Here is brief look at part of SMU (Simula Amex 1.90) defense contracts and products...they are also profitable and have already gone thru restructure:
Government and Defense Segment
The Company manufactures a number of safety systems for military and other government customers. The Company is a supplier of energy-absorbing seating systems for military helicopters, and a manufacturer of advanced armor systems, inflatable restraints for aircraft, state of the art vacuum-packed parachutes, and related safety systems and products.
The Company has been a major supplier of energy-absorbing seating systems for military helicopters and other military aircraft to various branches of the United States armed forces and their prime defense contractors, and foreign customers for over 20 years.The military aircraft seating systems focus on reducing injury and increasing survivability in aircraft crashes. These crashworthy seating systems contain proprietary energy-absorbing devices that activate upon crash impact to absorb shock that otherwise would be absorbed by the seat occupant.
As an outgrowth of its military aircraft seating systems the Company has developed an expertise in armor, which makes up a significant portion of both materials in, and costs of, such seating systems. In addition, the Company has developed a variety of other armor and composite materials for integration in its existing and proposed products and for sale as base materials to customers. Advanced composites materials with which the Company has expertise include fiber reinforcements of Kevlar, carbon, Spectra, S-glass, E-glass, and hybrid weaves matched with boron carbide, aluminum oxide, and other ceramics. The Company also has the capability to process thermoset resins including epoxies,polyesters, and vinyl esters.
The Company's high-strength, lightweight armor systems have been incorporated into a variety of United States armed forces vehicles. The Company develops and manufactures armor systems for seats as well as for structural and other components of military aircraft. Aircraft components incorporating armors developed or produced by the Company include V-22 Osprey crew seats; C-17 cockpit components; AH-64A Apache crew seats; Blackhawk crew seats and floor armor; CH-53 Sea Stallion crew seats; United States Navy landing craft air cushion pilot station armor; and high-mobility, multi-wheeled vehicles and transport vehicles.
The Company has completed development of various inflatable restraint systems for military and commercial aircraft. These systems include the Cockpit Airbag System (CABS) for the protection of the flight crew in military aircraft. The Company developed CABS under a contract with the United States Army.CABS incorporates airbags in a configuration surrounding the aviator that inflate following sensor detection of crash impact from a variety of directions. CABS then deflates following deployment and thereby protects against mishaps caused by accidental deployment during the normal operations of the aircraft. Development and qualification was completed in 1998. The Company has been awarded contracts and will commence production of CABS in 2000.
Under contract with the United States Navy, the Company has applied its technologies and overall knowledge of materials and structures to develop a parachute that solves numerous functional problems attendant to traditional military parachutes. The Company's parachute, unlike many parachutes traditionally used by the military is small, lightweight, unisex, capable of being worn during flight, and vacuum-packed so that it maintains a long-term shelf life without repacking. The Company is the sole source on this Navy contract.
(COMTEX) B: Simula, Inc. Reports Second Quarter Earnings; Company Shows
B: Simula, Inc. Reports Second Quarter Earnings; Company Shows Growth in
Revenues and Earnings as Restructuring Continues
PHOENIX, Aug 2, 2001 (BUSINESS WIRE) -- Simula, Inc. (AMEX: SMU) today reported
revenues for the three months ended June 30, 2001 were $26.0 million compared to
revenues of $24.0 million for the comparable period in 2000, an increase of 8%.
Net income was $0.6 million or $0.05 per basic and diluted common share compared
to $0.3 million or $0.02 per basic and diluted common share in 2000. The second
quarter included a $0.6 million charge related to the write down of assets held
for sale to their estimated net realizable value. Excluding this charge, second
quarter earnings would have been $1.0 million or $0.08 per basic and diluted
common share.
Revenues for the six months ended June 30, 2001 were $51.5 million compared to
$48.5 million for the comparable period in 2000, an increase of 6%. Net income
was $0.9 million or $0.07 per basic and diluted common share compared to $0.4
million or $0.04 per basic and diluted common share in 2000. Net income for the
six months, excluding $0.5 million in restructuring charges incurred in the
first quarter and the write down in assets held for sale discussed above, was
$1.6 million or $0.13 per basic and $0.12 per diluted common share.
As part of its on-going restructuring started in the 4th quarter 2000, during
the period ended June 30, 2001, the Company decided to sell certain non-core
assets in the Company's Commercial Segment. These assets have been classified as
Net Assets Held for Sale on the Company's balance sheet and, as referenced
above, a charge of $0.6 million has been recorded to reflect the write down to
estimated net realizable value.
In addition, the Company said that default interest expense on its senior
secured notes and refinancing costs and fees incurred had a per share effect of
approximately $.02 in the three and six month periods ended June 30, 2001.
"We are happy to report another quarter of solid operating results. We continue
to address significant issues as we rebuild the Company. We think it is
noteworthy that Simula shows growth in earnings and revenues despite contrary
market trends affecting technology and small cap companies," said Brad Forst,
President and CEO.
"Second quarter operating income increased 26% when compared to one year ago
and, excluding the net asset write down charge, increased 48%. Operating income
for the six month period increased 22% when compared to one year ago and,
excluding first quarter restructuring and the current net asset write down
charge, increased 42%. I believe that this is a strong indication that the
restructuring efforts taken in the first quarter are paying off."
