Diamond Triumph Auto Glass, Inc. Announces First Quarter 2005 Results
KINGSTON, Pa., May 16, 2005 -- Diamond Triumph Auto Glass, Inc. announced today that net sales for the quarter ended March 31, 2005 increased $0.1 million, or 0.3%, to $53.5 million as compared to $53.4 million for the quarter ended March 31, 2004. Net income for the quarter ended March 31, 2005 increased by $0.9 million to $0.8 million of net income from $0.1 million of net loss for the quarter ended March 31, 2004. EBITDA for the quarter ended March 31, 2005 increased $1.1 million to $3.4 million from $2.3 million for the quarter ended March 31, 2004.
Diamond Triumph Auto Glass, Inc.
($'s in Millions)
Quarter Ended
March 31,
2005 2004
Net Sales $53.5 $53.4
Cost of Sales 14.6 15.2
Gross Profit 38.9 38.2
Operating Expenses 36.0 36.5
Income From Operations $2.9 $1.7
Net (Loss) Income $0.8 ($0.1)
EBITDA (1) $3.4 $2.3
Total Long-Term Debt $79.8 $81.2
Norm Harris, Diamond Triumph's Chief Executive Officer, had the following comments regarding the Company. "Despite relatively flat sales versus 2004, the Company was able to increase earnings by leveraging costs throughout the organization. Based on the uncertainty surrounding pricing within our industry, we must continue to explore further opportunities to become more efficient in all facets of our business."
Michael Sumsky, Diamond Triumph's President and Chief Financial Officer added, "In light of our sales performance, we are pleased that we were able to maintain positive cash flow during the first quarter. Our challenge is to broaden our revenue base to generate additional cash flow to allow us to de- lever the Company."
Diamond Triumph Auto Glass, Inc., headquartered in Kingston, PA, is a leading provider of automotive glass replacement and repair services. Diamond Triumph currently operates 242 company owned automotive glass service centers, approximately 1,000 mobile installation vehicles and five distribution centers in 44 states. For more information about Diamond Triumph, visit the website at http://www.diamondtriumph.com/.
(1) EBITDA represents earnings before interest, taxes, depreciation and
amortization. EBITDA is a measurement of Diamond Triumph's
performance that is not required by, or presented in accordance with,
GAAP. EBITDA is not a measurement of Diamond Triumph's financial
performance under GAAP and should not be considered an alternative to
net income, operating income or any other performance measures
derived in accordance with GAAP or as an alternative to cash flow
from operating activities as a measure of its liquidity.
Diamond Triumph presents EBITDA because it considers it an important
supplemental measure of its performance and believes it is frequently
used by securities analysts, investors and other interested parties
in the evaluation of companies in its industry, many of which present
EBITDA when reporting their results.
Diamond Triumph believes issuers of "high yield" securities also
present EBITDA because investors, analysts and rating agencies
consider it useful in measuring the ability of those issuers to meet
debt service obligations. Diamond Triumph believes EBITDA is an
appropriate supplemental measure of debt service capacity, because
cash expenditures on interest are, by definition, available to pay
interest, and tax expense is inversely correlated to interest expense
because tax expense goes down as deductible interest expense goes up;
depreciation and amortization are non-cash charges.
Diamond Triumph also uses EBITDA for the following purposes: (i) its
executives' compensation plans base incentive compensation payments
on its EBITDA performance measured against budgets; and (ii) its
credit agreement and its indenture for its Notes use EBITDA to
measure Diamond Triumph's compliance with covenants such as
additional debt incurrence. EBITDA has limitations as an analytical
tool, and should not be considered in isolation, or as a substitute
for analysis of Diamond Triumph's results as reported under GAAP.
Some of these limitations are:
-- EBITDA does not reflect Diamond Triumph's cash expenditures, or
future requirements, for capital expenditures or contractual
commitments;
-- EBITDA does not reflect changes in, or cash requirements for,
Diamond Triumph's working capital needs;
-- EBITDA does not reflect the significant interest expense, or the
cash requirements necessary to service interest or principal
payments, on Diamond Triumph's debt;
-- Although depreciation and amortization are non-cash charges, the
assets being depreciated and amortized will often have to be
replaced in the future, and EBITDA does not reflect any cash
requirements for such replacements; and
-- Other companies in Diamond Triumph's industry may calculate EBITDA
differently than Diamond Triumph does, limiting its usefulness as
a comparative measure.
Because of these limitations, EBITDA should not be considered as a
measure of discretionary cash available to Diamond Triumph to invest
in the growth of its business. Diamond Triumph compensates for these
limitations by relying primarily on its GAAP results and using EBITDA
only supplementally.
Reconciliation of EBITDA to net income follows for the periods
indicated:
Three Months Ended March 31,
2005 2004
(dollars in millions)
Net income (loss) $ 0.8 $ (0.1)
Interest expense 2.1 2.1
Depreciation and amortization 0.5 0.6
Provision (Benefit) for income taxes - (0.3)
EBITDA $ 3.4 $ 2.3