Tower Automotive, Inc. Announces Q2 Reults
16 July 1997
Tower Automotive, Inc. Announces Increased Second-Quarter and Six-Month Results
MINNEAPOLIS, July 16 -- Tower Automotive, Inc.
, today announced increased revenues and operating income for the
second quarter and six months ended June 30, 1997. Operating results for
these periods reflect the Company's acquisitions of the Automotive Products
Company division (APC) of A.O. Smith Corporation , completed on
April 18, 1997, and Societa Industria Meccanica e Stampaggio S.p.A. (SIMES),
completed on May 9, 1997.
Revenues for the second quarter of 1997 were $327.3 million compared to
$96.5 million reported in the 1996 period, with approximately $196.0 million
of this increase resulting from the acquisitions of APC and SIMES. Operating
income of $28.6 million increased significantly versus $10.3 million reported
last year. Net income of $13.2 million, before the extraordinary loss on the
early extinguishment of debt, increased compared to $5.3 million last year.
Net income per share of 60 cents before the extraordinary loss, increased 36
percent compared to 44 cents in the comparable 1996 period. The Company also
reported an extraordinary loss on the early extinguishment of debt of $2.4
million, or 11 cents per share, as a result of the repayment of certain
indebtedness in April 1997.
For the six months ended June 30, 1997, revenues of $452.4 million
compared to $165.4 million in the year-ago period. Operating income of
$41.1 million increased $24.2 million compared with $16.9 million reported
last year. Net income of $19.9 million before the extraordinary loss, or
$1.08 per share, compared to $8.5 million, or 71 cents per share, in 1996.
In commenting on the results, Dugald Campbell, president and chief
executive officer of Tower Automotive, said, "The acquisitions of APC and
SIMES, which were completed during the second quarter, contributed
significantly to our financial results and represent important steps in
enhancing our ability to deliver structural modules to our customers on a
global basis. These acquisitions, combined with operating efficiencies at
many of our locations, resulted in a strong financial performance for the
quarter, despite the impact of work stoppages at certain of our customers."
The Company also announced its intention to raise $150,000,000 through
the issuance of convertible subordinated notes due 2004 pursuant to a Rule
144A private offering. The notes will be convertible, at the option of the
holder, into shares of common stock of the Company and will be noncallable for
three years. Neither the notes nor the common stock issuable upon the
conversion of the notes are being offered in a transaction that has registered
under the Securities Act of 1933 (the "Act") and may not be offered or sold in
the United States absent registration or an applicable exemption from the
registration requirements of the Act. The Company expects that such offering
will be completed by the end of July and will use the net proceeds therefrom
to reduce its bank indebtedness, which was incurred in connection with its
acquisitions of APC and SIMES.
Tower Automotive, Inc., produces a broad range of stamped and welded
assemblies for vehicle body structures and suspension systems for the
automotive manufacturers, including Ford, Chrysler, General Motors, Honda,
Toyota, Nissan, Mazda and Fiat. Products include body pillars, package trays,
control arms, engine cradles and full frame assemblies. The Company has its
operating headquarters in Grand Rapids, Mich., and a corporate office in
Minneapolis, Minn.
TOWER AUTOMOTIVE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in Thousands Except per Share Amounts - Unaudited)
Three Months Six Months
Ended June 30, Ended June 30,
1997 1996 1997 1996
Revenues $327,272 $96,521 $452,389 $165,442
Cost of sales 281,336 81,170 387,441 139,576
Gross profit 45,936 15,351 64,948 25,866
Selling, general and
administrative expenses15,362 4,569 21,174 8,083
Amortization expense 2,004 475 2,664 850
Operating income 28,570 10,307 41,110 16,933
Interest expense, net 6,605 1,465 7,953 2,773
Income before provision
for income taxes 21,965 8,842 33,157 14,160
Provision for income taxes 8,784 3,540 13,258 5,670
Net income before
extraordinary item 13,181 5,302 19,899 8,490
Extraordinary item - loss
on early extinguishment
of debt, net of
income taxes 2,434 - 2,434 -
Net income $10,747 $5,302 $17,465 $8,490
Income applicable to
common stockholders:
Before extraordinary
item $13,216 $5,340 $19,969 $8,572
Net income $10,782 $5,340 $17,535 $8,572
Income per common and common
equivalent share:
Before extraordinary item$0.60 $0.44 $1.08 $0.71
Extraordinary loss (0.11) - (0.13) -
Net income $0.49 $0.44 $0.95 $0.71
Weighted average
common and common
equivalent share 21,942 12,275 18,459 12,004
TOWER AUTOMOTIVE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands)
June 30, December 31,
Assets 1997 1996
(unaudited)
Current assets:
Cash and cash equivalents $34,599 $39,596
Accounts receivable 197,869 61,073
Inventories 74,921 21,864
Other current assets 109,123 14,433
Total current assets 416,512 136,966
Property, plant and
equipment, net 669,643 156,248
Restricted cash 11,130 10,833
Goodwill and other intangible
assets, net 366,268 94,560
$1,463,553 $398,607
Liabilities and Stockholders'
Investment
Current liabilities:
Current maturities of
long-term debt $722 $722
Accounts payable 156,038 32,280
Accrued liabilities 78,711 22,429
Total current liabilities 235,471 55,431
Long-term debt, net of
current maturities 600,338 113,460
Other noncurrent liabilities 142,526 47,839
Stockholders' investment:
Preferred stock -- --
Common stock 228 143
Warrants to acquire common stock2,000 2,000
Additional paid-in capital 422,474 136,759
Retained earnings 60,615 43,150
Subscriptions receivable (99) (175)
Total stockholders' investment485,218 181,877
$1,463,553 $398,607
SOURCE Tower Automotive, Inc.