IMPCO Technologies, Inc. (NasdaqNM:IMCO) has reported results for its fourth quarter and year ended December 31, 2005, reflecting contributions from the full consolidation of its BRC acquisition beginning in the second quarter of 2005.
“Our focus in 2005 was on the integration of BRC, streamlining our business operations and on cost-reduction initiatives necessary to return the company to profitability. With these activities now nearing a close, we will bring a strict focus to our core business operations and markets. As we look forward, we see growing interest in our alternative fuel products driven by broad economic, political, and environmental initiatives on a global basis, and we look forward to capitalizing on the significant opportunities available to IMPCO as the company’s strategic plan is implemented,” said Mariano Costamagna, president and CEO.
Revenues during the fourth quarter of 2005 increased 91.5 percent to $51.9 million from $27.1 million in the same period a year earlier primarily due to the addition of BRC revenues. The company reported a net loss for the 2005 fourth quarter of $0.5 million, or $0.02 per share, compared with a net loss of $17.9 million, or $0.96 per share, a year ago.
Revenues for the year ended December 31, 2005, increased 47.5 percent to $174.5 million from $118.3 million during the same period in the prior year. The increase in revenues was primarily due to the inclusion of BRC revenues beginning in the second quarter of 2005. For the year, the company reported a net loss of $10.7 million, or $0.40 per share, compared with a net loss of $15.9 million, or $0.85 per share, a year ago.
For the fourth quarter of 2005, consolidated gross profit increased $10.9 million compared with the same period in 2004. Consolidated operating expenses decreased $1.6 million during the fourth quarter of 2005 to $9.7 million from $11.3 million during the same period in the prior year.
Consolidated operating income increased $12.5 million during the fourth quarter of 2005 to $3.7 million from an operating loss of $8.8 million during the same period in the prior year.
For the year ended December 31, 2005, consolidated gross profit increased $20.8 million compared with the same period in 2004, primarily due to the addition of BRC revenues beginning in the second quarter of 2005.
Consolidated operating expenses for the year ended December 31, 2005 increased $15.2 million to $43.0 million from $27.8 million during the same period in 2004. These increases were offset by a decrease of $2.8 million goodwill impairment loss related to two international operations in the prior year.
As a result, consolidated operating income for the year ended December 31, 2005 increased $5.6 million to $4.5 million from an operating loss of $1.1 million during the same period in 2004. Other income of $0.5 million for the year ended December 31, 2005 consisted primarily of net unrealized foreign exchange gains as a result of movements between the U.S. dollar and the euro.
Income tax expense increased $11.7 million to $14.0 million for the year ended December 31, 2005 from $2.3 million for the same period in 2004. Income tax expense for 2005 and 2004 includes $8.5 million and $1.3 million, respectively, of non-cash charges associated with an increase in the valuation allowance for deferred tax assets related to domestic operations.
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