Thursday May 6, 9:30 am Eastern Time
Company Press Release
Simula Inc. Reports First-Quarter Profit On Record Revenues
PHOENIX--(BUSINESS WIRE)--May 6, 1999--Simula Inc. (NYSE:SMU - news) today announced financial results for the
first quarter ended March 31, 1999.
Revenues from continuing operations for the three months ended March 31, 1998 were a record $31.9 million compared to
revenues from continuing operations of $22.5 million for the comparable period in 1998, an increase of 42%.
Net income from continuing operations was $484,269, or $0.05 per basic common share and $0.04 per diluted common share, compared to net income from continuing
operations of $228,679, or $0.02 per basic and diluted common share, in the first quarter of 1998.
The record revenues, said Donald W. Townsend, president and CEO of Simula, reflect widespread acceptance of the company's products in all of its markets --
automotive safety systems, commercial airline seating systems, and the government and defense businesses.
Airline Interiors, the largest component of the company's commercial airline seating operations, was close to break-even for the quarter. ''We are optimistic that the 16g
seat operation will continue to show improvement throughout the balance of the year,'' said Townsend.
Townsend confirmed that an all-cash transaction for the sale of the company's discontinued rail and mass transit seating operations is scheduled to be completed by the end
of the second quarter of 1999.
Simula Inc. is a leader in developing and commercializing protective systems and energy absorption technologies that safeguard human lives. Products include advanced
occupant seating and restraint systems for commercial airline, military and automotive applications. Additional information may be found at www.simula.com.
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
anticipated. These forward-looking statements include projections of revenue and net income; issues that may affect revenue and net income; plans for the future; and
assumptions relating to the foregoing. Estimates are based on reliable information and past experience. However, operating results are affected by a wide variety of
factors, many of which are beyond the control of the company. Factors include, but are not limited to, the levels of orders which are received and can be shipped in the
quarter; whether and when order options are exercised; customer order patterns and seasonality; contract mix among the company's two business segments; shifting
production and delivery schedules; manufacturing capacity and yield; costs of labor, raw materials, supplies and equipment; reliability of vendor base; amount of resources
committed to research and development from time to time; technological changes; competition and competitive pressures on pricing; and economic conditions in the United
States and worldwide. Additionally, factors and risks affecting operating results include those described 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
March 31,
1999 1998
Revenue $31,928,262 $22,542,178
Cost of revenue 23,414,109 16,615,993
Gross margin 8,514,153 5,926,185
Administrative expenses 6,049,844 4,397,242
Operating income 2,464,309 1,528,943
Interest expense (1,667,072) (1,208,826)
Interest income 11,032 62,562
Income before taxes and
discontinued operations 808,269 382,679
Income tax expense (324,000) (154,000)
Income from continuing operations 484,269 228,679
Discontinued operations:
(Loss) earnings from discontinued
operations, net of tax -- (223,978)
Net income $ 484,269 $ 4,701
Income (loss) per common share - Basic:
Loss from continuing operations $ 0.05 $ 0.02
Discontinued operations:
(Loss) earnings from discontinued
operations, net of tax -- (0.02)
Net income (loss) $ 0.05 $ --
Income (loss) per common share - Diluted:
Loss from continuing operations $ 0.04 $ 0.02
Discontinued operations:
(Loss) earnings from discontinued
operations, net of tax -- (0.02)
Net income (loss) $ 0.04 $ --
Weighted average shares - basic 9,919,221 9,851,392
Weighted average shares - diluted 12,859,769 10,131,463
Contact:
Simula Inc., Phoenix
James C. Dodd, 602/631-4005
or
Silverman Heller Associates
Philip Bourdillon/Eugene Heller, 310/208-2550
-----------
Diluted shares includes the Convertible Notes Sold, Notes are convertible to Stock and should be included shares outstanding. |
