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MODTECH INC. REPORTS RESULTS

 PERRIS, Calif., March 18 /PRNewswire/ -- Modtech Inc. (NASDAQ: MODT) reported today a pre-tax loss in 1992 of approximately $2,300,000 as compared to a pre-tax loss in 1991 of approximately $3,300,000. The company said the loss is primarily attributable to the low utilization of its manufacturing facilities in the poor economic climate of California. Revenue for the year ended Dec. 31, 1992, was $31,100,000 as compared to $35,600,000 in the same period a year ago.
 According to Evan Gruber, chief executive officer, "While we have cut our loss by approximately 30 percent, and doing this with a 12 percent decline in sales, we are not pleased to report another loss. We continue to be hampered by the budget shortfalls which plague the State of California. California school districts continue to announce deficits and teacher layoffs. The California economic downturn continues. Unemployment, in many parts of the state continue to be in the double digits. New space/defense cutbacks will certainly add to the problem. These negative factors, which appear to cause reductions in state tax revenues, have caused our industry to contract. As firms in our industry compete for market share, margins decline. School districts do not appear to have funds to place orders even though the student population continues to grow. Additionally, we have also been hampered by the recent heavier than normal rain.
 "In June of 1991, Modtech's employees totaled 460. The total in January of 1993 was 215, approximately a 53 percent reduction. We are of course pleased that the voters of California have approved the school construction bonds which validated the need for new schools. However, until these capital funds and the school operating funds become available, we will still have tough quarters ahead."
 Modtech Inc. designs, manufactures and installs modular relocatable classrooms, marketing its products to California school districts, as well as to the State of California and leasing companies which, in turn, lease the classrooms to school districts.
 MODTECH INC.
 Selected Unaudited Financial Data
 Dec. 31
 (dollars in thousands, except earnings per share)
 1992 1991
 Fourth quarter:
 Net sales 4,216 3,451
 (Loss) before taxes (2,258) (3,338)
 Net (loss) (2,299) (2,855)
 (Loss) per share (.62) (.77)
 Average shares outstanding 3,701 3,701
 Year:
 Net sales 31,191 35,592
 (Loss) before taxes (2,325) (3,328)
 Net (loss) (2,366) (2,849)
 (Loss) per share (.64) (.77)
 Average shares outstanding 3,701 3,701
 -0- 3/18/93
 /CONTACT: Evan Gruber, CEO of Modtech Inc., 909-943-4014/
 (MODT)


CO: Modtech Inc. ST: California IN: SU: ERN

MS-KJ -- LA032 -- 7609 03/18/93 16:05 EST
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Publication:PR Newswire
Date:Mar 18, 1993
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