FOR IMMEDIATE RELEASE
For Further Information
Contact: Angela Toppi
Executive Vice President & CFO
TRANS-LUX REPORTS FOURTH QUARTER AND ANNUAL RESULTS
-- Earnings Down Due to Difficult Economic Times --
NORWALK, CT, March 27, 2003 - Trans-Lux Corporation (AMEX: TLX), a leading
supplier of programmable electronic information displays and operator of
cinemas, today reported financial results for the fourth quarter and year ended
December 31, 2002. Trans-Lux President and Co-Chief Executive Officer Michael
R. Mulcahy made the announcement.
For the year ended December 31, 2002, revenues were a record $74.9 million, up
6.7% from the $70.2 million reported in 2001. Net income for 2002 dropped to
$428,000 ($0.34 per share) from $509,000 ($0.40 per share) in 2001. Cash flow,
as defined by EBITDA, also less than the previous year, continued strong at
$15.3 million, compared to $16.5 million in 2001. Although revenue derived from
equipment rentals and maintenance contracts declined during the year, it
continues to constitute more than a third of the Company's total revenue from
electronic displays and represents recurring cash flow.
Fourth quarter revenues were slightly lower at $16.7 million in 2002, compared
with $17.0 million in the prior year. Earnings increased 23% to $137,000 ($0.11
per share) from $111,000 ($0.08 per share) for the fourth quarter last year.
Cash flow, as defined by EBITDA, was down for the quarter to $3.8 million from
$4.2 million during the fourth quarter of 2001.
In February 2003, Trans-Lux successfully completed its senior debt refinancing
with People's Bank and The Bank of New York, which included two term loans
totaling $17 million and a revolving line of credit of up to $5 million. The
entire revolving line is available at this time. "This refinancing will allow
the Company significantly more flexibility in moving forward with its
consolidation plans resulting from previous acquisitions," said Mr. Mulcahy.
Mr. Mulcahy commented on various special items that affected earnings. Reduced
interest rates, sales of certain real estate properties, as well as an increase
in the value of the Australian dollar continued to benefit the Company
throughout 2002. While pension fund costs, medical and general insurance
expenses increased significantly for Trans-Lux and many other U.S. companies
during the year, Trans-Lux was able to efficiently manage its overhead costs.
Economic conditions also required the Company to reduce net earnings as a result
of increasing its reserves for uncollectable accounts.
"In keeping with the national box office trend, the Company's Entertainment/Real