Trans-Lux Reports Third Quarter Results

NORWALK, CT--(Marketwire - Nov 14, 2012) - Trans-Lux Corporation, a leading supplier of Digital Displays and next generation LED lighting, reported financial results for the third quarter ended September 30, 2012 on November 14, 2012. Trans-Lux President and Chief Executive Officer J.M. Allain made the announcement.

Third Quarter 2012
Revenues for the third quarter of 2012 totaled $5.9 million, compared with $7.1 million for the third quarter of 2011. Trans-Lux recorded income for the third quarter of $0.2 million ($0.01 per share), compared with a loss of $2.2 million (loss of $0.88 per share) in the third quarter of 2011. The third quarter results include a $1.4 million benefit for the warrant valuation adjustment and a $0.2 million additional restructuring charge.

"We continue to see tangible results from the efficiencies we've implemented across the scope of our operations which resulted in a positive net income despite lower revenues for the quarter," said Mr. Allain. "Moving forward, new business opportunities will be driven by new and innovative sales programs that further differentiate us form the competition and capitalize on the combined sale of LED displays and lighting into numerous vertical markets."

Nine Months Ended September 30, 2012
Trans-Lux reported revenues for the nine-month period ending September 30, 2012 of $18.4 million, up from $17.1 million for the nine-month period ending September 30, 2011. Trans-Lux incurred a loss of $0.7 million (loss of $0.06 per share) during the first nine months of 2012, versus the $5.5 million loss (loss of $2.23 per share) reported for the same nine-month period in 2011. The nine months ended September 30, 2012 results include a $3.3 million benefit for the warrant valuation adjustment and a $0.4 million additional restructuring charge.

For more information, email info@trans-lux.com or visit www.trans-lux.com.

About Trans-Lux
Trans-Lux Corporation is a leading designer and manufacturer of TL Vision digital video displays and TL Energy LED lighting solutions for the financial, sports and entertainment, gaming, education, government, and commercial markets. With a comprehensive offering of LED Large Screen Systems, LCD Flat Panel Displays, Data Walls and scoreboards (marketed under Fair-Play by Trans-Lux), Trans-Lux delivers comprehensive video display solutions for any size venue's indoor and outdoor display needs. TL Energy enables organizations to greatly reduce energy related costs with green lighting solutions. For more information please visit www.Trans-Lux.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. Forward-looking statements such as "will," "believe," "are projected to be" and similar expressions are statements regarding future events or the future performance of Trans-Lux Corporation, and include statements regarding projected operating results. These forward-looking statements are based on current expectations, forecasts and assumptions and involve a number of risks and uncertainties that could cause actual results to differ materially from those anticipated by these forward-looking statements.

TRANS-LUX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
				September 30				December 31
In thousands, except share data				2012				2011
				(unaudited)				(see Note 1)
ASSETS
Current assets:
	Cash and cash equivalents			$	853			$	1,109
	Receivables, less allowance of $502 - 2012 and $884 - 2011				2,450				2,060
	Unbilled receivables				54				63
	Inventories				2,909				2,875
	Prepaids and other				294				729
		Total current assets			6,560				6,836
Rental equipment					43,779				43,252
	Less accumulated depreciation				29,885				27,060
					13,894				16,192
Property, plant and equipment					4,439				4,381
	Less accumulated depreciation				2,496				2,316
					1,943				2,065
Asset held for sale					-				696
Goodwill					744				744
Other assets					488				926
TOTAL ASSETS				$	23,629			$	27,459
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
	Accounts payable			$	1,796			$	1,589
	Accrued liabilities				6,431				6,719
	Current portion of long-term debt				4,206				4,444
	Warrant liabilities				2,132				5,408
		Total current liabilities			14,565				18,160
Long-term debt:
	Notes payable				472				512
Deferred pension liability and other					5,341				4,930
		Total liabilities			20,378				23,602
Redeemable convertible preferred stock:
	Preferred - $0.001 par value - 500,000 shares authorized, 416,500 Series A convertible preferred shares issued in 2011				-				6,138
Stockholders' equity (deficit):
	Common - $0.001 par value - 60,000,000 shares authorized, 25,895,424 shares issued in 2012 and 5,071,424 shares issued in 2011				26				5,071
	Additional paid-in-capital				23,804				12,620
	Accumulated deficit				(14,178	)			(13,443	)
	Accumulated other comprehensive loss				(3,338	)			(3,466	)
	Treasury stock - at cost - 383,596 common shares in 2012 and 2011				(3,063	)			(3,063	)
		Total stockholders' equity (deficit)			3,251				(2,281	)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)				$	23,629			$	27,459

The accompanying notes are an integral part of these condensed consolidated financial statements.

