DURA Automotive Announces Revised First Quarter and Full-Year Guidance
ROCHESTER HILLS, Mich.--March 16, 2005--DURA Automotive Systems, Inc. , today revised its first quarter and full-year 2005 guidance. DURA is lowering its first quarter adjusted EBITDA guidance from a range of $45 to $48 million to a range of approximately $38 to $43 million, or a reduction in adjusted income from continuing operations guidance from a range of $0.05 to $0.15 per diluted share to a loss in the range of $0.10 to $0.35 per diluted share. DURA is also lowering its full-year guidance for adjusted EBITDA to a range of $185 to $195 million from approximately $210 million. A reconciliation of adjusted EBITDA and adjusted income from continuing operations to the most directly comparable GAAP measures is set forth on the following page.DURA's revised adjusted EBITDA guidance reflects a more significant than previously expected decline in North American light truck production; slower than expected OEM launches in key European programs; delays in the conclusion of certain key customer negotiations concerning steel and other raw material pricing; additional Sarbanes Oxley compliance expenses; and start-up issues at facilities which have recently taken on additional manufacturing responsibilities as a result of facility consolidation actions. Sales guidance remains unchanged, reductions in light truck volumes were offset by changes in foreign exchange.
"We are not satisfied with our results thus far this year and the outlook for the remainder of 2005," said Larry Denton, president and chief executive officer of DURA Automotive. "We will continue to work diligently to offset further escalating material costs, and will institute the following actions. We must conclude open steel and other raw material cost recovery negotiations with our customers within the next 45 days. Additional cost containment actions have been implemented to trim DURA's overhead and SG&A costs. Specifically, we will eliminate the 2005 management bonus plan, freeze salaried wages through the remainder of the year, and eliminate a performance-based 401k discretionary contribution. While these actions are difficult, we are committed to delivering our shareholders value under these more challenging conditions than previously expected."
DURA Automotive Systems, Inc., is a leading independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive and recreation & specialty vehicle industries. DURA sells its products to every major North American, Asian and European automotive 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
DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
ADJUSTED EBITDA GUIDANCE
ADJUSTED INCOME FROM CONTINUING OPERATIONS GUIDANCE
(Amounts in millions, except per share amounts - unaudited)
Three Months Twelve Months
Ended Ended
March 31, 2005 December 31, 2005
Range Range
----------------- ------------------
Low High Low High
--------- ------- --------- --------
Operating Income 16.9 21.9 96.8 106.8
Depreciation expense 20.2 20.2 82.1 82 .1
Amortization expense 0.1 0.1 0.4 0.4
Facility consolidation and other
charges 0.8 0.8 5.7 5.7
--------- ------- --------- --------
Adjusted EBITDA $38.0 $43.0 $185.0 $195.0
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Income from continuing operations $(7.6) $(2.6)
Facility consolidation and other
charges, net 0.8 0.8
--------- -------
Adjusted income from continuing
operations $( 6.8) $(1.8)
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Diluted earnings per share:
Adjusted income from continuing
operations $(0.35) $(0.10)
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Diluted shares outstanding 18.8 18.8
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