J.L. French Automotive Castings, Inc., Announces Fourth-Quarter and Year-End Results
MINNEAPOLIS--March 22, 2002--J.L. French Automotive Castings, Inc., today announced revenues and operating income for the quarter and year ended December 31, 2001. For the fourth quarter of 2001, revenues were $121.0 million, a decrease of $13.9 million compared with $134.9 million in the 2000 period. Operating income was $17.2 million compared to $5.5 million reported last year. Earnings before interest, taxes, depreciation and amortization (EBITDA) were $34.3 million for the fourth quarter of 2001 compared to $19.6 million in the same period last year. Net income for the fourth quarter of 2001 was $0.4 million versus a loss of $7.7 million in the comparable 2000 period.For the year ended December 31, 2001, revenues decreased 9.2 percent to $505.7 million from $557.0 million in 2000. Operating income was $49.3 million compared to $49.5 million reported last year. EBITDA for 2001 was $106.1 million compared to $98.0 million in 2000. Net loss in 2001 was $6.9 million, compared with a net loss of $9.5 million in 2000.
J.L. French Automotive Castings, Inc., is a leading global designer and manufacturer of highly engineered aluminum die cast automotive parts including oil pans, engine front covers and transmission cases. The company has manufacturing facilities in Sheboygan, Wis.; Grandville and Benton Harbor, Mich.; Glasgow, Ky.; San Andres de Echevarria, Spain; Saltillo, Mexico; as well as five plants in the United Kingdom. The company is based in Sheboygan, Wis., and has its corporate office in Minneapolis, Minn.
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 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.
J.L. FRENCH AUTOMOTIVE CASTINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands - unaudited)
Three Months Ended Year Ended
Dec. 31, Dec. 31,
2001 2000 2001 2000
-------- -------- -------- --------
Revenues $121,027 $134,882 $505,709 $557,002
Cost of sales 91,919 120,058 414,310 470,647
-------- -------- -------- --------
Gross profit 29,108 14,824 91,399 86,355
Selling, general and
administrative expenses 5,516 6,026 27,413 25,544
Amortization expense 6,370 3,312 14,735 11,289
-------- -------- -------- --------
Operating income 17,222 5,486 49,251 49,522
Interest expense, net 13,071 16,823 53,618 62,538
-------- -------- -------- --------
Income (loss) before provision
for income taxes, and
extraordinary item 4,151 (11,337) (4,367) (13,016)
Provision (benefit) for income
taxes 3,702 (3,620) 2,555 (3,542)
-------- -------- -------- --------
Net income (loss) $ 449 $ (7,717) $ (6,922) $ (9,474)
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J.L. FRENCH AUTOMOTIVE CASTINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
Dec. 31, Dec. 31,
Assets 2001 2000
------ -------- --------
Current assets:
Cash and cash equivalents $ 1,055 $ 6,053
Accounts receivable, net 43,713 78,314
Inventories 31,097 40,546
Other current assets 17,479 20,076
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Total current assets 93,344 144,989
Property, plant and equipment, net 275,142 283,346
Intangible and other assets, net 332,423 348,209
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$700,909 $776,544
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Liabilities and Stockholders' Investment
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Current liabilities:
Current maturities of long-term debt $ 47,306 $ 18,185
Accounts payable 61,678 94,728
Accrued liabilities 33,167 48,799
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Total current liabilities 142,151 161,712
Long-term debt, net of current maturities 328,935 362,706
Subordinated notes 175,000 175,000
Other noncurrent liabilities 21,519 24,795
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Redeemable common stock 60,000 60,000
Stockholders' investment (deficit):
Common stock -- --
Additional paid-in capital 90,476 90,877
Retained earnings (deficit) (106,295) (92,886)
Accumulated other comprehensive loss -
cumulative translation adjustment (10,877) (5,660)
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Total stockholders' investment (deficit) (26,696) (7,669)
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$ 700,909 $ 776,544
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