Accuride Corporation Reports Third Quarter Results for 2001
EVANSVILLE, Ind.--Nov. 1, 2001--Accuride Corporation today announced net sales of $77.7 million for the third quarter ended September 30, 2001.This compares to net sales of $104.4 million for the third quarter of 2000, a decrease of 25.6%. For the nine months ended September 30, 2001, net sales were $260.7 million compared to net sales of $384.7 million for the same nine-month period in 2000, a decrease of 32.2%. The decrease is due to the cyclical downturn of the heavy/medium commercial vehicle market, with class 8 builds down more than 36% from the prior year's third quarter and down more than 47% from the prior year's first nine months.
Adjusted EBITDA of $10.0 million for the third quarter ended September 30, 2001, is down by 45.1% from $18.2 million for the third quarter of 2000. For the first nine months of 2001, adjusted EBITDA decreased by $48.6 million, or 60.1%, to reach $32.3 million. This compares to $80.9 million for the first nine months of 2000. EBITDA for the quarter ended September 30, 2001, was adjusted by $0.2 million for expenses incurred with the recent amendment of the Company's senior credit facility.
The Company's liquidity position remained strong at September 30, 2001, with $27.2 million in cash and Revolver availability of $52.5 million. Total debt for the quarter ended September 30, 2001, has been reduced by $17.5 million.
"The results for the third quarter were in line with our expectations. It now appears that some of our markets served continue to test trough levels which will challenge the entire organization over the next few quarters. The major issue facing this industry is the murkiness of the economy going forward," said Bill Greubel, Accuride's President and CEO. "However, we continue to see improvement in our operations and market share, which will bode well going forward. We continue to successfully work on our continuous improvement programs and maintain our focus on the processes we have control over."
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. 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 September 30,
--------------------------------
2001 2000
---- ----
NET SALES $ 77,714 $ 104,403
COST OF GOODS SOLD 67,935 87,214
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GROSS PROFIT $ 9,779 $ 17,189
OPERATING:
Selling, General & Administrative 7,706 6,435
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INCOME FROM OPERATIONS 2,073 10,754
OTHER INCOME (EXPENSE):
Interest Income 226 596
Interest (Expense) (10,569) (10,842)
Equity in Earnings of Affiliates 28 118
Other Income (Expense), Net (7,413) (2,674)
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INCOME (LOSS) BEFORE INCOME TAXES (15,655) (2,048)
INCOME TAX PROVISION (BENEFIT) (5,350) (859)
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NET INCOME (LOSS) $ (10,305) $ (1,189)
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Nine Months Ended September 30,
-------------------------------
2001 2000
---- ----
NET SALES $ 260,700 $ 384,727
COST OF GOODS SOLD 230,068 308,216
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GROSS PROFIT $ 30,632 $ 76,511
OPERATING:
Selling, General & Administrative 25,183 24,750
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INCOME FROM OPERATIONS 5,449 51,761
OTHER INCOME (EXPENSE):
Interest Income 1,244 1,448
Interest (Expense) (30,782) (31,497)
Equity in Earnings of Affiliates 218 357
Other Income (Expense), Net (8,011) (6,417)
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INCOME (LOSS) BEFORE INCOME TAXES (31,882) 15,652
INCOME TAX PROVISION (9,432) 6,574
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NET INCOME (LOSS) $ (22,450) $ 9,078
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ACCURIDE CORPORATION
CONSOLIDATED EBITDA
(DOLLARS IN THOUSANDS)
(UNAUDITED)
Three Months Ended September 30,
--------------------------------
2001 2000
---- ----
INCOME FROM OPERATIONS $ 2,073 $ 10,754
Depreciation and Amortization 7,677 7,319
Equity in Earnings of Affiliates 28 118
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EBITDA $ 9,778 $ 18,191
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ADJUSTMENTS 224 --
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ADJUSTED EBITDA $ 10,002 $ 18,191
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Nine Months Ended September 30,
-------------------------------
2001 2000
---- ----
INCOME FROM OPERATIONS $ 5,449 $ 51,761
Depreciation and Amortization 22,073 22,780
Equity in Earnings of Affiliates 218 357
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EBITDA $ 27,740 $ 74,898
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ADJUSTMENTS 4,516 6,000
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ADJUSTED EBITDA $ 32,256 $ 80,898
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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.