Dura Automotive Reports First-Quarter 2002 Results
ROCHESTER HILLS, Mich.--April 23, 2002--DURA Automotive Systems, Inc. , today reported financial results for the first quarter of 2002, which includes EPS of $0.61 per diluted share. This result is slightly better than the consensus estimate, which had increased from $0.41 to $0.60 per diluted share based on revised guidance provided by the company in March. Other highlights for the quarter include the reduction of debt by an additional $74.6 million and the completion of the Plastic Products Business divestiture.For the first quarter of 2002, DURA posted revenues of $616.2 million, down 6.9 percent from the $661.9 million reported in the first quarter of 2001. This revenue decline reflects the divestiture of the Plastic Products Business, weakness in the European automotive industry and unfavorable foreign exchange. Operating income for the quarter was $41.7 million and net income was $11.2 million, or $0.61 per diluted share. This compares with operating income of $47.3 million and net income of $10.8 million, or $0.60 per diluted share excluding one-time items, in the first quarter of 2001.
In the first quarter of 2002, DURA adopted Statement of Financial Accounting Standards No. 142, "Goodwill and Other Intangible Assets", and as a result no longer records amortization expense related to its goodwill. The first quarter of 2001 included an after-tax charge of $6.0 million related to goodwill amortization expense.
"We are very pleased with our performance in the first quarter. We are benefiting from continued operational improvements in Europe as well as stronger North American vehicle production than originally anticipated. In addition, we have successfully launched our first electric park brake during the quarter, which we are very excited about," said Karl Storrie, president and chief executive officer of DURA Automotive. "Also, we have once again been able to make improvements to our capital structure as we recently completed a $350 million bond offering. This offering has allowed us to pay down a significant piece of our bank debt allowing for additional flexibility within our credit agreement."
DURA Automotive Systems, Inc., is the world's largest independent designer and manufacturer of driver control systems and a leading global supplier of seating control systems, engineered assemblies, structural door modules and integrated glass systems 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. DURA sells its automotive products to every North American, Japanese and European original equipment manufacturer (OEM) and many leading Tier 1 automotive suppliers. DURA's operating headquarters is in Rochester Hills, Mich., and its corporate offices are 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 times frames; (ii) unanticipated difficulties servicing the indebtedness of 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 March 31,
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2002 2001
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Revenues $616,181 $661,853
Cost of sales 539,833 569,946
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Gross profit 76,348 91,907
Selling, general and
administrative expenses 34,267 37,633
Facility consolidation, product recall
and other charges -- 2,629
Amortization expense 396 6,999
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Operating income 41,685 44,646
Interest expense, net 22,546 28,533
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Income (loss) before provision for
income taxes, equity in losses of
affiliates and minority interest 19,139 16,113
Provision (benefit) for income taxes 7,273 6,284
Minority interest - dividends on trust
preferred securities, net 642 611
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Net income (loss) $11,224 $9,218
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Basic earnings (loss) per common share $0.63 $0.52
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Basic shares outstanding 17,814 17,715
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Diluted earnings (loss) per common share $0.61 $0.52
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Diluted shares outstanding 19,499 19,076
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Capital expenditures $14,036 $15,176
Depreciation $18,044 $16,696
DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
March 31, December 31,
Assets 2002 2001
------ ---- ----
Current assets:
Cash and cash equivalents $40,988 $32,289
Accounts receivable, net 311,099 293,476
Inventories 109,417 116,508
Other current assets 130,511 126,367
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Total current assets 592,015 568,640
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Property, plant and equipment, net 483,129 516,517
Goodwill, net 948,089 962,467
Deferred income taxes and other
assets, net 78,882 73,980
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$2,102,115 $2,121,604
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Liabilities and Stockholders' Investment
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Current liabilities:
Accounts payable $269,020 $249,824
Accrued liabilities 209,710 177,327
Current maturities of long-term
debt 67,901 60,847
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Total current liabilities 546,631 487,998
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Long-term debt, net of current
maturities 395,794 475,879
Subordinated notes 538,104 539,700
Other noncurrent liabilities 118,169 120,380
Mandatorily redeemable convertible
trust preferred securities 55,250 55,250
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Stockholders' investment:
Common stock - Class A 155 147
Common stock - Class B 25 31
Additional paid-in capital 343,627 342,694
Treasury stock (1,652) (1,891)
Retained earnings 172,492 161,268
Accumulated other comprehensive
loss (66,480) (59,852)
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Total stockholders' investment 448,167 442,397
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$2,102,115 $2,121,604