Prolong (AMEX:PRL)
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Prolong International Corporation Announces 2004 Financial
Results
IRVINE, Calif., April 18 /PRNewswire-FirstCall/ -- Prolong International
Corporation (AMEX:PRL), (http://www.prolong.com/), a technology driven holding
company and parent of Prolong Super Lubricants, Inc., manufacturer and marketer
of cost-saving consumer automotive, commercial/industrial and household
products, has announced financial results for the year ended December 31, 2004.
The Company reported a net loss of ($2.86) million or ($0.09) per diluted
share, on net sales of $7.9 million for the year ended December 31, 2004,
compared to a net loss of ($2.2) million or ($0.07) per diluted share, on net
sales of $8.35 million for the year ended December 31, 2003.
"Our sales and marketing team worked very hard last year to maintain our core
base of prestigious Prolong distributors; companies including Wal-Mart,
AutoZone, CSK Auto, Pep Boys, NAPA, Meijer's and Canadian Tire," said Elton
Alderman, CEO. "We not only maintained these customers in the face of
tenacious competition, but we were able to add to our list with the
introduction of Advance Auto Parts and its 2,612 stores, who we began shipping
to in January 2005. The Company produced an aggressive, long-form television
ad and ran it for a good part of the year; however, while it helped to boost
sales in its viewing markets, we had much higher expectations for its
contribution to direct sales."
Mr. Alderman continued, "Quite simply, we need to increase sales, while sharply
controlling the expense of securing those sales. To do so, we are working hard
to increase our points of distribution in the commercial trucking and
industrial machinery markets where our Prolong products have historically
proved themselves to be expense reducing and problem solving products for
businesses, factories, farms and government agencies. The company has begun
introducing its motor oils and its new oil stabilizer products to its
commercial, industrial, consumer and international distributors and end users.
I am very encouraged by the start.
"We intend to build a portfolio of the country's greatest industrial and
commercial parts suppliers as our distributors, just like we developed
relationships with the premier automotive aftermarket distribution
organizations. During late 2004, the Company secured Fastenal, Inc., with over
1,550 locations, as its first major industrial and construction supply
distributor. We believe this is the template for increasing sales of products
containing the patented Prolong technology. We believe our new products, when
added to existing Prolong products like greases, penetrant sprays, gear lubes
and cutting fluids, can help generate the increased sales we seek.
"Our international customer base and international sales continued to grow as
we secured additional customers within China, Japan, Malaysia, Chile and Mexico
during 2004. We expect to continue adding new international distributors for
all of our Prolong products and we anticipate finding acceptance of our new
motor oils and oil stabilizer in international markets. In addition, our
recently revamped web site, http://www.prolong.com/, has been well received by
visitors and is proving effective in supporting all of our Prolong business."
Mr. Alderman said, "We started off the year 2004 expecting higher sales and
better financial results than were achieved. Within this year's annual audited
financial statements, the Company's independent auditors have provided their
opinion that the financial statements of the Company present fairly, in all
material respects, the financial position of the Company and are in conformity
with generally accepted accounting principles. They have also expressed their
opinion to management that the company needs to add to its working capital
through new borrowings, additional equity or a combination thereof, in order to
assure adequate liquidity for ongoing and continued business operations, as the
Company's past losses and working capital deficiencies raise substantial doubt
about its ability to continue as a going concern. The Company's board and
management agree with their assessment and have been and continue to be
actively engaged in the process of seeking to secure such new financing on the
best available terms. The Company has challenges to meet, to be sure, but with
the continued support of our shareholders, vendors, customers and dedicated
employees, I believe the Company will make an impressive performance statement
to the world."
Prolong International Corporation (AMEX:PRL), a technology driven holding
company headquartered in Irvine, California, through its operating subsidiary,
manufactures, markets and distributes a complete line of patented lubricant and
proprietary automotive, commercial, industrial and household products. The
Company's products are marketed and sold under the brand name Prolong Super
Lubricants(R) and are used in automotive, industrial, commercial and consumer
applications. Prolong products are sold throughout the United States at major
chain stores, through commercial and industrial distributors, auto retailers
and in international markets. More information about Prolong International
Corporation and its products can be obtained at http://www.prolong.com/.
Forward-Looking Statements
Certain statements in this news release that relate to financial results,
projections, future plans, events, or performance, are 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 and
involve significant risks and uncertainties, including, but not limited to, the
following: competition, cost of components, product concentration and risk of
declining selling prices. The Company's actual results could differ materially
from those anticipated in such forward-looking statements as a result of a
number of factors. These risks and uncertainties, and certain other related
factors, are discussed in the Company's Form 10-K, Form 10-Q and other filings
with the Securities and Exchange Commission. These forward-looking statements
are made as of the date of this release and the company assumes no obligation
to update such forward-looking statements.
DATASOURCE: Prolong International Corporation
CONTACT: Investor Relations, Thomas C. Billstein of Prolong
International Corporation, +1-949-587-2700
Web site: http://www.prolong.com/