DURA Automotive Reports First Quarter 2003 Results
ROCHESTER HILLS, Mich.--April 24, 2003--DURA Automotive Systems, Inc. , today reported revenues of $592.8 million for the quarter ended March 31, 2003, up 2 percent over the $583.9 million recorded in the prior-year period. DURA's adjusted income from continuing operations for the quarter, which excludes facility consolidation charges, totaled $10.3 million, or $0.56 per diluted share. Other highlights for the quarter include a net debt reduction of $34.7 million as the company continued to focus on cash management and the completion of the Mechanical Assemblies Europe divestiture.
Revenue for the quarter was positively impacted by approximately $40 million due to the strengthening of the Euro versus the U.S. Dollar. As expected based on the company's previously disclosed forecast, revenue and operating income were negatively impacted year-over-year due to the weakening of the automotive and recreation vehicle production volumes and the run-out of the company's conventional window regulator business. Operating income totaled $37.6 million, an 18 percent decrease versus $46.1 million in the first quarter of 2002. SG&A for the quarter came in at 6.5 percent of sales and in line with the company's previously disclosed forecast. The total loss from discontinued operations reported in the quarter was $1.0 million and the pretax charge from facility closures was $0.3 million. Including the $1.0 million loss from discontinued operations and the $0.3 million facility consolidation charge, net income for the quarter was $9.2 million or $0.50 per diluted share.
"I have now been here for a little over three months and I am even more excited about DURA's product offerings and opportunities for success," said Larry Denton, president and chief executive officer of DURA Automotive. "We continue to reduce our net debt level and a plan is in place to focus on organic growth and improved returns for our shareholders."
A conference call to review the first-quarter results is scheduled today at 11 a.m. ET. Interested participants may listen to the live conference call or replay over the Internet by logging onto the investor relations section of the company's Web site, www.duraauto.com. A recording of this call also will be available until 6 p.m. ET on Thursday, May 1, 2003, by dialing (303) 590-3000, passcode 533487.
About DURA Automotive Systems, Inc.
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 recreation 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 is headquartered in Rochester Hills, Mich. 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,
--------------------
2003 2002
--------- ----------
Revenues $592,805 $583,858
Cost of sales 516,376 504,426
--------- ----------
Gross profit 76,429 79,432
Selling, general and administrative expenses 38,535 33,015
Facility consolidation and other charges 266 -
Amortization expense 70 324
--------- ----------
Operating income 37,558 46,093
Interest expense, net 20,686 22,468
--------- ----------
Income from continuing operations before
provision for income taxes and minority
interest 16,872 23,625
Provision for income taxes 6,074 7,366
Minority interest - dividends on trust preferred
securities, net 663 642
--------- ----------
Income from continuing operations 10,135 15,617
Loss from discontinued operations, including gain
on disposal of $899 in 2003 (978) (4,393)
--------- ----------
Income before accounting change 9,157 11,224
Cumulative effect of change in accounting, net - (205,192)
--------- ----------
Net income (loss) $9,157 $(193,968)
========= ==========
Basic earnings (loss) per share:
Income (loss) from continuing operations $0.55 $0.88
Discontinued operations (0.05) (0.25)
Cumulative effect of change in accounting - (11.52)
--------- ----------
Net income (loss) $0.50 $(10.89)
========= ==========
Basic shares outstanding 18,259 17,814
========= ==========
Diluted earnings (loss) per share:
Income (loss) from continuing operations $0.55 $0.83
Discontinued operations (0.05) (0.22)
Cumulative effect of change in accounting - (10.52)
--------- ----------
Net income (loss) $0.50 $(9.91)
========= ==========
Diluted shares outstanding 19,658 19,499
========= ==========
Capital expenditures $9,231 $13,526
Depreciation $19,259 $17,070
DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
ADJUSTED INCOME FROM CONTINUING OPERATIONS
(Amounts in thousands, except per share amounts - unaudited)
Three Months Ended
March 31,
----------------------
2003 2002
--------- --------
Income from continuing operations 10,135 15,617
Facility consolidation and other charges, net 170 -
--------- --------
Adjusted income from continuing operations $10,305 $15,617
========= ========
Basic earnings per share:
Adjusted income from continuing operations $0.56 $0.88
========= ========
Basic shares outstanding 18,259 17,814
========= ========
Diluted earnings per share:
Adjusted income from continuing operations $0.56 $0.83
========= ========
Diluted shares outstanding 19,658 19,499
========= ========
DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
March 31, December 31,
Assets 2003 2002
------ ------------ --------------
(unaudited)
Current assets:
Cash and cash equivalents $178,053 $143,237
Accounts receivable, net 298,290 245,615
Inventories 114,370 114,573
Current portion of derivative
instruments 14,485 (a) 15,825 (a)
Other current assets 98,977 103,875
Current assets of discontinued
operations - 32,041
------------ --------------
Total current assets 704,175 655,166
------------ --------------
Property, plant and equipment, net 439,441 444,479
Goodwill, net 774,640 774,983
Noncurrent portion of derivative
instruments 19,489 (a) 14,698 (a)
Deferred income taxes and other
assets, net 46,973 47,607
------------ --------------
$1,984,718 $1,936,933
============ ==============
Liabilities and Stockholders' Investment
----------------------------------------
Current liabilities:
Accounts payable $255,557 $216,045
Accrued liabilities 219,164 193,973
Current maturities of long-term
debt 5,216 7,154
Current liabilities of discontinued
operations - 25,931
------------ --------------
Total current liabilities 479,937 443,103
------------ --------------
Long-term debt, net of current
maturities 162,271 162,422
Senior notes 350,000 350,000
Subordinated notes 558,857 556,632
Senior notes - derivative instrument
adjustment 33,974 (a) 30,523 (a)
Other noncurrent liabilities 134,498 134,201
Mandatorily redeemable convertible
trust preferred securities 55,250 55,250
------------ --------------
Stockholders' investment:
Common stock - Class A 165 165
Common stock - Class B 18 17
Additional paid-in capital 347,405 347,065
Treasury stock (2,142) (1,974)
Retained earnings (118,246) (127,403)
Accumulated other comprehensive
loss (17,269) (13,068)
------------ --------------
Total stockholders' investment 209,931 204,802
------------ --------------
$1,984,718 $1,936,933
============ ==============
(a) As required by SFAS 133, reflects fair value of interest rate swap
contracts entered into in connection with the April 2002 Senior Notes
offering.