DURA Automotive Reports First Quarter 2004 Results
ROCHESTER HILLS, Mich.--April 22, 2004--DURA Automotive Systems, Inc. , today reported revenues of $634.6 million for the first quarter ended March 31, 2004 compared to $592.8 million recorded in the prior-year period. Including a loss of $0.7 million from discontinued operations and a pretax facility consolidation charge of $1.4 million, net income for the quarter was $9.2 million, or $0.48 per diluted share, compared to $9.2 million, or $0.50 per diluted share, in the prior-year quarter. DURA's adjusted income from continuing operations for the quarter, which excludes facility consolidation charges, totaled $10.9 million, or $0.57 per diluted share, higher than the analysts' mean estimate as reported on First Call of $0.56 per diluted share."We are pleased with the first-quarter results," said Larry Denton, president and chief executive officer of DURA Automotive. "We are exceeding our objectives in manufacturing efficiencies, quality, new business awards and rationalizations. We continue to be optimistic about the growth opportunities before us."
Revenue for the quarter as compared to the prior year increased by $41.9 million due to the strengthening of foreign currencies versus the U.S. dollar and an additional $33.9 million for the effect of the Creation Group acquisition, which supplies the North American recreation and specialty vehicle markets.
The facility consolidation charge for the quarter relates to the continuation of the previously announced closure and consolidation of the Fulton, Ky., facility and recently announced closure of the Brookfield, Mo., and Pikeville, Tenn., facilities. In addition, DURA is continuing to address its capacity utilization challenges in Europe and has recorded charges relating to actions taken at two facilities in France.
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, April 29, 2004, by dialing (303) 590-3000, passcode 574785.
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 facility consolidation and other charges, 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.
DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share amounts - unaudited)
Three Months Ended
March 31,
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2004 2003
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Revenues $634,563 $592,805
Cost of sales 557,898 516,376
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Gross profit 76,665 76,429
Selling, general and administrative expenses 38,911 38,535
Facility consolidation and other charges 1,448 266
Amortization expense 116 70
--------- ---------
Operating income 36,190 37,558
Interest expense, net 21,249 (a) 20,686
--------- ---------
Income from continuing operations before
provision for income taxes and minority
interest 14,941 16,872
Provision for income taxes 5,080 6,074
Minority interest - dividends on trust preferred
securities, net -- (a) 663
--------- ---------
Income from continuing operations 9,861 10,135
Loss from discontinued operations, net (693) (978)
--------- ---------
Net income $9,168 $9,157
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Basic earnings per share:
Income from continuing operations $0.54 $0.55
Discontinued operations (0.04) (0.05)
--------- ---------
Net income $0.50 $0.50
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Basic shares outstanding 18,385 18,259
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Diluted earnings per share:
Income from continuing operations $0.52 $0.55
Discontinued operations (0.04) (0.05)
--------- ---------
Net income $0.48 $0.50
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Diluted shares outstanding 18,960 19,658
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Capital expenditures $15,607 $9,231
Depreciation $22,031 $19,259
(a) As required by FIN 46, minority interest - dividends on trust
preferred securities has been classified as a component of
interest expense on a gross basis for periods subsequent to
December 31, 2003.
DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
ADJUSTED INCOME FROM CONTINUING OPERATIONS
(Amounts in thousands, except per share amounts - unaudited)
Three Months Ended
March 31,
-------------------
2004 2003
--------- ---------
Income (loss) from continuing operations $9,861 $10,135
Facility consolidation and other charges, net 1,080 170
--------- ---------
Adjusted income from continuing operations $10,941 $10,305
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Basic earnings per share:
Adjusted income from continuing operations $0.60 $0.56
========= =========
Basic shares outstanding 18,385 18,259
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Diluted earnings per share:
Adjusted income from continuing operations $0.57 $0.56
========= =========
Diluted shares outstanding 20,249 19,658
========= =========
DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
March 31, December 31,
Assets 2004 2003
------ ------------ ------------
(unaudited)
Current assets:
Cash and cash equivalents $154,508 $181,268
Accounts receivable, net 352,638 274,345
Inventories 124,137 127,957
Current portion of derivative instruments 15,640 6,629
Other current assets 87,673 95,045
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Total current assets 734,596 685,244
------------ ------------
Property, plant and equipment, net 479,286 488,363
Goodwill, net 856,043 859,022
Noncurrent portion of derivative instruments 19,354 12,844
Deferred income taxes and other assets, net 71,807 69,959
------------ ------------
$2,161,086 $2,115,432
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Liabilities and Stockholders' Investment
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Current liabilities:
Accounts payable $258,012 $243,995
Accrued liabilities 224,863 187,501
Current maturities of long-term debt 4,902 5,738
------------ ------------
Total current liabilities 487,777 437,234
------------ ------------
Long-term debt, net of current maturities 156,721 159,121
Senior notes 400,000 400,000
Subordinated notes 574,363 578,505
Mandatorily redeemable convertible trust
preferred securities 55,250 55,250
Senior notes - derivative instrument
adjustment 34,994 19,473
Other noncurrent liabilities 121,684 135,262
Stockholders' investment:
Common stock - Class A 170 168
Common stock - Class B 15 16
Additional paid-in capital 350,500 349,220
Treasury stock (2,539) (2,452)
Retained deficit (95,898) (105,065)
Accumulated other comprehensive income 78,049 88,700
------------ ------------
Total stockholders' investment 330,297 330,587
------------ ------------
$2,161,086 $2,115,432
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