DURA Automotive Reports Fourth Quarter and Full-Year 2004 Results
ROCHESTER HILLS, Mich.--Feb. 1, 20050, 2005--DURA Automotive Systems, Inc. , today reported revenues of $582.8 million for the fourth quarter ended December 31, 2004, compared to $627.2 million in the prior-year quarter. Including a pretax facility consolidation charge of $3.7 million, the net income for the quarter was $1.9 million, or $0.10 per diluted share, compared to a net loss of $2.9 million, or $0.15 per diluted share, in the prior-year quarter. DURA's adjusted income from continuing operations for the quarter, which excludes facility consolidation charges, totaled $4.8 million, or $0.26 per diluted share, compared to $9.8 million, or $0.52 per diluted share, in the prior-year quarter. Net debt reduction for the quarter was $5.1 million."Industry conditions continued to be challenging in the fourth quarter due to raw material pricing and global automotive production levels," said Larry Denton, president and chief executive officer of DURA Automotive. "On a positive note, the RV industry had a record year in 2004 and from a longer-term perspective we have made significant progress in accelerating our organic growth."
The decrease in fourth quarter sales from the prior year was driven primarily by lower North American and European automotive production, unfavorable vehicle platform mix and the effect of three fewer business days in the fourth quarter of 2004. Partially offsetting these decreases was the benefit received from foreign currency exchange. The decrease in fourth quarter income from continuing operations from the prior year reflects the impact of lower automotive production and higher raw material prices.
The facility consolidation charge for the quarter relates to the continuation of the previously announced closure of plants in the U.S., France and Germany. The facility consolidation charge of $3.7 million for the quarter includes $1.3 million of employee severance costs and $2.4 million of asset impairment and other charges.
Full-Year Results
For the year ended December 31, 2004, revenue totaled $2.5 billion versus $2.4 billion in 2003. Net income for the year was $11.7 million, or $0.62 per diluted share, compared to $22.3 million, or $1.20 per diluted share, in 2003. Adjusted income from continuing operations for the year, which excludes facility consolidation charges, totaled $29.4 million, or $1.56 per diluted share, compared to $33.6 million, or $1.81 per diluted share, in the prior year. Net debt reduction for the year was $10.3 million.
2005 First-Quarter and Full-Year Outlook
For the first quarter of 2005, the company expects revenue to be in the range of $600 to $650 million compared to $635 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 $0.05 to $0.15 per diluted share and adjusted EBITDA is estimated to be in the range of $45 to $48 million.
For the full year, our automotive industry production planning assumptions are 15.6 million units for North America and 20.0 million units for Europe. Revenue is expected to be $2.4 to $2.5 billion, versus $2.5 billion last year. Adjusted income from continuing operations, which excludes facility consolidation charges, is anticipated to be between $1.35 and $1.50 per diluted share. Adjusted EBITDA is estimated to be approximately $210 million. Full-year capital spending is expected to be approximately $70 million, interest expense $95 million and depreciation $80 million. Net debt for the year is expected to be consistent with year-end 2004. The full-year corporate tax rate is anticipated to be around 26 percent.
"We expect 2005 to be a challenging year for the automotive industry and DURA," said Denton. "However, we remain focused on our long-term strategy to accelerate organic growth and increase shareholder value."
Conference Call
A conference call to review the fourth-quarter results is scheduled for February 10, 2005, 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, February 17, 2005, by dialing (303) 590-3000, passcode 11022950.
