Automotive Performance Group Substantially Reduces Operating Loss In The First Quarter Of 2000.Business Editors NEW YORK--(BUSINESS WIRE)--July 31, 2000 Automotive Performance Group, Inc. (RACG RACG Radiometric Area Correlation Guidance ) today reported a significant reduction in its 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. for the first quarter of 2000, ended March 31, 2000, compared with the year-ago period. Operating loss for the first three months of 2000 was $209,000 versus an operating loss of $773,000 for the first quarter of 1999. The Company reported substantial declines in its Selling, General and Administrative, Salaries, Payroll Taxes Payroll Tax Tax an employer withholds and/or pays on behalf of their employees based on the wage or salary of the employee. In most countries, including the U.S., both state and federal authorities collect some form of payroll tax. and Benefits, and Professional Expenses. The Company reported a net loss of $2.19 million, or ($0.18) per share, for the first quarter of 2000, compared with a net loss of $1.42 million, or ($0.23) per share, a year ago. The weighted average of common shares outstanding was 12.4 million and 6.2 million for the three months ended March 31, 2000 and March 31, 1999, respectively. First-quarter 2000 net loss includes a non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. of $2.04 million, or ($0.16) per share, related to Automotive Performance Group's share of the net loss recognized by 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). APG APG Assists Per Game (basketball) APG Assists Per Game (hockey statistic) APG Aberdeen Proving Ground APG Automated Password Generator APG Asia Pacific Group on Money Laundering owned 22% of the equity of PBT during the first quarter of 2000. The Company sold an amount equal to 4% of the outstanding equity in PBT on April 7, 2000. This loss primarily is due to the accelerated amortization of intangibles, which resulted in a loss for financial statement reporting purposes even though PBT showed a profit at the EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become (earnings before interest and taxes In financial and business accounting, earnings before interest and taxes (EBIT) is a measure of a firm's profitability that excludes interest and income tax expenses.[1] EBIT = Operating Revenue – Operating Expenses + Non-operating Income , depreciation and amortization) level. "Our first-quarter results reflect the initial benefits of the dramatic restructuring program we instituted last year," said APG Chairman and Chief Executive Officer, Dean M. Willard. "Our goal is to be near breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations from operations in the second quarter and to show a profit during the second half of the year." Mr. Willard noted that APG's business at March 31, 2000 primarily consisted of three elements: - PBT Brands, which owns Permatex, Inc., a leading manufacturer and distributor of premium functional chemical products to the automotive maintenance and repair markets, and Advanced Chemistry and Technology, Inc., which develops and manufactures sealants for the aerospace and aircraft industry. PBT's annual sales exceed $130 million. - Boyd's Wheels, Inc., which designs, manufactures via contact with others, and sells specialty wheels to the automotive, truck, trailer and recreational vehicle markets. In April 2000, APG announced its interest to sell the wheel business of Boyds. - D'Artagnan Associates, Inc., a full-service management consulting organization. D'Artagnan recently served as consultant to Zero. Net to facilitate a series of transactions which resulted in the sale of a subsidiary of Envision Development Corporation (ASE (Adaptive Server Enterprise) A relational DBMS from Sybase that runs on Windows NT/2000, Linux and a variety of Unix platforms. ASE is a comprehensive and robust data management product with a long history dating back to the late 1980s. : EDV EDV end-diastolic volume. ), 43% owned by Zero.Net. Mr. Willard added that the Company's first-quarter 2000 operating loss was slightly less than the prior three months (before extraordinary items) and significantly below the operating losses recorded in last year's second and third quarters. "For 1999, APG had an operating loss of $2.4 million before unusual items," Mr. Willard noted. Automotive Performance Group's common stock was no longer traded on the OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. , effective June 1, 2000. The OTC Bulletin Board indicated that it had delisted APG's stock because the Company filings with the U.S. Securities and Exchange Commission (SEC) were not current. The Company was unable to obtain all documents required to complete its Current Report on Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. for August 1999 and its Annual Report on Form 10-KSB for the year ended December 31, 1999, on a timely basis. Some of the documents had to be prepared by other entities that APG did not control. The missing documents have been obtained and all delinquent reports have been filed with the SEC. APG is now in full compliance with all SEC filings requirements. The Company will soon apply to have its common stock relisted on the OTC Bulletin Board. Public trading in APG's common stock currently is reported on the "Pink Sheets," which are published daily by the National Quotation Bureau National Quotation Bureau A service that publishes bid and offer quotes from market makers in OTC transactions. National Quotation Bureau . 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 18% equity ownership in PBT Brands Inc., 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.
Automotive Performance Group, Inc. and Subsidiaries
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
(In Thousands, Except Per-Share Data)
Three months ended March 31,
2000 1999
--------- ---------
Revenues $ 44 $
Expenses
Direct expenses 31 0
Selling, general and administrative 47 181
Salaries, payroll taxes and benefits 33 232
Professional expenses 106 358
Depreciation and amortization 36 2
--------- ---------
253 773
Operating loss (209) (773)
Other income (expense)
Equity in losses of affiliate (2,045)
Interest expense (155)
Other income 98 12
--------- ---------
(1,947) (143)
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Loss from continuing
operations before
discontinued
operations (2,156) (916)
Discontinued operations
Loss from operations of discontinued
specialty chemical subsidiary (35) (309)
Loss from operations of automotive
parts and accessories subsidiaries (198)
--------- ---------
Loss from discontinued
operations (35) (507)
--------- ---------
NET LOSS $ (2,191) $ (1,423)
--------- ---------
Loss per common share basic and diluted
Loss before discontinued
operations $ (0.18) $ (0.15)
Discontinued operations 0.00 (0.08)
--------- ---------
$ (0.18) $ (0.23)
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