Trans-Lux Reports Third Quarter Results
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 |
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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 |
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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 | Nine Months Ended | |||||||||||||||||
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 | Nine Months Ended | |||||||||||||||
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. |
