Trans-Industries, Inc. Reports 2004 Third-Quarter and Nine-Month Results

Trans-Industries, Inc. Reports 2004 Third-Quarter and Nine-Month
Results 


ROCHESTER HILLS, Mich., Nov. 11  /PRNewswire-FirstCall/ -- Trans-Industries,
Inc. (NASDAQ:TRNI), a manufacturer of lighting products for buses, particle
extraction systems, electronic information systems and software related
products for the mass transit, highway and commercial markets, today announced
results for the third quarter and nine months ended September 30, 2004.

Sales were $6.9 million for the quarter, a decline of 17 percent from sales of
$8.3 million for the three months ended September 30, 2003.  A sales decline
was evident in all product areas with significant slowness realized among
information systems and lighting products.  Declines in these areas were
realized due to capital expenditure deferrals by highway departments, as well
as by commercial purchasers of information systems, while shipments of lighting
products were affected by a reduced level of bus production that persisted
throughout the quarter and most of the year.  Due in large measure to these
market factors, sales for the nine months ended September 30, 2004 were $22.1
million, or 13 percent below those of last year when they amounted to $25.5
million for the same nine-month period of 2003.

Net income for the quarter was $1.9 million, or $.60 per share, compared with a
loss during last year's third quarter of $1.7 million, or $.53 per share.  This
profit, however, resulted solely from a gain of $2.3 million on the sale of a
plant vacated by the information systems business.  From operations, a loss of
$490,000 was incurred.  Included in the $1.7 million loss for the third quarter
of 2003 was $361,000 of restructuring costs and $1.1 million of charges for an
inventory writedown.

The net loss for the nine months ended September 30, 2004 was $1.1 million, or
$.34 per share, compared with a loss of $2.3 million, or $.72 per share, the
prior year.  The 2004 period included an inventory writedown of $2.3 million
taken in the second quarter and a $2.4 million gain on the sale of the vacated
plant noted above taken in the third quarter.  Last year's period included an
inventory writedown and restructuring costs of $1.4 million, resulting is a
loss of $2.3 million for the nine months ended September 30, 2003.

A substantial improvement of the balance sheet was realized during the third
quarter.  Cash from the sale of the information systems plant plus the infusion
of $1.5 million from the sale of subordinated convertible debt enabled the
Company to reduce debt and improve working capital.  On August 18, 2004, the
Company closed refinancing with Huntington National Bank.  The Company used the
proceeds from the refinancing to repay its former lender, Comerica Bank, in
full.  The new loan agreement with Huntington National Bank includes a mortgage
on its real estate for $2 million.  The mortgage is a five-year note, amortized
over 10 years with monthly payments of $16,667.67 and a final balloon payment
of $1 million due at maturity.  Interest on the mortgage is at 1.75 percent
over the bank's prime lending rate.  Additionally, the Company obtained a $6
million line of credit secured by all of the Company's assets.  The credit line
is a three-year facility with an interest rate of 1.25 percent over the bank's
prime lending rate.

About the Company

The Company is a leading provider of lighting systems and related components to
the mass transit market as well as a supplier of information hardware and
software solutions on Intelligent Transportation Systems (ITS) and mass transit
projects.  ITS utilizes integrated networks of electronic sensors, signs and
software to monitor road conditions, communicate information to drivers and
help transportation authorities better manage traffic flow across their
existing infrastructures.

Forward-Looking Statements

Except for statements of historical fact, this news release contains certain
forward-looking statements about the Company.  Such statements are subject to
significant risks and uncertainties including changes in economic and market
conditions, management of growth, and other risks noted in the Company's SEC
filings which may cause actual results to differ materially.

         Visit Trans-Industries at http://www.transindustries.com/


                          Trans-Industries, Inc.
                  Sales and Earnings Report (Unaudited)
                            September 30, 2004

                           Third Quarter Ending        Nine Months Ending
                               September 30               September 30
                           2004           2003         2004         2003

  Sales                 $6,908,580     $8,310,848  $22,141,046  $25,503,607
  Cost of Sales          5,142,557      7,225,458   18,737,366   19,146,859
     Gross Profit        1,766,023      1,085,390    3,403,680    6,356,748

  Selling, Gen. &
   Admin. Exp.           2,133,229      2,227,645    6,240,547    7,523,631
  Interest                 123,043        160,692      446,619      492,461
  Restructuring Costs           19        361,124      129,017      633,983
  Other                 (2,384,522)        (3,355)  (2,395,733)      (5,363)
     Total Expenses       (128,231)     2,746,106    4,420,450    8,644,712

  Earnings/(Loss)
   Before Income Taxes   1,894,254     (1,660,716)  (1,016,770)  (2,287,964)

  Income Taxes/(Benefit)         0              0            0      (17,000)
     Net Income/(Loss)   1,894,254     (1,660,716)  (1,016,770)  (2,270,964)
  Preferred Dividend       (18,750)             0      (43,542)           0

  Net Earnings/(Loss)
   Available to Common
   Shareholders         $1,875,504    $(1,660,716) $(1,060,312) $(2,270,964)

  Earnings/(Loss) Per
   Share
     Basic                   $0.60         $(0.53)      $(0.34)      $(0.72)

   * Includes $2,378,390 gain on the sale of the Vultron building.

  Weighted Average
   Number of Shares
   Outstanding           3,139,737      3,139,737    3,139,737    3,139,737


                  Consolidated Balance Sheet (Unaudited)

                                        Third Quarter Ending
                                            September 30
  Assets:                                 2004         2003

  Total Current Assets                $13,746,062  $17,825,110
  Net Fixed Assets                      3,251,545    3,742,306
  Other Assets                            743,898      386,474
     Total Assets                     $17,741,505  $21,953,890

  Liabilities and Shareholders' Equity:

  Total Current Liabilities           $10,633,880  $14,568,106
  Deferred Income Taxes                         0      458,000
  Long-Term Debt                        1,735,739      296,374
  Shareholders' Equity                  5,371,886    6,631,410
     Total Liabilities and
      Shareholders' Equity            $17,741,505  $21,953,890


DATASOURCE: Trans-Industries, Inc.



CONTACT:  Kai Kosanke, Chief Financial Officer of Trans-Industries, Inc.,

[phone]



Web Site: http://www.transindustries.com/ 

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