American Building Control Reports 2003 Financial Results.Business Editors LEWISVILLE Lew·is·ville A city of northeast Texas, an industrial and residential suburb in the Dallas-Fort Worth metropolitan area. Population: 83,900. , Texas--(BUSINESS WIRE)--April 12, 2004 American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Building Control, Inc. (Nasdaq:ABCX) today reported financial results for the fiscal year ended December December: see month. 31, 2003. The company reported a net loss of $11.5 million, or $0.81 per share, on net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight of $39.8 million. For the year ended December 31, 2002, the company reported a net loss of $55.6 million, or $3.95 per share, on net sales of $44.2 million. For the fourth fiscal quarter ended December 31, 2003, the company reported a net loss of $3.3 million, or $0.23 per share, on net sales of $7.9 million. For the fourth fiscal quarter of 2002, the company reported a net loss of $23.5 million, or $1.67 per share, on net sales of $11.5 million. Fiscal 2003 results include a gain of $0.2 million from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. . Fiscal 2002 results include charges of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $26.2 million due to the cumulative effect of accounting changes, and a net loss of approximately $10.1 million arising from the disposition Act of disposing; transferring to the care or possession of another. The parting with, alienation of, or giving up of property. The final settlement of a matter and, with reference to decisions announced by a court, a judge's ruling is commonly referred to as disposition, regardless of of discontinued operations. "2003 was a year of change for American Building Control," said Carlo Loi, Chairman of the Board of American Building Control. "After extensive deliberation deliberation n. the act of considering, discussing, and, hopefully, reaching a conclusion, such as a jury's discussions, voting and decision-making. DELIBERATION, contracts, crimes. , the board determined that it was necessary for the company to change its strategic direction and its senior leadership. To that end, Danny Mills Daniel John "Danny" Mills (born May 18 1977 in Norwich, Norfolk) is an English professional footballer, who currently plays for Charlton Athletic currently on loan from Manchester City. His main position is right-back though he can also play in central defence. was named chief executive officer in the fourth quarter of 2003, and charged to resolve several legacy issues that had encumbered Encumbered A property owned by one party on which a second party reserves the right to make a valid claim, e.g., a bank's holding of a home mortgage encumbers property. the company's operating results for the past couple of years and to lead the company in a new direction." "On March 9, 2004, American Building Control announced that it is changing the strategic focus of the company, and will now concentrate on providing centralized cen·tral·ize v. cen·tral·ized, cen·tral·iz·ing, cen·tral·iz·es v.tr. 1. To draw into or toward a center; consolidate. 2. , integrated security solutions for the corporate, government and institutional markets," said Danny Mills, chief executive officer of American Building Control. "And we stated that the company's MDI (1) (Multiple Document Interface) A Windows function that allows an application to display and lets the user work with more than one document at the same time. Security Systems (MDI) and ABM ABM: see guided missile. ABM - Asynchronous Balanced Mode Data Systems (ABM) operations will provide the foundation for the Company's new focus." The company said these operations combined in 2003 to generate net sales of $16.9 million, and an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $5.5 million. The company added that it is rationalizing the sales and development activities of these operations, and expects to be much more effective and efficient once the changes are completed. "We also announced that we are planning to divest To deprive or take away. Divest is usually used in reference to the relinquishment of authority, power, property, or title. If, for example, an individual is disinherited, he or she is divested of the right to inherit money. various businesses that do not fit the new strategic direction of the Company, specifically SecurityandMore, and the Industrial Vision Source (IVS ivs - INRIA Videoconferencing System. A video-conferencing tool for the Internet based on the H.261 video compression standard. http://zenon.inria.fr:8003/rodeo/personnel/Thierry.Turletti/ivs.html. ) division. We have retained USBX Advisory Services advisory services advisory services provided to the public, in their capacity as owners and managers of animals, are an important part of veterinary science. They may be provided by government bureaux, by commercial companies who deal in pharmaceuticals or animals or animal , an investment banking firm with significant