DURA Automotive Reports Third Quarter 2004 Results
ROCHESTER HILLS, Mich.--Oct. 2, 20048, 2004--DURA Automotive Systems, Inc. , today reported revenues of $616.4 million for the third quarter ended September 30, 2004, compared to $554.4 million in the prior-year quarter. Including a pretax facility consolidation charge of $5.1 million, the net loss for the quarter was $2.7 million, or $0.15 per diluted share, compared to net income of $5.2 million, or $0.28 per diluted share, in the prior-year quarter. DURA's adjusted income from continuing operations for the quarter, which excludes facility consolidation charges, totaled $0.9 million, or $0.05 per diluted share, compared to $2.2 million, or $0.12 per diluted share, in the prior-year quarter. Net debt reduction for the quarter was $38.5 million."As we expected, this was a challenging quarter for the automotive industry with elevated steel pricing and softening North American production volumes. We identified these issues early on and managed our business aggressively to reduce the impact on our margins," said Larry Denton, president and chief executive officer of DURA Automotive. "While material pricing continues to be a challenge in the short-term, our organic growth remains on track."
Factors that favorably impacted revenue during the three months ended September 30, 2004, versus the prior year included the strengthening of European currencies in relation to the U.S. dollar of $22.9 million, the effect of the Creation Group acquisition of $13.7 million and the effect of five additional business days in the third quarter of 2004. These increases were partially offset by lower North American production levels.
The facility consolidation charge for the quarter relates to the continuation of the previously announced closure of plants in Fulton, Ky.; Brookfield, Mo.; Pikeville, Tenn.; and Rockford, Ill. In addition, DURA is continuing to address its capacity utilization challenges at facilities in France and Germany. The facility consolidation charge of $5.1 million for the quarter includes $4.6 million of employee severance costs and $0.5 million of asset impairment and other charges.
For the nine months ended September 30, 2004, revenue totaled $1.9 billion versus $1.8 billion in the prior-year period. Net income for the first nine months of 2004 was $9.8 million, or $0.52 per diluted share, compared to $25.2 million, or $1.36 per diluted share, in the same period last year. Adjusted income from continuing operations for the nine months, which excludes facility consolidation charges, totaled $23.4 million, or $1.24 per diluted share, compared to $23.7 million, or $1.28 per diluted share, in the prior-year period.
Fourth-Quarter and Full-Year Outlook
For the fourth quarter of 2004, the company expects revenue to be in the range of $600 million to $650 million compared to $627 million in the same period last year. Adjusted income from continuing operations, which excludes facility consolidation charges, is estimated to be in the range of $0.30 to $0.40 per diluted share.
For the 2004 full year, the company anticipates revenue will increase to a range of $2.51 billion to $2.56 billion, versus $2.38 billion last year. Adjusted income from continuing operations, which excludes facility consolidation charges, is anticipated to be between $1.55 and $1.65 per diluted share. Adjusted EBITDA is estimated to be in the range of $215 million to $218 million. Full-year capital spending is expected to be approximately $70 million, interest expense $89 million and depreciation $85 million. Net debt reduction is expected to be in the range of $10 million to $20 million. The full-year corporate tax rate is anticipated to remain around 29 percent.
Conference Call
A conference call to review the third-quarter results is scheduled for October 28, 2004, 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, November 4, 2004, by dialing (303) 590-3000, passcode 11010240.
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.
DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share amounts - unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
------------- -------------
2004 (a) 2003 2004 2003
---- ---- ---- ----
Revenues $616,363 $554,398 $1,909,742 $1,753,633
Cost of sales 552,459 493,300 1,692,490 1,537,848
--------- --------- ----------- -----------
Gross profit 63,904 61,098 217,252 215,785
Selling, general and
administrative
expenses 38,606 37,370 117,333 114,805
Facility consolidation
and other charges 5,061 (4,040) 18,087 (2,016)
Amortization expense 103 71 334 212
--------- --------- ----------- -----------
Operating income 20,134 27,697 81,498 102,784
Interest expense, net 23,907 20,253 (b) 66,695 61,627
--------- --------- ----------- -----------
Income from
continuing
operations before
provision for
income taxes and
minority interest (3,773) 7,444 14,803 41,157
Provision for income
taxes (1,094) 1,871 4,293 13,994
Minority interest -
dividends on trust
preferred securities,
net - 725 (b) - 2,051
Income from
continuing
operations (2,679) 4,848 10,510 25,112
Gain (loss) from
discontinued
operations, net (18) 348 (699) 81
--------- --------- ----------- -----------
Net income (loss) $(2,697) $5,196 $9,811 $25,193
========= ========= =========== ===========
Basic earnings (loss)
per share:
Income (loss) from
continuing
operations $(0.15) $0.26 $0.57 $1.38
Discontinued
operations - 0.02 (0.04) -
--------- --------- ----------- -----------
Net income (loss) $(0.15) $0.28 $0.53 $1.38
========= ========= =========== ===========
Basic shares
outstanding 18,578 18,335 18,468 18,295
========= ========= =========== ===========
Diluted earnings
(loss) per share:
Income (loss) from
continuing
operations $(0.15) $0.26 $0.56 $1.36
Discontinued
operations - 0.02 (0.04) -
--------- --------- ----------- -----------
Net income (loss) $(0.15) $0.28 $0.52 $1.36
========= ========= =========== ===========
Diluted shares
outstanding 18,578 18,711 18,881 18,494
========= ========= =========== ===========
Capital expenditures $14,660 $26,355 $43,963 $46,217
Depreciation $21,216 $18,553 $64,758 $55,955
(a) In conjunction with DURA's policy to close the fiscal quarter end
on the Sunday closest to the calendar quarter end and December 31 for
year end, there were five additional business days in the three months
ended October 3, 2004 as compared to the three months ended September
28, 2003. For presentation purposes, DURA refers to the calendar month
end as its fiscal quarter end.
(b) 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 Nine Months Ended
September 30, September 30,
------------- -------------
2004 2003 2004 2003
---- ---- ---- ----
Income from continuing
operations (2,679) 4,848 10,510 25,112
Facility consolidation and other
charges, net 3,590 (2,668) 12,918 (1,373)
--------- --------- --------- --------
Adjusted income from
continuing operations $911 $2,180 $23,428 $23,739
========= ========= ========= ========
Basic earnings per share:
Adjusted income from
continuing operations $0.05 $0.12 $1.27 $1.30
========= ========= ========= ========
Basic shares outstanding 18,578 18,335 18,468 18,295
========= ========= ========= ========
Diluted earnings per share:
Adjusted income from
continuing operations $0.05 $0.12 $1.24 $1.28
========= ========= ========= ========
Diluted shares outstanding 18,717 18,711 18,881 18,494
========= ========= ========= ========
DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
September 30, December 31,
Assets 2004 2003
------ ---- ----
(unaudited)
Current assets:
Cash and cash equivalents $174,935 $181,268
Accounts receivable, net 333,093 274,345
Inventories 138,694 127,957
Current portion of derivative instruments 10,987 6,629
Other current assets 81,968 95,045
------------- ------------
Total current assets 739,677 685,244
------------- ------------
Property, plant and equipment, net 460,261 488,363
Goodwill, net 866,725 859,022
Noncurrent portion of derivative
instruments 13,154 12,844
Deferred income taxes and other assets, net 69,521 69,959
------------- ------------
$2,149,338 $2,115,432
============= ============
Liabilities and Stockholders' Investment
----------------------------------------
Current liabilities:
Accounts payable $250,458 $243,995
Accrued liabilities 215,026 187,501
Current maturities of long-term debt 2,813 5,738
------------- ------------
Total current liabilities 468,297 437,234
------------- ------------
Long-term debt, net of current maturities 151,092 159,121
Senior notes 400,000 400,000
Subordinated notes 577,915 578,505
Mandatorily redeemable convertible trust
preferred securities 55,250 55,250
Senior notes - derivative instrument
adjustment 24,141 19,473
Other noncurrent liabilities 120,205 135,262
Stockholders' investment:
Common stock - Class A 186 168
Common stock - Class B - 16
Additional paid-in capital 351,167 349,220
Treasury stock (2,513) (2,452)
Accumulated deficit (95,254) (105,065)
Accumulated other comprehensive income 98,852 88,700
------------- ------------
Total stockholders' investment 352,438 330,587
------------- ------------
$2,149,338 $2,115,432
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