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DURA Automotive Reports Second Quarter 2005 Results

ROCHESTER HILLS, Mich.--July 28, 2005--DURA Automotive Systems, Inc. , today reported revenues of $623.8 million for the second quarter ended July 3, 2005, compared to $658.8 million in the prior-year quarter. Net income for the quarter was $3.0 million, or $0.16 per diluted share, compared to net income of $3.3 million, or $0.18 per diluted share, in the prior-year quarter. DURA's adjusted income from continuing operations for the quarter, which excludes facility consolidation charges, a loss on the early extinguishment of debt, and the favorable settlement of an environmental matter, totaled $1.6 million, or $0.09 per diluted share, compared to $11.6 million, or $0.61 per diluted share, in the prior-year quarter.

"Industry volumes continue to be volatile, however, our cost containment and geographic diversity have helped us meet our guidance for the quarter," said Larry Denton, president and chief executive officer of DURA Automotive. "We expect the industry to become even more challenging over the next six months and, therefore, we must keep our focus on our cost reduction initiatives."

The decrease in second-quarter revenue from the prior year was driven primarily by lower North American automotive and RV production, and unfavorable vehicle platform mix. Partially offsetting these decreases was the benefit received from foreign currency exchange. The decrease in second-quarter income from continuing operations from the prior year reflects the impact of lower automotive production and higher raw material prices.

The facility consolidation charge for the quarter relates to the previously announced headcount reductions associated with DURA's plan to migrate to one enterprise resource planning system and the continuation of the previously announced closure of plants in the U.S. and Germany. The facility consolidation charge before taxes of $2.6 million for the quarter includes $1.1 million of employee severance costs and $1.5 million of facility closure and asset impairment charges.

The loss on the early extinguishment of debt before taxes of $3.3 million for the quarter relates to the write-off of debt issuance costs in connection with DURA's termination of its previous credit agreement. The favorable resolution of an environmental matter before taxes of $8.2 million was the result of a negotiated settlement of our exposure during the quarter for less than originally estimated.

Six-Month Results

For the six-month period ended July 3, 2005, revenue totaled $1.2 billion compared to $1.3 billion for the same period in 2004. Net loss for the six-month period was $1.9 million, or $0.10 per diluted share, compared to net income of $12.5 million, or $0.66 per diluted share, in the prior year. DURA's adjusted loss from continuing operations for the six months ended July 3, 2005, which excludes facility consolidation and other charges, net of $2.8 million, a loss on the early extinguishment of debt, net of $2.1 million, and the favorable resolution of an environmental matter, net of $5.2 million, totaled a loss of $2.1 million, or $0.11 per diluted share, compared to adjusted income from continuing operations of $22.5 million, or $1.18 per diluted share, in the same period last year.

2005 Full-Year Outlook

For the full year, our automotive industry production planning assumptions are 15.6 million units for North America and 20.0 million units for Europe. These volume assumptions are consistent with our prior guidance in total, however, DURA's customer and program mix of the production volumes in North America and foreign exchange is anticipated to be more unfavorable in the second half of the year than previously expected. As a result, we are revising our revenue and EBITDA guidance accordingly. Our revised revenue is expected to be $2.3 to $2.4 billion, versus $2.5 billion last year. Adjusted EBITDA is now anticipated to be between $170 and $180 million. Full-year capital spending is expected to be approximately $70 million, interest expense $100 million and depreciation $82 million. We expect net debt to increase by $20 to $40 million for the year. A reconciliation of adjusted EBITDA to the most directly comparable GAAP measures is set forth below.

Conference Call

A conference call to review the second-quarter results is scheduled for July 28, 2005, at 11 a.m. EDT. Interested participants may listen to the live conference call or replay over the Internet by logging onto the investor relations section of the company's Web site, www.duraauto.com. A recording of this call also will be available until 6 p.m. ET on Thursday, August 4, 2005, by dialing (303) 590-3000, passcode 11034944.

About DURA Automotive Systems, Inc.

