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Trans-Lux President and Chief Executive Officer Michael R. Mulcahy made the announcement.
The Company has accounted for the July 15, 2008 sale of the Entertainment Division as discontinued operations and has accordingly restated the prior year's results.
Year Ended December 31, 2008
Revenues for 2008 totaled $36.7 million, compared with $37.3 million in 2008. Net loss from continuing operations totaled $4.6 million ($-2.00 per share), compared with a loss of $5.8 million ($-2.77 per share) in the prior year. The 2008 loss included a $2.7 million non-cash charge for a tax valuation allowance. The loss in 2007 included $2.9 million of non-cash charges, consisting of a one-time, non-tax deductible charge of $1.5 million relating to the successful Exchange Offer in the first quarter; a $1.0 million charge for a tax valuation allowance; and a $0.4 million charge in the Company's pension plan. Cash flow from continuing operations, as defined by EBITDA, improved to $4.6 million in 2008, compared to $4.3 million in 2007.
"The sale of the Entertainment Division represented a significant transformation for Trans-Lux in 2008," said Mulcahy. "While it was a long-standing component of the Company, the sale enabled us to both improve our debt position and dedicate our focus to the area where we see greater long-term potential in the years to come - our core display business."
Fourth Quarter 2008
Trans-Lux reported fourth quarter revenues of $7.4 million, down from $8.4 million in 2007. The Company reported a net loss from continuing operations for the quarter of $1.3 million ($-0.58 per share), compared with a net loss of $2.3 ($-0.98 per share) in the fourth quarter of 2007. Cash flow from continuing operations, as defined by EBITDA, was $440,000 for the quarter, compared with $282,000 during the same period in 2007. The 2008 fourth quarter results reflect a $194,000 goodwill impairment charge relating to a 1995 acquisition in the outdoor commercial business. The 2007 fourth quarter results reflect the $1.0 million non-cash charge for a tax valuation allowance and a $0.4 million non-cash charge in the Company's pension plan.
Discontinued Operations
As previously reported, the Company sold the assets of its Entertainment Division on July 15, 2008 for a purchase price of $24.5 million; $7.4 million paid in cash, $0.4 million in escrow and $16.7 million in assumption of debt, which included $0.3 million of debt of its joint venture, MetroLux Theatres. In addition to the $24.5 million purchase price, there is a potential additional purchase price based on the performance of one of the theatre operations. However, there can be no assurance that there will be any additional purchase price earned and none has been earned as of year-end. As a result of the sale, the Company recorded long-lived asset impairment charges of $2.8 million, as well as $2.0 million in disposal costs. The net proceeds from the sale were used to prepay the term loan under the Credit Agreement with the Company's senior lender. A total of $22.4 million of long-term debt has been paid down or assumed by the buyer as a result of the sale and the Company was released from liability on the assumed debt.
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