05:25 PM ET 03/30/99
Simula sees return to profits in Q1
PHOENIX, March 30 (Reuters) - Simula Inc. posted a fourth
quarter loss Tuesday but said it expects to return to profits
in the first quarter.
Simula reported a fourth quarter loss of $21 million, or
$2.12, compared to a loss of $606,680, or $0.06 a share, in the
year ago quarter. Revenues rose to $28.7 million compared with
$24.6 million for the year-ago quarter.
Excluding a loss from discontinued operations of $163,000,
or $0.02 a share, net of tax benefit, and an estimated loss on
disposal of the rail and mass-transit subsidiary of $13.9
million, or $1.40 a share, net of tax benefit, the
fourth-quarter 1998 loss from continuing operations was $7
million, or $0.70 a share.
Year-ago results reflected a gain of $1.3 million -- about
$790,000, or 9 cents per share, net of income-tax effect --
from real estate transactions.
The company said it has signed a letter of intent with a
prospective buyer of its rail and mass-transit operations. The
company said the purchase price will be less than the earlier
evaluation and accordingly has taken an additional write-off
for this estimate of loss on disposal in the fourth quarter.
The company said it will complete the sale of the rail
business in the second quarter and will use the sales proceeds
to repay indebtedness.
The company said its automobile-safety business did
exceptionally well in the fourth quarter partly due to higher
production of its Inflatable Tubular Structure product.
It said its government defense contracts remains strong and
should be boosted in the near-term by new product lines.
The company said the one area of its business that
performed poorly was its commercial-airliner seating business.
"When last year we suggested that income from continuing
operations in 1999 might be in the range of 60 cents to 65
cents per share, based on anticipated revenues of approximately
$130 million, we did not fully appreciate the economic impact
facing us in the airline seating business," Chief Executive
Donald Townsend said.
Quite simply, the impact of new management and the
implementation of new purchasing, inventory and production
procedures at Airline Interiors has taken longer than expected.
Townsend said that based on results of January and February
the company expects the airline business to break-even in the
first quarter.
"With these results at Airline Interiors, we believe that
the company will report a profit for the first quarter 1999,"
he said.
"Nonetheless, the environment is sufficiently fluid that,
our inherent optimism notwithstanding, we are at this point
reluctant to forecast any specific range for 1999. If one
assumes that Airline Interiors makes no contribution to
earnings, our earlier projection regarding income from
continuing operations in 1999 would now be viewed as probably
too high by a factor of approximately two," he said.
((Los Angeles Newsroom 213-380-2014))
SIMULA INC named James Dodd chief financial officer, replacing Sean Nolen, who left the company in
February. Before joining Simula, Dodd served three years as chief financial officer of Crown Point Publishing
Inc. Simula develops protective seating and restraint systems for airlines, vehicles and the military. (Reuters 01:27
PM ET 03/30/99) |
