SOURCE: New Century Companies Inc.

May 25, 2005 08:50 ET

New Century Companies, Inc. Returns to Profitability; Earns $0.02 per Share in Q1 2005

Further Evidence of Significant Industry Turnaround

LOS ANGELES, CA -- (MARKET WIRE) -- May 25, 2005 -- New Century Companies (OTC BB: NCNC), a leading U.S. manufacturer and re-manufacturer of vertical boring mills and large lathes, reported financial results for its first quarter ended March 31, 2005. The Company generated revenues of $1,431,889 for the three months ended March 31, 2005, which was a $452,581 or 46% increase from $979,308 for the three months ended March 31, 2004. The increase is the result of less foreign competition and improved market conditions.

Gross Profit (Loss). Gross profit for the three months ended March 31, 2005, was $386,019 or 27% of revenues, compared to a gross loss of $(34,693) for the three months ended March 31, 2004. The increase in gross profit is primarily due to decreased labor costs and increased outsourcing.

Operating Income (Loss). Operating income (loss) increased to a profit of $160,200 for the three months ended March 31, 2005 compared to a loss of $(493,088) for the three months ended March 31, 2004. The increase of $653,288 in the operating income is due to a 73% reduced cost of the public company related to consulting expenses and to a 48% decrease in selling, general and administrative expenses due to management's cost-cutting efforts.

Net Income (Loss). Net income (loss) increased to a profit of $111,133 or $0.02 per share for the three months ended March 31, 2005 compared to a loss of $(534,866) or ($0.11) for the three months ended March 31, 2004.

David Duquette, CEO, stated, "We have worked hard to reduce our manufacturing costs to return to profitability. We expect demand for our Vertical Turning Centers to remain strong as deliveries for competitive machines have increased."

About New Century Companies, Inc.

New Century, under its brand name Century Turn, specializes in manufacturing, remanufacturing and retrofitting machine tools, primarily Vertical Boring Mills and large Lathes. By offering remanufactured Vertical Boring Mills, the Company saves or conserves millions of dollars per year in energy costs by reutilizing the major castings of each Vertical Boring Mill. These savings, generally in the range of 40% to 60%, allow New Century to be the most price-competitive manufacturer of Vertical Boring Mills in the U.S. These cost savings are passed on to New Century customers and afford them the opportunity to manufacture rotating turbine components for power generation at better costs. New Century machines are also used by manufacturers of jet engine components, airplane landing gear parts, oil and gas components, to name a few. New Century currently manufactures its machines in state-of-the-art facilities in Santa Fe Springs, CA. New Century maintains a website at www.newcenturyinc.com

Except for historical information, this press release contains forward-looking statements, which reflect the Company's current expectation regarding future events. These forward-looking statements involve risks and uncertainties, which may cause actual results to differ materially from those statements. Those risks and uncertainties include, but are not limited to, changing market conditions, and other risks detailed from time to time in the Company's ongoing quarterly filings, annual information form, and annual reports. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events in this press release might not occur.

Contact Information

  • Contact:
    David Duquette
    CEO
    562-906-8455