TRANSTECHNOLOGY ANNOUNCES FOURTH QUARTER EARNINGS
TRANSTECHNOLOGY ANNOUNCES FOURTH QUARTER EARNINGS UNION, N.J., June 12 /PRNewswire/ -- TransTechnology Corp.
(NYSE: TT) today reported a profit from continuing operations for the fourth quarter ending March 31, 1992, of $434,000 or $.08 per share, on revenues of $32,153,000, as compared to a fourth quarter 1991 loss of $1,441,000 or $.28 per share on revenues of $31,950,000. Discontinued operations yielded a fourth quarter loss of $3,972,000 or $.78 per share vs. the $1,581,000 loss or $.31 per share reported for the same period last year. Total net losses for the quarter amounted to $3,538,000 or $.70 per share compared to the prior year's quarter of $3,022,000 or $.59 per share. All prior year results have been restated to reflect operations discontinued during the current fiscal year.
For the fiscal year ended March 31, 1992, the company reported a profit from continuing operations of $205,000 or $.04 per share on revenues of $102,122,000, while the prior year yielded a profit of $1,110,000, or $.22 per share on revenues of $109,643,000. Discontinued operations for the current fiscal year resulted in a loss of $9,620,000 or $1.89 per share while the prior fiscal year loss was $5,119,000 or $1.01 per share. Combined results for the 1992 fiscal year were a net loss of $9,415,000 or $1.85 per share and a net loss of $4,009,000 or $.79 per share for the 1991 fiscal year. Fourth quarter results from continuing operations were heavily influenced by the establishment of increased reserves for workers' compensation claims, inventory obsolescence and other liabilities amounting to more than $2 million. Reserves established to cover potential claims related to discontinued operations in the quarter amounted to more than $900,000. Additionally, a special one-time charge of $2.2 million for early debt retirement was also recognized as part of the discontinued operations. As a result, total such fourth quarter charges, from both continuing and discontinued operations, amounted to more than $5.1 million. For the fiscal year, total pre-tax charges for such reserves, including the relocation of the corporate office, restructuring and abandonment of the C3I product line, amounted to more than $15 million. The company also stated that it had completed the previously announced sales of its elastomer products and textile machinery divisions. These transactions have been reflected in the fourth quarter results. The sale of the weather instruments division is expected to be completed by June 30, 1992, and is reflected as a discontinued operation in the fourth quarter. Michael J. Berthelot, vice chairman and chief executive officer, stated that, "The company has substantially completed its previously disclosed restructuring. Following three out of four quarters of profits from continuing operations, the reduction of our debt by $44 million since the end of last year, lowered interest costs, and the divestiture of those businesses which did not meet our standards, we look forward to a bright future. We expect our first quarter results to be in line with the rate needed to achieve our estimate of $1 per share for the 1993 fiscal year." TRANSTECHNOLOGY CORP. (In thousands of dollars, except share data) Fourth quarter ended Year ended March 31, March 31, 1992 1991 1992 1991 Revenues from continuing operations $32,153 $31,950 $102,122 $109,643 Income (loss) from continuing operations before income taxes 170 (2,471) 56 1,578 Provision (credit) for income taxes (264) (1,030) (149) 468 Income (loss) from continuing operations 434 (1,441) 205 1,110 Loss from discontinued operations (3,972) (1,581) (9,620) (5,119) Net income (loss) (3,538) (3,022) (9,415) (4,009) Earnings (loss) per share: Income (loss) from continuing operations $.08 ($0.28) $0.04 $0.22 Loss from discontinued operations (0.78) (0.31) (1.89) (1.01) Net income (loss) ($0.70) ($0.59) ($1.85) ($0.79) Number of shares issued in computation of per share information 5,083,000 5,080,000 5,081,000 5,080,000 Loss from discontinued operations is net of a tax provision of $641,000 and a tax benefit of $977,000 for the quarter ended March 31, 1992 and 1991, respectively and tax benefits of $1,020,000 and $3,055,000 for the year ended in 1992 and 1991, respectively. -0- 6/12/92 /CONTACT: Michael J. Berthelot, vice chairman investor relations, of TransTechnolgy, 908-964-5666/ (TT) CO: TransTechnology Corp. ST: New Jersey IN: ARO SU: ERN
CH-AL -- LA010 -- 9661 06/12/92 12:17 EDT
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|Date:||Jun 12, 1992|
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