TRANS-LUX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
				Three Months Ended September 30								Nine Months Ended September 30
In thousands, except per share data				2012				2011				2012				2011
Revenues:
	Digital display sales			$	4,250			$	5,185			$	13,101			$	11,152
	Digital display lease and maintenance				1,671				1,908				5,261				5,903
	Real estate rentals				5				24				36				69
		Total revenues			5,926				7,117				18,398				17,124
Cost of revenues:
	Cost of digital display sales				3,166				4,911				10,176				9,874
	Cost of digital display lease and maintenance				1,510				1,727				4,467				4,976
	Cost of real estate rentals				16				16				47				49
		Total cost of revenues			4,692				6,654				14,690				14,899
Gross profit from operations					1,234				463				3,708				2,225
General and administrative expenses					(2,112	)			(1,950	)			(7,093	)			(6,205	)
Restructuring costs					(178	)			(16	)			(351	)			(86	)
Operating loss					(1,056	)			(1,503	)			(3,736	)			(4,066	)
Interest expense, net					(120	)			(416	)			(307	)			(1,140	)
Gain on debt extinguishment					-				-				60				-
Change in warrant liabilities					1,379				-				3,276				-
Income (loss) before income taxes					203				(1,919	)			(707	)			(5,206	)
Income tax expense					(7	)			(7	)			(21	)			(21	)
Income (loss) from continuing operations					196				(1,926	)			(728	)			(5,227	)
Loss from discontinued operations					-				(224	)			(7	)			(224	)
Net income (loss)				$	196			$	(2,150	)		$	(735	)		$	(5,451	)
Income (loss) per share continuing operations - basic and diluted				$	0.01			$	(0.79	)		$	(0.06	)		$	(2.14	)
Loss per share discontinued operations - basic and diluted					-				(0.09	)			-				(0.09	)
Total income (loss) per share - basic and diluted				$	0.01			$	(0.88	)		$	(0.06	)		$	(2.23	)
Weighted average common shares outstanding - basic and diluted					25,512				2,443				12,059				2,443

The accompanying notes are an integral part of these condensed consolidated financial statements.

TRANS-LUX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(unaudited)
			Three Months Ended September 30							Nine Months Ended September 30
In thousands			2012			2011				2012				2011
Net income (loss)			$	196		$	(2,150	)		$	(735	)		$	(5,451	)
Other comprehensive income (loss):
	Unrealized foreign currency translation gain (loss)			110			(299	)			128				(177	)
Total other comprehensive income (loss), net of tax				110			(299	)			128				(177	)
Comprehensive income (loss)			$	306		$	(2,449	)		$	(607	)		$	(5,628	)

The accompanying notes are an integral part of these condensed consolidated financial statements.

TRANS-LUX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
					Nine Months Ended
					September 30
In thousands					2012				2011
Cash flows from operating activities
Net loss					$	(735	)		$	(5,451	)
Loss from discontinued operations						7				224
	Loss from continuing operations					(728	)			(5,227	)
Adjustment to reconcile net loss from continuing operations to net cash (used in) provided by operating activities:
	Depreciation and amortization					3,102				3,492
	Stock compensation expense					3				18
	Gain on debt extinguishment					(60	)			-
	Change in warrant liabilities					(3,276	)			-
	Changes in operating assets and liabilities:
		Receivables				(381	)			(499	)
		Inventories				(34	)			1,171
		Prepaids and other assets				776				46
		Accounts payable and accrued liabilities				79				1,330
		Deferred pension liability and other				409				239
			Net cash (used in) provided by operating activities			(110	)			570
Cash flows from investing activities
Equipment manufactured for rental						(527	)			(296	)
Purchases of property, plant and equipment						(58	)			(48	)
			Net cash used in investing activities			(585	)			(344	)
Cash flows from financing activities
Payments of long-term debt						(750	)			(644	)
Proceeds from long-term debt						500				800
			Net cash (used in) provided by financing activities			(250	)			156
Cash flows from discontinued operations
Cash provided by sale of asset of discontinued operations						689				-
Net (decrease) increase in cash and cash equivalents						(256	)			382
Cash and cash equivalents at beginning of year						1,109				398
Cash and cash equivalents at end of period					$	853			$	780
Supplemental disclosure of cash flow information:
Interest paid					$	220			$	358
Income taxes paid						-				-

The accompanying notes are an integral part of these condensed consolidated financial statements.