Viasystems Group, Inc. Reports Record Fourth-Quarter 2000 Earnings; Revenue Increased 78% from 1999
ST. LOUIS--Jan. 30, 2001--Viasystems Group, Inc. today announced that the company's cash earnings ("EBG") for the quarter ended December 31, 2000, totaled $0.17 per fully diluted share. Revenue for the quarter was $456 million, an increase of 78% from proforma revenues for the 1999 period.Other highlights of the quarter's results were:
| -- | Revenue for the quarter increased 78% from the same period in 1999 and 12.1% from the quarter ended September 30, 2000 as a result of strong organic growth and the impact of acquisitions; |
| -- | Earnings before interest, taxes, depreciation and amortization ("EBITDA") of $76 million increased 62% and 9.8% over the same period in 1999 and the quarter ended September 30, 2000, respectively; and |
| -- | Revenue from printed circuit board assembly and electromechanical services increased to 49% of total sales for the fourth quarter of 2000 compared to 33% during the fourth quarter of 1999 and 45% during the third quarter of 2000. |
A summary of the quarter's results follows:
Fourth Fourth %
(all figures in thousands, Quarter 2000 Quarter 1999 Chg
except per share amounts) (pro forma)
Net sales $455,612 $256,381 77.7%
Gross margin 106,614 72,936 46.2%
Gross margin % 23.4% 28.4% NA
Adjusted earnings (EBG) 23,893 NA NA
Adjusted earnings
(EBG), per fully
diluted share $0.17 NA NA
Net income, per fully
diluted share $0.09 NA NA
Fully diluted shares 140,769 NA NA
EBITDA 75,963 46,792 62.3%
EBITDA % 16.7% 18.3% NA
Fourth Third %
(all figures in thousands, Quarter 2000 Quarter 2000 Chg
except per share amounts)
Net sales $455,612 $406,504 12.1%
Gross margin 106,614 97,649 9.2%
Gross margin % 23.4% 24.0% NA
Adjusted earnings (EBG) 23,893 20,387 17.2%
Adjusted earnings
(EBG), per fully
diluted share $0.17 $0.15 13.3%
Net income, per fully
diluted share $0.09 $0.06 50.0%
Fully diluted shares 140,769 136,229 3.3%
EBITDA 75,963 69,160 9.8%
EBITDA % 16.7% 17.0% NA
For the fiscal year ended December 31, 2000, Viasystems reported EBG of $0.43 per share on revenue of $1.509 billion and EBITDA of $255.2 million. For fiscal 1999, the company reported revenue of $929.2 million and EBITDA of $180.3 million.
Consistent with financial analysts' models, the preceding discussion on financial results reflects the pro forma results of Viasystems as though the March 29, 2000 transfer of nine European manufacturing facilities had occurred on January 1, 1999, which more appropriately reflects the results of Viasystems as a public company. The pro forma results of operations for the year ended December 31, 2000 also exclude the impact of one-time non-cash charges totaling $104.4 million recorded in the first quarter of 2000. For more detail on these transactions, please refer to the Form S-1 filed with the Securities and Exchange Commission on March 23, 2000 in connection with the company's initial public offering.
"We are very pleased to report another quarter of solid financial performance for Viasystems," said Chairman and CEO James N. Mills. "Not only have we met financial expectations, we also completed an acquisition that rounds out our global, full-service footprint. With the addition of Accutec's North American metal enclosure facility, Viasystems now has full box-build system integration capabilities in all major geographic areas of the world."
This press release contains forward-looking statements as defined by the federal securities laws, and these statements are based upon Viasystems' current expectations and assumptions, which are inherently subject to various risks and uncertainties that could cause actual results to differ from those anticipated, projected, or implied. Certain factors that could cause actual results to differ include fluctuations in operating results and customer orders, a competitive environment, reliance on large customers, risks associated with international operations, ability to protect patents and trade secrets, environmental laws and regulations, relationship with unionized employees, risks associated with acquisitions, substantial indebtedness, control by large stockholders and other factors described in Viasystems' filings with the Securities and Exchange Commission.
Viasystems Group, Inc. is a leading global EMS provider with more than 30,000 employees and 33 manufacturing facilities in nine countries, supplying customers in the telecommunications, networking, automotive and consumer electronics industries. Viasystems is listed on the New York Stock Exchange, trading under the symbol "VG."
VIASYSTEMS GROUP, INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------ --------------------
1999 2000 1999 2000
-------- -------- -------- ----------
Net sales $256,381 $455,612 $929,213 $1,509,322
Operating expenses:
Cost of goods sold 183,445 348,998 673,152 1,145,316
Selling, general
and administrative 26,144 30,651 75,800 108,829
Depreciation 21,824 23,565 73,510 91,041
Amortization 8,577 10,855 24,529 45,118
Write-off of acquired
in-process R&D -- -- 17,600 --
-------- -------- -------- ----------
Operating income $16,391 $41,543 $64,622 $119,018
Other expense:
Interest expense 30,313 23,169 109,804 101,898
Amortization of deferred
financing fees 958 762 6,461 4,272
Other 4,084 1,589 6,191 1,460
-------- -------- -------- ----------
Income (loss) before
income taxes and
cumulative effect
of a change in accounting $(18,964) $16,023 $(57,834) $11,388
Provision (benefit)
for income taxes (14,092) 2,405 (28,355) 1,715
-------- -------- -------- ----------
Income (loss) before
cumulative effect of a
change in accounting (4,872) 13,618 (29,479) 9,673
Cumulative effect of a
change of accounting
- write-off of start-up
costs (net of tax
benefit of $1,780) -- -- 3,580 --
-------- -------- -------- ----------
Net income (loss) $(4,872) $13,618 $(33,059) $9,673
======== ======== ======== ==========
Net income (loss) per share:
Basic $(0.07) $0.09 $(0.52) $0.04
Diluted $(0.07) $0.09 $(0.55) $0.04
Weighted average shares
outstanding:
Basic 78,001 136,993 62,123 121,607
Diluted 84,466 140,769 67,238 125,893
VIASYSTEMS GROUP, INC.
