DURA Automotive Reports Second Quarter 2004 Results
ROCHESTER HILLS, Mich.--July 29, 2004--DURA Automotive Systems, Inc. , today reported revenues of $658.8 million for the second quarter ended June 30, 2004, up 9 percent compared to $606.4 million in the prior-year period. Including a pretax facility consolidation charge of $11.6 million and a reduction in the year-to-date tax rate, net income for the quarter was $3.3 million, or $0.18 per diluted share, compared to $10.8 million, or $0.58 per diluted share, in the prior-year quarter. DURA's adjusted income from continuing operations for the quarter, which excludes facility consolidation charges, totaled $11.6 million, or $0.61 per diluted share, compared to $11.3 million, or $0.61 per diluted share, in the prior-year period."Our growth and rationalization initiatives progressed on target during the second quarter," said Larry Denton, president and chief executive officer of DURA Automotive. "We are confident that we have taken the appropriate steps to achieve our long-term organic growth goals, and we are experiencing early success in this endeavor. Our near-term focus is on mitigating the margin impact of increased raw material costs. We anticipate the second half of the year will be challenging given the continuation of these elevated material costs and the uncertainty of the North American production volumes in the third quarter of 2004."
Revenue for the quarter compared to the prior year increased by $23.3 million, due to the stronger foreign currencies versus the U.S. dollar and an additional $38.5 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 2004 quarter relates to the previously announced closure and consolidation of facilities in: Fulton, Ky.; Brookfield, Mo.; Pikeville, Tenn.; and Rockford, Il. In addition, DURA is continuing to address its capacity utilization challenges in Europe. As a result, the company has recorded charges relating to actions taken at two facilities in France and one in Germany. These consolidations are an integral part of DURA's initiatives to meet the competitive pressures of the automotive industry. The facility consolidation charge of $11.6 million for the quarter includes $6.7 million of asset impairment charges, $4.2 million of employee severance costs and $0.7 million of other closure costs.
A conference call to review the second-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, August 5, 2004, by dialing (303) 590-3000, passcode 581559.
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
DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share amounts - unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
-------- --------
2004 2003 2004 2003
---- ---- ---- ----
Revenues $658,815 $606,430 $1,293,378 $1,199,235
Cost of sales 582,132 528,172 1,140,030 1,044,548
--------- --------- ----------- -----------
Gross profit 76,683 78,258 153,348 154,687
Selling, general and
administrative
expenses 39,816 38,900 78,727 77,435
Facility
consolidation and
other charges 11,578 1,758 13,026 2,024
Amortization expense 115 71 231 141
--------- --------- ----------- -----------
Operating income 25,174 37,529 61,364 75,087
Interest expense, net 21,539 20,688 (a) 42,788 41,374 (a)
--------- --------- ----------- -----------
Income from
continuing
operations before
provision for
income taxes and
minority interest 3,635 16,841 18,576 33,713
Provision for income
taxes 307 6,049 5,387 12,123
Minority interest -
dividends on trust
preferred
securities, net - 663 (a) - 1,326 (a)
--------- --------- ----------- -----------
Income from
continuing
operations 3,328 10,129 13,189 20,264
Gain (loss) from
discontinued
operations, net 12 711 (681) (267)
--------- --------- ----------- -----------
Net income (loss) $3,340 $10,840 $12,508 $19,997
========= ========= =========== ===========
Basic earnings (loss)
per share:
Income (loss) from
continuing
operations $0.18 $0.55 $0.72 $1.11
Discontinued
operations - 0.04 (0.04) (0.02)
--------- --------- ----------- -----------
Net income (loss) $0.18 $0.59 $0.68 $1.09
========= ========= =========== ===========
Basic shares
outstanding 18,442 18,290 18,413 18,275
========= ========= =========== ===========
Diluted earnings
(loss) per share:
Income (loss) from
continuing
operations $0.18 $0.55 $0.70 $1.09
Discontinued
operations - 0.03 (0.04) (0.01)
--------- --------- ----------- -----------
Net income (loss) $0.18 $0.58 $0.66 $1.08
========= ========= =========== ===========
Diluted shares
outstanding 18,966 19,691 18,963 19,674
========= ========= =========== ===========
Capital expenditures $13,696 $10,631 $29,303 $19,862
Depreciation $21,177 $18,143 $43,208 $37,402
(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 Six Months Ended
June 30, June 30,
-------- --------
2004 2003 2004 2003
---- ---- ---- ----
Income from continuing
operations 3,328 10,129 13,189 20,264
Facility consolidation and
other charges, net 8,248 1,125 9,328 1,295
--------- --------- --------- ---------
Adjusted income from
continuing operations $11,576 $11,254 $22,517 $21,559
========= ========= ========= =========
Basic earnings per share:
Adjusted income from
continuing operations $0.63 $0.62 $1.22 $1.18
========= ========= ========= =========
Basic shares outstanding 18,442 18,290 18,413 18,275
========= ========= ========= =========
Diluted earnings per share:
Adjusted income from
continuing operations $0.61 $0.61 $1.18 $1.16
========= ========= ========= =========
Diluted shares outstanding 20,254 19,691 20,252 19,674
========= ========= ========= =========
DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
June 30, December 31,
Assets 2004 2003
------ ---- ----
(unaudited)
Current assets:
Cash and cash equivalents $134,444 $181,268
Accounts receivable, net 381,735 274,345
Inventories 128,298 127,957
Current portion of derivative instruments 7,547 6,629
Other current assets 79,371 95,045
------------ ------------
Total current assets 731,395 685,244
------------ ------------
Property, plant and equipment, net 461,417 488,363
Goodwill, net 859,973 859,022
Noncurrent portion of derivative instruments 2,114 12,844
Deferred income taxes and other assets, net 70,466 69,959
------------ ------------
$2,125,365 $2,115,432
============ ============
Liabilities and Stockholders' Investment
----------------------------------------
Current liabilities:
Accounts payable $253,126 $243,995
Accrued liabilities 219,479 187,501
Current maturities of long-term debt 2,786 5,738
------------ ------------
Total current liabilities 475,391 437,234
------------ ------------
Long-term debt, net of current maturities 152,118 159,121
Senior notes 400,000 400,000
Subordinated notes 574,929 578,505
Mandatorily redeemable convertible trust
preferred securities 55,250 55,250
Senior notes - derivative instrument
adjustment 9,661 19,473
Other noncurrent liabilities 121,441 135,262
Stockholders' investment:
Common stock - Class A 186 168
Common stock - Class B - 16
Additional paid-in capital 350,831 349,220
Treasury stock (2,539) (2,452)
Retained deficit (92,557) (105,065)
Accumulated other comprehensive income 80,654 88,700
------------ ------------
Total stockholders' investment 336,575 330,587
------------ ------------
$2,125,365 $2,115,432
============ ============