Automotive Performance Group Reports Second-Quarter Results.NEW YORK--(BUSINESS WIRE)--Aug. 30, 1999-- Automotive Performance Group, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). : RACG RACG Radiometric Area Correlation Guidance ), today reported results for the second quarter and first six months of 1999, ended June 30. For the second quarter of 1999, the Company reported a loss of $7.2 million, or $(1.11) per share, including a loss of $3.6 million, or $(0.55) per share, 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. , and an expense of $3.0 million, or $(0.46) per share, related to the writeoff of goodwill. For the first six months of 1999, Automotive Performance Group reported a loss of $8.6 million, or $(1.36) per share, including a loss from discontinued operations ($0.64 per share), a writeoff of goodwill ($0.46 per share), and other extraordinary items. Because of the new business structure announced on August 4, 1999, all of the Company's business activities that were extant ex·tant adj. 1. Still in existence; not destroyed, lost, or extinct: extant manuscripts. 2. Archaic Standing out; projecting. a year ago no longer exist as continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the . In addition, virtually all of Automotive Performance Group's business activities that will continue on a going-forward basis are new to the Company. Because of this restructuring, management believes it would be misleading to present comparative financial statements or analyses. On August 4, 1999, the Company announced a multi-faceted restructuring program following its acquisition of a 22% equity ownership in PBT PBT Provider Backbone Transport (networking technology adding determinism to ethernet) PBT Polybutylene Terephthalate PBT Profit Before Tax PBT Paper Based Test (education) Brands, Inc. (PBT). PBT was formed to acquire the Automotive Aftermarket Aftermarket See: Secondary market. aftermarket See secondary market. Business of Loctite Corp. (Permatex), a leading manufacturer, distributor, and marketer of premium functional chemical products to the automotive maintenance and repair markets, under the Permatex, Right Stuff, and Fast Orange brand names. Automotive Performance Group has the right to invest up to 22% of the equity in subsequent acquisitions by PBT and may also seek acquisitions that do not interfere with the business of PBT. Automotive Performance Group's restructuring program included the sale of the operating assets Operating Assets Another term for working capital. of its Royal Purple Motor Oil subsidiary and a plan to spin off all of the Company's other operating assets and holdings (excluding PBT Brands) to its shareholders. The structure of the spinoff is under review. "Upon the completion of the restructuring program, the Company's assets will be made up primarily of its investment in PBT," said Board Chairman and Chief Executive Officer Dean M. Willard. "Although we will not have any direct operations for now, we will be seeking acquisition opportunities. Future acquisitions are expected to be financed through a combination of earnings from investments, and private placements of stock and debt," Mr. Willard added. Except for historical matters contained herein, the matters discussed in this press release are 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. and are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions 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 forward-looking statements reflect assumptions and involve risks and uncertainties which may affect Automotive Performance Group, Inc.'s business and prospects and cause actual results to differ materially from these forward-looking statements. Automotive Performance Group, Inc., participates in the fast-growing high-performance automotive and specialty chemical A Specialty chemical is a chemical produced for a specialized use. They are produced in lower volume than bulk chemicals, of which petrochemicals, made from oil feedstocks, are the most common. However, both are produced in a chemical plant. industries through its 22% equity ownership in PBT Brands Inc., which owns Permatex, a leading manufacturer, distributor, and marketer of premium functional chemical products to the automotive maintenance and repair markets, and Advanced Chemistry and Technology, Inc. (AC Tech), which develops and manufacturers sealants for the aerospace and aircraft industry. -0-
Automotive Performance Group, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In Millions of Dollars, Except Per-Share Data)
Three Months Ended Six Months Ended
June 30, June 30,
1999 1998 1999 1998
Revenues $ - $ - $ - $ -
Expenses 3.5 0.2 4.3 0.2
Operating Loss (3.5) (0.2) (4.3) (0.2)
Loss from Continuing Operations
Before Discontinued Operations
and Extraordinary Item (3.6) (0.2) (4.5) (0.2)
Loss from Discontinued
Operations (3.6) (4.1) (4.1) (7.0)
Extraordinary Item - - - 0.3
NET LOSS (7.2) (4.3) (8.6) (7.0)
Earnings Per Share
Continuing Operations $ (0.56) $(0.04) $(0.72) $(0.06)
Discontinued Operations (0.55) (0.71) (0.64) (1.77)
Extraordinary Item - - - 0.07
$ (1.10) $(0.75) $ (1.36) $(1.76)
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