Noble International Announces First Quarter Results
WARREN, Mich., May 7, 2003 -- Noble International, Ltd. (the "Company") today confirmed previously announced revenue from continuing operations of $40.8 million and net income from continuing operations of $2.0 million or $0.25 per diluted share for the three months ended March 31, 2003.
Continuing Operations
Revenue from continuing operations for the three months ended March 31, 2003 increased 50% to $40.8 million from $27.3 million for the same period in 2002. The increase in revenue was primarily from the Company's automotive business and resulted from higher production volumes on certain vehicles, higher steel sales and sales from new product launches. Net income from continuing operations for the three months ended March 31, 2003 increased 46% to $2.0 million from $1.4 million in the first quarter of 2002. The increase in net income was primarily the result of the increased revenues as well as improvements in production efficiencies.
Included in the net income from continuing operations for the first quarter of 2003 is a restructuring charge of $0.4 million, net of tax, or $.05 per diluted share related to severance commitments for staff reductions from continuing operations. Excluding the restructuring charge, selling, general and administrative expenses were $2.8 million or 6.8% of net sales as compared to $2.2 million or 8.2% of net sales in the first quarter of 2002. Excluding the restructuring charge, operating profit for the quarter ending March 31, 2003, was $3.9 million or 9.5% of net sales as compared to $2.2 million or 8.1% of net sales in the first quarter of 2002. Net income from continuing operations before the restructuring charge was $2.5 million or 6% of net sales as compared to $1.4 million or 5.1% of net sales for the first quarter of 2002.
Commenting on the accomplishments and results of the quarter, Christopher L. Morin, President and Chief Operating Officer, stated, "As a management team, we are very excited about focusing on the growth and profitability of our core automotive business. Despite lower automotive industry production volumes, we continue to grow revenue as we launch new products and applications. We are pleased with our leading market position and prospects for winning new business."
Divestitures and Discontinued Operations
In the fourth quarter of 2002, the Company made the strategic decision to exit its non-core businesses and focus management's attention and resources on its core automotive operations. To that end, the Company successfully divested of its heavy equipment and logistics operations. In March 2003, the Company completed the sale of its logistics business for approximately $11.0 million in cash and notes. In addition, the Company expects to recapture taxes paid on capital gains and ordinary income from current and prior periods totaling approximately $7.2 million. The results of the operations of the logistics business during the first quarter and the loss on the sale of this segment are included in the loss on the sale of discontinued operations. While the Company has included in the loss from discontinued operations estimates for expenses to be paid post closing related to the sale of its logistics business, there may be some additional trailing expenses as the actual expenses are incurred over the next several months.
Over the last six months, the Company has reduced senior debt by 20%, net of approximately $8.0 million in capital expenditures invested primarily in the launch of new business.
Commenting further, Mr. Morin stated, "As we execute our strategy, an equally important focus for the Company over the next twelve months will be on generating cash from operations and reducing our debt levels while fulfilling our capital expenditure requirements relating to new business being launched this year."
In conjunction with the release of its operating results, Noble invites you to listen to its conference call which will be broadcast live over the Internet on Monday, May 12, 2003 at 9:00 a.m. Eastern Time with Christopher Morin.
What: Noble International, Ltd. First Quarter 2003 Conference Call
When: May 12, 2003 at 9:00 a.m. Eastern Time
Where: http://www.firstcallevents.com/service/ajwz381595878gf12.html
How: Live over the Internet - simply log on to the web at the address
above (questions will not be taken over the Internet).
If you are unable to listen during the live webcast, the call will be archived until May 16, 2003 at www.nobleintl.com . To access the replay, click on Investor Relations.
(Minimum requirements to listen to broadcast: The Windows Media Player software, downloadable free from http://www.microsoft.com/windows/windowsmedia/EN/default.asp and at least a 28.8 kbps connection to the Internet. If you experience problems listening to the broadcast, send an email to webcastsupport@tfprn.com.)
SAFE HARBOR STATEMENT
Noble International, Ltd. is a leading supplier of automotive parts, component assemblies and value-added services to the automotive industry. As an automotive supplier, Noble provides design, engineering, manufacturing, complete program management and other services to the automotive market. Noble delivers integrated component solutions, technological leadership and product innovation to original equipment manufacturers (OEMs) and Tier I automotive parts suppliers thereby helping its customers increase their productivity while controlling costs.
