DURA Automotive Reports First Quarter 2005 Results
ROCHESTER HILLS, Mich.--April 28, 2005--DURA Automotive Systems, Inc. , today reported revenues of $620.0 million for the first quarter ended April 3, 2005, compared to $634.6 million in the prior-year quarter. Including a pretax facility consolidation charge of $1.7 million, the net loss for the quarter was $4.8 million, or $0.26 per diluted share, compared to net income of $9.2 million, or $0.48 per diluted share, in the prior-year quarter. DURA's adjusted loss from continuing operations for the quarter, which excludes facility consolidation charges, totaled $3.7 million, or $0.20 per diluted share, compared to income of $10.9 million, or $0.57 per diluted share, in the prior-year quarter."The automotive industry has been extremely challenging in recent months," said Larry Denton, president and chief executive officer of DURA Automotive. "Reduced production volumes, elevated raw material pricing and unfavorable platform mix have negatively impacted DURA's first-quarter results. We have taken swift actions to accelerate our cost reduction efforts and we are committed to meeting our financial targets for the year, while at the same time delivering on our future organic growth."
The decrease in first-quarter sales from the prior year was driven primarily by lower North American and European automotive production and unfavorable vehicle platform mix. Partially offsetting these decreases was the benefit received from foreign currency exchange. The decrease in first-quarter income from continuing operations from the prior year reflects the impact of lower automotive production, higher raw material prices and start-up issues at facilities which have recently taken on additional manufacturing responsibilities as a result of facility consolidation actions.
The facility consolidation charge for the quarter relates to headcount reductions associated with DURA's plan to migrate to one enterprise resource planning system and the continuation of the previously announced closure of plants in the U.S., France and Germany. The facility consolidation charge of $1.7 million for the quarter includes $1.0 million of employee severance costs and $0.7 million of facility closure and other charges.
2005 Second-Quarter and Full-Year Outlook
For the second quarter of 2005, the company expects revenue to be in the range of $600 million to $650 million compared to $659 million in the same period last year. Adjusted EBITDA, which excludes facility consolidation charges, is estimated to be in the range of $50 million to $55 million. A reconciliation of adjusted EBITDA to the most directly comparable GAAP measures is set forth below.
For the full year, DURA's 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 billion to $2.5 billion, versus $2.5 billion last year. Adjusted EBITDA is anticipated to be between $185 million and $195 million. Full-year capital spending is expected to be approximately $70 million, interest expense $100 million and depreciation $85 million. DURA expects net debt to increase by $10 million to $20 million for the year.
Conference Call
A conference call to review the first-quarter results is scheduled for April 28, 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, May 5, 2005, by dialing (303) 590-3000, passcode 11028895.
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.
DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share amounts - unaudited)
Three Months Ended
April 3, March 28,
2005 2004
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Revenues $619,979 $634,563
Cost of sales 559,398 557,898
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Gross profit 60,581 76,665
Selling, general and administrative expenses 42,173 38,911
Facility consolidation and other charges 1,666 1,448
Amortization expense 112 116
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Operating income 16,630 36,190
Interest expense, net 24,970 21,249
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Income (loss) from continuing operations
before provision for income taxes and
minority interest (8,340) 14,941
Provision (benefit) for income taxes (3,617) 5,080
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Income (loss) from continuing operations (4,723) 9,861
Gain (loss) from discontinued operations,
net (109) (693)
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Net income (loss) $(4,832) $9,168
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Basic earnings (loss) per share:
Income from continuing operations $(0.25) $0.54
Discontinued operations (0.01) (0.04)
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Net income (loss) $(0.26) $0.50
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Basic shares outstanding 18,662 18,385
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Diluted earnings (loss) per share:
Income from continuing operations $(0.25) $0.52
Discontinued operations (0.01) (0.04)
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Net income (loss) $(0.26) $0.48
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Diluted shares outstanding 18,662 18,960
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Capital expenditures $14,278 $15,607
Depreciation $20,435 $22,031
DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
ADJUSTED INCOME FROM CONTINUING OPERATIONS
(Amounts in thousands, except per share amounts - unaudited)
Three Months Ended
April 3, March 28,
2005 2004
------------ ------------
Income (loss) from continuing operations $(4,723) $9,861
Facility consolidation and other charges,
net 1,010 1,080
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Adjusted income (loss) from continuing
operations $(3,713) $10,941
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Basic earnings (loss) per share:
Adjusted income (loss) from continuing
operations $(0.20) $0.60
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Basic shares outstanding 18,662 18,385
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Diluted earnings (loss) per share:
Adjusted income (loss) from continuing
operations $(0.20) $0.57
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Diluted shares outstanding 18,662 20,249
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DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
ADJUSTED EBITDA GUIDANCE
(Amounts in millions, except per share amounts - unaudited)
Three Months Ended Twelve Months Ended
July 3, 2005 December 31, 2005
Range Range
------------------- -------------------
Low High Low High
--------- --------- --------- ---------
Operating Income 27.3 32.3 94.2 104.2
Depreciation expense 21.3 21.3 84.7 84.7
Amortization expense 0.1 0.1 0.4 0.4
Facility consolidation and
other charges 1.3 1.3 5.7 5.7
--------- --------- --------- ---------
Adjusted EBITDA $50.0 $55.0 $185.0 $195.0
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DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
April 3, December 31,
Assets 2005 2004
-------------------------------------------- ------------ ------------
Current assets:
Cash and cash equivalents $111,592 $191,568
Accounts receivable, net 320,426 273,956
Inventories 144,291 149,834
Current portion of derivative instruments 5,541 7,746
Other current assets 111,948 92,016
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Total current assets 693,798 715,120
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Property, plant and equipment, net 470,812 487,106
Goodwill, net 891,263 903,584
Noncurrent portion of derivative instruments 6,569 10,601
Deferred income taxes and other assets, net 97,433 107,510
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$2,159,875 $2,223,921
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Liabilities and Stockholders' Investment
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Current liabilities:
Accounts payable $271,059 $270,341
Accrued liabilities 204,165 187,254
Current maturities of long-term debt 2,516 2,968
------------ ------------
Total current liabilities 477,740 460,563
------------ ------------
Long-term debt, net of current maturities 115,763 150,898
Senior notes 400,000 400,000
Subordinated notes 583,691 589,469
Mandatorily redeemable convertible trust
preferred securities 55,250 55,250
Senior notes - derivative instrument
adjustment 12,110 18,347
Other noncurrent liabilities 133,125 141,903
Stockholders' investment:
Common stock - Class A 187 186
Additional paid-in capital 351,701 351,571
Treasury stock (2,127) (2,513)
Retained deficit (98,174) (93,342)
Accumulated other comprehensive income 130,609 151,589
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Total stockholders' investment 382,196 407,491
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$2,159,875 $2,223,921
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