Shiloh Industries Reports Third-Quarter and Nine-Months Results
Shiloh Industries Reports Third-Quarter and Nine-Months Results
CLEVELAND, Aug. 24 Shiloh Industries, Inc. ,
a leading manufacturer of engineered welded blanks, stamped components and
modular systems for the automotive and heavy truck industries, today reported
results for the third quarter and the first nine months of fiscal 2001.
For the third quarter ended July 31, 2001, the Company had a net loss of
$6.4 million, or $0.43 per basic and diluted share, compared to net income of
$3.5 million, or $0.25 per basic and diluted share, for the third quarter of
fiscal 2000. The operating loss for the quarter was $1.3 million, versus
operating income of $9.3 million in the third quarter of fiscal 2000.
Revenues for the third quarter of fiscal 2001 were $165.2 million, compared to
revenues of $154.1 million for the same period of fiscal 2000.
For the nine months ended July 31, 2001, the net loss was $3.7 million, or
$0.25 per basic and diluted share, compared with net income of $13.1 million,
or $0.94 per basic and diluted share, for the first nine months of fiscal
2000. Operating income for the first nine months of fiscal 2001 was
$13.3 million, compared to operating income of $29.8 million for the first
nine months of fiscal 2000. Revenues were $504.2 million, up from revenues of
$460.6 million for the first nine months of fiscal 2000.
The revenue increase primarily reflects new business at Ohio Welded Blank,
additional revenue from Dickson Manufacturing, acquired in August 2000, and
additional revenue from Saltillo Welded Blank, which became operational during
the third quarter of fiscal 2000. Most of the Company's remaining operations
experienced revenue decreases as a result of softness in the automotive, heavy
truck and tool & die sectors and a weakness in the steel industry.
Declining revenues related to the automotive and heavy truck markets did
not fully absorb certain fixed costs, which negatively impacted operating
income and net income. Net income was also impacted during the quarter by
operating losses of approximately $1.0 million at Valley City Steel and Canton
Tool & Die. Certain assets of Valley City Steel Company were sold at the end
of the third quarter and the net assets of Canton Tool & Die are being held
for sale. In addition, bad debt expense of $1.9 million was recorded during
the quarter in connection with certain steel industry and automotive industry
customers.
John F. Falcon, President and CEO said, "While our third quarter numbers
were disappointing, we are starting to see positive results from the strategic
repositioning of Shiloh. Unfortunately, we're making progress in a business
downturn which is depressing our core stamping and blanking business and
minimizing our accomplishments. We are continuing to rationalize our assets
in an effort to eliminate underperforming operations, such as our tool & die
operations. We're also seeing increased revenues at Ohio Welded Blank and
Saltillo where we've made sizeable investments in new technology."
As part of an ongoing program to rationalize assets, the Company completed
the sale of certain assets of Valley City Steel Company for $12.4 million in
cash to Viking Industries, Inc., a minority-owned business enterprise. Shiloh
retains a 49% interest in the joint-venture with Viking Industries, Inc.
Additionally in July 2001, the Company completed the sale of building,
land and certain other assets of its Wellington Die Division for $3.5 million
in cash. The sale resulted in a pre-tax loss on the sale of $3.5 million.
The Company anticipates that the remaining operations at Wellington Die will
shift to Wellington Stamping by the end of the second quarter of fiscal 2002.
Craig A. Stacy took a position as CEO and principal at Bronx/Taylor-Wilson
during the quarter. The Company is actively engaged in discussions with a
potential replacement for the Chief Financial Officer position.
Headquartered in Cleveland, Shiloh Industries, Inc. is a leading
manufacturer of engineered welded blanks, stamped components and modular
systems for the automotive and heavy truck industries. The Company operates
12 manufacturing subsidiaries, excluding Valley City Steel Company, comprised
of 15 facilities in Ohio, Georgia, Michigan, Tennessee and Mexico and employs
more than 3,000 people.
