Dura Automotive Reports Fourth-Quarter and 2001 Results
ROCHESTER HILLS, Mich.--Feb. 6, 2002--Dura Automotive Systems, Inc. , today reported financial results for the fourth quarter and year ended December 31, 2001. Highlights for the quarter and year include:| -- | Cash flows from operations allowed for a reduction of debt of $148.8 million in 2001 and $29.3 million in the fourth quarter. |
| -- | Divested, or entered into agreements to divest, three businesses identified as non-core. |
| -- | EPS of $0.07 in the fourth quarter before one-time items, $0.02 above expectations. |
| -- | Reduced year-over-year selling, general and administrative costs by $26.0 million to adjust our structure to the current market conditions. |
For the quarter, Dura posted revenues of $580.3 million, down 11.5 percent from the $655.5 million reported in fourth quarter of 2000. This revenue decline reflects the weakness in the North American automotive and recreational vehicle industries as well as unfavorable foreign exchange. Offsetting the quarter-over-quarter decrease was new business in both the Control Systems and Body & Glass divisions. Excluding the impact of the one-time costs, operating income for the quarter was $26.1 million and net income was $1.2 million, or $0.07 per share, $0.02 above consensus estimates. During the quarter, Dura incurred one-time non-cash costs associated with the divestitures of its magnesium injection molding and plastics businesses of $12.4 million before tax and incurred cash costs of $1.7 million before tax, primarily a result of headcount reduction actions. Including the one-time costs, operating income was $12.0 million and the net loss was $7.5 million, or $0.42 per diluted share. In the year-ago quarter, Dura reported net income of $3.5 million, or $0.20 per diluted share.
"We were very pleased with our results in the fourth quarter. In the face of economic and industry uncertainty, we continued to focus on the generation of cash from operations and on our cost reduction efforts while maintaining an eye to the future," said Karl Storrie, president and chief executive officer of Dura Automotive. "Our results include the effects of our strategic decision to shed non-productive assets and the costs associated with reducing our workforce in light of current market conditions."
For the year ended December 31, 2001, revenues decreased 5.9 percent to $2,477.4 million from $2,633.1 million in 2000. Excluding the effects of one-time items, operating income decreased $56.1 million to $147.4 million and net income was down $24.7 million to $26.3 million, or $1.46 per share.
Storrie continued, "2001 proved to be a difficult year. However, we implemented our playbooks as the industry environment changed and, while some of the actions taken were difficult, they were necessary given the uncertain times. We remain focused on building Dura as a world-class organization that will reward shareholders over the long term. We look forward to 2002 with excitement for the new products and technologies we are marketing and developing for our customers, while at the same time focusing on building our core businesses."
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 time 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 Twelve months Ended
December 31, December 31,
------------------- ---------------------
2001 2000 2001 2000
---- ---- ---- ----
Revenues $580,309 $655,544 $2,477,373 $2,633,084
Cost of sales 515,345 576,177 2,163,324 2,236,544
--------- --------- ---------- ----------
Gross profit 64,964 79,367 314,049 396,540
Selling, general and
administrative expenses 32,333 36,553 139,559 165,524
Facility consolidation,
product recall and other
charges 14,072 (639) 24,386 15,361
Amortization expense 6,522 6,630 27,049 27,515
--------- --------- ---------- ----------
Operating income 12,037 36,823 123,055 188,140
Interest expense, net 23,065 29,880 100,817 112,433
--------- --------- ---------- ----------
Income (loss) before
provision for income
taxes, equity in losses
of affiliates and
minority interest (11,028) 6,943 22,238 75,070
Provision (benefit) for
income taxes (4,191) 2,790 8,450 30,571
Minority interest and equity
in losses of affiliates, net -- -- -- 914
Minority interest - dividends
on trust preferred
securities, net 642 611 2,569 2,445
--------- --------- ---------- ----------
Net income (loss) $ (7,479) $ 3,542 $ 11,219 $ 41,777
========= ========= ========== ==========
Basic earnings (loss) per
common share $ (0.42) $ 0.20 $ 0.63 $ 2.39
========= ========= ========== ==========
Basic shares outstanding 17,786 17,524 17,757 17,468
========= ========= ========== ==========
Diluted earnings (loss) per
common share $ (0.42) $ 0.20 $ 0.62 $ 2.35
========= ========= ========== ==========
Diluted shares outstanding 17,786 17,536 18,003 18,847
========= ========= ========== ==========
Capital expenditures $ 25,293 $ 33,319 $ 71,779 $ 110,132
Depreciation $ 16,021 $ 12,806 $ 67,530 $ 57,988
DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
December 31, December 31,
Assets 2001 2000
------ ---- ----
Current assets:
Cash and cash equivalents $ 32,289 $ 30,438
Accounts receivable, net 293,476 367,505
Inventories 116,508 148,919
Other current assets 126,367 170,083
---------- ----------
Total current assets 568,640 716,945
---------- ----------
Property, plant and equipment, net 516,517 533,912
Goodwill, net 962,467 1,028,113
Deferred income taxes and other assets, net 73,980 78,077
---------- ----------
$2,121,604 $2,357,047
========== ==========
Liabilities and Stockholders' Investment
----------------------------------------
Current liabilities:
Accounts payable $ 249,824 $ 258,895
Accrued liabilities 177,327 225,032
Current maturities of long-term debt 60,847 64,013
---------- ----------
Total current liabilities 487,998 547,940
---------- ----------
Long-term debt, net of current maturities 475,879 766,961
Subordinated notes 539,700 394,240
Other noncurrent liabilities 120,380 139,262
Mandatorily redeemable convertible trust
preferred securities 55,250 55,250
---------- ----------
Stockholders' investment:
Common stock - Class A 147 143
Common stock - Class B 31 33
Additional paid-in capital 342,694 341,472
Treasury stock (1,891) (1,505)
Retained earnings 161,268 150,049
Accumulated other comprehensive loss (59,852) (36,798)
---------- ----------
Total stockholders' investment 442,397 453,394
---------- ----------
$2,121,604 $2,357,047
========== ==========