Tower Automotive Announces Operating Results for the First Quarter
GRAND RAPIDS, Mich.--April 16, 2002--Tower Automotive, Inc. , today announced its operating results for the first quarter ended March 31, 2002.For the first quarter of 2002, revenues were $668 million, compared with $628 million in the 2001 period. Net income for the first quarter of 2002, adjusted for the restructuring and impairment charges and gain on sale described below, was $12 million, or $0.25 per diluted share. Including the after-tax effect of these one-time items, the reported net loss was $35 million for the first quarter of 2002, or a loss of $0.72 per diluted share. This compares with reported net income of $13 million, or earnings of $0.28 per diluted share, in the first quarter of 2001.
The first quarter of 2002 included previously announced restructuring and asset impairment charges of $75 million (or a charge of $1.01 per diluted share after-tax) and a gain of $3.8 million (or income of $0.05 per diluted share after-tax) on the sale of its Iwahri, Korea plant to a Hyundai affiliate.
In the first quarter of 2002, the company also adopted the requirements of Statement of Financial Accounting Standards No. 142, "Goodwill and Other Intangible Assets", and as a result no longer records amortization expense of its goodwill. In the first quarter of 2001, net income of $13 million included an after-tax charge of $3.5 million related to goodwill amortization expense.
In commenting on first quarter results, Dug Campbell, president and chief executive officer of Tower Automotive, said, "We are encouraged by the improving performance of our enterprise and the solid production volumes that have materialized thus far in 2002. In particular, we are beginning to realize savings associated with our recent restructuring activities, and the efficiency of our recently launched assembly lines is showing expected improvement. In addition, we continue to retain our platform position on existing programs as well as win new program awards that further expand our business globally and improve our customer diversification."
The company's conference call to recap the earnings report will be Webcast at 1 p.m. Eastern Time today. To access the Webcast, go to www.streetevents.com, search for Tower Automotive on April 16, and click on the microphone icon. If you are unable to listen to the live Webcast, a postview archive will be available beginning at approximately 4 p.m. Eastern, Tuesday, April 16.
Tower Automotive, Inc., is a global designer and producer of vehicle structural components and assemblies used by every major automotive original equipment manufacturer, including Ford, DaimlerChrysler, GM, Honda, Toyota, Nissan, Fiat, Hyundai/Kia, BMW, and Volkswagen Group. Products include body structures and assemblies, lower vehicle structures, suspension modules and systems and suspension components. The company is based in Grand Rapids, Mich. Additional company information is available at www.towerautomotive.com.
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from the anticipated results as a consequence of certain risks and uncertainties, including but not limited to general economic conditions in the markets in which Tower Automotive operates, and other risks detailed from time to time in the company's Securities and Exchange Commission filings.
TOWER AUTOMOTIVE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share amounts - unaudited)
3 Months Ended March 31,
------------------------
2002 2001
--------- ---------
Revenues $668,107 $628,376
Cost of sales 599,098 549,105
--------- ---------
Gross profit 69,009 79,271
Selling, general and administrative
Expenses 32,907 35,299
Amortization expense 979 6,078
Restructuring and asset impairment charge 75,407 --
--------- ---------
Operating income (loss) (40,284) 37,894
Interest expense, net 17,140 19,722
Gain on sale of plant (3,839) --
--------- ---------
Income (loss) before provision for
income taxes, equity in earnings of
joint ventures and minority interest (53,585) 18,172
Provision (benefit) for income taxes (18,756) 7,028
--------- ---------
Income (loss) before equity in earnings of
joint ventures and minority interest (34,829) 11,144
Equity in earnings of joint ventures, net 4,385 4,381
Minority interest, net (4,073) (2,664)
--------- ---------
Net income (loss) $(34,517) $12,861
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Basic earnings (loss) per common share $(0.72) $ 0.29
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Basic shares outstanding 48,253 44,111
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Diluted earnings (loss) per common share $(0.72) $ 0.28
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Diluted shares outstanding 48,253 52,233
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TOWER AUTOMOTIVE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
March 31, Dec. 31,
Assets 2002 2001
--------------------------------------------- ----------- -----------
(unaudited)
Current assets:
Cash and cash equivalents $14,601 $21,767
Accounts receivable 287,888 216,638
Inventories 103,140 112,536
Prepaid tooling and other 109,789 89,229
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Total current assets 515,418 440,170
---------- ----------
Property, plant and equipment, net 1,041,063 1,120,259
Investments in joint ventures 247,191 243,198
Deferred income taxes 82,949 61,461
Goodwill and other assets, net 666,987 668,348
---------- ----------
$2,553,608 $2,533,436
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Liabilities and Stockholders' Investment
---------------------------------------------
Current liabilities:
Current maturities of long-term debt and
capital lease obligations $183,283 $172,083
Accounts payable 386,033 368,910
Accrued liabilities 264,439 278,962
---------- ----------
Total current liabilities 833,755 819,955
---------- ----------
Long-term debt, net of current maturities 644,477 601,084
Obligations under capital leases, net of
current maturities 3,905 4,620
Convertible subordinated notes 199,984 199,984
Other noncurrent liabilities 196,907 201,635
---------- ----------
Total noncurrent liabilities 1,045,273 1,007,323
---------- ----------
Mandatorily redeemable trust convertible
preferred securities 258,750 258,750
Stockholders' investment:
Preferred stock -- --
Common stock 485 481
Additional paid-in capital 457,426 456,627
Retained earnings 5,915 40,432
Deferred compensation plans (14,294) (15,571)
Accumulated other comprehensive loss (33,702) (34,561)
---------- ----------
Total stockholders' investment 415,830 447,408
---------- ----------
$2,553,608 $2,533,436
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TOWER AUTOMOTIVE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands - unaudited)
3 Months Ended March 31,
------------------------
2002 2001
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OPERATING ACTIVITIES:
Net income (loss) $(34,517) $12,861
Adjustments required to reconcile net income
(loss) to net cash provided by (used in)
operating activities -
Depreciation and amortization 33,392 39,074
Deferred income tax provision (benefit) (22,283) 5,492
Deferred compensation plans 815 --
Gain on sale of plant (3,839) --
Equity in earnings of joint ventures, net (4,385) (4,381)
Restructuring and asset impairment charge 75,407 --
Change in working capital and
other operating items (73,728) (22,984)
-------- --------
Net cash provided by (used in) operating
activities (29,138) 30,062
-------- --------
INVESTING ACTIVITIES:
Acquisitions, divestitures and investment in
joint ventures (38,039) (3,181)
Capital expenditures, net (13,201) (62,516)
-------- --------
Net cash used in investing activities (51,240) (65,697)
-------- --------
FINANCING ACTIVITIES:
Proceeds from borrowings 486,549 678,255
Repayments of debt (414,612) (646,627)
Net proceeds from issuance of stock 1,275 634
-------- --------
Net cash provided by financing activities 73,212 32,262
-------- --------
NET CHANGE IN CASH AND CASH EQUIVALENTS (7,166) (3,373)
CASH AND CASH EQUIVALENTS:
Beginning of period 21,767 3,373
-------- --------
End of period $14,601 $ --
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