Trans-Industries, Inc. Reports Third-Quarter Results

Trans-Industries, Inc. Reports Third-Quarter Results 


ROCHESTER HILLS, Mich., Nov. 20  /PRNewswire-FirstCall/ -- Trans-Industries,
Inc. , a manufacturer of lighting products for busses, 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, 2003.

Sales for the third quarter were $8.3 million compared with $7.6 million a year
ago.  Included in the 2002 third-quarter results was $310,000 in sales from a
United Kingdom subsidiary, which was sold in the first quarter of 2003. For the
nine-month period ending on September 30, 2003, sales were $25.5 million
compared with $24.7 million last year, with $310,000 of these sales for the 2002
period attributed to the operation that was sold. Excluding these sales, the
Company realized volume increases of approximately 14% for the quarter and 10%
for the nine-month period.

Although not readily apparent, a substantial improvement in operating
profitability was achieved during the third quarter prior to recognition of
restructuring and nonrecurring charges.  During the quarter, a plan was
implemented to restore profitability at the information systems business. Costs
associated with this restructuring include, but are not limited to, employee
severance costs and inventory writeoffs as well as legal, insurance and advisory
fees.  The plan entailed reducing personnel, consolidating manufacturing into
one plant from two, placing the Rochester Hills plant on the market for sale,
and eliminating certain product lines.  The resultant loss for the quarter
amounted to $1.7 million, or $0.53 per share, compared with a loss of $678,000,
or $0.16 per share, last year.  The 2003 quarterly loss included $361,000 of
restructuring costs and an inventory writedown of $1.1 million.  For the
nine-month period, a loss of $2.3 million, or $0.72 per share was incurred,
compared with a loss of $140,000, or $0.04 per share a year ago.  The 2003
period included a $272,000 restructuring loss on the sale of an English
subsidiary that was taken in the first quarter, as well as the previously
mentioned charges.

The Company continues to be in default on certain covenants of its bank debt. 
As a result, the bank has the right, among other remedies, to demand payment in
full of all the liabilities.  Pursuant to an agreement between Trans-Industries
and its current lender, Comerica Bank dated August 1, 2003, Comerica has agreed
to forbear from taking action to collect the liabilities until December 1, 2003.
 Although this agreement expires on December 1, 2003, the Company anticipates
the bank will extend this agreement for another 30 days, however, there can be
no assurances of this.  The Company has begun negotiations with another lender
to replace Comerica.  The proposed new lender has begun its task of due
diligence and after a satisfactory completion of that process, the Company
expects to replace the Comerica debt.  The Company has targeted the end of the
year for the completion, however, there can be no assurance of when, or if,
successful completion of any agreement with this new lender will occur.

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/

                       Financial Tables Follow ...


                          Trans-Industries, Inc.
                            Quarterly Earnings
                            September 30, 2003

                            Third Quarter Ending      Nine Months Ending
                                September 30             September 30
                              2003         2002        2003         2002

  Sales                    $8,310,848  $7,603,082  $25,503,607  $24,658,201
  Cost of Sales             7,225,458   5,592,213   19,146,859   17,452,601
     Gross Profit           1,085,390   2,010,869    6,356,748    7,205,600

  Selling, Gen. & Admin.
   Exp.                     2,227,645   2,518,781    7,523,631    7,307,764
  Interest                    160,692     163,743      492,461      596,253
  Restructuring Costs *       361,124           0      633,983            0
  Other                        (3,355)    (13,663)      (5,363)     (26,793)
     Total Expenses         2,746,106   2,668,861    8,644,712    7,877,224

  Earnings/(Loss) Before
   Income Taxes            (1,660,716)   (657,992)  (2,287,964)    (671,624)

  Income Taxes/(Benefit)            0    (166,000)     (17,000)    (532,000)
     Net Income/(Loss)    $(1,660,716)  $(491,992) $(2,270,964)   $(139,624)

  Earnings/(Loss) Per Share
     Basic                     $(0.53)     $(0.16)      $(0.72)      $(0.04)



* Restructuring charges incurred for restructuring Vultron, including the sale
of its wholly owned subsidiary.

  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:                                        2003              2002

  Total Current Assets                       $17,825,110       $21,071,820
  Net Fixed Assets                             3,742,306         4,436,213
  Other Assets                                   386,474           236,419
     Total Assets                            $21,953,890       $25,744,452

  Liabilities and Shareholders' Equity:

  Total Current Liabilities                  $14,568,106       $11,939,434
  Deferred Income Taxes                          458,000           193,000
  Long-Term Debt                                 296,374         3,591,434
  Shareholders' Equity                         6,631,410        10,020,584
     Total Liabilities and
      Shareholders' Equity                   $21,953,890       $25,744,452


DATASOURCE: Trans-Industries, Inc.



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

[phone]



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

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