Noble International, Ltd. Announces Full Year Earnings of
$1.49 Per Share
DETROIT, Feb. 7 Noble International, Ltd.
Noble International, Ltd. (the "Company") today announced full year 2000
earnings of $10.8 million or $1.49 per share. 2000 full year earnings
includes the first quarter sale of the Company's plastics division and a
fourth quarter restructuring charge. Results from continuing operations for
the quarter and year ended December 31, 2000, including a pretax restructuring
charge of $3.9 million, was a loss of $0.47 per share for the quarter and
earnings of $0.16 per share for the full year. Before the restructuring
charge, the loss from continuing operations for the quarter was $0.09 per
share and earnings of $0.52 for the year.
Restructuring Charge
The pretax restructuring charge of $3.9 million, or $0.38 per share after
tax, is the result of the Company's decision to consolidate several of its
operating facilities within its metals group. To date, the Company has
consolidated its Cincinnati and Sharonville, Ohio facilities into other Noble
Metal Processing - Midwest facilities. The Company also plans to relocate its
Michigan based Detroit and six Clinton Township facilities into a single
facility located in Warren, Michigan. It is anticipated that the Michigan
relocation will be substantially complete by year-end. The restructuring
charge consists of the anticipated costs to be incurred as a result of this
decision; including continued lease obligations, taxes, expected losses and
carrying costs of exited facilities and the write-off of leasehold
improvements. The Company has retained an outside real estate firm to affect
the sale of the eight exited facilities as well as the exploration of a sale
and leaseback arrangement of the Company's facility in Indianapolis, Indiana
and its new facility in Shelbyville, Kentucky.
Commenting on the consolidation of facilities, Christopher Morin, Noble's
Chief Operating Officer stated, "The consolidation of facilities will allow
Noble to create a more efficient production environment, eliminate production
constraints due to space that exist in the Company's current facilities and
reduce the common costs associated with operating multiple operations. The
Company expects to realize these operating gains in 2002."
Fourth Quarter
Revenues for the quarter ended December 31, 2000 increased 57.5% to $35.1
million from $22.3 million for the same period last year. Revenue in the
Company's metals group was lower than the prior year due to the extended
shutdowns during the quarter by OEMs, lower production volumes and the delay
of new product launches. This decline was more than offset by the revenue
growth in the Company's logistics group. Results of continuing operations
were a loss of $0.68 million or $0.09 per share for the quarter before the
restructuring charge compared to earnings of $1.9 million or $0.21 per share
in 1999. The loss in the quarter was primarily the result of lower volumes
and shutdowns in the metals group and higher than expected costs in the
logistics group related to the integration of these businesses.
Full Year 2000
Revenue for the full year ended December 31, 2000 was $109.8 million
compared to $85.3 in 1999, an increase of 28.8%. The increased revenue was
primarily the result of the acquisition of the logistics group during the year
as well as increased volumes in the Company's metal and distribution groups.
Net earnings from continuing operations, before the restructuring charge was
$3.76 million or $0.52 per share compared to $7.2 million or $0.92 per share
in 1999. The net earnings decline in 2000 was primarily the result of the
impact of product mix and OEM plant shutdowns within the Company's metals
group and higher than expected costs in the Company's logistics group related
to the integration of these businesses.
"Though somewhat disappointed with the financial results of the quarter,
overall, we are pleased with the Company's performance in 2000," said David V.
Harper, Noble's Chief Financial Officer. "The Company had significant
accomplishments in 2000: the successful sale of its plastics group, the
diversification of the Company through its acquisition of its logistics group
and the implementation of aggressive cost cutting initiatives in order to
mitigate volume reductions within the Company's metals group. We believe
these activities will result in higher income in 2001."
Other Developments
The Company also announced today it is negotiating to purchase a 49%
interest in a Detroit based minority owned and operated slitting business. In
addition, the Company announced today it is also negotiating the sale of the
Company's Indianapolis and North Vernon operations, as well as its Clinton
Township forming operation, to this joint venture. This sale will expand the
ventures capabilities into blanking and stamping and provide a platform for
future growth.
2001 Earnings Expectations
The Company expects segment earnings per share, after the allocation of
corporate expenses, from continuing operations for 2001 as follows:
Q1 2001 Q2 2001 Q3 2001 Q4 2001 Total
Automotive Group $ 0.14 $ 0.26 $ 0.17 $ 0.12 $ 0.69
Non-Automotive Group $ (0.03) $ 0.03 $ 0.12 $ 0.19 $ 0.31
Total $ 0.11 $ 0.29 $ 0.29 $ 0.31 $ 1.00
In regard to the Company's 2001 expectations, Robert J. Skandalaris,
Noble's Chairman and Chief Executive Officer, stated, "We are very optimistic
regarding the Company's performance in 2001. We have taken aggressive steps
to limit the effect of the automotive slowdown and price concessions demanded
by the OEMs on earnings through significant cost reductions, facility
consolidations and business diversification. This has been accomplished
without negatively impacting the high quality standards the Company is known
for within the automotive community." Mr. Skandalaris continued, "The non-
automotive group is expected to make a contribution to earnings as the growth
and integration of these businesses continues. In 2001, we expect the non-
automotive group to make-up almost one-third of our earnings and going
forward, we expect this portion to increase."