A conference call to discuss third quarter 2001 results will be held at 2
p.m. (EDT), on Monday, August 27, 2001. To listen to the conference call,
dial 800-289-0529 approximately five minutes prior to the scheduled start time
and request conference code 774-255.
A replay of the conference call will be available from about 6 p.m. (EDT)
on August 27, 2001 to 5 p.m. (EDT) Friday, September 7, 2001. To access the
replay, call 888-203-1112 and follow the prompts to conference 774-255.
The forward-looking statements in this press release involve a number of
risks and uncertainties. Among the factors that could cause actual results to
differ materially are the following: a downturn in the automotive industry and
the general economy; competitive factors such as increases in the price of, or
limitations on the availability of steel; the ability of certain customers to
pay amounts owed to the Company on a timely basis, if at all; the ability of
the Company to continue to successfully integrate the operations of recent
acquisitions; the ability of the Company to consummate and implement its
strategic initiatives with respect to Canton Tool & Die; the ability of the
Company to shift certain operations to Wellington Stamping; the ability to
minimize start-up costs at new facilities, including the new Mexico facility
-- Saltillo Welded Blank; potential disruptions in operations due to, or
during facility expansions; delays in, or cancellations of, customer programs;
the risks and uncertainties related to commencing foreign operations; a labor
dispute involving Shiloh, its customers or suppliers; changes in estimated
sale prices of assets held for sale; and other risks and uncertainties that
may be identified from time to time in the Company's reports to the Securities
and Exchange Commission.
(Financial Statements Follow)
SHILOH INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Amounts in thousands)
Three months ended Nine months ended
July 31, July 31,
2001 2000 2001 2000
Revenues $165,166 $154,100 $504,244 $460,594
Cost of sales 151,473 132,495 458,867 393,196
Gross profit 13,693 21,605 45,377 67,398
Selling, general
and administrative
expenses 14,999 12,341 42,819 37,556
Asset impairment -- -- (10,756) --
Operating income (loss) (1,306) 9,264 13,314 29,842
Interest expense 4,689 4,049 15,780 10,748
Interest income 19 14 80 65
Other income
(expense), net (3,508) 155 (3,198) 1,690
Income (loss)
before income
taxes (9,484) 5,384 (5,584) 20,849
Provision (benefit)
for income taxes (3,130) 1,930 (1,843) 7,714
Net income (loss) $(6,354) $3,454 $(3,741) $13,135
Earnings per share:
Basic Earnings Per Share
Net income (loss) $(.43) $.25 $(.25) $.94
Basic Weighted
Average Number
of Common Shares 14,798 13,973 14,798 13,973
Diluted Earnings Per Share
Net income (loss) $(.43) $.25 $(.25) $.94
Diluted Weighted
Average Number
of Common Shares 14,798 13,973 14,798 13,977
SHILOH INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in thousands)
July 31, October 31,
2001 2000
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $313 $1,173
Accounts receivable, net 77,255 127,573
Income tax receivable 4,048 1,340
Inventories, net 72,964 69,006
Net assets held for sale 11,800 32,706
Deferred income taxes 8,998 13,492
Prepaid expenses 7,200 5,039
Total current assets 182,578 250,329
Property, plant and equipment, net 323,779 308,315
Goodwill, net 3,199 3,794
Other assets 25,566 10,447
Total assets $535,122 $572,885
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $81,803 $89,615
Short-term debt 4,045 --
Advanced billings -- 581
Other accrued expenses 16,200 21,376
Total current liabilities 102,048 111,572
Long-term debt 228,000 251,545
Deferred income taxes 21,541 22,884
Long-term benefit liabilities 6,608 6,296
Other liabilities 893 815
Total liabilities 359,090 393,112
Stockholders' equity:
Common stock 148 148
Paid-in capital 53,924 53,924
Retained earnings 122,302 126,043
Other comprehensive
income (loss) (342) (342)
Total stockholders' equity 176,032 179,773
Total liabilities and
stockholders' equity $535,122 $572,885
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