Simclar Announces 2007 Results

HIALEAH, Fla., March 31 /PRNewswire-FirstCall/ -- Simclar, Inc. (Nasdaq:
SIMC) today announced financial results for the fourth quarter of 2007 and for
the full year that ended December 31, 2007. Results for the fourth quarter and
for the full year of 2007 include the consolidated operations of Simclar, Inc.
and its subsidiaries. For the fourth quarter of 2007, Simclar had a net loss
of $64,088 or ($0.01) per share, compared to net income of $949,000 or $0.15
per share for the fourth quarter of 2006. For the calendar year 2007, Simclar
had net income of $2.4 million or $0.37 per share, compared to net income of
$2.9 million or $0.44 per share for 2006.
For the year 2007, Simclar reported total revenues of $136.4 million
compared to $116.0 million in 2006, an 18% increase. For the fourth quarter of
2007, revenues increased to $34.7 million compared to $33.2 million for the
fourth quarter of 2006.
Net cash provided from operating activities was $7.2 million in 2007,
compared to $2.8 million in 2006.
Sam Russell commented, "The overall performance of the Company in 2007
came in well below our expectations, and is highly disappointing. Sales
increased 18%, but earnings decreased, mostly as a result of our
underperforming operation in North Carolina which incurred losses of $2.1
million in 2007 and was discontinued fully during the first quarter of 2008.
The closure of this facility will adversely affect earnings in the first
quarter of 2008, but the longer term benefits of the transfer of this business
to our facility in Mexico are expected to be improved profits and cash flow.
Although the world economic outlook is currently unclear, we have worked on
contingency plans to sustain profitability on diminished sales, should a
further downturn in the economy occur. On the positive side, our cash
management remained strong and allowed the Company to repay $6.2 million of
its bank loans in the year, including $3.0 million of voluntary repayments. We
are looking forward to the production release in the third quarter of 2008 of
Simclar Group's new TurboFabric product, which is a Scalable Advanced TCA
Platform, and the impact this will have across all of our businesses."
Simclar, Inc., with four North American manufacturing locations, and
numerous regional sales locations, has been engaged in contract manufacturing
of electronic and electro-mechanical products for OEMs for 32 years.
Statements in this news release, which relate to other than strictly
historical facts, such as statements about the Company's plans and strategies,
expectations for future financial performance, and markets for the Company's
products and services are forward-looking statements. The words "believe,"
"expect," "anticipate," "estimate," "project," and similar expressions
identify forward-looking statements that speak only as of the date hereof.
Investors are cautioned that such statements involve risks and uncertainties
that could cause actual results to differ materially from historical or
anticipated results due to many factors including, but not limited to, the
Company's customer concentration, debt covenants, competition, the
effectiveness of our internal controls, and other risks detailed in the
Company's most recent Annual Report on Form 10-K and other Securities and
Exchange Commission filings. The Company undertakes no obligation to publicly
update or revise any forward-looking statements.
Visit Simclar, Inc at its website, www.simclar.com for more information
about the Company.
SOURCE Simclar, Inc.

Steph Donnelly, CFO of Simclar, Inc., +1-937-220-9777