Accuride Corporation Reports Results for 2000
EVANSVILLE, Ind.--Feb. 27, 2001--Today, Accuride Corporation announced sales of $91.1 million for the fourth quarter ended December 31, 2000.This compares to sales of $128.8 million for the fourth quarter of 1999, representing a decrease of 29.3%. This decline was primarily driven by a continued industry downturn in commercial vehicle builds, with class 8 builds down more than 50% from the prior year's quarter. For the twelve months ended December 31, 2000, net sales decreased $30.1 million or 5.9% to $475.8 million compared to net sales of $505.9 million for the same twelve-month period in 1999.
On a pro-forma basis reflecting the AKW acquisition effective April 1, 1999, sales for the twelve-month period ended December 31, 2000, decreased by $54.0 million or 10.2% to $475.8 million from $529.8 million, as compared to the prior twelve-month period in 1999.
Adjusted EBITDA decreased to $8.4 million for the fourth quarter ended December 31, 2000. This is down from $24.8 million for the fourth quarter of 1999. Adjusted EBITDA for the quarter ended December 31, 2000 was impacted by $2.6 million from loss of overhead absorption due to a planned inventory reduction of $10.4 million. For the twelve months of 2000, adjusted EBITDA decreased by $22.4 million, or 20.1%, to $89.3 million. This compares to $111.7 million for the twelve months ended December 31, 1999.
On a pro-forma basis reflecting the AKW acquisition, adjusted EBITDA decreased from $114.7 million for the twelve months ended December 31, 1999, to $89.3 million for the twelve months ended December 31, 2000, a decrease of $25.4 million, or 22.1%.
EBITDA for the three months ended December 31, 2000, was adjusted by $3.2 million, consisting of $1.0 million for employee severance, $0.4 million for merger and acquisition advisory fees, and $1.8 million for Accuride de Mexico integration and restructuring charges.
The Company's liquidity position remained strong at December 31, 2000, with $38.5 million in cash.
"Accuride's fourth quarter was adversely affected by the continued industry-wide downturn exacerbated by unplanned customer shutdowns through the quarter," said Bill Greubel, Accuride's President and CEO. "We continue to focus on managing cash and controllable costs as well as taking the restructuring actions necessary to navigate through the trough and to position our company for improved earnings going forward. This includes a 10% salaried workforce reduction, a heightened focus on continuous improvement, and a significant reduction in planned capital spending. We are pleased to have ended the year with more than $38 million in cash as we head into 2001."
ACCURIDE CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(DOLLARS IN THOUSANDS)
(UNAUDITED)
Three Months Ended December 31,
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2000 1999
---- ----
NET SALES $ 91,077 $ 128,847
COST OF GOODS SOLD 85,016 101,232
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GROSS PROFIT $ 6,061 $ 27,615
OPERATING:
Selling, General
& Administrative 8,099 10,268
--------- ---------
INCOME FROM OPERATIONS (2,038) 17,347
OTHER INCOME (EXPENSE):
Interest Income 376 266
Interest Expense (9,069) (10,545)
Equity in Earnings
of Affiliates 98 (42)
Other Income (Expense), Net 260 524
--------- ---------
INCOME (LOSS) BEFORE INCOME
TAXES AND MINORITY INTEREST (10,373) 7,550
INCOME TAX PROVISION (2,213) 3,170
--------- ---------
INCOME (LOSS) BEFORE
EXTRAORDINARY GAIN (8,160) 4,380
EXTRAORDINARY GAIN, NET OF TAX 1,595 -
NET INCOME (LOSS) $ (6,565) $ 4,380
--------- ---------
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Twelve Months Ended December 31,
--------------------------------
2000 1999
---- ----
NET SALES $ 475,804 $ 505,854
COST OF GOODS SOLD 393,232 392,219
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GROSS PROFIT $ 82,572 $ 113,635
OPERATING:
Selling, General
& Administrative 32,849 32,050
--------- ---------
INCOME FROM OPERATIONS 49,723 81,585
OTHER INCOME (EXPENSE):
Interest Income 1,824 670
Interest Expense (40,566) (39,658)
Equity in Earnings
of Affiliates 455 2,316
Other Income (Expense), Net (6,157) (1,081)
--------- ---------
INCOME BEFORE INCOME TAXES
AND MINORITY INTEREST 5,279 43,832
INCOME TAX PROVISION 4,361 18,409
MINORITY INTEREST -- 91
--------- ---------
INCOME BEFORE EXTRAORDINARY GAIN 918 25,332
EXTRAORDINARY GAIN, NET OF TAX 1,595 -
NET INCOME $ 2,513 $ 25,332
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ACCURIDE CORPORATION
CONSOLIDATED ADJUSTED EBITDA
(DOLLARS IN THOUSANDS)
(UNAUDITED)
Three Months Ended December 31,
-------------------------------
2000 1999
---- ----
INCOME (LOSS) FROM OPERATIONS $ (2,038) $ 17,347
Depreciation and Amortization 7,208 7,511
Equity in Earnings (Losses)
of Affiliates 98 (42)
--------- ---------
EBITDA $ 5,268 $ 24,816
--------- ---------
--------- ---------
ADJUSTMENTS
Employee Severance 963 --
Integration & Restructuring 1,769 --
M&A Advisory Costs 447 --
--------- ---------
ADJUSTED EBITDA $ 8,447 $ 24,816
--------- ---------
--------- ---------
Twelve Months Ended December 31,
--------------------------------
2000 1999
---- ----
INCOME FROM OPERATIONS $ 49,723 $ 81,585
Depreciation and Amortization 29,988 27,839
Equity in Earnings of Affiliates 455 2,316
--------- ---------
EBITDA $ 80,166 $ 111,740
--------- ---------
--------- ---------
ADJUSTMENTS
Employee Severance 963 --
Integration & Restructuring 5,069 --
M&A Advisory Costs 3,147 --
--------- ---------
ADJUSTED EBITDA $ 89,345 $ 111,740
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Adjusted EBITDA is not intended to represent cash flows as defined by GAAP. It is included in our report as it is a basis upon which the Company assesses its financial performance and certain covenants in the Company's borrowing arrangements are tied to similar measures. Depreciation and amortization excludes amortization of deferred financing costs which are classified as interest expense and therefore are not components of income from operations.