KATY INDUSTRIES, INC.
REPORTS
2007
THIRD
QUARTER
RESULTS
ARLINGTON, VA –
November
13,
2007 –
Katy
Industries,
Inc.
(OTC
BB:
KATY)
today
reported
a
net
loss
in
the
third
quarter
of
2007
of
($1.5)
million
[($0.18)
per
share],
versus
a
net
loss
of
($0.9)
million
[($0.11)
per
share],
in
the
third
quarter
of
2006,
as
adjusted
to
exclude
restructuring
and
other
non-recurring
or
unusual
items,
which
are
discussed
below.
Including
these
items,
Katy
reported
a
net
loss
in
the
third
quarter
of
2007
of
($0.8)
million
[($0.10)
per
share],
versus
a
net
loss
of
($2.0)
million
[($0.25)
per
share],
in
the
same
period
of
2006.
Operating
loss,
as
adjusted
to
exclude
all
restructuring
and
other
non-recurring
or
unusual
items,
was
($1.1)
million
[(2.2%)
of
net
sales]
in
the
third
quarter
of
2007,
compared
to
an
operating
loss,
as
adjusted,
of
($0.2)
million
[(0.5%)
of
net
sales]
in
the
same
period
in
2006.
Net
income
(loss),
as
adjusted,
and
operating
income
(loss),
as
adjusted,
are
non-GAAP
financial
measures
and
are
further
discussed
below.
Katy
also
reported
a
net
loss
for
the
nine
months
ended
September
30,
2007
of
($4.0)
million
[($0.51)
per
share],
versus
a
net
loss
of
($4.9)
million
[($0.62)
per
share],
for
the
nine
months
ended
September
30,
2006,
as
adjusted
to
exclude
restructuring
and
other
non-recurring
or
unusual
items,
which
are
discussed
below.
Including
these
items,
Katy
reported
a
net
loss
for
the
nine
months
ended
September
30,
2007
of
($2.8)
million
[($0.35)
per
share],
versus
a
net
loss
of
($9.7)
million
[($1.22)
per
share],
in
the
same
period
of
2006.
The
operating
loss,
as
adjusted
to
exclude
all
restructuring
and
other
non-recurring
or
unusual
items,
was
($3.2)
million
[(2.2%)
of
net
sales]
for
the
nine
months
ended
September
30,
2007,
compared
to
an
operating
loss,
as
adjusted,
of
($4.5)
million
[(3.0%)
of
net
sales]
in
the
same
period
in
2006.
Net
income
(loss),
as
adjusted,
and
operating
income
(loss),
as
adjusted,
are
non-GAAP
financial
measures
and
are
further
discussed
below.
During
the
third
quarter
of
2007,
Katy
reported
restructuring
and
other
non-recurring
or
unusual
items
of
$1.6
million
pre-tax
[$0.20
per
share]
which
represents
operating
activities
of
the
discontinued
businesses
as
discussed
further
below.
During
the
third
quarter
of
2006,
Katy
reported
restructuring
and
other
non-recurring
or
unusual
items
of
($1.3)
million
pre-tax
[($0.17)
per
share],
primarily
consisting
of
severance,
restructuring
and
related
costs
as
well
as
operating
activities
of
the
discontinued
businesses.
Details
regarding
these
items
are
provided
in
the
“Reconciliations
of
GAAP
Results
to
Results
Excluding
Certain
Unusual
Items”
accompanying
this
press
release.
For
the
nine
months
ended
September
30,
2007,
Katy
reported
restructuring
and
other
non-recurring
or
unusual
items
of
$4.4
million
pre-tax
[$0.55
per
share],
including
a
gain
on
the
sale
and
operating
activities
of
discontinued
businesses
of
$8.6
million
offset
by
severance,
restructuring
and
related
costs
of
($2.7)
million
and
loss
on
sale
of
assets
of
($1.5)
million.
For
the
nine
months
ended
September
30,
2006,
Katy
reported
restructuring
and
other
non-recurring
or
unusual
items
of
($2.5)
million
pre-tax
[($0.32)
per
share],
including
severance,
restructuring
and
related
costs
of
($1.6)
million,
loss
from
discontinued
businesses
of
($0.7)
million
and
costs
of
($0.8)
million
related
to
the
cumulative
effect
of
a
change
in
accounting
principle
for
the
implementation
of
SFAS
No.
123R,
Accounting
for
Stock-Based
Compensation
offset
by
gain
on
SESCO
joint
venture
transaction
of
$0.6
million.
Details
regarding
these
items
are
provided
in
the
“Reconciliations
of
GAAP
Results
to
Results
Excluding
Certain
Unusual
Items”
accompanying
this
press
release.
Financial
highlights
for
the
third
quarter
of
2007,
as
compared
to
the
same
period
in
the
prior
year,
included:
·
On
November
1,
2007,
the
Company
entered
into
a
definitive
agreement
to
sell
the
Woods
U.S.
and
Woods
Canada
businesses
which
comprises
our
Electrical
Products
Group.
The
sale
is
expected
to
close
by
November
30,
2007.
As
of
September
30,
2007,
the
Company
determined
these
businesses
met
the
criteria
as
an
Asset
Held
for
Sale
which
results
in
all
operating
activities
being
classified
as
discontinued
operations
for
all
periods
presented.
Besides
the
Woods
U.S.
and
Woods
Canada
businesses,
the
discontinued
operations
also
includes
the
Metal
Truck
Box
business,
Consumer
United
Kingdom
business
and
Contico
Manufacturing,
Ltd.
business,
all
of
which
were
sold
in
either
2006
or
2007.
.
·
Net
sales
in
the
third
quarter
of
2007
were
$49.2
million,
a
decrease
of
$2.7
million
compared
to
the
same
period
in
2006
primarily
due
to
lower
