Stamford Industrial Group Announces Results for the First Quarter Ended March 31,...

Stamford Industrial Group Announces Results for the First Quarter Ended March
31, 2009

STAMFORD, Conn., May 11 /PRNewswire-FirstCall/ -- Stamford Industrial Group,
Inc. (OTC: SIDG "SIG" or the "Company"), announced today financial results
for the first quarter ended March 31, 2009.

(Logo: http://www.newscom.com/cgi-bin/prnh/20070912/NYW145LOGO )

First Quarter Consolidated Results
Consolidated revenue was $17.1 million, a decrease of 47.7% or $15.6 million
for the first quarter ended March 31, 2009, compared to $32.7 million for the
first quarter ended March 31, 2008. The decrease of $15.6 million is
primarily due to price reductions and lower sales volume resulting from
decreased demand for our products from existing customers, as a result of
decreased spending in commercial and industrial construction end markets.

The Company's consolidated gross profit margin was $1.9 million or 11.1% of
sales for the three months ended March 31, 2009 as compared to $5.6 million or
17.1% of sales for the three months ended March 31, 2008. The 35.1% decrease
in gross margin percentage was due to significantly higher costs for raw
material and significant price reductions on lower sales volume.

The Company's consolidated operating expenses were 17.5% of revenue or $3.0
million for the first quarter ended March 31, 2009 as compared to 10.1% or
$3.3 million for the first quarter ended March 31, 2008. The reduction in
operating expenses reflects a decrease in employment-related expenses of $0.3
million

Net loss for the first quarter ended March 31, 2009 was $1.0 million or $0.11
per diluted share versus net income of $1.4 million or $0.15 per diluted share
in the first quarter last year.

The following chart reconciles net loss and diluted loss per share on a GAAP
basis to net loss and diluted loss per share before non-cash expenses:

Reconciliation of GAAP EPS to Non-GAAP EPS Three Months Ended
(unaudited) March 31, 2009
------------------------------------------ ---------------------
(unaudited)
---------------------
(in (per share
millions) Diluted)
---------- ---------
Net loss - Diluted EPS $(1.0) $(0.11)
---------- ---------
Deferred stock compensation expense 0.1 0.01
Depreciation and amortization expense 0.6 0.07
Related party stock expense - -
Tax benefit, net (0.5) (0.06)
---------- ---------
Total non-cash (benefit) expenses: $0.2 $0.02
---------- ---------
Net loss - Diluted EPS before non-cash
benefits and expenses $(0.8) $(0.09)
========== =========

Adjusted EBITDA Results
Earnings before interest, taxes, depreciation and amortization, deferred
stock-based compensation, incentive compensation, other income and related
party stock and cash fees ("Adjusted EBITDA") for the first quarter ended
March 31, 2009 was negative $0.4 million as compared to Adjusted EBITDA of
$3.4 million for the first quarter ended March 31, 2008. Within this press
release is a reconciliation of net (loss) income as reported to Adjusted
EBITDA.

Stamford Industrial Group's Chief Executive Officer Al Weggeman commented,
"Our first quarter financial results were in line with our expectations and we
believe reflect the weakened global economy. We continued to see lower volume
rates in our product lines that service global infrastructure OEM equipment
customers, such as crane manufacturers. We experienced a sharper decline in
volume for our component products that support the aerial work platform and
material handling OEM end markets. Our gross margin of 11.1% in the first
quarter as compared to 4.6% in the fourth quarter 2008, reflects difficult
business actions that we implemented to reduce our cost structure as we
respond to this widespread economic downturn.

With respect to our acquisition program we remain focused on finding a
suitable acquisition with an acceptable return on investment. Our acquisition
strategy is to build a diversified industrial growth company providing
engineered products and solutions for global niche markets. We are seeking
acquisitions with transactions generally valued at up to $100 million and
having an EBITDA range of $5 to $15 million in the engineered component
product market."

Cash Flow
Cash provided by operating activities was $2.0 million for the first quarter
ended March 31, 2009, reflecting net loss of $1.0 million, change in deferred
tax asset of $0.4 million, offset by depreciation and amortization of $0.6
million, non-cash deferred stock-based compensation of $0.1 million, and
change in working capital of $2.7 million.

