DURA Automotive Reports Improved Fourth-Quarter and Full-Year Results
ROCHESTER HILLS, Mich.--Feb. 1, 20042, 2004--DURA Automotive Systems, Inc. :-- Fourth quarter adjusted income from continuing operations of $9.8 million, or $.52 per share exceeding the company's guidance of $.40 per share
-- Full-year adjusted income from continuing operations of $33.6 million, or $1.81 per share
-- Full-year adjusted net debt reduction of $39.8 million
DURA Automotive Systems, Inc. , today reported revenues of $627.2 million for the fourth quarter ended December 31, 2003, up 9 percent compared to $576.5 million recorded in the prior-year period. Including a loss of $2.9 million from discontinued operations and a pretax facility consolidation charge of $11.3 million, net loss for the quarter was $2.9 million, or $0.15 per diluted share, compared to a loss of $90.7 million, or $4.97 per diluted share, in the prior-year quarter. DURA's adjusted income from continuing operations for the quarter, which excludes facility consolidation charges and a loss on the early extinguishment of debt, totaled $9.8 million, or $0.52 per diluted share, compared to the company's previously announced guidance of $0.40 per diluted share.
"This was an extremely productive and rewarding first year," said Larry Denton, president and chief executive officer of DURA Automotive. "We have made significant progress in implementing our four point strategy. We have laid a solid foundation in 2003 to improve our organic growth and we have made strategic investments in new technologies and product offerings that will help us expand our business portfolio."
Revenue for the quarter as compared to the prior year was positively impacted by approximately $48.0 million due to the strengthening of foreign currencies versus the U.S. dollar and an additional $34.2 million for the effect of the Creation Group acquisition, which supplies the North American recreation and specialty vehicle markets. As anticipated, based on the company's previously disclosed forecast, revenue and operating income for the quarter were negatively affected by the run-out of the company's conventional window regulator business. Operating income totaled $24.2 million, a 23 percent decrease from $31.5 million in the fourth quarter of 2002.
The facility consolidation charge for the quarter relates to the continuation of the previously announced closure and consolidation of the Fulton, Ky., and Mt. Carroll, Ill., facilities. In addition, DURA is continuing to address its capacity utilization challenges in Europe and has recorded charges relating to actions taken at facilities in France and Spain.
"We will continue to aggressively execute our strategy to improve our asset utilization rates," Denton said. "This includes taking the necessary consolidation actions in order to enhance DURA's competitive position, grow sales and earnings, and improve shareholder value."
Full-Year Results
Revenues of $2.38 billion for the year ended 2003 compared to $2.36 billion in 2002. Operating income for the year ended 2003 decreased 26 percent to $127.0 million versus $172.6 million in 2002. Including the full-year impact of the discontinued operations of $2.8 million, facility consolidation charges of $9.3 million and one-time charges associated with the early extinguishment of debt of $2.9 million, net income was $22.3 million, or $1.20 per diluted share, compared to a prior year net loss of $288.7 million, or $14.48 per diluted share. DURA's adjusted income from continuing operations for the year, which excludes severance and facility consolidation charges and the early extinguishment of debt, totaled $33.6 million, or $1.81 per diluted share, compared to the company's previously announced guidance of $1.70 per diluted share. Strong cash flow generation for the year enabled the company to reduce net debt by $39.8 million before adjusting for the investment in the Creation Group and the impact of foreign exchange.
A conference call to review the fourth-quarter results is scheduled today at 10 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, February 19, 2004, by dialing (303) 590-3000, passcode 567490.
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 and specialty vehicle markets. 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.
Use of Non-GAAP Financial Information
In addition to the results reported in accordance with accounting principles generally accepted in the United States ("GAAP") included throughout this news release, the Company has provided information regarding "adjusted income from continuing operations" (a non-GAAP financial measure). Adjusted income from continuing operations represents income from continuing operations adjusted for severance charges, facility consolidation and other charges, net and loss on early extinguishment of debt, net. Management believes that adjusted income from continuing operations is useful to both management and investors in their analysis of the Company's ability to analyze operational performance. Adjusted income from continuing operations should not be considered in isolation or as a substitute for net income or other income statement data prepared in accordance with GAAP, or as a measure of profitability or liquidity. Also, adjusted income from continuing operations, as determined and presented by the Company, may not be comparable to related or similarly titled measures reported by other companies.