DURA Automotive Systems, Inc., is a leading independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive industry. The company is also a leading supplier of similar products to the recreation vehicle (RV) and specialty vehicle industries. DURA sells its automotive products to every North American, Japanese and European original equipment manufacturer (OEM) and many leading Tier 1 automotive suppliers. DURA is headquartered in Rochester Hills, Mich. Information about DURA and its products is available on the Internet at www.duraauto.com.

Use of Non-GAAP Financial Information

In addition to the results reported in accordance with accounting principles generally accepted in the United States ("GAAP") included throughout this news release, the Company has provided information regarding "adjusted income from continuing operations" and "adjusted EBITDA" (non-GAAP financial measures). Adjusted income from continuing operations represents income from continuing operations adjusted for facility consolidation and other charges, net, the favorable resolution of an environmental matter and a loss on early extinguishment of debt, net. Adjusted EBITDA represents income from continuing operations adjusted for facility consolidation and other charges, a loss on early extinguishment of debt, the favorable resolution of an environmental matter, interest, amortization, depreciation and taxes. Management believes that adjusted income from continuing operations and adjusted EBITDA are useful to both management and investors in their analysis of the Company's ability to analyze operational performance. Adjusted income from continuing operations and adjusted EBITDA should not be considered in isolation or as a substitute for net income or other income statement data prepared in accordance with GAAP, or as a measure of profitability or liquidity. Also, adjusted income from continuing operations and adjusted EBITDA, as determined and presented by the Company, may not be comparable to related or similarly titled measures reported by other companies.

Forward-Looking Statements


            DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
     (Amounts in thousands, except per share amounts - unaudited)


                           Three Months Ended     Six Months Ended
                           July 3,   June 27,    July 3,    June 27,
                            2005      2004        2005        2004
                            ----      ----        ----        ----
Revenues                  $623,834   $658,815  $1,243,813  $1,293,378
Cost of sales              545,478    582,132   1,104,876   1,140,030
                          --------- ---------- ----------- -----------
Gross profit                78,356     76,683     138,937     153,348

Selling, general and
 administrative expenses    41,025     39,816      83,198      78,727
Facility consolidation
 and other charges           2,624     11,578       4,290      13,026
Amortization expense           104        115         216         231
                          --------- ---------- ----------- -----------
Operating income            34,603     25,174      51,233      61,364

Interest expense, net       24,907     21,539      49,877      42,788
Loss on early
 extinguishment of debt      3,349          -       3,349           -
                          --------- ---------- ----------- -----------

Income (loss) from
 continuing operations
 before provision for
 income taxes and
 minority interest           6,347      3,635      (1,993)     18,576

Provision (benefit) for
 income taxes                3,391        307        (226)      5,387
                          --------- ---------- ----------- -----------

Income (loss) from
 continuing operations       2,956      3,328      (1,767)     13,189

Gain (loss) from
 discontinued operations,
 net                             3         12        (106)       (681)
                          --------- ---------- ----------- -----------

Net income (loss)           $2,959     $3,340     $(1,873)    $12,508
                          ========= ========== =========== ===========

Basic earnings (loss) per
 share:
Income (loss) from
 continuing operations       $0.16      $0.18      $(0.09)      $0.72
Discontinued operations          -          -       (0.01)      (0.04)
                          --------- ---------- ----------- -----------
Net income (loss)            $0.16      $0.18      $(0.10)      $0.68
                          ========= ========== =========== ===========
Basic shares outstanding    18,704     18,442      18,683      18,413
                          ========= ========== =========== ===========

Diluted earnings (loss)
 per share:
Income (loss) from
 continuing operations       $0.16      $0.18      $(0.09)      $0.70
Discontinued operations          -          -       (0.01)      (0.04)
                          --------- ---------- ----------- -----------
Net income (loss)            $0.16      $0.18      $(0.10)      $0.66
                          ========= ========== =========== ===========
Diluted shares
 outstanding                18,818     18,966      18,683      18,963
                          ========= ========== =========== ===========

