MSX International Sales Increase 36% in 2000
AUBURN HILLS, Mich., Feb. 27 MSX International's sales for
the year ended December 31, 2000 increased 36% to $1.04 billion from $760
million in fiscal 1999. The increase included growth in all service lines.
Internal growth was complemented by incremental sales of approximately $198
million from companies acquired in fiscal year 1999 and 2000. Sales to non-
automotive customers in fiscal 2000 increased to about 21% of total sales, in
contrast to about 11% during fiscal 1999.
Operating income for 2000 was $57.1 million compared to operating income
of $38.3 million, a 49% increase. Existing businesses contributed $8.8
million of the increase. Net income was $14.9 million, representing a 46%
increase from $10.2 million in fiscal 1999. Operating and net income
increased due to the increased sales generated by existing businesses and from
the impact of acquisitions. Improvements in operating income were partially
offset by an increase in the effective tax rate and increased borrowing costs.
Thomas Stallkamp, vice chairman and chief executive officer, remarked, "We
are pleased to report another record year. As the technology sector evolves,
MSX International's global resources and customer base provide a foundation
for continuing growth. Although our larger US automotive customers have
recently announced some cutbacks, our balanced service offering and increased
sales to non-automotive customers moderate the impact of these actions on MSX
International's growth."
MSX INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF INCOME
for the fiscal quarters and fiscal years ended January 2, 2000
and December 31, 2000
Fiscal Quarter Ended Fiscal Year Ended
December 31, January 2, December 31, January 2,
2000 2000 2000 2000
(in thousands)
Net sales $261,014 $189,900 $1,035,223 $759,842
Cost of sales 225,274 160,614 889,286 653,274
Gross profit 35,740 29,286 145,937 106,568
Selling, general
and administrative
expenses 21,301 19,572 83,238 65,082
Amortization of
goodwill and
other intangibles 1,520 1,005 5,583 3,156
Operating income 12,919 8,709 57,116 38,330
Interest expense,
net 7,843 5,792 30,119 21,141
Income before
income taxes,
minority interests,
and equity in
net losses
of affiliates 5,076 2,917 26,997 17,189
Income tax
provision 2,127 1,317 11,340 6,995
Less minority
interests and
equity in net
losses of
affiliates, net
of taxes 94 - 766 -
Net income $2,855 $1,600 $14,891 $10,194