Second quarter results were also favorably influenced by $1.0 million in
additional gross margin recognized upon receipt of a contract to provide
helicopter cockpit air bags systems ("CABS") to the U.S. Army. The favorable
impact on gross margin represents the recognition of cost reimbursement for
product development costs incurred in prior periods. This major contract was
disclosed by the Company on June 27, 2001.
The Company also cited continued strong demand for the Company's automotive
safety products from BMW, Simula's largest automotive industry customer, and the
positive effects of cost containment measures initiated earlier this year.
Debt Restructuring
The Company said it continues to negotiate a number of options to address the
level and cost of its debt. "Management focus is balanced between improving
operations and restructuring the balance sheet," said Forst. "Addressing our
debt is a systematic process we are approaching deliberately over time with a
defined plan. We have examined global refinancing, partial refinancing, equity
infusion, asset sales, and combinations of these approaches to find an optimum
path. I continue to believe we will report progress on this plan in the third
quarter."
Management
On July 26, 2001, the Company announced that its Chief Financial Officer would
leave that position. The Company is conducting a search and considering a number
of candidates. "We are building our new management team for future growth and
the strategic repositioning of our Company," said Forst.
Guidance
Finally, the Company reconfirmed guidance given in the first quarter with
respect to forecasted revenues and earnings for 2001, net of restructuring, net
asset write down, and refinancing charges incurred for the year.
Conference Call/Webcast
The Company will conduct a conference call and webcast with the investment
community during the week of August 6, 2001. A subsequent press release will
provide details.
About Simula
Simula designs and makes systems and devices that save human lives. Its core
markets are aerospace and defense systems, and automotive safety systems.
Simula's core technologies include inflatable restraints, energy absorbing
seating systems, advanced polymer materials, transparent and opaque armor
products, personnel protective equipment and parachutes, and crash sensors. More
information is available at simula.com.
Safe Harbor statement under the Private Securities Litigation Reform Act of
1995: This news release contains forward-looking statements that involve risks
and uncertainties that may cause the Company's actual experience to differ
materially from that which is anticipated. These forward-looking statements
include statements about expected revenues, cost reductions, net income and
operating income in 2001; the ability to find a replacement lender and the
likelihood of a material reduction in the Company's level and cost of debt.
Factors pertinent to the Company's ability to meet its current financial
projections include its leveraged status and the level and cost of debt and the
nature of debt covenants; the reduction of fixed expenses; the ability to
maintain margins or grow volumes in its automotive segment; the likelihood of
success in building strategic alliances with large prime contractors and first
tier suppliers to OEMs; the competition and competitive pressures on pricing
including from first tier supplier partners; and the amount of resources
committed to independent research and development from time to time. Other
factors relevant to the restructuring of the Company's debt include the
completion of diligence and negotiations of favorable terms and conditions for
such restructuring. Actual results may differ materially from those projected.
Additional risks include those described herein and in the Company's
registration statements and periodic reports filed with the U.S. Securities and
Exchange Commission.
SIMULA, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Six Months Ended
June 30, June 30,
-------------------------- ---------------------------
2001 2000 2001 2000
------------- ------------- ------------- -------------
Revenue $ 25,956,898 $ 23,946,849 $ 51,492,665 $ 48,505,707
Cost of
revenue 16,204,171 16,071,566 32,587,769 33,016,868
------------- ------------- ------------- -------------
Gross margin 9,752,727 7,875,283 18,904,896 15,488,839
Administrative
expenses 5,560,735 5,033,692 11,222,489 10,087,802
Restructuring
charge -- -- 479,000 --
Write down of
net assets
held for sale 600,000 -- 600,000 --
------------- ------------- ------------- -------------
Operating income 3,591,992 2,841,591 6,603,407 5,401,037
Interest expense (2,651,567) (2,302,531) (5,168,521) (4,566,169)
------------- ------------- ------------- -------------
Income before
taxes and
discontinued
operations 940,425 539,060 1,434,886 834,868
Income tax
expense (363,000) (231,000) (535,000) (335,000)
------------- ------------- ------------- -------------
Net income 577,425 308,060 899,886 499,868
Preferred stock
dividends -- 33,025 -- 66,683
------------- ------------- ------------- -------------
Net earnings
available for
common
shareholders $ 577,425 $ 275,035 $ 899,886 $ 433,185
============= ============= ============= =============
Income (loss)
per common
share -
basic $ 0.05 $ 0.02 $ 0.07 $ 0.04
Income (loss)
per common
share -
diluted $ 0.05 $ 0.02 $ 0.07 $ 0.04
Weighted
average
shares
- basic 12,200,717 11,169,767 12,195,363 11,136,797
Weighted
average
shares
- diluted 12,685,300 11,169,767 12,637,451 11,141,396
CONTACT: Simula, Inc., Phoenix
Brad Forst, 602/631-4005
www.simula.com
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-0-
KEYWORD: ARIZONA
INDUSTRY KEYWORD: AEROSPACE/DEFENSE
AUTOMOTIVE
EARNINGS
SOURCE:
Simula,
Inc.
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