SUPPLEMENTAL PRO FORMA INFORMATION
(In thousands, except per share data)
(unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------ --------------------
1999 2000 1999 2000
-------- -------- -------- ----------
Earnings before interest,
taxes, depreciation
and amortization ("EBITDA") $ 46,792 $ 75,963 $180,261 $ 255,177
Depreciation 21,824 23,565 73,510 91,041
Amortization 8,577 10,855 24,529 45,118
Write-off of acquired
in-process R&D -- -- 17,600 --
Interest expense 30,313 23,169 109,804 101,898
Amortization of deferred
financing fees 958 762 6,461 4,272
Other expense (income) 4,084 1,589 6,191 1,460
Provision (benefit)
for income taxes (14,092) 2,405 (28,355) 1,715
Cumulative effect of a
change in accounting -- -- 3,580 --
-------- -------- -------- ----------
Net income (loss) $ (4,872) $ 13,618 $(33,059) $ 9,673
======== ======== ======== ==========
Amortization, net
of income tax effect 10,780 44,793
Amortization of deferred
financing fees 762 4,272
Paid-in-kind dividend
and accretion
on preferred stock (1,267) (4,828)
-------- ----------
Adjusted earnings ("EBG") $ 23,893 $ 53,910
======== ==========
Income per share:
Basic - EBG $ 0.17 $ 0.43
Diluted - EBG $ 0.17 $ 0.43
Weighted average shares
outstanding:
Basic 136,993 121,607
Diluted 140,769 125,893
VIASYSTEMS GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------- ----------------------
1999 2000 1999 2000
--------- -------- ---------- ----------
Net sales $354,449 $455,612 $1,293,370 $1,604,985
Operating expenses:
Cost of goods sold 260,132 348,998 969,614 1,230,552
Selling, general
and administrative
(including $110,070
and $104,351 of
non-cash charges
in December 1999
and March 2000,
respectively) 147,146 30,651 232,653 225,611
Depreciation and
amortization 55,661 34,420 182,143 144,866
Impairment loss 468,389 -- 468,389 --
Write-off of acquired
in-process R&D -- -- 17,600 --
--------- -------- ---------- ----------
Operating income
(loss) (576,879) 41,543 (577,029) 3,956
Other expense:
Interest expense 31,964 23,169 117,822 105,514
Amortization of deferred
financing fees 1,878 762 6,619 4,296
Other 19,864 1,589 23,594 1,857
--------- -------- ---------- ----------
Income (loss) before
income taxes and
cumulative effect of a
change in accounting
and extraordinary item (630,585) 16,023 (725,064) (107,711)
Provision (benefit) for
income taxes 1,360 2,405 (23,212) (2,923)
--------- -------- ---------- ----------
Net income (loss) before
cumulative effect of
a change in accounting
and extraordinary item (631,945) 13,618 (701,852) (104,788)
Cumulative effect of a
change of accounting
- write-off of start-up
costs (net of income tax
benefit of $6,734) -- -- 18,443 --
Extraordinary item - loss
on early extinguishment
of debt (net of income
tax benefit of $0) -- -- -- 31,196
--------- -------- ---------- ----------
Net income (loss) $(631,945) $13,618 $(720,295) $(135,984)
========= ======== ========== ==========
Net income (loss) per share:
Basic $(7.08) $0.09 $(10.14) $(1.13)
Diluted $(7.49) $0.09 $(10.77) $(1.14)
Weighted average shares
outstanding:
Basic 78,001 136,993 62,123 121,607
Diluted 84,466 140,769 67,238 123,259
VIASYSTEMS GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
December 31, December 31,
1999 2000
----------- -----------
Current assets:
Cash and cash equivalents $22,839 $45,676
Accounts receivable, net 236,455 320,561
Inventories 176,125 255,973
Prepaid and other 51,010 70,922
----------- -----------
Total current asses 486,429 693,132
Property, plant and equipment 482,144 452,621
Intangibles and other assets 340,653 465,531
----------- -----------
Total assets $1,309,226 $1,611,284
=========== ===========
Current liabilities:
Current maturities of long-term
obligations $27,851 $23,882
Accounts payable and accrued
liabilities 321,195 405,896
Income taxes payable 25,163 22,759
----------- -----------
Total current liabilities 374,209 452,537
Long-term obligations 1,334,672 1,000,435
Other long-term liabilities 96,319 22,380
Equity (495,974) 135,932
----------- -----------
Total liabilities and
stockholders' equity $1,309,226 $1,611,284
=========== ===========