Trans-Lux Reports Third Quarter Results

Marketwired

NORWALK, CT--(Marketwire - Nov 14, 2012) - Trans-Lux Corporation, a leading supplier of Digital Displays and next generation LED lighting, reported financial results for the third quarter ended September 30, 2012 on November 14, 2012. Trans-Lux President and Chief Executive Officer J.M. Allain made the announcement.

Third Quarter 2012
Revenues for the third quarter of 2012 totaled $5.9 million, compared with $7.1 million for the third quarter of 2011. Trans-Lux recorded income for the third quarter of $0.2 million ($0.01 per share), compared with a loss of $2.2 million (loss of $0.88 per share) in the third quarter of 2011. The third quarter results include a $1.4 million benefit for the warrant valuation adjustment and a $0.2 million additional restructuring charge.

"We continue to see tangible results from the efficiencies we've implemented across the scope of our operations which resulted in a positive net income despite lower revenues for the quarter," said Mr. Allain. "Moving forward, new business opportunities will be driven by new and innovative sales programs that further differentiate us form the competition and capitalize on the combined sale of LED displays and lighting into numerous vertical markets."

Nine Months Ended September 30, 2012
Trans-Lux reported revenues for the nine-month period ending September 30, 2012 of $18.4 million, up from $17.1 million for the nine-month period ending September 30, 2011. Trans-Lux incurred a loss of $0.7 million (loss of $0.06 per share) during the first nine months of 2012, versus the $5.5 million loss (loss of $2.23 per share) reported for the same nine-month period in 2011. The nine months ended September 30, 2012 results include a $3.3 million benefit for the warrant valuation adjustment and a $0.4 million additional restructuring charge.

For more information, email info@trans-lux.com or visit www.trans-lux.com.

About Trans-Lux
Trans-Lux Corporation is a leading designer and manufacturer of TL Vision digital video displays and TL Energy LED lighting solutions for the financial, sports and entertainment, gaming, education, government, and commercial markets. With a comprehensive offering of LED Large Screen Systems, LCD Flat Panel Displays, Data Walls and scoreboards (marketed under Fair-Play by Trans-Lux), Trans-Lux delivers comprehensive video display solutions for any size venue's indoor and outdoor display needs. TL Energy enables organizations to greatly reduce energy related costs with green lighting solutions. For more information please visit www.Trans-Lux.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. Forward-looking statements such as "will," "believe," "are projected to be" and similar expressions are statements regarding future events or the future performance of Trans-Lux Corporation, and include statements regarding projected operating results. These forward-looking statements are based on current expectations, forecasts and assumptions and involve a number of risks and uncertainties that could cause actual results to differ materially from those anticipated by these forward-looking statements.

   
   
   
TRANS-LUX CORPORATION AND SUBSIDIARIES  
CONDENSED CONSOLIDATED BALANCE SHEETS  
             
    September 30     December 31  
In thousands, except share data   2012     2011  
    (unaudited)     (see Note 1)  
ASSETS                
Current assets:                
  Cash and cash equivalents   $ 853     $ 1,109  
  Receivables, less allowance of $502 - 2012 and $884 - 2011     2,450       2,060  
  Unbilled receivables     54       63  
  Inventories     2,909       2,875  
  Prepaids and other     294       729  
    Total current assets     6,560       6,836  
Rental equipment     43,779       43,252  
  Less accumulated depreciation     29,885       27,060  
      13,894       16,192  
Property, plant and equipment     4,439       4,381  
  Less accumulated depreciation     2,496       2,316  
      1,943       2,065  
Asset held for sale     -       696  
Goodwill     744       744  
Other assets     488       926  
TOTAL ASSETS   $ 23,629     $ 27,459  
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)                
Current liabilities:                
  Accounts payable   $ 1,796     $ 1,589  
  Accrued liabilities     6,431       6,719  
  Current portion of long-term debt     4,206       4,444  
  Warrant liabilities     2,132       5,408  
    Total current liabilities     14,565       18,160  
Long-term debt:                
  Notes payable     472       512  
Deferred pension liability and other     5,341       4,930  
    Total liabilities     20,378       23,602  
Redeemable convertible preferred stock:                
  Preferred - $0.001 par value - 500,000 shares authorized, 416,500 Series A convertible preferred shares issued in 2011    
-
     
6,138
 
                 
Stockholders' equity (deficit):                
  Common - $0.001 par value - 60,000,000 shares authorized, 25,895,424 shares issued in 2012 and 5,071,424 shares issued in 2011    
26
     
5,071
 
  Additional paid-in-capital     23,804       12,620  
  Accumulated deficit     (14,178 )     (13,443 )
  Accumulated other comprehensive loss     (3,338 )     (3,466 )
  Treasury stock - at cost - 383,596 common shares in 2012 and 2011     (3,063 )     (3,063 )
    Total stockholders' equity (deficit)     3,251       (2,281 )
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)   $ 23,629     $ 27,459  
 
The accompanying notes are an integral part of these condensed consolidated financial statements.
   
