J.L. French Automotive Castings, Inc.,
Announces Fourth-Quarter Results
MINNEAPOLIS, March 8 J.L. French Automotive Castings,
Inc., today announced revenues and operating income for the quarter and year
ended December 31, 2000.
For the fourth quarter of 2000, revenues were $134.9 million, an increase
of $11.8 million compared with $123.1 million in the 1999 period. Operating
income was $5.5 million compared to $17.7 million reported last year.
Earnings before interest, taxes, depreciation and amortization (EBITDA) was
$19.6 million for the fourth quarter of 2000 compared to $29.7 million in the
same period last year. Net loss for the fourth quarter of 2000 was
$7.7 million versus income of $1.2 million in the comparable 1999 period.
For the year ended December 31, 2000, revenues increased 58.3 percent to
$557.0 million from $351.8 million in 1999. Operating income was
$49.5 million compared to $53.6 million before the recapitalization expense
reported last year. EBITDA for 2000 was $98.0 million compared to
$90.3 million in 1999. Net loss in 2000 was $9.5 million, compared with a net
loss of $13.7 million in 1999. The loss in 1999 includes a $22.4 million
pre-tax recapitalization expense and an extraordinary loss on early debt
extinguishment of $8.1 million.
The effects of performance issues at the Grandville, Mich., and
Glasgow, Ky., facilities were reduced by the implementation of the company's
corrective action plans which resulted in lower overtime costs, elimination of
premium freight costs and reductions in headcount. The implementation of the
plan will continue throughout the first half of 2001. Fourth-quarter
operations were also adversely impacted by reduced customer production
schedules in December and higher energy costs.
During the fourth quarter, the company's stockholders invested $60 million
in common stock of the company and a holder of a $30 million convertible note
converted the note to common stock. In addition, J.L. French completed an
amendment to its senior credit facility, which provides for deferral of
$18 million in principal payments originally scheduled for 2001 until future
years. The amendment also provides for covenant relief through 2002.
On February 12, 2001, J.L. French announced the appointment of David S.
Hoyte to the position of president and chief executive officer and Charles M.
Waldon to the position of vice chairman. Hoyte, who previously was the
president of the Ride Control Group of Arvin Meritor, will be responsible for
the day to day operations of the company. As vice chairman, Waldon will
oversee the development of new technologies and processes, expansion of
customer relationships, and lead capacity utilization strategic planning.
J.L. French Automotive Castings, Inc., is a leading global designer and
manufacturer of highly engineered aluminum die cast automotive parts including
oil pans, engine front covers and transmission cases. The company has
manufacturing facilities in Sheboygan, Wis.; Grandville and Benton Harbor,
Mich.; Glasgow, Ky.; San Andres de Echevarria, Spain; Saltillo, Mexico; as
well as five plants in the United Kingdom. The company is based in Sheboygan,
Wis. and has its corporate office 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 time frames; (ii) unanticipated difficulties servicing the 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.
J.L. FRENCH AUTOMOTIVE CASTINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands - unaudited)
Three Months Ended Dec. 31, Year Ended Dec. 31,
2000 1999 2000 1999
Revenues $134,882 $123,110 $557,002 $351,829
Cost of sales 120,058 98,050 470,647 267,514
Gross profit 14,824 25,060 86,355 84,315
Selling, general and
administrative expenses 6,026 4,093 25,544 19,577
Recapitalization expense -- 475 -- 22,425
Amortization expense 3,312 2,814 11,289 11,167
Operating income 5,486 17,678 49,522 31,146
Interest expense, net 16,823 12,547 62,538 37,326
Income (loss) before
provision for income
taxes, and extraordinary
item (11,337) 5,131 (13,016) (6,180)
Provision (benefit) for
income taxes (3,620) 3,928 (3,542) (595)
Income (loss) before
extraordinary item (7,717) 1,203 (9,474) (5,585)
Extraordinary item - loss
on early extinguishment
of debt, net -- -- -- 8,112
Net income (loss) $(7,717) $1,203 $(9,474) $(13,697)
J.L. FRENCH AUTOMOTIVE CASTINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
December 31, December 31,
Assets 2000 1999
Current assets:
Cash and cash equivalents $6,053 $4,900
Accounts receivable, net 78,314 82,449
Inventories 40,546 36,979
Other current assets 20,076 19,333
Total current assets 144,989 143,661
Property, plant and equipment, net 283,346 221,167
Intangible and other assets, net 348,209 330,406
$776,544 $695,234
Liabilities and Stockholders' Investment
Current liabilities:
Current maturities of long-term debt $18,185 $28,400
Accounts payable 94,728 56,461
Accrued liabilities 48,799 43,434
Total current liabilities 161,712 128,295
Long-term debt, net of current maturities 362,706 373,044
Subordinated notes 175,000 175,000
Convertible subordinated notes -- 30,000
Other noncurrent liabilities 24,795 30,488
Redeemable common stock 60,000 --
Stockholders' investment (deficit):
Common stock -- --
Additional paid-in capital 90,877 42,589
Retained earnings (deficit) (92,886) (82,824)
Accumulated other comprehensive loss -
cumulative translation adjustment (5,660) (1,358)
Total stockholders' investment (deficit) (7,669) (41,593)
$776,544 $695,234