Free cash flow, defined as net cash provided by operating activities less
capital expenditures, was $2.0 million. Free cash flow, which represents net
cash provided by operating activities less capital expenditures, is presented
in the earnings release because management believes that free cash flow is a
common alternative to measure liquidity.

Balance Sheet
As of March 31, 2009, the Company reported:

Total debt (short-term, current portion and long-term), which consists of
$18.0 million of bank debt and $2.5 million of a subordinated note, was $20.5
million at March 31, 2009 compared to $21.8 million at December 31, 2008. The
decrease in debt is due to payments on long-term debt of $1.0 million and
payments on the Company's line of credit facility of $0.3 million.

Net Operating Loss Carryforwards
The Company estimates that it presently has available approximately $114
million of federal net operating loss carryforwards for federal income tax
purposes, subject to compliance with Section 382 of the Internal Revenue Code.

Capital expenditures for the full year 2009 are expected to be approximately
$0.7 million.

Use of Non-GAAP Measures
The Company reports its financial results in accordance with U.S. generally
accepted accounting principles ("GAAP"). The Company also believes that
presentation of certain non-GAAP measures, i.e., EBITDA, Adjusted EBITDA, Free
Cash Flow and EPS before non-cash expenses, provides useful information for
the understanding of its ongoing operations and enables investors to focus on
period-over-period operating performance, and thereby enhances the user's
overall understanding of the Company's current financial performance relative
to past performance and provides, to the nearest GAAP measures, a better
baseline for modeling future earnings expectations. Non-GAAP measures are
reconciled to comparable GAAP financial measures in the financial tables
within this press release. The Company cautions that non-GAAP measures should
be considered in addition to, but not as a substitute for, the Company's
reported GAAP results. Additionally, the Company notes that certain items may
be presented in different manners by different companies, thereby leading to
different measurers for different companies.

Conference Call Scheduled For May 11, 2009 At 5:30 P.M. (Eastern Daylight
Time)
The Company will host a conference call on Monday, May 11th at 5:30 p.m.
Eastern Daylight Time. The call will compare Stamford Industrial Group's
consolidated results of operations for the first quarter ended March 31, 2009
and the first quarter ended March 31, 2008. The conference call will be
followed by a question-and-answer session. To participate in this call, dial
(866) 939-3921 any time after 5:20 p.m. Eastern Daylight Time. International
callers should dial (678) 302-3550.

About Stamford Industrial Group, Inc.
Stamford Industrial Group, Inc. is working to build a diversified global
industrial manufacturing group through organic and acquisition growth
initiatives that will complement and diversify existing business lines.
Concord Steel, Inc., a wholly-owned subsidiary of Stamford Industrial Group,
acquired in October 2006, is a leading independent manufacturer of steel
counter-weights and structural weldments that are incorporated into a variety
of industrial equipment, including aerial work platforms, cranes, elevators
and material handling equipment.

Additional information about Stamford Industrial Group, Inc. can be found at
http://www.Stamfordig.com.

Forward-looking Statements
This press release includes "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. The Company may use
words such as "anticipates," "believes," "plans," "expects," "intends,"
"future," and similar expressions to identify forward-looking statements.
These forward-looking and other statements, which are not historical facts,
are based largely upon our current expectations and assumptions and are
subject to a number of risks and uncertainties that could cause actual results
to differ materially from those contemplated by such forward-looking
statements. These risks and uncertainties include, among others, our inability
to secure necessary financing, any inability to continue to comply with the
financial covenants under our credit agreement,our ability to implement our
acquisition growth strategy and integrate and successfully manage any
businesses that we acquire, our ability to continue to grow revenues in our
operating divisions, our ability to use our net operating loss carry forward,
changes in the Company's relationship with customers, changes in the demand
for counterweights or the growth of the construction industry, changes in our
relationship with our unionized employees, the current economic downturn and
its effect on the credit and capital markets as well as the industries and
customers that use our products, declines in the business of our customers,
the loss of major customers, reductions to our deferred tax assets or
recognition of such assets, the price of steel, and other factors described in
the "Risk Factors" section of the Company's filings with the Securities and
Exchange Commission, including the Company's latest annual report on Form 10-K
and most recently filed Forms 8-K and 10-Q, which may be obtained at our web
site at www.stamfordig.com or the Securities and Exchange Commission's web
site at www.sec.gov.