Certain statements made by Noble International, Ltd. in this release and other periodic oral and written statements, including filings with the Securities and Exchange Commission, are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, as well as statements which address operating performance, events or developments that we believe or expect to occur in the future, including those that discuss strategies, goals, outlook or other non- historical matters, or which relate to future sales or earnings expectations, cost savings, awarded sales, volume growth, earnings or a general belief in our expectations of future operating results, are forward-looking statements. The forward-looking statements are made on the basis of management's assumptions and estimations. As a result, there can be no guarantee or assurance that these assumptions and expectations will in fact occur. The forward-looking statements are subject to risks and uncertainties that may cause actual results to materially differ from those contained in the statements. Some, but not all of the risks, include our ability to obtain future sales; our ability to successfully integrate acquisitions; changes in worldwide economic and political conditions, including adverse effects from terrorism or related hostilities including increased costs, reduced production or other factors; costs related to legal and administrative matters; our ability to realize cost savings expected to offset price concessions; inefficiencies related to production and product launches that are greater than anticipated; changes in technology and technological risks; increased fuel costs; work stoppages and strikes at our facilities and that of our customers; the presence of downturns in customer markets where the Company's goods and services are sold; financial and business downturns of our customers or vendors; and other factors, uncertainties, challenges, and risks detailed in Noble's public filings with the Securities and Exchange Commission. Noble does not intend or undertake any obligation to update any forward-looking statements. For more information see www.nobleintl.com .
NOBLE INTERNATIONAL, LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited, in thousands, except per share data)
Three Months Ended
March 31,
2003 2002
Net sales 40,848 27,288
Cost of sales 34,174 22,831
Gross margin 6,674 4,457
Selling, general and administrative
expenses 3,428 2,243
Operating profit 3,246 2,214
Interest income 155 245
Interest expense (346) (276)
Other, net (2) (5)
Earnings from continuing operations
before income taxes 3,053 2,178
Income tax expense 1,018 779
Preferred stock dividends - 10
Earnings on common shares from
continuing operations 2,035 1,389
Discontinued operations:
Earnings (loss) from discontinued
operations (807) 221
Loss on sale of discontinued
operations (678) -
Net earnings on common shares $550 $1,610
Basic earnings per common share:
Earnings per share from continuing
operations $0.26 $0.21
Earnings (loss) from discontinued
operations (0.10) 0.03
Loss on sale of discontinued
operations (0.09) -
Basic earnings per common share $0.07 $0.24
Diluted earnings per common share
Earnings per share from continuing
operations $0.25 $0.19
Earnings (loss) from discontinued
operations (0.09) 0.03
Loss on sale of discontinued
operations (0.08) -
Diluted earnings per common share $0.08 $0.22
Dividends declared and paid $0.080 $0.080
Basic weighted average common shares
outstanding 7,722,877 6,729,905
Diluted weighted average common
shares outstanding 8,910,859 8,111,888
EBITDA - Continuing Operations $5,046 $3,831
NOBLE INTERNATIONAL, LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, December 31,
2003 2002
(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $1,156 $1,154
Accounts receivable, trade - net 30,924 22,992
Note receivable 5,375 -
Inventories 11,466 9,363
Deferred income taxes 6,949 6,217
Income taxes refundable 250 250
Prepaid expenses 3,168 2,555
Total Current Assets 59,288 42,531
Property, Plant & Equipment, net 49,361 47,762
Other Assets:
Goodwill, net 15,690 15,690
Covenants not to compete, net 333 383
Note receivable, long term 4,000 -
Other assets, net 10,374 10,487
Total Other Assets 30,397 26,560
Assets Held for Sale 1,084 13,098
Total Assets $140,130 $129,951
LIABILITIES & STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $24,287 $19,830
Accrued liabilities 7,774 5,685
Current maturities of long-term
debt 8,421 8,414
Income taxes payable 6 -
Total Current Liabilities 40,488 33,929
Long-Term Liabilities:
Deferred income taxes 2,015 2,006
Convertible subordinated debentures 16,037 16,037
Long-term debt, excluding current
maturities 39,300 33,234
Total Long-Term Liabilities 57,352 51,277
Liabilities Held for Sale - 2,684
Stockholders' Equity
Common stock 9 9
Additional paid-in capital 32,930 32,874
Retained earnings 9,686 9,755
Accumulated comprehensive loss, net (335) (577)
Total Stockholders' Equity 42,290 42,061
Total Liabilities & Stockholders'
Equity $140,130 $129,951
Audio: http://www.firstcallevents.com/service/ajwz381595878gf12.html