Accuride Corporation Reports Results for 2001
EVANSVILLE, Ind.--Feb. 28, 2002--Accuride Corporation today announced net sales of $71.4 million for the fourth quarter ended December 31, 2001.This compares to net sales of $91.1 million for the fourth quarter of 2000, a decrease of 21.6%. For the twelve months ended December 31, 2001, net sales were $332.1 million compared to net sales of $475.8 million for the same twelve-month period in 2000, a decrease of 30.2%. The decrease is largely due to the continuation of the cyclical downturn of the heavy/medium commercial vehicle market, with builds down more than 26% from the prior year's fourth quarter and down more than 37% from the prior year.
Adjusted EBITDA of $8.7 million for the fourth quarter ended December 31, 2001, is up from $8.4 million for the fourth quarter of 2000. The resulting EBITDA margin has increased to 12.2% of net sales from 9.3% of net sales in last year's fourth quarter. For the twelve months of 2001, adjusted EBITDA decreased by $48.4 million, or 54.1%, to reach $41.0 million. This compares to $89.3 million for the twelve months of 2000.
The Company's liquidity position remained strong at December 31, 2001, with $47.7 million in cash and revolver availability of $37.5 million.
"The results for the fourth quarter continue to be impacted by the current downturn in the heavy/medium truck market. However, our margins continue to improve and our liquidity is strong," said Bill Greubel, Accuride's President and CEO. "Despite a 22% decrease in revenue, our margins have increased by 290 basis points as we continue to aggressively work on cost and productivity programs throughout the Company. Our actions have positioned the Company for improved earnings upon the eventual industry rebound."
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 December 31,
2001 2000
---- ----
NET SALES $ 71,371 $ 91,077
COST OF GOODS SOLD 65,669 85,016
---------- ----------
GROSS PROFIT $ 5,702 $ 6,061
OPERATING EXPENSES:
Selling, General & Administrative 8,355 8,099
---------- ----------
INCOME (LOSS) FROM OPERATIONS (2,653) (2,038)
OTHER INCOME (EXPENSE):
Interest Income 118 376
Interest (Expense) (10,779) (9,069)
Equity in Earnings of Affiliates 32 98
Other Income (Expense), Net (1,826) 260
---------- ----------
INCOME (LOSS) BEFORE INCOME TAXES (15,108) (10,373)
INCOME TAX PROVISION (BENEFIT) (4,404) (2,213)
---------- ----------
INCOME (LOSS) BEFORE EXTRAORDINARY GAIN (10,704) (8,160)
EXTRAORDINARY GAIN, NET OF TAX -- 1,595
---------- ----------
NET INCOME (LOSS) $(10,704) $ (6,565)
---------- ----------
---------- ----------
Twelve Months Ended December 31,
2001 2000
---- ----
NET SALES $332,071 $475,804
COST OF GOODS SOLD 295,737 393,232
---------- ----------
GROSS PROFIT $ 36,334 $ 82,572
OPERATING EXPENSES:
Selling, General & Administrative 33,538 32,849
---------- ----------
INCOME (LOSS) FROM OPERATIONS 2,796 49,723
OTHER INCOME (EXPENSE):
Interest Income 1,362 1,824
Interest (Expense) (41,561) (40,566)
Equity in Earnings of Affiliates 250 455
Other Income (Expense), Net (9,837) (6,157)
---------- ----------
INCOME (LOSS) BEFORE INCOME TAXES (46,990) 5,279
INCOME TAX PROVISION (BENEFIT) (13,836) 4,361
---------- ----------
INCOME (LOSS) BEFORE EXTRAORDINARY GAIN (33,154) 918
EXTRAORDINARY GAIN, NET OF TAX -- 1,595
---------- ----------
NET INCOME (LOSS) $(33,154) $ 2,513
---------- ----------
---------- ----------
ACCURIDE CORPORATION
CONSOLIDATED EBITDA
(DOLLARS IN THOUSANDS)
(UNAUDITED)
Three Months Ended December 31,
-------------------------------
2001 2000
---- ----
INCOME (LOSS) FROM OPERATIONS $ (2,653) $ (2,038)
Depreciation and Amortization 11,344 7,208
Equity in Earnings of Affiliates 31 97
---------- ----------
EBITDA $ 8,722 $ 5,267
---------- ----------
---------- ----------
ADJUSTMENTS -- 3,179
---------- ----------
ADJUSTED EBITDA $ 8,722 $ 8,446
---------- ----------
---------- ----------
Twelve Months Ended December 31,
--------------------------------
2001 2000
---- ----
INCOME (LOSS) FROM OPERATIONS $ 2,796 $ 49,723
Depreciation and Amortization 33,416 29,989
Equity in Earnings of Affiliates 250 454
---------- ----------
EBITDA $ 36,462 $ 80,166
---------- ----------
---------- ----------
ADJUSTMENTS 4,516 9,179
---------- ----------
ADJUSTED EBITDA $ 40,978 $ 89,345
---------- ----------
---------- ----------
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.
Adjusted EBITDA for 2001 represents income from operations plus depreciation and amortization, net of $2.2 million in amortization of deferred financing costs, plus equity in earnings of affiliates, plus (i) $2.7 million of charges related to the closure of the Columbia, Tennessee, facility, (ii) $1.6 million of restructuring charges related to our other facilities, (iii) and $0.2 million for charges related to the Amended and Restated Credit Agreement entered into on July 27, 2001.