Noble International, Ltd. is a leading supplier of automotive parts,
component assemblies and value-added services to the automotive industry and a
leading supplier of dedicated regional logistic services. As an automotive
supplier, Noble provides design, engineering, manufacturing, complete program
management and other services to the automotive market. Noble delivers
integrated component solutions, technological leadership and product
innovation to original equipment manufacturers (OEMs) and Tier I automotive
parts suppliers thereby helping its customers increase their productivity
while controlling costs.
Certain statements in this news release may be "forward-looking
statements" within the meaning of Section 27A of the Securities and Exchange
Act of 1933. Statements regarding future prospects and developments are based
upon current expectations and involve certain risks and uncertainties that
could cause actual results and developments to differ materially from the
forward-looking statements.
NOBLE INTERNATIONAL, LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS DATA
(In Thousands, except for per share amounts)
Three Months Ended Twelve Months Ended
December 31 December 31
2000 1999 2000 1999
Net Sales $35,126 $22,304 $109,781 $85,266
Cost of goods sold 28,214 14,938 81,676 56,438
Gross Profit 6,912 7,366 28,105 28,828
Selling, general and
administrative expenses 10,605 3,990 23,004 15,760
Operating income (3,693) 3,376 5,101 13,068
Interest income 2 - 5 4
Interest expense (1,238) (453) (2,929) (1,819)
Gain(Loss) on disposal of
assets 224 - 437 -
Sundry, net (125) 106 (202) 276
(1,137) (347) (2,689) (1,539)
Earnings (Loss) from
continuing operations before
income taxes and
extraordinary item (4,830) 3,029 2,412 11,529
Income tax expense(benefit) (1,566) 1,110 1,196 4,235
Earnings (Loss) from
continuing operations before
extraordinary item (3,264) 1,919 1,216 7,294
Preferred stock dividends 10 14 49 61
Earnings (Loss) from
continuing operations on
common shares
before extraordinary item (3,274) 1,905 1,167 7,233
Earnings (loss) from
discontinued operations - (1,508) (115) (472)
Gain on sale of discontinued
operations 2 - 10,044 -
Earnings (loss) before
extraordinary item $(3,272) $397 $11,096 $6,761
Extraordinary item - (loss)
from extinguishment of debt - - (304) -
Earnings (loss) on common
shares $(3,272) $397 $10,792 $6,761
Basic earnings (loss) per
common share:
Earnings (Loss) per common
from continuing operations
before extraordinary item $(0.48) $0.26 $0.16 $1.01
Earnings (Loss) per common
share - discontinued
operations $- $(0.21) $1.40 $(0.07)
Extraordinary item - (loss)
from extinguishment of debt $- $- $(0.04) $-
Earnings (Loss) per common
share $(0.48) $0.05 $1.52 $0.94
Dividends declared $0.075 $- $0.225 $-
Earnings (Loss) per common
share - assuming dilution:
Earnings (Loss) per common
from continuing operations
before extraordinary item $(3,274) $1,905 $1,167 $7,233
Proforma reduction in
interest on convertible
debentures - - - 645
Proforma earnings (loss) from
continuing operations before
extraordinary item (3,274) 1,905 1,167 7,878
Earnings (loss) from
discontinued operations - (1,508) (115) (472)
Gain on sale of discontinued
operations 2 - 10,044 -
Proforma earnings (loss)
before extraordinary item (3,272) 397 11,096 7,406
Extraordinary item - (loss)
from extinguishment of debt - - (304) -
Proforma earnings (loss) on
common shares assuming
dilution $(3,272) $397 $10,792 $7,406
Earnings (Loss) per common
share - assuming dilution:
Earnings (Loss) per common
from continuing operations
before extraordinary item $(0.47) $0.21 $0.16 $0.92
Earnings (Loss) per common
share - discontinued
operations $- $(0.17) $1.38 $(0.05)
Extraordinary item - (loss)
from extinguishment of debt $- $- $(0.04) $-
Earnings (Loss) per common
share $(0.47) $0.04 $1.49 $0.87
Basic weighted average common
shares outstanding 6,865,199 7,228,313 7,099,202 7,192,328
Diluted weighted average
common shares and equivalents 6,900,541 9,074,759 7,218,868 8,530,981
EBITDA $(1,361) $3,813 $28,136 $19,033
NOBLE INTERNATIONAL, LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET DATA
(In Thousands)
Dec 31 Dec 31
2000 1999
Total assets $145,452 $174,805
Working capital (deficiency) 9,297 71,979
Total Debt 73,774 117,588
Shareholders' equity 43,316 39,853