STAMFORD INDUSTRIAL GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except per share amounts)

Three Months Ended
------------------
March 31, March 31,
2009 2008
--------- ---------
Revenues $17,114 $32,677
Cost of revenues 15,260 27,112
--------- ---------
Gross margin 1,854 5,565
--------- ---------
Operating expenses:
Sales and marketing 336 415
General and administrative 2,557 2,578
Related party cash fee 125 125
Related party stock compensation 22 177
--------- ---------
Total operating expenses 3,040 3,295
--------- ---------
(Loss) income from operations (1,186) 2,270

Other (expense) income:
Interest income - 1
Interest expense (287) (790)
Other income 1 27
--------- ---------
Total other (expense), net (286) (762)
--------- ---------
(Loss) income before taxes (1,472) 1,508
--------- ---------
(Benefit) provision for income taxes (504) 89
--------- ---------
Net (loss) income $(968) $1,419
========= =========
Basic net (loss) income per share $(0.11) $0.17
========= =========
Shares used in basic calculation 8,420 8,367
========= =========
Diluted net (loss) income per share $(0.11) $0.15
========= =========
Shares used in diluted calculation 8,420 9,566
========= =========

STAMFORD INDUSTRIAL GROUP, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands, except per share amounts)

March 31, December 31,
2009 2008
--------- ------------
ASSETS
Current assets:
Cash and cash equivalents $1,014 $303
Accounts receivable, net 8,332 9,806
Inventories, net 11,578 15,748
Deferred tax asset, net 519 519
Prepaid expenses and other current assets 142 149
--------- ------------
Total current assets 21,585 26,525

Property, plant and equipment, net 7,873 8,160

Deferred financing costs, net 455 493
Intangible assets, net 19,213 19,476
Deferred tax asset, net 39,624 39,188
Other assets 358 205
--------- ------------
Total assets $89,108 $94,047
========= ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable $- $286
Current portion of long-term debt 4,000 4,000
Accounts payable 3,478 6,335
Accrued expenses and other liabilities 3,095 3,070
--------- ------------
Total current liabilities 10,573 13,691

Long-term debt, less current portion 16,533 17,533
Other long-term liabilities 704 242
--------- ------------
Total liabilities 27,810 31,466
--------- ------------

Commitments and contingencies

Stockholders' equity:
Preferred stock - $.0001 par value;
5,000 shares authorized;
no shares issued or outstanding - -
Common stock - $.0001 par value;
100,000 shares authorized;
8,420 and 8,420 shares issued
and outstanding at March 31, 2009
and December 31, 2008, respectively 3 3
Additional paid-in capital 248,020 247,885
Accumulated deficit (186,725) (185,307)
--------- ------------
Total stockholders' equity 61,298 62,581
--------- ------------
Total liabilities and stockholders' equity $89,108 $94,047
========= ============

STAMFORD INDUSTRIAL GROUP, INC.
RECONCILIATION OF NET (LOSS) INCOME AS REPORTED TO
ADJUSTED EBITDA (UNAUDITED)
(in thousands)

Quarter Ended
--------------------
March 31, March 31,
2009 2008
--------- ---------
Net (loss) income $(968) $1,419
Income tax (benefit) expense (504) 89
Interest expense, net 287 789
Other income (1) (27)
--------- ---------
Income from operations (1,186) 2,270
Depreciation - Cost of revenues 175 160
Depreciation - Operating expense 112 89
Amortization 263 262
--------- ---------
EBITDA (636) 2,781
--------- ---------
Deferred stock-based compensation 103 230
Incentive compensation - 135
Related party consulting fee 125 125
Related party stock fee 22 177
--------- ---------
Adjusted EBITDA $(386) $3,448
========= =========

SOURCE Stamford Industrial Group, Inc.

Albert W. Weggeman, CEO, +1-203-428-2200, AWeggeman@Stamfordig.com; or
Jonathan LaBarre, CFO, +1-203-428-2200, JLaBarre@Stamfordig.com