Published: April 15, 2010
Trans-Lux Reports Year-End, Fourth Quarter Results and Going Concern Qualification
NORWALK, Conn. - (BUSINESS WIRE) - Trans-Lux Corporation (NYSE Amex: TLX), a leading supplier of
programmable electronic information displays, today reported financial
results for the fourth quarter and year ended December 31, 2009.
Trans-Lux President and Chief Executive Officer J. M. Allain made the
announcement.
Year Ended December 31, 2009 - Continuing Operations
Revenues for 2009 totaled $28.5 million, down from $36.7 million at the
end of 2008. Net loss from continuing operations at year-end was $8.8
million ($-3.81 per share), compared with a loss of $4.6 million ($-2.00
per share) in 2008. This year's loss includes the write-off of a $2.7
million note receivable related to the former Norwalk, Connecticut
facility that the Company sold in 2004, an $0.8 million charge related
to the Company's pension plan and supplemental retirement plan, a $0.5
million charge for foreign currency translation and a $0.2 million
charge for legal fees relating to the settlement of a lawsuit. The
Company recorded negative cash flow for year-end 2009 of $1.1 million
from continuing operations including the write-off, as defined by
EBITDA, compared with positive cash flow of $4.6 million for the same
period in 2008. In addition, the Company's independent registered public
accounting firm included an explanatory paragraph in their opinion in
connection with the audit relating to the uncertainty regarding the
Company's ability to continue as a going concern. Despite such
qualification, the Company's senior lender has extended the term of its
bank loans to May 1, 2011, but will monitor any action by holders of
subordinated indebtedness who cannot receive payment if there is an
event of default under such bank loan.
"The Company and our markets experienced significant change over the
last year and we have taken steps to retool our operations to
concentrate on the LED and digital signage market. The Company continues
to manage a plan to improve operating results and is seeking ways to
reduce costs of components and other expenses to improve sales margins
and look at ways to lower overhead costs," said Mr. Allain. "We are
taking measures to capitalize on new business opportunities and have
already secured several substantial new orders during the first quarter
of 2010."
Fourth Quarter 2009
Fourth quarter revenues were $5.3 million, down from $7.4 million in
2008. Trans-Lux reported a net loss from continuing operations of $3.1
million ($-1.31 per share) during the fourth quarter, compared with a
net loss of $1.3 million ($-0.58 per share) during the same period the
prior year. Several one-time charges affected the fourth quarter 2009
loss, including an $0.8 million charge related to the Company's pension
plan and supplemental retirement plan, a $0.2 million charge for legal
fees relating to the settlement of a lawsuit and a $0.1 million charge
for foreign currency translation. Last year's fourth quarter loss
included a $0.2 million charge for goodwill impairment relating to a
1995 acquisition in the outdoor commercial business offset by a $0.5
million foreign currency translation gain. The Company had negative cash
flow from continuing operations, as defined by EBITDA, of $1.3 million
for the quarter, compared with positive cash flow of $440,000 during the
fourth quarter of 2008.
Discontinued Operations
As previously reported, the Company sold the assets of its Entertainment
Division on July 15, 2008 for a purchase price of $24.5 million; $7.4
million paid in cash, $0.4 million in escrow and $16.7 million in
assumption of debt, which included $0.3 million of debt of its joint
venture, MetroLux Theatres. As a result of the sale, in the second
quarter of 2008, the Company recorded long-lived asset impairment
charges of $2.8 million, as well as $2.0 million in disposal costs. The
net proceeds from the sale were used to prepay the term loan under the
Credit Agreement with the Company's senior lender. A total of $22.4
million of long-term debt had been paid down or assumed by the buyer as
a result of the sale and the Company was released from liability on the
assumed debt.
About Trans-Lux
Trans-Lux is a leading designer and manufacturer of digital signage
display solutions for the financial, sports and entertainment, gaming
and leasing markets. With a comprehensive offering of LED Large Screen
Systems, LCD Flat Panel Displays, Fair-Play branded Scoreboards,
Trans-Lux delivers comprehensive digital signage solutions for any size
venue's indoor and outdoor display needs. For more information, please
visit our web site at www.trans-lux.com.
(Table of Operations attached)
Safe Harbor Statement under the Private Securities Litigation Reform
Act of 1995
The Company may, from time to time, provide estimates as to future
performances. These forward-looking statements will be estimates and may
or may not be realized by the Company. The Company undertakes no duty to
update such forward-looking statements. Many factors could cause actual
results to differ from these forward-looking statements, including loss
of market share through competition, introduction of competing products
by others, pressure on prices from competition or purchasers of the
Company's products, interest rate and foreign exchange fluctuations,
terrorist acts and war.
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TRANS-LUX CORPORATION
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TABLE OF OPERATIONS
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(Unaudited)
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THREE MONTHS ENDED
DECEMBER 31
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YEAR ENDED
DECEMBER
31
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(In thousands, except per share data)
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2009
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2008
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2009
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2008
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Revenues
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$
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5,330
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$
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7,422
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$
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28,548
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$
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36,683
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Loss from continuing operations
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(3,054
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(1,348
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(8,795
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(4,616
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Income (loss) from discontinued operations
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--
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44
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--
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(3,426
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)
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Net loss
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$
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(3,054
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$
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(1,304
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$
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(8,795
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$
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(8,042
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Calculation of EBITDA:
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Net loss from continuing operations
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$
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(3,054
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$
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(1,348
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$
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(8,795
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$
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(4,616
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Interest expense, net
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431
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338
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1,693
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1,527
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Income tax expense
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(88
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(76
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54
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1,306
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Depreciation and amortization
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1,444
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1,526
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5,983
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6,398
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EBITDA from continuing operations (1)
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(1,267
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440
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(1,065
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4,615
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Effect of discontinued operations
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--
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72
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--
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(2,908
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Total EBITDA (1)
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$
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(1,267
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$
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511
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$
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(1,065
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$
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1,707
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(Loss) income per share - basic and diluted
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Continuing operations
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$
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(1.31
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$
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(0.58
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$
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(3.81
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$
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(2.00
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Discontinued operations
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--
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0.01
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--
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(1.49
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Total loss per share
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$
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(1.31
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$
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(0.57
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$
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(3.81
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$
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(3.49
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Average common shares outstanding - basic and diluted
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2,324
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2,307
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2,311
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2,307
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(1)
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EBITDA is defined as earnings before effect of interest, income
taxes, depreciation and amortization. EBITDA is presented here
because it is a widely accepted financial indicator of a company's
ability to service and/or incur indebtedness. However, EBITDA should
not be considered as an alternative to net income or cash flow data
prepared in accordance with accounting principles generally accepted
in the United States or as a measure of a company's profitability or
liquidity. The Company's measure of EBITDA may not be comparable to
similarly titled measures reported by other companies.
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Trans-Lux Corporation
Angela D. Toppi, Executive Vice President &
CFO
203-642-5903
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