Dura Reports 3Q Results
ROCHESTER HILLS, Mich.--Oct. 22, 2001--Dura Automotive Systems, Inc. (Nasdaq: DRRA - news), today reported financial results for the third quarter and nine-month period ended September 30, 2001. For the quarter, Dura posted revenues of $568.9 million, down 3.1 percent from the $587.1 million reported in third quarter of 2000. This revenue decline reflects the continuing weakness in the North American automotive and recreational vehicle industries as well as unfavorable foreign exchange. Offsetting the quarter-over-quarter decrease was the fourth-quarter 2000 acquisition of Reiche GmbH (Germany) and new business in both the Control Systems and Body & Glass divisions. Excluding the impact of the one-time costs associated with the divestiture of its Australian operations, operating income for the quarter was $27.8 million and net income was $1.4 million, or $0.08 per share. Including the divestiture costs, operating income was $20.2 million and the net loss was $3.4 million, or $0.19 loss per diluted share. In the year-ago quarter, Dura reported net income of $10.3 million, or $0.58 per diluted share.
``Our third-quarter results were impacted by our strategic decision to shed non-productive assets and by excessive costs associated with product launches. These, along with tough market conditions, made for a difficult quarter,'' said Karl Storrie, president and chief executive officer of Dura Automotive. ``Despite the difficult operating environment, we remain focused on building Dura as a world-class organization that will reward shareholders over the long term.''
For the nine months ended September 30, 2001, revenues decreased 4.2 percent to $1,897.1 million from $1,977.5 million in the year-ago period. Operating income decreased $40.3 million to $111.1 million and net income was down $19.5 million to $18.7 million. Earnings per diluted share were $1.04 compared to $2.13 for the first nine months of 2000.
Storrie continued, ``Rest assured we remain focused on strengthening our business in core areas key to our long-term success and on effectively dealing with the current industry instability. We are working diligently to reduce costs and exercising tight cash management. We have adjusted our `Playbooks' for cost management to our changing industry environment and are aggressively taking action at all Dura locations. I am pleased with the significant reduction in long-term debt we have achieved in 2001. As we focus on the remainder of the year and 2002, we will continue to monitor market conditions and take the actions necessary to benefit our shareholders and customers.''
Dura Automotive Systems, Inc., is the world's largest independent designer and manufacturer of driver control systems and a leading global supplier of door modules, seat mechanisms and structures, glass systems and engineered assemblies for the global automotive industry. The company is also a leading supplier of similar products to the North American recreational vehicle and mass transit market. The company's products include door modules, parking brake systems, automotive cables, transmission shifter systems, encapsulated and sliding windows, window regulators, hinges, latches, seating systems, engine control products, underbody tire carriers, jacks, brake, clutch and accelerator pedals and other mechanical assemblies. The company's products are sold to every North American, European and Japanese original equipment manufacturer, including Ford, General Motors, DaimlerChrysler, Volkswagen, BMW, Toyota, Honda, Nissan, PSA (Peugeot and Citroen) and Renault. Dura's operating headquarters is in Rochester Hills, Mich., and its corporate office is in Minneapolis, Minn. Information about Dura and its products is available on the Internet at www.duraauto.com.
This press release contains forward-looking statements that are
subject to risks and uncertainties. These statements often include
words such as ``believe,'' ``expect,'' ``anticipate,'' ``intend,'' ``plan,''
``estimate,'' or similar expressions. These statements are based on
certain assumptions that the company has made in light of its
experience in the industry as well as its perspective of historical
trends, current conditions, expected future developments and other
factors it believes are appropriate in the circumstances. Actual
results may differ materially from the anticipated results because of
certain risks and uncertainties, including but not limited to (i)
expected synergies, economies of scale and cost savings from the
company's acquisitions not being fully realized or realized within the
expected times frames; (ii) unanticipated difficulties servicing the
substantially higher level of indebtedness at the company, (iii) costs
or operational difficulties related to integrating the operations of
the acquired entities with those of the company being greater than
expected; (iv) labor disputes involving the company or its significant
customers, (v) risks associated with conducting business in foreign
countries, and (vi) general economic or business conditions affecting
the automotive industry, either nationally or regionally, being less
favorable than expected.
DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share amounts - unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
-------------- ---------------
2001 2000 2001 2000
---- ---- ---- ----
Revenues $568,890 $587,081 $1,897,064 $1,977,540
Cost of sales 500,723 493,450 1,647,979 1,660,367
-------- -------- ---------- ----------
Gross profit 68,167 93,631 249,085 317,173
Selling, general and
administrative expenses 33,494 41,406 107,226 128,971
Facility consolidation,
product recall
and other charges 7,685 -- 10,314 16,000
Amortization expense 6,833 6,814 20,527 20,885
-------- -------- ---------- ----------
Operating income 20,155 45,411 111,018 151,317
Interest expense, net 24,603 27,284 77,752 82,553
-------- -------- ---------- ----------
Income (loss) before
provision for income taxes,
equity in losses of
affiliates and minority
interest (4,448) 18,127 33,266 68,764
Provision (benefit) for income
taxes (1,704) 7,260 12,641 27,781
Minority interest and equity
in losses of affiliates, net -- -- -- 914
Minority interest - dividends
on trust preferred
securities, net 642 612 1,927 1,834
-------- -------- ---------- ----------
Net income (loss) $ (3,386) $ 10,255 $ 18,698 $ 38,235
======== ======== ========== ==========
Basic earnings (loss) per
common share $ (0.19) $ 0.59 $ 1.05 $ 2.19
======== ======== ========== ==========
Basic shares outstanding 17,768 17,470 17,747 17,450
======== ======== ========== ==========
Diluted earnings (loss) per
common share $ (0.19) $ 0.58 $ 1.04 $ 2.13
======== ======== ========== ==========
Diluted shares outstanding 17,768 18,772 18,022 18,854
======== ======== ========== ==========
Capital expenditures $ 16,847 $ 17,961 $ 46,486 $ 76,513
Depreciation $ 17,211 $ 14,229 $ 51,509 $ 45,182
DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
Sept. 30, Dec. 31,
Assets 2001 2000
------ ---- ----
(Unaudited)
Current assets:
Cash and cash equivalents $ 20,202 $ 30,438
Accounts receivable, net 364,497 367,505
Inventories 128,313 148,919
Other current assets 146,403 170,083
---------- ----------
Total current assets 659,415 716,945
---------- ----------
Property, plant and equipment, net 517,522 533,912
Goodwill, net 992,549 1,028,113
Deferred income taxes and other assets, net 81,668 78,077
---------- ----------
$2,251,154 $2,357,047
========== ==========
Liabilities and Stockholders' Investment
----------------------------------------
Current liabilities:
Accounts payable $ 256,895 $ 258,895
Accrued liabilities 253,317 225,032
Current maturities of long-term debt 63,712 64,013
---------- ----------
Total current liabilities 573,924 547,940
---------- ----------
Long-term debt, net of current maturities 499,988 766,961
Subordinated notes 542,030 394,240
Other noncurrent liabilities 134,545 139,262
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 341,798 341,472
Treasury stock (1,278) (1,505)
Retained earnings 168,747 150,049
Accumulated other comprehensive loss (64,028) (36,798)
---------- ----------
Total stockholders' investment 445,417 453,394
---------- ----------
$2,251,154 $2,357,047
========== ==========