TRANS-LUX REPORTS SECOND QUARTER 2010 RESULTS
NORWALK, CT, August 18, 2010 – Trans-Lux Corporation (NYSE Amex: TLX), a leading supplier of programmable electronic information displays, today reported financial results for the second quarter ended June 30, 2010. Trans-Lux President and Chief Executive Officer J.M. Allain made the announcement.
Second Quarter 2010
Revenues totaled $6.3 million for the second quarter, compared with $7.4 million during the same period last year. Trans-Lux recorded a loss for the quarter of $2.6 million (-$1.07 per share), compared with a loss of $3.8 million (-$1.65 per share) in the second quarter of the prior year. This year’s second quarter loss includes a $1.0 million restructuring charge and a $0.5 million charge to write-off engineering software. The prior year’s second quarter loss includes the write-off of a $2.7 million note receivable related to the former Norwalk, CT facility that the Company sold in 2004. The Company incurred negative EBITDA of $0.9 million, compared with negative EBITDA of $1.8 million in 2009. Without the restructuring charge and write-offs, EBITDA would have been a positive $594,000 for the three months ended June 30, 2010, compared with a positive $882,000 for the same period in 2009. The Company took several actions during the quarter to reduce operating costs, including the elimination of approximately 50 positions from operations and the closing of the Stratford, Connecticut, manufacturing facility. The one-time restructuring costs consist of employee severance pay, facility closing costs, representing primarily lease termination and asset write-off costs, and other fees directly related to the restructuring plan.
“We have implemented tremendous changes in the way we conduct virtually every facet of our business to reflect the ‘new’ Trans-Lux business model. Streamlining operating costs and enhancing operational efficiencies remain priorities, while simultaneously improving manufacturing efficiencies and greatly expanding our product line to cultivate new business opportunities. And we are already seeing results from these efforts,” said Mr. Allain. “We are making strategic investments to deliver the next generation of digital signage and display solutions, and to establish new partnerships in various segments of the digital display industry that will further cultivate long-term growth.”
Six Months Ended June 30, 2010
Trans-Lux reported revenues for the six-month period ended June 30, 2010 of $11.7 million, down from $15.2 million last year. Trans-Lux incurred a loss of $4.0 million (-$1.66 per share) during the first six months, versus the $5.0 million loss (-2.15 per share) reported for the same period in 2009. This year’s loss includes the $1.0 million restructuring charge and the $0.5 million charge to write-off engineering software. The prior year’s loss includes the write-off of a $2.7 million note receivable related to the former Norwalk, CT facility that the Company sold in 2004. The Company incurred negative EBITDA of $515,000, compared with negative EBITDA of $997,000 during the same six-month period in 2009. Without the restructuring charge and write-offs, EBITDA would have been a positive $983,000 for the six months ended June 30, 2010, compared with a positive $1.7 million for the same period in 2009.
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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.