KATY INDUSTRIES, INC.
REPORTS
2007
FOURTH
QUARTER
RESULTS
ARLINGTON, VA –
March
12,
2008 –
Katy
Industries,
Inc.
(OTC
BB:
KATY)
today
reported
a
net
loss
in
the
fourth
quarter
of
2007
of
($2.4)
million
[($0.30)
per
share],
versus
a
net
loss
of
($1.3)
million
[($0.16)
per
share],
in
the
fourth
quarter
of
2006,
as
adjusted
to
exclude
restructuring
and
other
non-recurring
or
unusual
items,
which
are
discussed
below.
Including
these
items,
Katy
reported
net
income
in
the
fourth
quarter
of
2007
of
$1.3
million
[$0.16
per
share],
versus
a
net
loss
of
($2.7)
million
[($0.34)
per
share],
in
the
same
period
of
2006.
Operating
loss,
as
adjusted
to
exclude
all
restructuring
and
other
non-recurring
or
unusual
items,
was
($2.5)
million
[(5.9%)
of
net
sales]
in
the
fourth
quarter
of
2007,
compared
to
an
operating
loss,
as
adjusted,
of
($0.9)
million
[(2.0%)
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. .
Katy
also
reported
a
net
loss
for
the
year
ended
December
31,
2007
of
($6.4)
million
[($0.81)
per
share],
versus
a
net
loss
of
($5.8)
million
[($0.73)
per
share],
for
the
year
ended
December
31,
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
year
ended
December
31,
2007
of
($1.5)
million
[($0.19)
per
share],
versus
a
net
loss
of
($12.4)
million
[($1.55)
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
($5.7)
million
[(3.1%)
of
net
sales]
for
the
year
ended
December
31,
2007,
compared
to
an
operating
loss,
as
adjusted,
of
($5.4)
million
[(2.8%)
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
fourth
quarter
of
2007,
Katy
reported
restructuring
and
other
non-recurring
or
unusual
items
of
$3.8
million
pre-tax
[$0.47
per
share],
primarily
consisting
of
a
gain
on
the
sale
and
operating
activities
of
the
discontinued
businesses
of
$3.8
million,
income
from
the
sale
of
our
equity
investment
of
$0.8
million,
partially
offset
by
a
loss
on
sale
of
assets
of
($0.9)
million.
During
the
fourth
quarter
of
2006,
Katy
reported
restructuring
and
other
non-recurring
or
unusual
items
of
($0.3)
million
pre-tax
[($0.04)
per
share],
primarily
consisting
of
a
loss
on
the
sale
and
operating
activities
of
the
discontinued
businesses
of
($1.5)
million
and
loss
on
sale
of
assets
of
($0.4)
million,
partially
offset
by
a
reduction
in
severance,
restructuring
and
related
costs
of
$1.6
million.
Details
regarding
these
items
are
provided
in
the
“Reconciliations
of
GAAP
Results
to
Results
Excluding
Certain
Unusual
Items”
accompanying
this
press
release.
For
the
year
ended
December
31,
2007,
Katy
reported
restructuring
and
other
non-recurring
or
unusual
items
of
$8.2
million
pre-tax
[$1.02
per
share],
including
a
gain
on
the
sale
and
operating
activities
of
discontinued
businesses
of
$12.4
million,
income
from
the
sale
of
our
equity
investment
of
$0.8
million,
partially
offset
by
severance,
restructuring
and
related
costs
of
($2.6)
million
and
loss
on
sale
of
assets
of
($2.4)
million.
For
the
year
ended
December
31,
2006,
Katy
reported
restructuring
and
other
non-recurring
or
unusual
items
of
($3.6)
million
pre-tax
[($0.45)
per
share],
including
loss
on
the
sale
and
operating
activities
of
the
discontinued
businesses
of
($3.0)
million,
loss
on
sale
of
assets
of
($0.4)
million,
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,
partially
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
fourth
quarter
of
2007,
as
compared
to
the
same
period
in
the
prior
year,
included:
·
On
November
30,
2007,
the
Company
completed
the
sale
of
the
Woods
U.S.
and
Woods
Canada
businesses,
which
comprised
our
Electrical
Products
Group.
Gross
proceeds
received
were
$49.8
million,
including
$6.8
million
being
held
in
escrow
and
expected
to
be
received
primarily
in
the
first
two
quarters
of
2008.
As
a
result,
Katy
recorded
a
$1.3
million
gain
on
the
sale
of
these
businesses.
These
proceeds
were
used
to
pay
down
the
outstanding
revolving
loan
which
was
$2.9
million
at
December
31,
2007
as
compared
to
$43.9
million
