 2004, an increase of 2%. EBITDA for the Rubber Group decreased to $3,153,000 from $3,229,000. EBITDA for the Metals Group improved to negative $51,000 from negative $301,000. EBITDA for the Corporate Office decreased to negative $553,000 from negative $435,000. For more information about EBITDA, please see the section of the press release captioned “Notice Relating to Use of Non-GAAP Measure.”

Net cash provided by operating activities of continuing operations for the fourth quarter of 2005 totaled $1,133,000, compared to $2,674,000 for the fourth quarter of 2004, a decrease of 58%.

Lexington Precision Corporation
April 6, 2006

The company reported a net loss of $3,783,000, or 77 cents per diluted common share, for the year ended December 31, 2005, compared to net income of $1,590,000, or 32 cents per diluted common share, for 2004.

The loss from continuing operations totaled $4,427,000, or 90 cents per diluted common share, for 2005, compared to income from continuing operations of $4,798,000, or 97 cents per diluted common share, for 2004. The results of continuing operations for 2005 included a pre-tax gain of $571,000 on the sale of a vacant manufacturing facility in LaGrange, Georgia, and a pre-tax gain of $1,100,000 on the sale of a vacant manufacturing facility in Casa Grande, Arizona. Income from continuing operations for 2004 included a pre-tax gain of $3,252,000 on the repurchase of the company’s $7,500,000 senior, unsecured note, and a pre-tax gain of $5,346,000 on the repurchase of $8,264,000 principal amount of the company’s 12% Senior Subordinated Notes. Income from discontinued operations totaled $644,000, or 13 cents per diluted common share, compared to a loss from discontinued operations of $3,208,000, or 65 cents per diluted common share, for 2004. Income from discontinued operations for 2005 included a pre-tax gain of $542,000 to record an increase in the estimated carrying value of long-lived assets that had been written down in 2004 and a pre-tax gain of $568,000 on the sale of long-lived assets. The loss from discontinued operations for 2004, included a pre-tax impairment charge of $1,595,000 to write down the carrying value of plant and equipment.

Net sales of continuing operations for 2005 were $96,842,000, compared to $110,353,000 for 2004. Net sales of the Rubber Group decreased by 15% to $84,884,000, while net sales of the Metals Group increased by 11% to $11,958,000.

During 2005, income from operations totaled $4,397,000, compared to $4,666,000 for 2004. Income from operations at the Rubber Group decreased to $7,034,000 from $9,865,000. The Metals Group reported a loss from operations of $315,000 for 2005, compared to a loss from operations of $2,788,000 for 2004. The improved results at the Metals Group resulted in part from the $1,100,000 pre-tax gain on the sale of the Casa Grande, Arizona, real estate. The loss from operations at the Corporate Office decreased to $2,322,000 for 2005, from $2,411,000 for 2004.

EBITDA from continuing operations for 2005 totaled $12,771,000, compared to EBITDA of $13,110,000 for 2004, a decrease of 3%. EBITDA for the Rubber Group decreased 15% to $14,260,000. EBITDA for the Metals Group improved to $823,000 from negative $1,312,000. EBITDA for the Corporate Office improved to negative $2,312,000 from negative $2,372,000.

Net cash provided by operating activities of continuing operations for 2005 totaled $7,142,000, compared to $7,068,000 for 2004, an increase of 1%.

Attached to this press release are 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 income from continuing operations to EBITDA from continuing operations.

