J.L. French Automotive Castings, Inc., Announces First-Quarter Results
MINNEAPOLIS--May 15, 2002--J.L. French Automotive Castings, Inc., today announced results for the first quarter of fiscal 2002 ended March 31, 2002. For the quarter, revenues were $134.7 million, a slight increase compared with $134.6 million in the 2001 period. Operating income was $12.2 million compared to $5.8 million, a 110 percent increase from last year. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased nearly 24 percent to $24.1 million from $19.5 million in the first quarter of 2001.In commenting on first-quarter results, David S. Hoyte, president and chief executive officer, said, "Despite relatively flat sales as compared to last year, we were able to post significantly improved operating earnings. The increase is the result of the continuing operating improvements at our Grandville, Mich., and Glasgow, Ky., facilities and the effects of our company-wide cost reduction programs."
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, 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) unanticipated difficulties servicing the level of indebtedness at the company, (ii) costs or operational difficulties related to integrating the operations of the acquired entities with those of the company being greater than expected; (iii) labor disputes involving the company or its significant customers, (iv) risks associated with conducting business in foreign countries, and (v) 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 March 31,
2002 2001
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Sales $ 134,714 $ 134,556
Cost of sales 114,553 118,143
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Gross profit 20,161 16,413
Selling, general and administrative
expenses 7,333 7,731
Amortization expense 616 2,862
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Operating income 12,212 5,820
Interest expense and other, net 11,954 14,180
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Income (loss) before provision (benefit)
for income taxes 258 (8,360)
Provision (benefit) for income taxes 363 (2,996)
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Net loss $ (105) $ (5,364)
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J.L. FRENCH AUTOMOTIVE CASTINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
March 31, December 31,
Assets 2002 2001
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(unaudited)
Current assets:
Cash and cash equivalents $ 1,047 $ 1,055
Accounts receivable, net 48,020 43,713
Inventories 27,029 31,079
Other current assets 18,991 17,497
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Total current assets 95,087 93,344
Property, plant and equipment, net 266,841 275,142
Intangible and other assets, net 330,269 332,423
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$ 692,197 $ 700,909
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Liabilities and Stockholders' Deficit
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Current liabilities:
Current maturities of long-term debt $ 48,242 $ 47,306
Accounts payable 55,982 61,678
Accrued liabilities 41,051 33,167
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Total current liabilities 145,275 142,151
Long-term debt, net of current maturities 320,781 328,935
Subordinated notes 175,000 175,000
Other noncurrent liabilities 19,439 21,519
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Total liabilities 660,495 667,605
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Redeemable common stock 60,000 60,000
Stockholders' deficit:
Common stock -- --
Additional paid-in capital 90,442 90,476
Accumulated deficit (107,600) (106,295)
Accumulated other comprehensive loss (11,140) (10,877)
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Total stockholders' deficit (28,298) (26,696)
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$ 692,197 $ 700,909
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