Dura Automotive Reports Fourth-Quarter and Full-Year
Results
ROCHESTER HILLS, Mich., Feb. 7 Dura Automotive Systems, Inc. , today reported financial
results for the fourth quarter and the year ended December 31, 2000. Results
for the quarter were in line with the company's January 22nd press release and
reflect the additional costs associated with the realignment and streamlining
of the company's operations, the continued weakness in the recreational
vehicle market, the softening of the North American automotive market and the
continuation of depressed European currencies versus the U.S. dollar.
Fourth-quarter revenues were $655.5 million, a decrease of $14.1 million
compared to the fourth quarter of 1999. Fourth-quarter operating income was
$36.8 million, down $10.1 million compared to the fourth quarter of 1999. Net
income was $3.5 million, or $0.20 per diluted share outstanding, versus
$10.8 million, or $0.60 per diluted share, in the comparable 1999 period.
Excluding the impact of restructuring activities, operating income was
$36.2 million, or $0.18 per diluted share, in 2000 compared to $63.2 million,
or $1.10 per diluted share, in 1999.
For the full year, revenues were $2,633.1 million, an increase of
$432.7 million compared to 1999. Excluding product recall and restructuring
charges, 2000 operating income rose $11.4 million to $203.5 million from
$192.1 million reported in 1999. Net income excluding the product recall and
restructuring charges decreased $8.2 million to $51.0 million, or $2.84 per
share, compared with $59.2 million, or $3.47 per share in 1999.
Karl Storrie, president and chief executive officer of Dura Automotive,
stated, "We had some difficult challenges during the year and the fourth
quarter in particular. Additionally, in the fourth quarter we began to see a
significant downturn in the North American automotive industry. This
softening is continuing to impact us in 2001 and we have made structural
changes to reduce our cost base helping to mitigate the impact of the volume
downturns. We will continue to monitor the market conditions and make further
structural adjustments as needed."
Dura Automotive Systems, Inc., is the world's largest independent designer
and manufacturer of cockpit sub-systems and a leading global supplier of door
modules, seat mechanisms and structures, glass systems and engineered
assemblies for the global automotive industry. The company is also a leading
supplier of similar products to the North American recreational vehicle and
mass transit market. The company's products include door modules, parking
brake systems, automotive cables, transmission shifter systems, encapsulated
and sliding windows, window regulators, hinges, latches, seating systems,
engine control products, underbody tire carriers, jacks, brake, clutch and
accelerator pedals and other mechanical assemblies. The company's products
are sold to every North American, European and Japanese original equipment
manufacturers, including Ford, General Motors, DaimlerChrysler, Volkswagen,
BMW, Toyota, Honda, Nissan, PSA (Peugeot and Citroen) and Renault. Dura's
operating headquarters is in Rochester Hills, Mich., and its corporate office
is in Minneapolis, Minn.
This press release contains forward-looking statements that are subject to
risks and uncertainties. These statements often include words such as
"believe," "expect," "anticipate," "intend," "plan," "estimate," or similar
expressions. These statements are based on certain assumptions that the
company has made in light of its experience in the industry as well as its
perspective of historical trends, current conditions, expected future
developments and other factors it believes are appropriate in the
circumstances. Actual results may differ materially from the anticipated
results because of certain risks and uncertainties, including but not limited
to (i) expected synergies, economies of scale and cost savings from the
company's acquisitions not being fully realized or realized within the
expected times frames; (ii) unanticipated difficulties servicing the
substantially higher level of indebtedness at the company; (iii) costs or
operational difficulties related to integrating the operations of the acquired
entities with those of the company being greater than expected; (iv) labor
disputes involving the company or its significant customers; (v) risks
associated with conducting business in foreign countries; and (vi) general
economic or business conditions affecting the automotive industry, either
nationally or regionally, being less favorable than expected.
DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
2000 1999 2000 1999
Revenues $ 655,544 $ 669,631 $ 2,633,084 $ 2,200,385
Cost of sales 576,177 562,339 2,236,544 1,854,705
Gross profit 79,367 107,292 396,540 345,680
Selling, general and
administrative
expenses 36,553 37,759 165,524 130,079
Facility consolidation,
product recall, and
other charges (639) 16,246 15,361 16,246
Amortization expense 6,630 6,325 27,515 23,546
Operating income 36,823 46,962 188,140 175,809
Interest expense, net 29,880 26,124 112,433 81,633
Income before provision
for income taxes,
equity in losses of
affiliates and minority
interest 6,943 20,838 75,707 94,176
Provision for income
taxes 2,790 8,389 30,571 37,984
Minority interest and
equity in losses of
affiliates, net -- 1,070 914 3,978
Minority interest -
dividends on trust
preferred securities,
net 611 611 2,445 2,445
Income before
extraordinary item and
accounting change 3,542 10,768 41,777 49,769
Extraordinary item -
loss on early
extinguishment of debt,
net -- -- -- (5,402)
Cumulative effect of
change in accounting,
net -- -- -- (3,147)
Net income $3,542 $10,768 $41,777 $41,220
Basic earnings per
common share:
Income before
extraordinary item and
accounting change $0.20 $0.62 $2.39 $3.06
Extraordinary item -- -- -- (0.33)
Cumulative effect of
change in accounting -- -- -- (0.20)
Net income $0.20 $0.62 $2.39 $2.53
Basic shares
outstanding 17,524 17,421 17,468 16,263
Diluted earnings per
common share:
Income before
extraordinary item and
Accounting change $0.20 $0.60 $2.35 $2.94
Extraordinary item -- -- -- (0.30)
Cumulative effect of
change in accounting -- -- -- (0.18)
Net income $0.20 $0.60 $2.35 $2.46
Diluted shares
outstanding 17,536 18,920 18,847 17,767
DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
December 31, December 31,
Assets 2000 1999
Current assets:
Cash and cash equivalents $30,438 $23,697
Accounts receivable, net 367,505 478,542
Inventories 148,919 136,562
Other current assets 170,083 154,704
Total current assets 716,945 793,505
Property, plant and equipment, net 533,912 500,894
Goodwill, net 1,028,113 1,067,937
Deferred income taxes and other assets, net 78,077 82,531
$2,357,047 $2,444,867
Liabilities and Stockholders' Investment
Current liabilities:
Accounts payable $258,895 $281,413
Accrued liabilities 225,032 296,431
Current maturities of long-term debt 64,013 52,712
Total current liabilities 547,940 630,556
Long-term debt, net of current maturities 766,961 776,750
Subordinated notes 394,240 401,560
Other noncurrent liabilities 139,262 149,755
Mandatorily redeemable convertible trust
preferred securities 55,250 55,250
Stockholders' investment:
Common stock - Class A 143 141
Common stock - Class B 33 33
Additional paid-in capital 341,472 339,041
Treasury stock (1,505) --
Retained earnings 150,049 108,272
Accumulated other comprehensive loss (36,798) (16,491)
Total stockholders' investment 453,394 430,996
$2,357,047 $2,444,867