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" and "adjusted EBITDA" (non-GAAP financial measures). 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. Adjusted EBITDA represents income from continuing operations adjusted for severance charges, facility consolidation and other charges, loss on early extinguishment of debt, interest, amortization and taxes. Management believes that adjusted income from continuing operations and adjusted EBITDA are useful to both management and investors in their analysis of the Company's ability to analyze operational performance. Adjusted income from continuing operations and adjusted EBITDA 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 and adjusted EBITDA, 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,
------------------- -----------------------
2004 2003 2004 2003
--------- --------- ----------- -----------
Revenues $582,802 $627,161 $2,492,543 $2,380,794
Cost of sales 521,624 551,395 2,214,113 2,089,243
--------- --------- ----------- -----------
Gross profit 61,178 75,766 278,430 291,551
Selling, general and
administrative expenses 33,156 40,130 150,489 154,935
Facility consolidation and
other charges 3,730 11,268 21,817 9,252
Amortization expense 111 158 445 370
--------- --------- ----------- -----------
Operating income 24,181 24,210 105,679 126,994
Interest expense, net 22,840 20,294 89,535 81,921
Loss on early
extinguishment of debt - 2,852 - 2,852
--------- --------- ----------- -----------
Income from continuing
operations before
provision for income
taxes and minority
interest 1,341 1,064 16,144 42,221
Provision (benefit) for
income taxes (621) 361 3,672 14,355
Minority interest -
dividends on trust
preferred securities, net - 684 - 2,735
Income from continuing
operations 1,962 19 12,472 25,131
Gain (Loss) from
discontinued operations,
net (50) (2,874) (749) (2,793)
--------- --------- ----------- -----------
Net income (loss) $1,912 $(2,855) $11,723 $22,338
========= ========= =========== ===========
Basic earnings (loss) per
share:
Income from continuing
operations $0.10 $- $0.67 $1.37
Discontinued operations - (0.16) (0.04) (0.15)
--------- --------- ----------- -----------
Net income (loss) $0.10 $(0.16) $0.63 $1.22
========= ========= =========== ===========
Basic shares outstanding 18,626 18,369 18,508 18,313
========= ========= =========== ===========
Diluted earnings (loss)
per share:
Income from continuing
operations $0.10 $- $0.66 $1.35
Discontinued operations - (0.15) (0.04) (0.15)
--------- --------- ----------- -----------
Net income (loss) $0.10 $(0.15) $0.62 $1.20
========= ========= =========== ===========
Diluted shares outstanding 18,828 18,768 18,868 18,563
========= ========= =========== ===========
Capital expenditures $23,245 $21,456 $67,208 $67,673
Depreciation $18,519 $21,242 $82,943 $77,197
DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
ADJUSTED INCOME FROM CONTINUING OPERATIONS
(Amounts in thousands, except per share amounts - unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------- --------------------
2004 2003 2004 2003
--------- --------- ---------- ---------
Income from continuing
operations $1,962 $19 $12,472 $25,131
Facility consolidation and
other charges, net 2,876 7,938 16,951 3,681
Cost of sales - severance
cost, net - - - 2,884
Loss on early extinguishment
of debt, net - 1,882 - 1,882
--------- --------- ---------- ---------
Adjusted income from
continuing operations $4,838 $9,839 $29,423 $33,578
========= ========= ========== =========
Basic earnings per share:
Adjusted income from
continuing operations $0.26 $0.54 $1.59 $1.83
========= ========= ========== =========
Basic shares outstanding 18,626 18,369 18,508 18,313
========= ========= ========== =========
Diluted earnings per share:
Adjusted income from
continuing operations $0.26 $0.52 $1.56 $1.81
========= ========= ========== =========
Diluted shares outstanding 18,828 18,768 18,868 18,563
========= ========= ========== =========
DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
December 31, December 31,
Assets 2004 2003
------ ------------ ------------
Current assets:
Cash and cash equivalents $191,568 $181,268
Accounts receivable, net 273,956 274,345
Inventories 149,834 127,957
Current portion of derivative instruments 7,746 6,629
Other current assets 92,016 95,045
------------ ------------
Total current assets 715,120 685,244
------------ ------------
Property, plant and equipment, net 487,106 488,363
Goodwill, net 903,584 859,022
Noncurrent portion of derivative instruments 10,601 12,844
Deferred income taxes and other assets, net 107,510 69,959
------------ ------------
$2,223,921 $2,115,432
============ ============
Liabilities and Stockholders' Investment
----------------------------------------
Current liabilities:
Accounts payable $270,341 $243,995
Accrued liabilities 187,254 187,501
Current maturities of long-term debt 2,968 5,738
------------ ------------
Total current liabilities 460,563 437,234
------------ ------------
Long-term debt, net of current maturities 150,898 159,121
Senior notes 400,000 400,000
Subordinated notes 589,469 578,505
Mandatorily redeemable convertible trust
preferred securities 55,250 55,250
Senior notes - derivative instrument
adjustment 18,347 19,473
Other noncurrent liabilities 141,903 135,262
Stockholders' investment:
Common stock - Class A 186 168
Common stock - Class B - 16
Additional paid-in capital 351,571 349,220
Treasury stock (2,513) (2,452)
Retained deficit (93,342) (105,065)
Accumulated other comprehensive income 151,589 88,700
------------ ------------
Total stockholders' investment 407,491 330,587
------------ ------------
$2,223,921 $2,115,432
============ ============