Dura Reports Q2 and Six-Month Results
ROCHESTER HILLS, Mich.--July 24, 2001--Dura Automotive Systems, Inc. , today reported financial results for the quarter and six-month period ended June 30, 2001. Highlights for the quarter included:| -- | Earnings of $0.70 per diluted share; |
| -- | Cash flow from operations allowing for $71.2 million reduction in debt, bringing the year-to-date reduction to $133.3 million; |
| -- | Issuance of $158.5 million of bonds with the proceeds being used to reduce senior indebtedness, better balancing our capital structure; and |
| -- | Amendment of our Credit Agreement to allow for greater financial flexibility. |
Second-quarter revenues were $666.3 million, a decrease of $41.4 million compared to the second quarter of 2000. Revenues for the quarter were unfavorably impacted by the continued weakness in the North American automotive and recreational vehicle industries as well as foreign exchange. Offsetting the quarter-over-quarter decrease was the fourth-quarter 2000 acquisition of Reiche GmbH (Germany) and new business in both the Cockpit Systems and Body & Glass Divisions. Second-quarter 2001 operating income was $46.2 million, a decrease compared to the second quarter of 2000 of $1.5 million. Net income was $12.9 million, or $0.70 per diluted share outstanding, versus $11.5 million, or $0.64 per diluted share, in the comparable period of 2000.
For the six months ended June 30, 2001, revenues decreased by $62.3 million to $1,328.2 million compared to 2000. Operating income for the first half of 2001 decreased $15.0 million to $90.9 million compared to the first half of 2000 and net income was down $5.9 million to $22.1 million. Operating and net income for the quarter and six months was down due to the revenue decline offset partially by cost reduction measures and one-time charges that occurred in the second quarter of 2000.
Other key results for the periods ended June 30, 2001 include a six-month reduction in total debt of $133.3 million, a six-month reduction in operating working capital of $81.2 million and a $7.5 million reduction in quarter-over-quarter selling, general and administrative expenses. All of these positive results serve as evidence of the focus management continues to have on cost reduction and cash generation.
Karl Storrie, president and chief executive officer of Dura Automotive, stated, "We have had some significant accomplishments so far in 2001. The actions that we have taken to address the industry instability and our continuous efforts of cost reduction and tight cash management have resulted in strong performance and a significant reduction in debt. We have also made some alterations to our credit structure that we believe will benefit us as we progress through these difficult industry times and in the years to come."
DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share amounts - unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
------------------- ------------------
2001 2000 2001 2000
---- ---- ---- ----
Revenues $ 666,321 $ 707,690 $ 1,328,174 $ 1,390,459
Cost of sales 577,310 593,263 1,147,256 1,166,917
---------- ---------- ------------ ------------
Gross profit 89,011 114,427 180,918 223,542
Selling, general
and administrative
expenses 36,099 43,647 73,732 87,565
Facility
consolidation,
product recall
and other charges -- 16,000 2,629 16,000
Amortization expense 6,695 7,030 13,694 14,071
------------ --------- ------------- ------------
Operating income 46,217 47,750 90,863 105,906
Interest expense,
net 24,616 27,348 53,149 55,269
------------ --------- ------------- ------------
Income before
provision for
income taxes,
equity in losses
of affiliates and
minority interest 21,601 20,402 37,714 50,637
Provision for income
taxes 8,061 8,155 14,345 20,521
Minority interest
and equity in
losses of
affiliates, net -- 116 -- 914
Minority interest -
dividends on trust
preferred
securities, net 674 611 1,285 1,222
------------ ---------- ------------- ------------
Net income $ 12,866 $ 11,520 $ 22,084 $ 27,980
=========== ========== =========== ==========
Basic earnings per
common share $ 0.72 $ 0.66 $ 1.25 $ 1.60
=========== ========== ============ ===========
Basic shares
outstanding 17,757 17,448 17,736 17,439
=========== ========== =========== ==========
Diluted earnings per
common share: $ 0.70 $ 0.64 $ 1.22 $ 1.54
=========== ========== ============ ===========
Diluted shares
outstanding 19,353 18,903 19,214 18,929
=========== ========== =========== ==========
Capital expenditures $ 14,463 $ 30,783 $ 29,639 $ 58,552
Depreciation $ 17,603 $ 16,200 $ 34,298 $ 30,947
DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
June 30, December 31,
Assets 2001 2000
------ ---- ----
(Unaudited)
Current assets:
Cash and cash equivalents $ 29,665 $ 30,438
Accounts receivable, net 372,399 367,505
Inventories 130,413 148,919
Other current assets 141,775 170,083
-------------- --------------
Total current assets 674,252 716,945
-------------- --------------
Property, plant and equipment, net 508,375 533,912
Goodwill, net 987,120 1,028,113
Deferred income taxes and other
assets, net 79,532 78,077
-------------- --------------
$ 2,249,279 $ 2,357,047
============== ==============
Liabilities and Stockholders' Investment
----------------------------------------
Current liabilities:
Accounts payable $ 275,706 $ 258,895
Accrued liabilities 247,497 225,032
Current maturities of long-term
debt 55,767 64,013
-------------- --------------
Total current liabilities 578,970 547,940
-------------- --------------
Long-term debt, net of current
maturities 501,667 766,961
Subordinated notes 534,467 394,240
Other noncurrent liabilities 132,862 139,262
Mandatorily redeemable convertible
trust preferred securities 55,250 55,250
-------------- --------------
Stockholders' investment:
Common stock - Class A 146 143
Common stock - Class B 32 33
Additional paid-in capital 341,616 341,472
Treasury stock (1,278) (1,505)
Retained earnings 172,133 150,049
Accumulated other comprehensive
loss (66,586) (36,798)
-------------- --------------
Total stockholders' investment 446,063 453,394
-------------- --------------
$ 2,249,279 $ 2,357,047
============== ==============