Accuride Corporation Reports Second Quarter Results for 2001
EVANSVILLE, Ind.--Aug. 1, 2001--Accuride Corporation today announced net sales of $92.1 million for the second quarter ended June 30, 2001. This compares to net sales of $137.0 million for the second quarter of 2000, a decrease of 32.8%. For the six months ended June 30, 2001, net sales were $183.0 million compared to net sales of $280.3 million for the same six-month period in 2000, a decrease of 34.7%. The decrease in net sales for both the three- and six-month periods ended June 30, 2001, is due to the cyclical downturn of the entire Heavy/Medium commercial vehicle market.Adjusted EBITDA of $12.3 million for the second quarter ended June 30, 2001, is down by 60.9% from $31.4 million for the second quarter of 2000. For the first six months of 2001, adjusted EBITDA decreased by $40.4 million, or 64.5%, to reach $22.3 million. This compares to $62.7 million for the first six months of 2000. EBITDA for the quarter ended June 30, 2001, was adjusted by $2.9 million for restructuring and relocation charges for the previously-announced closure of the Columbia, Tennessee, facility, and by $0.4 million for employee severance costs.
Accuride is pleased to have successfully completed an amendment of its senior credit facility on July 27, 2001. This amendment provides the Company with the necessary covenant flexibility and liquidity required to execute its business plan. In exchange for covenant modifications, the lenders received improved credit structure and pricing.
The Company's liquidity position remained strong at June 30, 2001, with $55.3 million in cash.
"Overall, the results for the second quarter were in line with our expectations. The commercial vehicle market seems to have bottomed. However, we now anticipate no substantial improvement over the next few quarters. Our focus continues to be on aggressively managing cash and working capital, and continuous improvement as we navigate through the cycle," said Bill Greubel, Accuride's President and CEO. "We are pleased to have recently successfully amended our senior credit facility. We are confident that this provides sufficient flexibility and liquidity through the downturn in the industry."
Accuride Corporation is North America's largest manufacturer and supplier of wheels for heavy/medium trucks and trailers. The Company offers the broadest product line in the North American heavy/medium wheel industry and is the only North American manufacturer and supplier of both steel and forged aluminum heavy/medium wheels. Accuride Corporation also produces wheels for buses, commercial light trucks and sport utility vehicles, and for passenger cars. Accuride Corporation has steel wheel operations in Henderson, Kentucky; Columbia, Tennessee; London, Ontario, Canada; and in Monterrey, Mexico. Accuride has aluminum wheel operations in Erie, Pennsylvania, and Cuyahoga Falls, Ohio. Additionally, the Company produces tire molds at its Erie, Pennsylvania, facility. Accuride is also involved in a commercial tire and wheel assembly joint venture in Springfield, Ohio, and Talbotville, Ontario, Canada and in a strategic alliance in Ceriano Laghetto, Italy. For more information, visit Accuride's website at http://www.accuridecorp.com.
Statements contained in this news release that are not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company's expectations, hopes, beliefs and intentions on strategies regarding the future. It is important to note that the Company's actual future results could differ materially from those projected in such forward-looking statements because of a number of factors, including but not limited to general economic, business and financing conditions, labor relations, governmental action, competitor pricing activity, expense volatility and other risks detailed from time to time in the Company's Securities and Exchange Commission filings. Accuride assumes no obligation to update the information included in this release.
ACCURIDE CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(DOLLARS IN THOUSANDS)
(UNAUDITED)
Three Months Ended June 30,
--------------------------
2001 2000
---- ----
NET SALES $ 92,056 $ 136,956
COST OF GOODS SOLD 80,149 109,376
--------- ---------
GROSS PROFIT $ 11,907 $ 27,580
OPERATING:
Selling, General & Administrative 10,220 9,915
--------- ---------
INCOME FROM OPERATIONS 1,687 17,665
OTHER INCOME (EXPENSE):
Interest Income 623 469
Interest (Expense) (9,805) (10,097)
Equity in Earnings of Affiliates 70 113
Other Income (Expense), Net 2,417 (3,142)
--------- ---------
INCOME (LOSS) BEFORE INCOME TAXES (5,008) 5,008
INCOME TAX PROVISION (57) 2,102
--------- ---------
NET INCOME (LOSS) $ (4,951) $ 2,906
========= =========
Six Months Ended June 30,
-------------------------
2001 2000
---- ----
NET SALES $ 182,987 $ 280,324
COST OF GOODS SOLD 162,134 221,002
--------- ---------
GROSS PROFIT $ 20,853 $ 59,322
OPERATING:
Selling, General & Administrative 17,477 18,315
--------- ---------
INCOME FROM OPERATIONS 3,376 41,007
OTHER INCOME (EXPENSE):
Interest Income 1,018 852
Interest (Expense) (20,213) (20,655)
Equity in Earnings of Affiliates 190 239
Other Income (Expense), Net (598) (3,743)
--------- ---------
INCOME (LOSS) BEFORE INCOME TAXES (16,227) 17,700
INCOME TAX PROVISION (4,082) 7,433
--------- ---------
NET INCOME (LOSS) $ (12,145) $ 10,267
========= =========
ACCURIDE CORPORATION
CONSOLIDATED EBITDA
(DOLLARS IN THOUSANDS)
(UNAUDITED)
Three Months Ended June 30,
---------------------------
2001 2000
---- ----
INCOME FROM OPERATIONS $ 1,687 $17,665
Depreciation and Amortization 7,208 7,593
Equity in Earnings of Affiliates 70 113
------- -------
EBITDA $ 8,965 $25,371
======= =======
ADJUSTMENTS 3,299 6,000
------- -------
ADJUSTED EBITDA $12,264 $31,371
======= =======
Six Months Ended June 30,
-------------------------
2001 2000
---- ----
INCOME FROM OPERATIONS $ 3,376 $41,007
Depreciation and Amortization 14,396 15,462
Equity in Earnings of Affiliates 190 239
------- -------
EBITDA $17,962 $56,708
======= =======
ADJUSTMENTS 4,292 6,000
------- -------
ADJUSTED EBITDA $22,254 $62,708
======= =======
Adjusted EBITDA is not intended to represent cash flows as
defined by GAAP. It is included in our report as it is a
basis upon which the Company assesses its financial
performance and certain covenants in the Company's borrowing
arrangements are tied to similar measures. Depreciation and
amortization excludes amortization of deferred Financing
costs which are classified as interest expense and therefore
are not components of income from operations.