Notice Relating to Use of Non-GAAP Measure

EBITDA is not a measure of performance under U.S. generally accepted accounting principles (GAAP) 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 GAAP. We

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Lexington Precision Corporation
April 6, 2006

have presented EBITDA because 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. Nevertheless, EBITDA has distinct limitations as compared to a GAAP number such as net income. By excluding interest and tax payments, for example, an investor may not see that both represent a reduction in cash available to the company. Likewise, depreciation and amortization, while non-cash items, represent generally the devaluation of assets that produce revenue for the company. 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

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LEXINGTON PRECISION CORPORATION

Condensed Consolidated Statement of Operations
(in thousands, except per share amounts)

	Quarter Ended						Year Ended
	December 31						December 31
	2005			2004			2005			2004
	(unaudited)						(audited)
Net sales	$	21,762		$	24,392		$	96,842		$	110,353
Cost of sales		20,130			22,399			87,369			98,304
Gross profit		1,632			1,993			9,473			12,049
Selling and administrative expenses		1,679			1,629			6,747			7,383
Gain on sale of assets held for sale		571			—			1,671			—
Income from operations		524			364			4,397			4,666
Other income (expense):
Interest expense		(2,312	)		(2,242	)		(9,200	)		(8,662	)
Gain on repurchase of debt		—			5,346			77			8,598
Income (loss) from continuing operations before income taxes		(1,788	)		3,468			(4,726	)		4,602
Income tax provision		(362	)		(282	)		(299	)		(196	)
Income (loss) from continuing operations		(1,426	)		3,750			(4,427	)		4,798
Income (loss) from discontinued operations		(228	)		(567	)		644			(3,208	)
Net income (loss)	$	(1,654	)	$	3,183		$	(3,783	)	$	1,590
Basic and diluted income (loss) per share of common stock:
Continuing operations	$	(0.29	)	$	0.76		$	(0.90	)	$	0.97
Discontinued operations		(0.05	)		(0.11	)		0.13			(0.65	)
Net Income (loss)	$	(0.34	)	$	0.65		$	(0.77	)	$	0.32
Reconciliation of net income (loss) from continuing operations to EBITDA from continuing operations:
Income (loss) from continuing operations	$	(1,426	)	$	3,750		$	(4,427	)	$	4,798
Add back (deduct):
Depreciation and amortization		2,025			2,129			8,374			8,444
Gain on repurchase of debt		—			(5,346	)		(77	)		(8,598	)
Interest expense		2,312			2,242			9,200			8,662
Income tax provision		(362	)		(282	)		(299	)		(196	)
EBITDA from continuing operations	$	2,549		$	2,493		$	12,771		$	13,110
Net cash provided by operating activities	$	1,133		$	2,674		$	7,142		$	7,068

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LEXINGTON PRECISION CORPORATION

Select Consolidated and Segment Financial Data
Continuing Operations
(in thousands)
(unaudited)

	Quarter Ended						Year Ended
	December 31						December 31
	2005			2004			2005			2004
Net sales:
Rubber Group	$	18,902		$	21,219		$	84,884		$	99,565
Metals Group		2,860			3,173			11,958			10,788
Total net sales	$	21,762		$	24,392		$	96,842		$	110,353
Income (loss) from operations:
Rubber Group	$	1,380		$	1,463		$	7,034		$	9,865
Metals Group		(301	)		(656	)		(315	)		(2,788	)
Corporate Office		(555	)		(443	)		(2,322	)		(2,411	)
Total income from operations		524			364			4,397			4,666
Depreciation and amortization included in income from operations:
Rubber Group		1,773			1,766			7,226			6,929
Metals Group		250			355			1,138			1,476
Corporate Office		2			8			10			39
Total depreciation and amortization		2,025			2,129			8,374			8,444
Earnings (loss) before interest, taxes, depreciation, and amortization (EBITDA):
Rubber Group		3,153			3,229			14,260			16,794
Metals Group		(51	)		(301	)		823			(1,312	)
Corporate Office		(553	)		(435	)		(2,312	)		(2,372	)
Total EBITDA	$	2,549		$	2,493		$	12,771		$	13,110
Capital expenditures:
Rubber Group	$	344		$	1,756		$	3,034		$	5,277
Metals Group		98			66			292			773
Corporate Office		1			–			4			7
Total capital expenditures	$	443		$	1,822		$	3,330		$	6,057

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