FORT WORTH, Texas, Aug. 17, 2004 (PRIMEZONE) -- Catalyst Lighting Group, Inc., (OTCBB:CYSL), a manufacturer and marketer of outdoor lighting poles and accessories through its Whitco Company, LP subsidiary, announced its financial results for the third quarter of fiscal 2004, which ended on June 30, 2004.
For the quarter ended June 30, 2004, total revenue was $4.3 million, up from $4.1 million in the prior-year comparable quarter. The increase in revenue for the three-month period is attributable to a 159 percent increase in sales of aluminum poles and a 27 percent increase in steel area lighting poles. These increases were partially offset by a 75 percent decrease in sales to an OEM customer that held the contract to supply fixtures and lighting poles to Wal-Mart. This contract was not renewed with the OEM customer. Gross margin for the quarter increased to 32 percent from 29 percent in the comparable quarter last year. The increase in gross margin percent for the three-month period is attributable to a higher margin mix of sales of products, a decrease in freight as a percentage of sales and some efficiencies gained through the initiation of self-manufacturing of products under 40 feet. For the nine-month period, gross margin ended at 32 percent, compared to 32 percent for the same period last year.
For the three months ended June 30, 2004, loss from operations was $66,048, which is a $108,864 decrease over the same comparative quarter ended June 30, 2003, which reported a loss of $162,124. For the nine months ended June 30, 2004, Catalyst reported a loss from operations of $444,080, compared to a loss from the nine months ended June 30, 2003 of $162,236.
Dennis Depenbusch, CEO of Catalyst Lighting Group, stated, "We are generally pleased to report our increased momentum for the current quarter. We are particularly pleased sales gains in other categories were sufficient to replace the business lost by our OEM customer to Wal-Mart. We will strive to hold our general, selling and administrative expenses steady, while continuing to grow our sales and gross margin. Our internal production of poles is continuing to gain us manufacturing efficiency and improving our gross margins. We are optimistic, based on our current order backlog, we will continue our momentum toward increased sales, gross margins and operating income for the fourth quarter which ends September 30th, in relation to the quarter we have just reported."
About Catalyst Lighting Group, Inc.
Catalyst Lighting Group is headquartered in Fort Worth, Texas. Through its sole subsidiary, Whitco Company, LP, Catalyst manufactures and markets light poles for the commercial and industrial markets. The company sells and distributes its products through a network of more than 70 agents stationed throughout the United States. More information about Catalyst Lighting Group, Inc. may be found on the company's Web site, www.catalystlighting.com.
Certain of the above statements contained in this press release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Actual results, events and circumstances (including future performance, results and trends) could differ materially from those set forth in such statements due to various factors, risks and uncertainties, including but not limited to, risks associated with Catalyst Lighting Group, Inc.'s future growth and operating results, the uncertainty of market acceptance of the company's products, technological change, competitive factors and general economic conditions. Catalyst Lighting Group, Inc. has no duty and undertakes no obligation to update such statements.
