Dayton Superior Reports Record Fourth Quarter and Full Year 2007 Results

Business Wire, Feb 15, 2008

DAYTON, Ohio -- Dayton Superior Corporation (NASDAQ: "DSUP"), the leading North American provider of specialized products for the non-residential concrete construction market, reported today its highest fourth quarter and full year income from operations.

The following results for its fourth quarter ended December 31, 2007, are compared with results for the similar period of 2006:

* Net sales were $116 million, equal to 2006.

* Income from operations was $11 million compared to $3 million in 2006, reflecting gains in product sales gross profit, as favorable pricing and ongoing cost improvement programs continued to expand margins;

* Net loss of $3 million, or $0.18 per share, improved from net loss of $10 million, or $0.91 per share. The net loss includes $2 million, or $0.12 per share, of non-recurring items.

Eric R. Zimmerman, Dayton Superior's President and Chief Executive Officer, said, "Our operating performance improvement trends that began in 2006 are evident in our fourth quarter and full year results. Considering that the construction industry experienced challenges through most of the year, and that non-residential construction activity was flat to down, these results validate the work of the Dayton Superior team to improve our processes, customer service, and operating results."

For the quarter, product sales of Dayton Superior's concrete construction related products increased 1% to $89 million, stemming both from higher selling prices and higher unit volume. Equipment rental revenues decreased 16% to $15 million, while the revenues from sales of used rental equipment increased 12% to $11 million.

Gross profit on product sales was $22 million, or 25% of product sales, a 400 basis point improvement over the fourth quarter of 2006, as the Company's cost saving initiatives continued to outpace inflation. Rental gross profit was $7 million, or 47% of rental revenue, compared with $8 million, or 43% of rental revenue, in the fourth quarter of 2006. Fourth quarter gross profit as a percent of sales of used rental equipment increased to 85% from 78% in last year's fourth quarter.

Selling, general, and administrative expenses at $27 million and 23% of sales were down from $31 million and 27% of sales in 2006 due to lower consulting fees and stock compensation expense.

Other expenses of $2 million in the fourth quarter related to terminated merger discussions.

The following results for all of 2007, are compared with results for the similar period of 2006:

* Net sales were $483 million, compared to $479 million for 2006.

* Income from operations was $42 million compared to $33 million in 2006, reflecting gains in product sales gross profit, as favorable pricing and ongoing cost improvement programs continued to expand margins;

* Net loss of $7 million, or $0.37 per share, improved from net loss of $18 million, or $1.76 per share, despite $2 million, or $0.12 per share, of non-recurring items.

Dayton Superior is proceeding with the previously reported refinancing of its revolving credit facility and 10-3/4% Senior Second Secured Notes, and expects to close this refinancing in the first quarter of 2008.

"The annual and quarterly improvement trends in gross margins validate our strategy and our direction. Gross margin, less SG&A, showed a 40% improvement for the year. In short, 2007 was a very solid operating year for Dayton Superior. We expect our regionalization, new product development, and manufacturing initiatives to continue to lead improved operating results as we focus on those activities that are closest to our customers. As 2008 unfolds, Dayton Superior is positioned well and looking forward to another record year," Zimmerman said.

Dayton Superior has determined that it overstated Deferred Income Taxes in 2004 by approximately $11 million and, as a result, had reflected higher liabilities and higher Shareholders' Deficit in periods from 2004 and subsequent by that amount. The overstatement resulted from failing to reduce the tax valuation allowance for accelerated depreciation that will reverse within net operating loss carry forward periods. As a result, Dayton Superior restated financial statements subsequent to December 31, 2004 to reflect lower total liabilities and lower shareholders' deficit by approximately $11 million. The restatement has been reflected in the summary balance sheet attached to this release. The restatement does not affect Dayton Superior's consolidated statement of operations for any period subsequent to 2004.

The Company has scheduled a conference call at 11:00 a.m. ET, Friday, February 15, 2008 to discuss the fourth quarter and full year 2007 results. The conference call can be accessed by dialing 1-800-226-0630 and entering ID#33887790 at least ten minutes before the start of the call. A replay of the call will be available from 2:00 p.m. ET on Friday, February 15, 2008 through 11:59 p.m. EDT on Monday, February 25, 2008 by calling 1-800-642-1687 or 1-706-645-9291 and entering ID#33887790.