Forward-Looking Statements
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 Twelve Months Ended
December 31, December 31,
------------------- -----------------------
2003 2002 2003 2002
--------- --------- ----------- -----------
Revenues $627,161 $576,542 $2,380,794 $2,360,323
Cost of sales 551,395 498,450 2,089,243 2,035,021
--------- --------- ----------- -----------
Gross profit 75,766 78,092 291,551 325,302
Selling, general and
administrative expenses 40,130 33,021 154,935 135,571
Facility consolidation and
other charges 11,268 13,341 9,252 16,121
Amortization expense 158 232 370 989
--------- --------- ----------- -----------
Operating income 24,210 31,498 126,994 172,621
Interest expense, net 20,294 19,493 81,921 83,908
Loss on early
extinguishment of debt 2,852 - 2,852 5,520
--------- --------- ----------- -----------
Income from continuing
operations before
provision for income
taxes and minority
interest 1,064 12,005 42,221 83,193
Provision for income taxes 361 14,592 14,355 37,605
Minority interest -
dividends on trust
preferred securities, net 684 621 2,735 2,486
--------- --------- ----------- -----------
Income (loss) from
continuing operations 19 (3,208) 25,131 43,102
Loss from discontinued
operations, net (2,874) (87,457) (2,793) (126,581)
--------- --------- ----------- -----------
Income (loss) before
accounting change (2,855) (90,665) 22,338 (83,479)
Cumulative effect of
change in accounting, net - - - (205,192)
--------- --------- ----------- -----------
Net income (loss) $(2,855) $(90,665) $22,338 $(288,671)
========= ========= =========== ===========
Basic earnings (loss) per
share:
Income (loss) from
continuing operations $- $(0.18) $1.37 $2.39
Discontinued operations (0.16) (4.79) (0.15) (7.01)
Cumulative effect of
change in accounting - - - (11.36)
--------- --------- ----------- -----------
Net income (loss) $(0.16) $(4.97) $1.22 $(15.98)
========= ========= =========== ===========
Basic shares outstanding 18,369 18,241 18,313 18,062
========= ========= =========== ===========
Diluted earnings (loss)
per share:
Income (loss) from
continuing operations $- $(0.18) $1.35 $2.31
Discontinued operations (0.15) (4.79) (0.15) (6.41)
Cumulative effect of
change in accounting - - - (10.38)
--------- --------- ----------- -----------
Net income (loss) $(0.15) $(4.97) $1.20 $(14.48)
========= ========= =========== ===========
Diluted shares outstanding 18,768 18,241 18,563 19,759
========= ========= =========== ===========
Capital expenditures $21,456 $15,435 $67,673 $54,312
Depreciation $21,242 $15,876 $77,197 $68,332
DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
ADJUSTED INCOME FROM CONTINUING OPERATIONS
(Amounts in thousands, except per share amounts - unaudited)
Three Months Twelve Months
Ended Ended
December 31, December 31,
---------------- -----------------
2003 2002 2003 2002
------- -------- -------- --------
Income (loss) from continuing
operations $19 $(3,208) $25,131 $43,102
Facility consolidation and other
charges, net 7,938 11,575 3,681 13,243
Cost of sales - severance cost, net - - 2,884 -
Loss on early extinguishment of
debt, net 1,882 - 1,882 3,422
------- -------- -------- --------
Adjusted income from continuing
operations $9,839 $8,367 $33,578 $59,767
======= ======== ======== ========
Basic earnings per share:
Adjusted income from continuing
operations $0.54 $0.46 $1.83 $3.31
======= ======== ======== ========
Basic shares outstanding 18,369 18,241 18,313 18,062
======= ======== ======== ========
Diluted earnings per share:
Adjusted income from continuing
operations $0.52 $0.46 $1.81 $3.15
======= ======== ======== ========
Diluted shares outstanding 18,768 19,674 18,563 19,759
======= ======== ======== ========
DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
December 31, December 31,
Assets 2003 2002
------ ----------- -----------
Current assets:
Cash and cash equivalents $181,268 $143,237
Accounts receivable, net 274,345 245,615
Inventories 127,957 114,573
Current portion of derivative instruments 6,629 (a) 15,825 (a)
Other current assets 95,045 103,875
Current assets of discontinued operations - 32,041
----------- -----------
Total current assets 685,244 655,166
----------- -----------
Property, plant and equipment, net 488,363 444,479
Goodwill, net 859,022 774,983
Noncurrent portion of derivative
instruments 12,844 (a) 14,698 (a)
Deferred income taxes and other assets,
net 69,959 47,607
----------- -----------
$2,115,432 $1,936,933
=========== ===========
Liabilities and Stockholders' Investment
----------------------------------------
Current liabilities:
Accounts payable $243,995 $216,045
Accrued liabilities 187,501 193,973
Current maturities of long-term debt 5,738 7,154
Current liabilities of discontinued
operations - 25,931
----------- -----------
Total current liabilities 437,234 443,103
----------- -----------
Long-term debt, net of current maturities 159,121 162,422
Senior notes 400,000 350,000
Subordinated notes 578,505 556,632
Mandatorily redeemable convertible trust
preferred securities 55,250 -
Senior notes - derivative instrument
adjustment 19,473 (a) 30,523 (a)
Other noncurrent liabilities 135,262 134,201
Mandatorily redeemable convertible trust
preferred securities - 55,250
Stockholders' investment:
Common stock - Class A 168 165
Common stock - Class B 16 17
Additional paid-in capital 349,220 347,065
Treasury stock (2,452) (1,974)
Retained deficit (105,065) (127,403)
Accumulated other comprehensive income
(loss) 88,700 (13,068)
----------- -----------
Total stockholders' investment 330,587 204,802
----------- -----------
$2,115,432 $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 and
November 2003 Senior Notes offerings.