Tower Automotive Announces Operating Results for the First Quarter 2003
GRAND RAPIDS, Mich.--April 22, 2003--Tower Automotive, Inc. , today announced its operating results for the first quarter ended March 31, 2003.For the first quarter of 2003, revenues were $733 million, compared with $668 million in the 2002 period. Net income for the first quarter of 2003 was $12 million, or $0.21 per diluted share. Net income for the first quarter of 2002, adjusted for the restructuring and asset impairment charges, gain on sale and cumulative effect of change in accounting principle described below, was $12 million, or $0.25 per diluted share. Including the after-tax effect of these aforementioned items, net loss was $147 million for the first quarter of 2002, or a loss of $3.05 per diluted share.
In commenting on first quarter results, Dug Campbell, president and chief executive officer of Tower Automotive, said, "While sales were up compared to last year, softening in certain platform volumes tended to offset strong Dodge Ram, Ford Expedition and Cadillac CTS sales. Our focus for 2003 is to ensure the new Volvo, Nissan and GM launches are flawless, and at the same time implement swift countermeasures to mitigate the impact of any further reduction in customer production releases."
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), 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 and an after-tax impairment loss of $113 million (or a charge of $2.34 per diluted share) associated with the adoption of the requirements of Statement of Financial Accounting Standards No. 142, "Goodwill and Other Intangible Assets."
Accessing the Conference Call Website and PowerPoint Presentation - A conference call of the first quarter results is scheduled today at 10 a.m. ET. Individual investors may listen to the conference call and access a PowerPoint presentation over the Internet by logging onto www.companyboardroom.com and searching for Tower Automotive. Institutional investors may access the Webcast and presentation by logging onto www.streetevents.com.
Tower Automotive, Inc., is a global designer and producer of vehicle structural components and assemblies used by every major automotive original manufacturer, including Ford, DaimlerChrysler, GM, Honda, Toyota, Nissan, Fiat, Hyundai/Kia, BMW, and Volkswagen Group. Products include body structures and assemblies, lower vehicle frames and structures, chassis 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)
Three Months Ended
March 31,
--------------------
2003 2002
--------- ----------
Revenues $732,578 $668,107
Cost of sales 658,054 599,098
--------- ----------
Gross profit 74,524 69,009
Selling, general and administrative expenses 34,676 32,995
Restructuring and asset impairment charge -- 75,407
--------- ----------
Operating income (loss) 39,848 (39,393)
Interest expense, net 16,769 18,031
Other income -- (3,839)
--------- ----------
Income (loss) before provision for
income taxes 23,079 (53,585)
Provision (benefit) for income taxes 7,847 (18,756)
--------- ----------
Income (loss) before equity in earnings of
joint ventures and minority interest 15,232 (34,829)
Equity in earnings of joint ventures, net 644 4,385
Minority interest, net (4,304) (4,073)
--------- ----------
Income (loss) before cumulative effect of
change in accounting principle 11,572 (34,517)
Cumulative effect of change in accounting
principle -- (112,786)
--------- ----------
Net income (loss) $11,572 $(147,303)
========= ==========
Basic earnings (loss) per common share:
Income(loss) before cumulative effect of
change in accounting principle $ 0.21 $ (0.71)
Cumulative effect of change in accounting
principle -- (2.34)
--------- ----------
Net income (loss) $0.21 $(3.05)
========= ==========
Weighted average basic shares outstanding 56,194 48,253
========= ==========
Diluted earnings (loss) per common share:
Income (loss) before cumulative effect of
change in accounting principle $ 0.21 $ (0.71)
Cumulative effect of change in accounting
principle -- (2.34)
--------- ----------
Net income (loss) $0.21 $(3.05)
========= ==========
Weighted average diluted shares outstanding 56,210 48,253
========= ==========
TOWER AUTOMOTIVE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
March 31, December 31,
Assets 2003 2002
--------------------------------------------- ----------- ------------
(unaudited)
Current assets:
Cash and cash equivalents $18,772 $13,699
Accounts receivable 338,629 249,341
Inventories 116,635 133,074
Deferred income taxes, net 18,360 20,634
Prepaid tooling and other 111,414 100,433
----------- ------------
Total current assets 603,810 517,181
----------- ------------
Property, plant and equipment, net 1,046,819 1,073,619
Investments in joint ventures 258,970 260,898
Deferred income taxes 99,436 105,699
Goodwill, net 478,972 472,967
Other assets, net 160,978 127,521
----------- ------------
$2,648,985 $2,557,885
=========== ============
Liabilities and Stockholders' Investment
---------------------------------------------
Current liabilities:
Current maturities of long-term debt and
capital lease obligations $99,049 $ 120,470
Accounts payable 461,864 417,727
Accrued liabilities 269,728 284,450
----------- ------------
Total current liabilities 830,641 822,647
----------- ------------
Long-term debt, net of current maturities 602,536 535,220
Obligations under capital leases, net of
current maturities 32,582 29,731
Convertible subordinated notes 199,984 199,984
Other noncurrent liabilities 195,588 199,477
----------- ------------
Total noncurrent liabilities 1,030,690 964,412
----------- ------------
Mandatorily redeemable trust convertible
preferred securities 258,750 258,750
Stockholders' investment:
Preferred stock -- --
Common stock 660 659
Additional paid-in capital 683,384 683,072
Retained deficit (45,602) (57,174)
Deferred compensation plans (8,687) (10,746)
Accumulated other comprehensive loss (40,991) (43,875)
Treasury stock, at cost (59,860) (59,860)
----------- ------------
Total stockholders' investment 528,904 512,076
----------- ------------
$2,648,985 $2,557,885
=========== ============
TOWER AUTOMOTIVE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands - unaudited)
Three Months Ended
March 31,
--------------------
2003 2002
--------- ----------
OPERATING ACTIVITIES:
Net income (loss) $11,572 $(147,303)
Adjustments required to reconcile net income
(loss) to net cash provided by (used in)
operating activities -
Cumulative effect of change in accounting
principle -- 112,786
Restructuring and asset impairment charge -- 75,407
Depreciation 39,051 32,413
Deferred income tax provision (benefit) 8,274 (22,283)
Deferred compensation plans 366 815
Gain on sale of plant -- (3,839)
Equity in earnings of joint ventures, net (644) (4,385)
Change in working capital and other
operating items (57,396) (72,749)
--------- ----------
Net cash provided by (used in) operating
activities 1,223 (29,138)
--------- ----------
INVESTING ACTIVITIES:
Acquisitions, divestitures and investment in
joint ventures 3,232 (38,039)
Capital expenditures, net (41,200) (13,201)
--------- ----------
Net cash used in investing activities (37,968) (51,240)
--------- ----------
FINANCING ACTIVITIES:
Proceeds from borrowings 699,646 486,549
Repayments of debt (658,131) (414,612)
Net proceeds from issuance of stock 303 1,275
--------- ----------
Net cash provided by financing activities 41,818 73,212
--------- ----------
NET CHANGE IN CASH AND CASH EQUIVALENTS 5,073 (7,166)
CASH AND CASH EQUIVALENTS:
Beginning of period 13,699 21,767
--------- ----------
End of period $18,772 $14,601
========= ==========