   
   
TRANS-LUX CORPORATION AND SUBSIDIARIES  
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS  
(unaudited)  
                         
    Three Months Ended
September 30
    Nine Months Ended
September 30
 
In thousands, except per share data   2012     2011     2012     2011  
Revenues:                                
  Digital display sales   $ 4,250     $ 5,185     $ 13,101     $ 11,152  
  Digital display lease and maintenance     1,671       1,908       5,261       5,903  
  Real estate rentals     5       24       36       69  
    Total revenues     5,926       7,117       18,398       17,124  
                                 
Cost of revenues:                                
  Cost of digital display sales     3,166       4,911       10,176       9,874  
  Cost of digital display lease and maintenance     1,510       1,727       4,467       4,976  
  Cost of real estate rentals     16       16       47       49  
    Total cost of revenues     4,692       6,654       14,690       14,899  
                                 
Gross profit from operations     1,234       463       3,708       2,225  
General and administrative expenses     (2,112 )     (1,950 )     (7,093 )     (6,205 )
Restructuring costs     (178 )     (16 )     (351 )     (86 )
Operating loss     (1,056 )     (1,503 )     (3,736 )     (4,066 )
Interest expense, net     (120 )     (416 )     (307 )     (1,140 )
Gain on debt extinguishment     -       -       60       -  
Change in warrant liabilities     1,379       -       3,276       -  
Income (loss) before income taxes     203       (1,919 )     (707 )     (5,206 )
Income tax expense     (7 )     (7 )     (21 )     (21 )
Income (loss) from continuing operations     196       (1,926 )     (728 )     (5,227 )
Loss from discontinued operations     -       (224 )     (7 )     (224 )
Net income (loss)   $ 196     $ (2,150 )   $ (735 )   $ (5,451 )
                                 
Income (loss) per share continuing operations - basic and diluted   $ 0.01     $ (0.79 )   $ (0.06 )   $ (2.14 )
Loss per share discontinued operations - basic and diluted     -       (0.09 )     -       (0.09 )
Total income (loss) per share - basic and diluted   $ 0.01     $ (0.88 )   $ (0.06 )   $ (2.23 )
                                 
Weighted average common shares outstanding - basic and diluted     25,512       2,443       12,059       2,443  
   
The accompanying notes are an integral part of these condensed consolidated financial statements.
   
   
   
TRANS-LUX CORPORATION AND SUBSIDIARIES  
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)  
(unaudited)  
                       
    Three Months Ended
September 30
    Nine Months Ended
September 30
 
In thousands   2012   2011     2012     2011  
                               
Net income (loss)   $ 196   $ (2,150 )   $ (735 )   $ (5,451 )
Other comprehensive income (loss):                              
  Unrealized foreign currency translation gain (loss)     110     (299 )     128       (177 )
Total other comprehensive income (loss), net of tax     110     (299 )     128       (177 )
Comprehensive income (loss)   $ 306   $ (2,449 )   $ (607 )   $ (5,628 )
 
The accompanying notes are an integral part of these condensed consolidated financial statements.
   
   
   
TRANS-LUX CORPORATION AND SUBSIDIARIES  
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS  
(unaudited)  
    Nine Months Ended  
    September 30  
In thousands   2012     2011  
Cash flows from operating activities                
Net loss   $ (735 )   $ (5,451 )
Loss from discontinued operations     7       224  
  Loss from continuing operations     (728 )     (5,227 )
Adjustment to reconcile net loss from continuing operations to net cash (used in) provided by operating activities:                
  Depreciation and amortization     3,102       3,492  
  Stock compensation expense     3       18  
  Gain on debt extinguishment     (60 )     -  
  Change in warrant liabilities     (3,276 )     -  
  Changes in operating assets and liabilities:                
    Receivables     (381 )     (499 )
    Inventories     (34 )     1,171  
    Prepaids and other assets     776       46  
    Accounts payable and accrued liabilities     79       1,330  
    Deferred pension liability and other     409       239  
      Net cash (used in) provided by operating activities     (110 )     570  
Cash flows from investing activities                
Equipment manufactured for rental     (527 )     (296 )
Purchases of property, plant and equipment     (58 )     (48 )
      Net cash used in investing activities     (585 )     (344 )
Cash flows from financing activities                
Payments of long-term debt     (750 )     (644 )
Proceeds from long-term debt     500       800  
      Net cash (used in) provided by financing activities     (250 )     156  
Cash flows from discontinued operations                
Cash provided by sale of asset of discontinued operations     689       -  
Net (decrease) increase in cash and cash equivalents     (256 )     382  
Cash and cash equivalents at beginning of year     1,109       398  
Cash and cash equivalents at end of period   $ 853     $ 780  
Supplemental disclosure of cash flow information:                
Interest paid   $ 220     $ 358  
Income taxes paid     -       -  
 
The accompanying notes are an integral part of these condensed consolidated financial statements.
Contact:

Sami Sassoun
Senior Vice President & CFO
Email Contact
203.642.5903
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