CMT Amex 1.15/1.25: 9mo rev $71m vs $53m, net inc $1.7m vs loss of ($600k), positive 18 cents per sh vs loss of 6 cents...
(COMTEX) B: Core Molding Technologies Reports Improved Third Quarter 200
B: Core Molding Technologies Reports Improved Third Quarter 2002 Results
COLUMBUS, Ohio, Nov 12, 2002 /PRNewswire-FirstCall via COMTEX/ -- Core Molding
Technologies, Inc. (Amex: CMT) today announced results for its third quarter
ended September 30, 2002.
The Company recorded net income for the quarter of $485,000, or $.05 per basic
and diluted share, compared with net loss of $786,000, or ($.08) per basic and
diluted share, in the third quarter of 2001. Net sales for the third quarter of
2002 were $23,399,000 compared with $14,535,000 in the same quarter of 2001, an
increase of 61%.
The Company's Mexican operation, established in October 2001, accounted for $6.0
million in sales in the third quarter 2002, or approximately 68% of the sales
increase, compared with the third quarter of 2001. Customer tooling projects
completed in the third quarter 2002 were $2.4 million higher than in the third
quarter of 2001, accounting for approximately 27% of the sales increase. Tooling
project revenues are sporadic in nature and do not represent a recurring trend.
Excluding the revenues from the newly established Mexico operations and the
completed tooling projects, sales in the third quarter of 2002 were $400,000
higher compared with the third quarter of 2001, accounting for approximately 5%
of the sales increase.
For the nine months ended September 30, 2002 net income was $1,726,000, or $.18
per basic and diluted share, compared with a net loss of $606,000, or ($.06) per
basic and diluted share, for the same period of 2001. Net sales for the nine
months ended September 30, 2002 were $71,077,000, compared with $53,512,000 for
the same period of 2001, an increase of 33%.
The Company's new Mexican operation accounted for $15.3 million of the increase
or approximately 87%. Completed tooling projects accounted for $5.9 million of
the increase, while all other sales excluding Mexico and tooling decreased $3.7
million.
"We are encouraged with the results of the third quarter, which built on a solid
first half of 2002," said James L. Simonton, president and chief executive
officer. "Operational efficiencies in our Columbus operation, coupled with
increased sales from our newly established operations in Mexico, increased
tooling revenues and the sale of our former ticker symbol (for $297,000 net of
tax) enabled us to show an increase in revenues and improved earnings for the
third quarter 2002 and for the nine months ending September 30, 2002 as compared
with the same periods in 2001."
Sales of compression molded products from the Columbus, Ohio, and Gaffney, South
Carolina, operations continue to be soft. Sales of compression molded products
to truck manufacturers were up 28% for the third quarter 2002 compared with the
third quarter 2001 largely due to the purchases made in anticipation of new
heavy truck engine emission standards, but are still down 6% for the nine months
ended September 30, 2002 compared with the same period in 2001. Demand for new
medium and heavy-duty trucks remains low due to conditions in the trucking
industry and general economy. Sales of personal watercraft products were
comparable in the third quarter 2002 with the third quarter 2001; however,
personal watercraft sales were down 4% for the nine months ended September 30,
2002 compared to the same period in 2001 due to weaker consumer spending on
discretionary items. Similar softness in sales to an automotive Tier I supplier
were observed.
"Our newly established Mexico operations continue to perform according to our
expectations," said Simonton. "Year to date through September, these operations
have produced sales of $15.3 million. We continue our efforts to grow this
operation with the addition of key skills and support personnel as we work on
installing and improving our operating systems."
He continued, "Corporate-wide, margins continue to be impacted by excess
capacity in our industry created by the lower demand from our customer base. The
outlook for the balance of 2002 is affected by general weakness in the economy
and the uncertain effect of new federal environmental engine standards on heavy
truck sales. We continue to focus on improving operational effectiveness, having
launched our lean manufacturing/six sigma efforts at our Gaffney facility in
August while positioning ourselves to compete for additional business and
prepare for the upturn in the economy."
Core Molding Technologies, Inc. is a compounder of sheet molding composites
(SMC) and molder of fiberglass reinforced plastics. The Company's processing
capabilities include the compression molding of SMC, vacuum assisted resin
infusion molding, spray up and lay up processes. The Company produces high
quality fiberglass reinforced, molded products and SMC materials for varied
markets, including medium and heavy-duty trucks, automobiles, personal
watercraft and other commercial products. Core Molding Technologies, with its
headquarters in Columbus, Ohio, operates plants in Columbus, Gaffney, South
Carolina, and Matamoros, Mexico.
This press release contains certain "forward-looking statements" that involve
certain risks and uncertainties. Core Molding Technologies' actual results may
differ significantly from those discussed in the forward-looking statements.
Factors that may cause such a difference include, but are not limited to:
business conditions in the plastics, transportation, recreation and consumer
products industries, the general economy, competitive factors, the dependence on
four major customers, the recent efforts of Core Molding Technologies to expand
its customer base, new technologies, regulatory requirements, labor relations,
the loss of or inability to attract key personnel, the availability of capital,
the startup of operations in Mexico, and management's decision to expand its
customer base and pursue new products or businesses that involve additional
cost, risks or capital expenditures.
SEE ATTACHED FINANCIALS
CORE MOLDING TECHNOLOGIES, INC.
Condensed Income Statement
(in thousands, except per share data)
Three Months Ended Nine Months Ended
09/30/02 09/30/01 09/30/02 09/30/01
(Unaudited) (Unaudited)
Net Sales $23,399 $14,535 $71,077 $53,512
Cost of Sales 20,092 13,599 60,218 47,750
Gross Margin 3,307 936 10,859 5,762
Selling, General and
Admin. Expense 2,455 1,836 7,044 5,574
Operating Income (Loss) 852 (900) 3,815 188
Other Income 500 - 500 -
Interest Expense - Net 475 441 1,412 1,223
Income (Loss) before Taxes 877 (1,341) 2,903 (1,035)
Income Tax Expense (Benefit) 392 (555) 1,177 (429)
Net Income (Loss) $485 $(786) $1,726 $(606)
Net Income (Loss) per
Common Share
Basic & Diluted $0.05 $(0.08) $0.18 $(0.06)
Weighted Average Shares
Outstanding:
Basic & Diluted 9,779 9,779 9,779 9,779
Condensed Balance Sheet
(in thousands)
As of As of
09/30/02 12/31/01
(Unaudited)
Assets
Cash and Investments $7,495 $3,194
Accounts Receivable 15,689 11,946
Inventories 4,308 3,902
Other Current Assets 2,192 2,784
Property, Plant & Equipment - net 24,290 25,361
Deferred Tax Asset - net 11,413 11,693
Other assets 1,565 2,427
Total Assets $66,952 $61,307
Liabilities and Stockholders' Equity
Current Portion of Long-term Debt $1,980 $355
Accounts Payable 6,693 3,757
Accrued Liabilities and Other 6,858 5,929
Long-term Debt 24,125 26,015
Interest Rate Swap 770 367
Deferred Long-term Gain 1,668 2,009
Post Retirement Benefits Liability 5,862 5,340
Stockholders' Equity 18,996 17,535
Total Liabilities and Stockholders' Equity $66,952 $61,307
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SOURCE Core Molding Technologies, Inc.
CONTACT: Herman F. Dick, Jr. of Core Molding Technologies, Inc.,
+1-614-870-5604
(CMT)
prnewswire.com
Copyright (C) 2002 PR Newswire. All rights reserved.
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KEYWORD: Ohio
INDUSTRY KEYWORD: CHM
CST
SUBJECT CODE: ERN
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