Aftermarket Technology Corp. Reports 2000 Year
End Results
- Record EPS for Company Realized
- 2000 Yields Improved Revenue, Margins and Balance Sheet
WESTMONT, Ill., Feb. 22 Aftermarket Technology Corp.
today reported financial results for the year ended
December 31, 2000.
For the year ended December 31, 2000, revenue from continuing operations
increased by $15.4 million to $343.4 million from $328.0 million for 1999.
Gross profit from continuing operations, as a percentage of sales, increased
to 35.1% from 34.1%. Excluding special charges of $4.0 million recorded
during the year ended December 31, 1999, income from continuing operations
increased 11.9% to $26.4 million for the year ended December 31, 2000 as
compared to $23.6 million for the prior year. Income from continuing
operations reached an all-time-high of $1.25 per diluted share for the year
ended December 31, 2000 versus $1.11 per diluted share for the year ended
December 31, 1999, excluding special charges.
Total revenue from continuing operations was $92.6 million in the fourth
quarter of 2000 versus $86.2 million in the prior year's fourth quarter.
Income from continuing operations was $7.0 million versus $9.2 million, before
special charges, in the prior year's fourth quarter. As a result, on a per
share basis, income from continuing operations was $0.33 per diluted share for
the three months ended December 31, 2000 as compared to $0.43 per diluted
share before special charges for the three months ended December 31, 1999. Key
factors in the quarter over quarter change in EPS included improved Logistics
revenues offset by weaker demand in our Drivetrain Remanufacturing segment and
the favorable resolution of certain non-recurring events recorded in the
fourth quarter of 1999.
Mike DuBose, Chairman, President and CEO said, "We have successfully
completed year two of the ATC transition. During the year, our Drivetrain
Remanufacturing business faced some difficult challenges due to unusually mild
weather, high fuel prices during the summer peak driving months, unusual
inventory and pricing policy changes by our OE customers and the general
turmoil facing our OE customers due to weakening demand for new automobiles.
However, this segment ended the year with market demand for our remanufactured
products beginning to increase and with our targeted installed base reaching
an all-time-high. The installed base growth will help protect us from the
cyclical nature of the automotive segment and will provide a sound foundation
for growth into the future."
"During 2000, we had numerous business wins, including new contracts
covering remanufactured transmissions and other drivetrain components,
remanufactured engines for the European market, value-added third-party
fulfillment and reverse logistics services."
DuBose continued, "With the proceeds from the October sale of our
Distribution Group, we have paid down debt by approximately $60 million and
are realizing a tax benefit of approximately $44 million. The sale of this
under-performing asset allowed us to focus on our core strengths and to
reposition the Company into two reportable segments-Drivetrain Remanufacturing
and Logistics. We look with particular pride to our Logistics segment, which
has experienced a 36% compounded annual growth rate over the past two years."
DuBose concluded, "As we enter 2001, we are committed to four initiatives
that will drive our continued transformation: 1) implementation of lean and
continuous improvement principles across the organization; 2) focused effort
on our customer delight initiative designed to further improve our customer
focused performance and strengthen our customer relationships; 3) continued
strategic growth of our logistics businesses; and 4) the protection and
continued growth of our drivetrain remanufacturing business. We are excited
by the prospects that 2001 holds for our Company and our shareholders and hope
to build on the solid achievements of the past two years."
In related news, the Company reaffirmed its estimate for the first quarter
and full year 2001 earnings per share of $0.27 and $1.30, respectively.
ATC is headquartered in Westmont, Illinois. The Company's continuing
operations include drivetrain remanufacturing, third-party logistics and
material recovery services. ATC also remanufactures electronic control
modules, instrument and display clusters and radios.
The preceding paragraphs contain statements that are not related to
historical results and are "forward-looking" statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Forward-looking
statements include those that are predictive or express expectations, that
depend upon or refer to future events or conditions, or that concern future
financial performance (including future revenues, earnings or growth rates),
ongoing business strategies or prospects, or possible future Company actions.
Forward-looking statements involve risks and uncertainties because such
statements are based on current expectations, projections and assumptions
regarding future events that may not prove to be accurate. Actual results may
differ materially from those projected or implied in the forward-looking
statements. The factors that could cause actual results to differ are
discussed in the Company's Annual Report on Form 10-K for the year ended
December 31, 1999 and other filings made by the Company with the Securities
and Exchange Commission.
AFTERMARKET TECHNOLOGY CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
For the three For the twelve
months ended months ended
December 31, December 31,
2000 1999 2000 1999
(Unaudited)
Net sales $92,612 $86,155 $343,357 $328,024
Cost of sales 60,274 53,601 222,939 216,217
Special charges - 113 113
Gross profit 32,338 32,441 120,418 111,694
Selling, general and
administrative expense 13,990 11,035 48,971 47,026
Amortization of intangible assets 1,256 1,321 5,025 5,065
Special charges - 1,730 - 3,864
Income from operations 17,092 18,355 66,422 55,739
Other income (expense), net 195 202 173 323
Interest expense 6,127 5,932 23,900 22,774
Income from continuing operations,
before income taxes 11,160 12,625 42,695 33,288
Income tax expense 4,202 4,636 16,249 12,224
Income from continuing operations 6,958 7,989 26,446 21,064
Loss from discontinued operations,
net of income taxes - (8,246) (123,329) (14,257)
Net income (loss) $6,958 $(257) $(96,883) $6,807
Per common share - basic:
Income from continuing operations $0.34 $0.39 $1.28 $1.04
Loss from discontinued operations - (0.40) (5.97) (0.71)
Net income (loss) $0.34 $(0.01) $(4.69) $0.33
Weighted average number of common
shares outstanding 20,751 20,418 20,663 20,325
Per common share - diluted:
Income from continuing operations $0.33 $0.38 $1.25 $1.00
Loss from discontinued operations - (0.39) (5.83) (0.68)
Net income (loss) $0.33 $(0.01) $(4.58) $0.32
Weighted average number of common
and common equivalent shares
outstanding 20,925 21,228 21,163 21,164
