Hayes Lemmerz Autiomotive Reports Strong Operating Performance in Third Quarter
NORTHVILLE, Mich., Dec. 10, 2003 -- Hayes Lemmerz International, Inc. today reported financial results for the three months ended October 31, 2003. The Company said that earnings from operations totaled $13.9 million for the quarter, with gross profits remaining consistent in the three months ended October 31, 2003, as compared to the same period in 2002, despite the impact of increased depreciation expense and lower OEM production requirements.
"Our significant ongoing cost-cutting measures, along with improved productivity and plant rationalization programs, have produced improvements in operating efficiencies that have positioned us well in the marketplace," said James Yost, Vice President of Finance and Chief Financial Officer. Net sales for the three month period totaled $530.9 million, compared to $535.4 million for the comparable period in 2002. The Company reported a net loss of $10.0 million, or $0.33 per share, compared to net income of $3.7 million for the comparable three months in 2002.
The net loss for the quarter includes asset impairment losses of $19.6 million related to the write-down of certain building, machinery and equipment and production tooling at the Company's facilities in La Mirada, California, Gainesville, Georgia, and Wabash, Indiana.
Mr. Yost noted that liquidity continues to be strong with cash of $109.0 million, along with $77.5 million available on the Company's revolving credit agreement.
"We remain focused on pursuing the Company's goal of satisfying our customers and becoming the low-cost producer, with the best people in our industry," Mr. Yost concluded.
Hayes Lemmerz will host a telephone conference call to discuss the Company's 2003 second quarter financial results today, Wednesday, December 10, 2003, at 9:30 a.m. (ET). To participate by phone, please dial 10 minutes prior to the call: (800) 399.3882 from the United States and Canada; or (706) 634.4552 from outside the United States. Callers should ask to be connected to Hayes Lemmerz earnings conference call, Conference ID#3959172. The conference call will be accompanied by a slide presentation, which can be accessed through the Company's web site in the Investor Kit/ presentations section at http://www.hayes-lemmerz.com/investor_kit/html/presentations.html.
Hayes Lemmerz International, Inc. is a leading global supplier of automotive and commercial highway wheels, brakes, powertrain, suspension, structural and other lightweight components. The Company has 43 plants, 2 joint venture facilities and approximately 11,000 employees worldwide.
More information about Hayes Lemmerz International, Inc. is available at our website which is www.hayes-lemmerz.com.
HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Millions of dollars, except share amounts)
(Unaudited)
Successor Pre- Successor
decessor Predecessor
Three Three Five Nine
Months Months Months Four Months
Ended Ended Ended Months Ended
October October October Ended October
31, 31, 31, May 31, 31,
2003 2002 2003 2003 2002
Net sales $530.9 $535.4 $859.2 $689.8 $1,526.1
Cost of goods sold 461.6 464.7 760.5 611.3 1,372.1
Gross profit 69.3 70.7 98.7 78.5 154.0
Marketing, general and
administration 26.9 23.5 47.6 33.5 74.1
Engineering and product
development 6.2 5.1 10.4 8.1 15.6
Asset impairments and other
restructuring
charges 19.6 10.0 19.6 6.4 35.3
Other (income) expense, net 2.7 (1.8) 4.8 (1.9) (5.5)
Reorganization items - 7.0 - 45.0 34.9
Fresh start accounting
adjustments - - - (63.1) -
Earnings (loss) from
operations 13.9 26.9 16.3 50.5 (0.4)
Interest expense, net 16.6 19.0 24.7 22.7 53.7
Subsidiary preferred stock
dividends 0.2 - 0.3 - -
Income tax provision 6.1 3.0 8.7 60.3 0.6
Minority interest 1.0 1.2 1.8 1.2 2.7
Cumulative effect of change in
accounting
principle, net of tax of $0 - - - - (554.4)
Extraordinary gain on debt
discharge, net of tax $0 - - - 1,076.7 -
Net income (loss) $(10.0) $3.7 $(19.2) $1,043.0 $(611.8)
Basic and diluted net loss per
share $(0.33) $(0.64)
HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Millions of dollars,
except share amounts)
Successor Predecessor
October January
31, 31,
2003 2003
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $109.0 $66.1
Receivables 329.0 276.6
Inventories 180.5 176.6
Prepaid expenses and other 16.5 32.5
Total current assets 635.0 551.8
Property, plant and equipment, net 900.9 951.2
Goodwill 388.8 191.3
Intangible assets, net 226.5 102.6
Other assets 74.3 49.7
Total assets $2,225.5 $1,846.6
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
DIP Facility $ - $49.9
Bank borrowings and other notes 1.6 15.8
Current portion of long-term debt 11.6 40.1
Accounts payable and accrued liabilities 356.6 268.7
Total current liabilities 369.8 374.5
Long-term debt, net of current portion 748.8 61.9
Pension and other long-term liabilities 529.5 334.4
Series A Warrants and Series B Warrants 6.7 -
Redeemable preferred stock of subsidiary 10.3 -
Minority interest 14.5 16.4
Liabilities subject to compromise - 2,133.8
Commitments and contingencies
Total stockholders' equity (deficit) 545.9 (1,074.4)
Total liabilities and stockholders'
equity (deficit) $2,225.5 $1,846.6
HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Millions of dollars)
(Unaudited)
Successor Predecessor
Five Nine
Months Months
Ended Four Months Ended
October Ended October
31, May 31, 31,
2003 2003 2002
Cash provided by operating activities $54.5 $31.1 $43.9
Cash flows from investing activities:
Purchase of property, plant, equipment
and tooling (41.1) (26.3) (69.9)
Purchase of equipment previously leased - (23.6) -
Proceeds from sale of assets and
businesses 0.8 0.8 9.1
Purchase of businesses - - (7.2)
Cash used for investing activities (40.3) (49.1) (68.0)
Cash flows from financing activities:
Change in borrowings under DIP Facility - (49.9) 41.1
Repayment of note payable - (2.0) -
Changes in bank borrowings (11.9) (9.8) (20.1)
Proceeds from New Senior Notes, net of
discount and related fees - 242.8 -
Proceeds from New Term Loan, net of
related fees - 436.1 -
Prepetition Lenders' Payment amount - (477.3) -
Payment to holders of Old Senior Notes - (13.0) -
Repayment of long-term debt (74.0) - -
Repayment of New Term Loan (1.1) - -
Cash provided by (used for) financing
activities (87.0) 126.9 21.0
Effect of exchange rate changes on cash
and cash equivalents 2.7 4.1 3.3
Increase (decrease) in cash and cash
equivalents (70.1) 113.0 0.2
Cash and cash equivalents at beginning of
period 179.1 66.1 45.2
Cash and cash equivalents at end of
period $109.0 $179.1 $45.4
Supplemental data:
Cash paid for interest 10.3 5.8 $12.7
Cash paid for income taxes 15.5 2.9 $6.1