Accuride Corporation Reports First Quarter Results for 2002
EVANSVILLE, Ind.--May 10, 2002--Accuride Corporation today announced net sales of $77.8 million for the first quarter ended March 31, 2002. This compares to net sales of $90.9 million for the first quarter of 2001, a decrease of 14.4%. The decrease is largely due to the continuation of the cyclical downturn of the heavy/medium commercial vehicle market with builds down more than 22% from the prior year's first quarter.Adjusted EBITDA of $13.1 million for the first quarter ended March 31, 2002, is up from $10.0 million for the first quarter of 2001. The resulting EBITDA margin has increased to 16.9% of net sales from 11.0% of net sales in last year's first quarter. EBITDA for the quarter was adjusted by $1.0 million, $0.9 million of which is related to a reduction in the employee workforce.
The Company's liquidity position remained strong at March 31, 2002, with $31.7 million in cash and revolver availability of $27.5 million.
"Although industry builds remain soft, we continue to drive margin improvement in all operating units," said Terry Keating, Accuride's President and CEO. "We are heartened by the recent strength in class 8 net orders which along with our focus on continuous improvement should provide positive earnings momentum in the upcoming quarters."
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; 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 March 31,
2002 2001
-------- --------
NET SALES $ 77,804 $ 90,931
COST OF GOODS SOLD 65,646 81,985
-------- --------
GROSS PROFIT $ 12,158 $ 8,946
OPERATING EXPENSES:
Selling, General & Administrative 7,167 7,257
-------- --------
INCOME FROM OPERATIONS 4,991 1,689
OTHER INCOME (EXPENSE):
Interest Income 90 395
Interest (Expense) (10,014) (10,408)
Equity in Earnings of Affiliates 39 120
Other Income (Expense), Net 865 (3,015)
-------- --------
INCOME (LOSS) BEFORE INCOME TAXES (4,029) (11,219)
INCOME TAX PROVISION (BENEFIT) (655) (4,025)
-------- --------
NET INCOME (LOSS) $ (3,374) $ (7,194)
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ACCURIDE CORPORATION
CONSOLIDATED EBITDA
(DOLLARS IN THOUSANDS)
(UNAUDITED)
Three Months Ended March 31,
2002 2001
------- -------
INCOME (LOSS) FROM OPERATIONS $ 4,991 $ 1,689
Depreciation and Amortization 7,109 7,187
Equity in Earnings of Affiliates 39 120
------- -------
EBITDA $12,139 $ 8,996
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ADJUSTMENTS 987 993
------- -------
ADJUSTED EBITDA $13,126 $ 9,989
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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 2002 represents income from operations plus
depreciation plus equity in earnings of affiliates, plus (i) $0.9
million of costs related to a reduction in the employee workforce,
(ii) $0.1 million of costs related to other non-operational costs.
Adjusted EBITDA for 2001 represents income from operations plus
depreciation plus equity in earnings of affiliates, plus (i) $1.0
million of costs related to a reduction in the employee workforce.