experience in the security industry, to handle the divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). of these companies," said Mr. Mills. "The initial reaction to our new direction from customers, suppliers, distributors and other industry observers has been very encouraging and supportive supportive adjective Pertaining to a Pt management philosophy in which only the Sx of a particular condition are treated; supportive measures are often taken when no specific and/or effective therapy is available or accessible–eg, viral meningitis, or ," said Mr. Mills. "They universally acknowledge the ongoing shift to centralized, integrated security solutions in today's marketplace. They also recognize that MDI's sophisticated Security Suite of products can play an important and strategic role in delivering a security solution capable of incorporating access control, video, alarm monitoring and audit function components, and be the centerpiece of a network-based solution in the converged security marketplace. "We are going through a period of rebuilding and transition at American Building Control, and we are instituting the changes necessary to be successful in today's marketplace," said Mr. Mills. "There is more work to do, and it will likely be at least two to three quarters before we see real financial benefits from the progress that we are making operationally. The balance sheet is debt free, and the divestiture of non-strategic businesses will reinforce re·in·force v. 1. To give more force or effectiveness to something; strengthen. 2. To reward an individual, especially an experimental subject, with a reinforcer subsequent to a desired response or performance. 3. internal cash flows to fund the Company through this transition period." About American Building Control, Inc. American Building Control is a leading provider of centralized, integrated security solutions for the corporate, government and institutional markets. For more information on American Building Control, Inc., please visit our website www.americanbuildingcontrol.com. Forward-Looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. and Cautionary Statements Except for historical information and discussions contained herein, certain statements included in this press release may constitute "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995, These statements include a number of risks, uncertainties and other factors that could cause actual results to differ materially, as discussed in the Company's filings with the Securities and Exchange Commission.
AMERICAN BUILDING CONTROL, INC. and SUBSIDIARIES
CONDENSED COMPARATIVE BALANCE SHEETS
(in millions)
December 31, December 31,
2003 2002
----------- -------------
Cash $ 6.3 $ 16.4
Marketable Securities 1.5 -
Receivables 3.5 5.0
Inventories 4.8 4.4
Other Current Assets 2.6 6.5
----------- -------------
Current Assets 18.7 32.3
Land & Building - 8.0
Property & Equipment 2.8 2.5
Intangibles 3.6 5.7
Other Assets 0.7 2.1
----------- -------------
Total Assets $ 25.8 $ 50.6
=========== =============
Payables 2.9 3.2
Accrued Expenses 3.9 6.3
Deferred Income - current portion 0.5 1.0
Other Current Liabilities 0.3 2.0
Net Current Liabilities of
Discontinued Operations 1.8 2.1
----------- -------------
Current Liabilities 9.4 14.6
Sale Leaseback Obligation - 6.6
Deferred Income - 1.0
Other Liabilities 0.1 1.0
----------- -------------
Long-Term Liabilities 0.1 8.6
Equity 16.3 27.4
----------- -------------
Total Liabilities and Equity $ 25.8 $ 50.6
=========== =============
AMERICAN BUILDING CONTROL, INC. and SUBSIDIARIES
CONDENSED COMPARATIVE STATEMENTS OF OPERATIONS
(in millions, except per share data)
Years ended December 31,
2003 2002
-------------- -----------
Sales $39.8 $44.2
Gross Profit 12.1 12.4
Margin 30.3% 28.1%
Operating Expenses 19.8 23.7
Goodwill & Asset Impairment 1.7 3.3
Depreciation & Amortization 2.0 2.3
------------ -----------
Operating Loss (11.4) (16.9)
Interest Expense 0.6 2.9
Other Expense (Income) (0.3) (0.6)
------------ -----------
Loss Before Discontinued Operations and
Income Taxes (11.7) (19.2)
Income Taxes - -
Income (Loss) from Discontinued
Operations 0.2 (10.1)
------------ -----------
Loss Before Cumulative Effect of
Accounting Change (11.5) (29.3)
Cumulative Effect of Accounting Change -
Continuing Operations - (14.8)
Cumulative Effect of Accounting Change -
Discontinued Operations - (11.4)
------------ -----------
Net Loss Allocable to Common
Stockholders $(11.5) $(55.5)
============ ===========
Basic and Diluted Earnings (Loss) Per
Share:
Continuing operations $(0.83) $(1.37)
Discontinued operations 0.02 (0.72)
Cumulative Effect of Accounting
Change - Continuing operations - (1.05)
Cumulative Effect of Accounting
Change - Discontinued operations - (0.81)
------------ -----------
Basic and Diluted Earnings (Loss) Per
Share $(0.81) $(3.95)
============ ===========
Basic and Diluted Common Shares Used in
Computations 14.1 14.0
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