Noble International, Ltd. Reports First
Quarter Results
DETROIT, April 26 Noble International, Ltd. (the
"Company") today announced earnings from core businesses of
$1.2 million, or $0.18 per share, before the impact of results and the tax
effect of the sale of non-core businesses during the quarter ending March 31,
2001. The Company exceeded its earnings goal for its core businesses by 73%
or $0.08 per share. The results of non-core business operations negatively
impacted earnings by $0.34 million or $0.05 per share and a one-time tax
charge related to the sale of these businesses resulted in increased tax
expense of $1.1 million or $0.16 per share. As a result, the Company incurred
a reported loss of $0.2 million or $0.3 per share for the quarter ending March
31, 2001.
Noble International, Ltd.
Quarter Ending March 31, 2001
($000)
Earnings Per Share
Core businesses results $1,231 $0.18
Non-core businesses results prior to sale (342) (0.05)
Tax impact of sale of non-core businesses (1,085) (0.16)
Reported (loss) $(196) (0.03)
Core Businesses
The Company's core businesses consist of metal processing (laser blank
welding), logistics and distribution. Revenue increased 98.2% for the quarter
ending March 31, 2001 as compared to the same period in 2000. The increase
was due primarily to the acquisition of the Company's logistics group during
the third quarter of 2000. Revenue in the Company's metal processing group
declined 16.4% in the quarter versus the first quarter of 2000 due to the
general slowdown in production by original equipment manufacturers ("OEM's")
during January and February. Revenue in the Company's distribution group
increased 10.1% as compared to the first quarter of 2000 due to the
acquisition of Pro Motorcar Products, Inc. in the fourth quarter of 2000.
Earnings from core businesses declined for the quarter ended March 31,
2001 as compared to the same quarter in 2000. The decline was due mainly to
lower volumes and extended shutdowns by the OEMs which negatively impacted the
Company's metals group. In addition, the Company's logistics group has
experienced pricing pressures and continued integration costs that unfavorably
impacted the group's earnings.
Non-Core Businesses
The Company's non-core businesses consisted of Noble Metal Forming, Inc.
and Noble Metal Processing-Midwest. Both of these Company's were sold to
S.E.T. Steel, Inc. ("SET") in February 2001. The results of operations for
2001 prior to the sale included a loss of $0.34 million. In connection with
the sale to SET, the Company incurred a one-time tax expense of $1.1 million
due to the difference between book and tax values of the businesses sold.
Commenting on the quarter's results, David V. Harper, the Company's Chief
Financial Officer said "Given the downturn in the automotive segment during
the first quarter, we are very pleased with the results of our metal
processing group. In addition, our logistics group continues to improve as
our integration process continues. We believe this group will be profitable
by year-end. We are optimistic regarding the expected performance of the
Company during the remainder of 2001."
2001 Full Year Expectations
The Company maintains it expectation of achieving earnings of $1.00 per
share in 2001.
Conference Calls
The Company has decided to discontinue its practice of holding quarterly
conference calls. The Company believes its press releases better reach its
investor base and has expanded the information contained in its press
releases. The Company will however, hold a conference call for its year end
earnings release.
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 Act of 1933,
as amended and Section 21E of the Securities Exchange Act of 1934, as amended.
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, including those detailed in the company's filings with the
Securities and Exchange Commission.
NOBLE INTERNATIONAL, LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS DATA
(In Thousands, except for per share amounts)
Three Months Ended
March 31
2001 2000
Net Sales $27,523 $25,064
Cost of goods sold 20,488 17,013
Gross Profit 7,035 8,051
Selling, general and
administrative expenses 5,414 3,870
Operating income 1,621 4,181
Income from unconsolidated entity 50 -
Interest income 514 3
Interest expense (1,205) (515)
Sundry, net 515 10
(176) (502)
Earnings from continuing operations
before income taxes and
extraordinary item 1,495 3,679
Income tax expense 1,672 1,371
Earnings (Loss) from continuing
operations before extraordinary item (177) 2,308
Preferred stock dividends 19 14
Earnings (Loss) from continuing
operations on common shares
before extraordinary item (196) 2,294
(Loss) from discontinued operations - (115)
Gain on sale of discontinued
operations - 11,200
Earnings (loss) before extraordinary
item $(196) $13,379
Extraordinary item - (loss) from
extinguishment of debt $ - $(394)
Earnings (loss) on common shares $(196) $12,985
Basic earnings (loss) per common
share:
Earnings (Loss) per common from
continuing operations before
extraordinary item $(0.03) $0.32
Earnings per common share -
discontinued operations $ - $1.53
Extraordinary item - (loss) from
extinguishment of debt $ - $(0.06)
Earnings (Loss) per common share $(0.03) $1.79
Dividends declared $0.075 $ -
Earnings (Loss) per common share -
assuming dilution:
Earnings (Loss) per common from
continuing operations before
extraordinary item $(196) $2,294
Proforma reduction in interest on
convertible debentures 62
Proforma earnings (loss) from
continuing operations before
extraordinary item (196) 2,356
(Loss) from discontinued operations - (115)
Gain on sale of discontinued
operations - 11,200
Proforma earnings (loss) before
extraordinary item (196) 13,441
Extraordinary item - (loss) from
extinguishment of debt - (394)
Proforma earnings (loss) on common
shares assuming dilution $(196) $13,047
Earnings (Loss) per common share -
assuming dilution:
Earnings (Loss) per common from
continuing operations before
extraordinary item $(0.03) $0.29
Earnings per common share -
discontinued operations $ - $1.42
Extraordinary item - (loss) from
extinguishment of debt $ - $(0.05)
Earnings (Loss) per common share $(0.03) $1.66
Basic weighted average common shares
outstanding 6,704,478 7,234,051
Diluted weighted average common
shares and equivalents 6,727,364 7,858,882
EBITDA - continuing operations $3,869 $5,944
NOBLE INTERNATIONAL, LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET DATA
(In Thousands)
Three Months Ended
March 31
2001 2000
Total assets $144,066 $111,998
Working capital (deficiency) 4,947 6,058
Total Debt 83,188 36,581
Shareholders' equity 43,059 52,519
Depreciation and Amortization 1,449 1,750
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