Accuride Corporation Reports Second Quarter Results for 2002
EVANSVILLE, Ind.--July 23, 2002--Accuride Corporation today announced net sales of $94.6 million for the second quarter ended June 30, 2002. This compares to net sales of $92.1 million for the second quarter of 2001, an increase of 2.7%. For the six months ended June 30, 2002, net sales were $172.4 million compared to net sales of $183.0 million for the same six-month period in 2001, a decrease of 5.8%.Adjusted EBITDA of $19.5 million for the second quarter ended June 30, 2002, is up from $12.3 million for the second quarter of 2001. The resulting adjusted EBITDA margin has increased to 20.6% of net sales from 13.3% of net sales in last year's second quarter. For the first six months of 2002, adjusted EBITDA increased by $10.4 million, or 46.7%, to reach $32.7 million. EBITDA for the quarter was adjusted by $0.9 million, of which $0.4 million was related to non-cash expenses associated with the recently resolved labor dispute at the Henderson, Kentucky, facility.
The Company's liquidity position remained strong at June 30, 2002, with $29.3 million in cash and revolver availability of $27.5 million.
"The performance of our manufacturing facilities continues to be strong," said Terry Keating, Accuride's President and CEO. "This performance along with our demonstrated flexibility will continue to serve us well as we deal with the Class 8 demand uncertainties related to the October 1, 2002 EPA emission compliance deadline."
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 June 30,
---------------------------
2002 2001
-------- --------
NET SALES $ 94,585 $ 92,056
COST OF GOODS SOLD 75,238 80,149
-------- --------
GROSS PROFIT $ 19,347 $ 11,907
OPERATING EXPENSES:
Selling, General & Administrative 7,138 10,220
-------- --------
INCOME FROM OPERATIONS 12,209 1,687
OTHER INCOME (EXPENSE):
Interest Income 34 623
Interest (Expense) (10,094) (9,805)
Equity in Earnings of Affiliates 66 70
Other Income (Expense), Net 1,688 2,417
-------- --------
INCOME (LOSS) BEFORE INCOME TAXES 3,903 (5,008)
INCOME TAX PROVISION (BENEFIT) 1,926 (57)
-------- --------
NET INCOME (LOSS) $ 1,977 $ (4,951)
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Six Months Ended June 30,
---------------------------
2002 2001
-------- --------
NET SALES $172,389 $182,987
COST OF GOODS SOLD 140,884 162,134
-------- --------
GROSS PROFIT $ 31,505 $ 20,853
OPERATING:
Selling, General & Administrative 14,305 17,477
-------- --------
INCOME FROM OPERATIONS 17,200 3,376
OTHER INCOME (EXPENSE):
Interest Income 124 1,018
Interest (Expense) (20,108) (20,213)
Equity in Earnings of Affiliates 105 190
Other Income (Expense), Net 2,553 (598)
-------- --------
INCOME (LOSS) BEFORE INCOME TAXES (126) (16,227)
INCOME TAX PROVISION (BENEFIT) 1,271 (4,082)
-------- --------
NET INCOME (LOSS) $ (1,397) $(12,145)
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ACCURIDE CORPORATION
CONSOLIDATED ADJUSTED EBITDA
(DOLLARS IN THOUSANDS)
(UNAUDITED)
Three Months Ended June 30,
---------------------------
2002 2001
-------- --------
INCOME (LOSS) FROM OPERATIONS $ 12,209 $ 1,687
Depreciation and Amortization 6,382 7,208
Equity in Earnings of Affiliates 66 70
-------- --------
EBITDA $ 18,657 $ 8,965
======== ========
ADJUSTMENTS 873 3,299
-------- --------
ADJUSTED EBITDA $ 19,530 $ 12,264
======== ========
Six Months Ended June 30,
---------------------------
2002 2001
-------- --------
INCOME (LOSS) FROM OPERATIONS $ 17,200 $ 3,376
Depreciation and Amortization 13,491 14,396
Equity in Earnings of Affiliates 105 190
-------- --------
EBITDA $ 30,796 $ 17,962
======== ========
ADJUSTMENTS 1,860 4,292
-------- --------
ADJUSTED EBITDA $ 32,656 $ 22,254
======== ========
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) $0.4 million of costs related to the consolidation of light wheel
production, (iii) $0.4 million of costs related to non-cash expenses
associated with the recently resolved labor dispute at the Henderson,
Kentucky, facility (iv) $0.2 million of costs related to other
non-recurring costs. Adjusted EBITDA for 2001 represents income from
operations plus depreciation plus equity in earnings of affiliates,
plus (i) $1.4 million of costs related to a reduction in the employee
workforce, (ii) $2.9 million of costs related to the restructuring of
light wheel production.