Capital expenditures       $13,326    $13,696     $27,604     $29,303
Depreciation               $21,057    $21,177     $41,492     $43,208



            DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
              ADJUSTED INCOME FROM CONTINUING OPERATIONS
     (Amounts in thousands, except per share amounts - unaudited)


                                  Three Months Ended Six Months Ended
                                   July 3,  June 27,  July 3, June 27,
                                    2005      2004     2005     2004
                                    ----      ----     ----     ----
Income (loss) from continuing
 operations                         $2,955   $3,328  $(1,768) $13,189
Facility consolidation and other
 charges, net                        1,768    8,248    2,778    9,328
Loss on early extinguishment of
 debt, net                           2,143        -    2,143        -
Favorable settlement of
 environmental matter, net          (5,243)       -   (5,243)       -
                                  --------- -------- -------- --------
    Adjusted income (loss) from
     continuing operations          $1,623  $11,576  $(2,090) $22,517
                                  ========= ======== ======== ========


Basic earnings (loss) per share:
   Adjusted income (loss) from
    continuing operations            $0.09    $0.63   $(0.11)   $1.22
                                  ========= ======== ======== ========
Basic shares outstanding            18,704   18,442   18,683   18,413
                                  ========= ======== ======== ========

Diluted earnings (loss) per share:
   Adjusted income (loss) from
    continuing operations            $0.09    $0.61   $(0.11)   $1.18
                                  ========= ======== ======== ========
Diluted shares outstanding          18,818   20,254   18,683   20,252
                                  ========= ======== ======== ========



            DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
                       ADJUSTED EBITDA GUIDANCE
      (Amounts in millions, except per share amounts - unaudited)


                                                  Twelve Months Ended
                                                   December 31, 2005
                                                         Range
                                                         -----
                                                     Low       High
                                                     ---       ----
Operating Income                                       $87        $97
Depreciation expense                                    82         82
Facility consolidation and other charges                 9          9
    Favorable settlement of environmental matter        (8)        (8)
                                                  --------- ----------
  Adjusted EBITDA                                     $170       $180



            DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED BALANCE SHEETS
                        (Amounts in thousands)

                                               July 3,    December 31,
                   Assets                        2005         2004
                   ------                        ----         ----

Current assets:
  Cash and cash equivalents                     $101,701     $191,568
  Accounts receivable, net                       345,152      273,956
  Inventories                                    132,805      149,834
  Current portion of derivative instruments            -        7,746
  Other current assets                           103,762       92,016
                                             ------------ ------------
    Total current assets                         683,420      715,120
                                             ------------ ------------

Property, plant and equipment, net               447,848      487,106
Goodwill, net                                    866,486      903,584
Noncurrent portion of derivative instruments       1,422       10,601
Deferred income taxes and other assets, net       98,977      107,510
                                             ------------ ------------
                                              $2,098,153   $2,223,921
                                             ============ ============
  Liabilities and Stockholders' Investment
  ----------------------------------------

Current liabilities:
  Accounts payable                              $259,868     $270,341
  Accrued liabilities                            170,403      187,254
  Current maturities of long-term debt             1,292        2,968
                                             ------------ ------------
    Total current liabilities                    431,563      460,563
                                             ------------ ------------

Long-term debt, net of current maturities        154,832      150,898
Senior notes                                     400,000      400,000
Subordinated notes                               575,366      589,469
Mandatorily redeemable convertible trust
 preferred securities                             55,250       55,250
Senior notes - derivative instrument
 adjustment                                        1,422       18,347
Other noncurrent liabilities                     129,952      141,903

Stockholders' investment:
  Common stock - Class A                             187          186
  Additional paid-in capital                     352,102      351,571
  Treasury stock                                  (2,006)      (2,513)
  Retained deficit                               (95,215)     (93,342)
  Accumulated other comprehensive income          94,700      151,589
                                             ------------ ------------
    Total stockholders' investment               349,768      407,491
                                             ------------ ------------
                                              $2,098,153   $2,223,921
                                             ============ ============