INTERMET Reports Second-Quarter and Six-Month Results; Earnings Above Consensus Expectations
INTERMET Reports Second-Quarter and Six-Month Results; Earnings Above Consensus Expectations
TROY, Mich., July 12 INTERMET Corporation
today reported second-quarter 2001 sales of $228 million, down $54 million (or
19 percent) compared with the second quarter of 2000 on lower car builds.
Second-quarter net income was $3.8 million, or 15 cents per diluted share,
compared with prior-year levels of $11.9 million, or 47 cents per diluted
share. Results were negatively affected by a reduction in inventory at the
OEMs as well as lower overall automotive production in North America. Energy
costs, while moderating, continued to have a negative impact on earnings.
Year-to-date sales were $452 million, a decrease of $132 million (or
23 percent) from revenues posted for the first six months of last year.
Excluding the IMT divestiture, six-month sales were 18% less than last year.
Year-to-date net income was $4.2 million, or 16 cents per diluted share. For
2000, INTERMET's six-month net income was $21.4 million, or 84 cents per
diluted share. The company's effective tax rate for the first six months of
2001 was 46%. Depreciation and amortization for the first six months of this
year was $28.4 million and capital spending year-to-date was $19.4 million.
The INTERMET board of directors voted to approve a quarterly dividend of 4
cents per share, payable September 28, 2001, to shareholders of record as of
September 1, 2001.
"We are pleased that INTERMET was able to post these earnings results on a
very low sales base resulting from our customers still experiencing
considerable difficulties," said John Doddridge, Chairman and Chief Executive
Officer. "Although sales continued at a lower rate than we had projected for
the second quarter, we still met our profit forecast."
"Our Alexander City Foundry in Alabama has made significant improvements
in the second quarter; therefore we no longer consider it a serious
operational concern," said Doddridge. "Our customers are working with us to
resolve several remaining operational and engineering issues."
Chief Financial Officer Doretha Christoph indicated that INTERMET has
reached a tentative agreement on its loans and confirmed that the $200-million
term loan maturity has been extended until July 18, 2001, to complete the
remaining closing documentation.
Commenting on the current quarter, Doddridge said, "We continue to see the
benefits of our ongoing strict cost-containment measures; however, the third
quarter will be challenging as we will be affected by summer plant shutdowns -
-- both ours as well as our customers. We anticipate our third-quarter
revenues will likely be less than current analysts' consensus, and given the
continuing uncertainty of the marketplace, we feel it is inappropriate to
forecast the quarter at this time."
INTERMET will hold a Conference Call today at 3 p.m. EDT. Investors and
interested parties can listen to a live webcast by visiting http://www.intermet.com
and clicking on the "Financial/Investor Information" link on the home page.
(The webcast also will be available at http://www.streetfusion.com.) It is
recommended that access to the live webcast be established 10-15 minutes prior
to the scheduled start time. A replay of the webcast briefing also is expected
to be available on the company's web site beginning two hours after completion
of the briefing through August 12, 2001.
With headquarters in Troy, Michigan, INTERMET Corporation is a
manufacturer of powertrain, chassis/suspension and structural components for
the automotive industry. INTERMET's strategy is to be the leading supplier of
cast-metal automotive components in the world. The company has more than
6,500 employees at facilities located in North America and Europe. More
information is available on the Internet at http://www.intermet.com .
This news release may include forecasts and forward-looking statements
about INTERMET, its industry and the markets in which it operates. Forward-
looking statements and the achievement of any forecasts or projections are
subject to risks, uncertainties and other factors that could cause actual
results to differ materially from those expressed or denied. Such risks and
uncertainties are fully detailed as a preface to the Management's Discussion
and Analysis of Financial Condition in the company's 2000 Annual Report for
the year ended December 31, 2000.
INTERMET Corporation Condensed Consolidated Statements of Operations
(In thousands, except per share data)
Three months ended Six months ended
June 30, June 30, June 30, June 30,
2001 2000 2001 2000
(Unaudited)
Net sales $228,190 $281,855 $452,115 $584,100
Cost of sales 203,862 240,565 409,094 498,642
Gross profit 24,328 41,290 43,021 85,458
Selling, general
and administrative 9,108 10,121 17,072 19,980
Goodwill amortization 1,558 1,588 3,116 3,175
Other operating
(income) expense (136) 202 (251) 6,217
Operating profit 13,798 29,379 23,084 56,086
Interest
(expense), net (7,632) (10,271) (16,032) (20,577)
Other income, net 354 1,039 644 1,939
Income before
income taxes 6,520 20,147 7,696 $37,448
Provision for
income taxes 2,699 8,277 3,536 16,082
Net income $3,821 $11,870 $4,160 $21,366
Income per
common share - basic $0.15 $0.47 $0.16 $0.84
Income per
common share - diluted $0.15 $0.47 $0.16 $0.84
Weighted average
shares outstanding:
Basic 25,371 25,364 25,368 25,359
Diluted 25,481 25,387 25,438 25,403
INTERMET Corporation Condensed Consolidated Balance Sheets
(In thousands)
June 30, December 31,
2001 2000
Assets (Unaudited)
Current assets:
Cash and cash equivalents $89,847 $19,737
Accounts receivable 145,853 134,881
Inventories 81,841 93,870
Other current assets 25,989 31,960
Total current assets 343,530 280,448
Property, plant and equipment, net 392,515 397,634
Other non-current assets 235,194 240,714
$971,239 $918,796
Liabilities and shareholders' equity
Current liabilities:
Accounts payable $74,391 $103,501
Accrued liabilities 76,693 82,555
Long-term debt due within one year 216,627 216,479
Total current liabilities 367,711 402,535
Non-current liabilities:
Long-term debt 275,544 182,687
Other non-current liabilities 47,366 54,167
Total non-current liabilities 322,910 236,854
Shareholders' equity 280,618 279,407
Total liabilities and shareholders' equity $971,239 $918,796
INTERMET Corporation Condensed Consolidated Statements of Cash Flow
(In thousands)
Six months ended
June 30,
2001
(Unaudited)
Net income $4,160
Depreciation and amortization 28,409
Changes in working capital and other (34,022)
Cash used in operating activities $(1,453)
Property, plant and equipment additions (19,410)
Proceeds from insurance 2,179
Property, plant and equipment
additions - insurance (2,179)
Cash used in investing activities (19,410)
Change in debt 93,005
Dividend (2,032)
Cash provided by financing activities 90,973
Change in cash and cash equivalents 70,110
Cash and cash equivalents beginning of period 19,737
Cash end of period $89,847