COXT news out on Financials:
Cox Technologies, Inc. Reports Fiscal 2003 Financial Results
BELMONT, N.C., Aug 5, 2003 (BUSINESS WIRE) -- Cox Technologies, Inc. (COXT.OB)
reported a net income of $110,448 or less than $.01 per share on revenues of
$8,773,852 for the fiscal year ended April 30, 2003, as compared to a net loss
of $5,163,046 or $.20 per share on revenues of $8,627,103 for the fiscal year
ended April 30, 2002. During the fourth quarter of fiscal 2002, the Company
recognized an impairment loss of $2,696,000 related to goodwill associated with
the acquisition of Vitsab, AB and another impairment loss of $842,000 related to
a piece of high-speed Vitsab(R) production equipment. Without these one-time
adjustments, the net loss for fiscal 2002 would have been $1,625,000 or $.06 per
share.
Kurt C. Reid, Co-Chief Executive Officer stated, "revenues from sales increased
by approximately 2% or $146,749 over fiscal 2002. As a whole, both unit sales
and selling prices remained relatively flat in fiscal 2003. While holding the
line on sales, the Company has been able to reduce its cost of sales through
reductions in labor costs and related fringe benefits, lower raw material costs
and lower cost of units purchased from an offshore manufacturer."
Mr. Reid noted that, "the Company is benefiting from the efforts of management
and employees to reduce costs and expenses in all aspects of the business. These
efforts have translated into positive cash flow provided by operating activities
of $590,381 in fiscal 2003 as compared to negative cash flow used in operating
activities of ($356,522) for fiscal 2002. Also, the Company was able to reduce
its indebtedness by a net amount of $999,120 during 2003." Mr. Reid further
stated, "our bank debt is now being amortized in monthly installments through
July 2006 which will add to our ability to plan for the future."
Cox Technologies is engaged in the business of producing and distributing
transit temperature recording instruments, both domestically and
internationally. These graphic transit recorders are marketed under the trade
name Cox Recorders and produce a record that is documentary proof of temperature
conditions. The Company also produces and markets Vitsab(R) "smart label"
technology.
Statements contained in this document, which are not historical in nature, are
forward-looking within the meaning of the Private Securities Litigation Reform
Act of 1995. Forward-looking statements are subject to risks and uncertainties
that may cause future results to differ materially from those set forth in such
forward-looking statements. Cox Technologies undertakes no obligation to update
forward-looking statements to reflect events or circumstances after the date
hereof. Such risks and uncertainties with respect to Cox Technologies include,
but are not limited to, its ability to successfully implement internal
performance goals, performance issues with suppliers, regulatory issues,
competition, the effect of weather on customers, exposure to environmental
issues and liabilities, variations in material costs and general and specific
economic conditions. From time to time, Cox Technologies may include
forward-looking statements in oral statements or other written documents.
SELECTED FINANCIAL DATA
Twelve Months
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Periods Ended April 30, 2003 2002
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Income Statement Items:
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Sales revenues $8,773,852 $8,627,103
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Cost of sales 4,917,048 5,436,181
General and administrative 2,045,839 2,540,680
Selling 1,057,109 1,260,652
Depreciation, depletion and amortization 340,300 678,962
Loss on impairment - 3,537,597
------------------------
8,360,296 13,454,072
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Income (loss) from operations 413,556 (4,826,969)
Other income (expense) 151,150 189,185
Interest expense (454,258) (525,262)
------------------------
Income (loss) before income taxes 110,448 (5,163,046)
Provision for income taxes - -
------------------------
Net income (loss) $110,448 ($5,163,046)
========================
Weighted average common shares outstanding 27,907,224 25,360,071
Basic and diluted net income (loss) per share ($.00) ($.20)
========================
Balance Sheet Items:
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Assets:
Current assets $2,811,230 $2,753,151
Property and equipment, net 505,688 1,064,628
Patents 114,845 148,796
Other 80,438 105,816
------------------------
$3,512,201 $4,072,391
========================
Liabilities and Stockholder's Equity:
Current liabilities $822,726 $3,144,001
Long-term debt 4,189,893 3,233,913
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5,012,619 6,377,914
Stockholder's equity (1,500,418) (2,305,523)
------------------------
$3,512,201 $4,072,391
========================
Cash Flow Items:
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Net income (loss) $110,448 ($5,163,046)
Add - Non cash items 512,778 4,171,281
Change in assets and liabilities ( 32,845) 635,243
------------------------
Net cash provided by (used in) operating
activities 590,381 (356,522)
Net cash provided by investing activities 70,189 3,041
Net cash provided by (used in) financing
activities ( 340,040) 485,490
Effect of exchange rate changes on cash 35,577 40,413
------------------------
Net increase in cash and cash equivalents $356,107 $172,422
========================
SOURCE: Cox Technologies, Inc.
CONTACT: Cox Technologies, Inc.
Kurt C. Reid, 704-825-8146
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