CATALYST LIGHTING GROUP, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS FOR THE NINE MONTHS
ENDED ENDED
JUNE 30, JUNE 30,
2004 2003 2004 2003
--------- --------- --------- ---------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
--------- --------- --------- ---------
NET SALES $4,275,000 $4,069,887 $12,440,537 $10,644,295
COST OF SALES 2,884,195 2,882,794 8,511,721 7,277,750
---------- ---------- ----------- -----------
GROSS PROFIT ON
SALES 1,390,805 1,187,092 3,928,816 3,366,545
GENERAL, SELLING
AND
ADMINISTRATIVE
EXPENSES 1,456,853 1,349,216 4,372,896 3,528,781
---------- ---------- ----------- -----------
INCOME (LOSS)
FROM
OPERATIONS (66,048) (162,124) (444,080) (162,236)
OTHER EXPENSE:
Reverse merger
costs - 21,991 - 85,377
Interest
expense 70,837 73,800 252,900 220,977
---------- ---------- ----------- -----------
LOSS FROM
OPERATIONS
BEFORE
PROVISION FOR
INCOME TAXES (136,885) (257,915) (696,980) (468,590)
PROVISION FOR
INCOME TAXES 50,142 - 253,801 -
---------- ---------- ----------- -----------
NET LOSS $ (86,743) $ (257,915) $ (443,179) $ (468,590)
========== ========== =========== ===========
PRO FORMA
INCOME TAX
AND NET
LOSS:
Net loss
before pro
forma
income
taxes $ (86,743) $ (257,915) $ (443,179) $ (468,590)
Pro forma
income tax
benefit
(expense) - 93,766 - 169,250
---------- ---------- ----------- -----------
PRO FORMA NET
LOSS $ (86,743) $ (164,149) $ (443,179) $ (299,340)
========== ========== =========== ===========
NET LOSS PER
COMMON SHARE:
Basic $ (.02) $ (.09) $ (.13) $ (.16)
========== ========== ============ ===========
Diluted $ (.02) $ (.09) $ (.13) $ (.16)
========== ========== ============ ===========
PRO FORMA NET
LOSS PER
COMMON
SHARE:
Basic $ (.02) $ (.05) $ (.13) $ (.10)
========== ========== ============ ===========
Diluted $ (.02) $ (.05) $ (.13) $ (.10)
========== ========== ============ ===========
WEIGHTED
AVERAGE
NUMBER OF
SHARES
OUTSTANDING:
Basic 3,601,809 2,991,972 3,482,575 2,917,273
========== ========== =========== ===========
Diluted 3,601,809 2,991,972 3,482,575 2,917,273
========== ========== =========== ===========
CATALYST LIGHTING GROUP, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
JUNE 30, SEPTEMBER 30,
2004 2003
----------- -----------
(Unaudited) (see Note)
----------- -----------
ASSETS
------
CURRENT ASSETS:
Cash $ 80,634 $ 96,591
Trade receivables, less allowance for
doubtful accounts of $60,646 and
$53,892 2,866,956 3,380,471
Trade receivable - related party 44,746 92,305
Inventories, net of reserve of $17,877
and $64,698 1,701,897 1,311,130
Prepaid expenses and other 30,937 49,502
Deferred tax asset 47,699 47,699
----------- -----------
Total current assets 4,772,869 4,977,698
PROPERTY AND EQUIPMENT, net of
accumulated depreciation of
$84,696 and $58,410 146,684 115,198
OTHER ASSETS:
Goodwill 2,971,362 2,971,362
Deferred tax asset 253,801
Other 15,793 15,793
----------- -----------
Total other assets 3,240,956 2,987,155
----------- -----------
TOTAL ASSETS $ 8,160,508 $ 8,080,051
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES:
Revolving note payable $ 1,718,433 $ 2,072,522
Current maturities of long-term debt:
Related party 250,000 250,000
Other 482,775 274,134
Accounts payable 2,860,699 2,447,756
Accrued commissions 471,391 587,383
Other accrued liabilities 277,826 219,553
----------- -----------
Total current liabilities 6,061,124 5,851,348
----------- -----------
LONG-TERM DEBT, less current maturities:
Related party 50,000 70,000
Other 850,000 1,083,989
----------- -----------
Total long-term debt 900,000 1,153,989
DEFERRED TAXES 108,833 108,833
COMMITMENTS
STOCKHOLDERS' EQUITY:
Preferred stock - $.01 par value;
authorized 10,000,000 shares, none
issued -- --
Common stock - $.01 par value;
authorized 40,000,000 shares,
3,646,869 shares issued and
outstanding 36,469 33,914
Additional paid-in capital 2,020,278 1,454,984
Accumulated deficit (966,196) (523,017)
----------- -----------
Total stockholders' equity 1,090,551 965,881
----------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 8,160,508 $ 8,080,051
=========== ===========
(Note) Derived from the Company's audited consolidated balance sheet at September 30, 2003