Collins & Aikman Reports Q2 1997 Sales
22 July 1997
Collins & Aikman Reports 37% Increase in Sales For Second Quarter 1997
CHARLOTTE, N.C., July 22 -- Collins & Aikman Corporation
announced today that its sales for continuing operations were
$416.0 million for the second quarter ended June 28, up 37 percent or
$113.2 million, over the comparable period of 1996. Operating profit was up
12 percent to $42.2 million from $37.8 million for the comparable 1996 period.
EBITDA for continuing operations for the second quarter of 1997 was
$56.0 million versus $46.2 million in the 1996 comparable period, a 21 percent
increase.
"Our solid second quarter was strengthened significantly by our newly
acquired companies -- JPS Automotive and Perstorp Components _- which together
contributed $109.1 million of revenues for the quarter," said Thomas Hannah,
Chief Executive Officer of Collins & Aikman. "We continue to be very pleased
with these acquisitions, along with the other strategic expansions we have
completed, as they have helped us solidify our automotive presence and extend
our international sales reach _- especially in Europe."
"We benefited in the second quarter from the breadth of our customer base,
and a strong _- although somewhat reduced -- North American auto build,"
Hannah said. "However, a lower build of certain models, the strikes at
General Motors and Chrysler, and some adverse trim level selections somewhat
dampened our results this quarter."
The Company estimated that the strikes at Chrysler and General Motors
impacted sales by approximately $17.0 million in the second quarter of 1997.
Net income for the second quarter was $14.8 million, or $.22 per share, up
5 percent, compared to the same 1996 period. Income from discontinued
operations totaled $3.9 million, or $.06 per share, down from $5.0 million, or
$.07 per share for the comparable 1996 period.
For the six months ended June 28, sales from continuing operations totaled
$831.6 million, up 48 percent or $271.1 million, over the comparable period
last year. Operating profit for continuing operations was up $21.8 million to
$82.2 million, a 36 percent increase over the first six months of 1996.
EBITDA for continuing operations for the first six months of 1997 was
$109.8 million, compared to $76.4 million for the first six months of 1996, a
44 percent increase. In the first six months of 1997, JPS Automotive reported
$120.1 million in sales and Perstorp reported $91.4 million in sales.
Net income for the six months ended June 28 was $112.2 million, or $1.66
per primary common share, which included a gain of $1.26 per share related to
the sale of the Company's Floorcoverings business. Net income for
discontinued operations for the six months ending June 28, was $4.8 million or
$.07 per share, compared to a loss of $17.1 million or $.25 per share for the
first six months of 1996.
Other Second Quarter Highlights
The Automotive Carpet and Acoustics Group's revenues increased by almost
86 percent for the second quarter as compared to the same period of 1996.
The carpet operations of Collins & Aikman's recently-acquired subsidiary,
JPS Automotive, contributed $41.0 million of the revenue increase for the
quarter. Acoustics products sales amounted to $47.0 million for the quarter,
43 percent of which were generated in Europe.
"With the year 2000 fast approaching, our recent acquisitions have helped
to prepare us for the next century of automobile interior trim requirements,"
said Hannah. "For example, we have recently booked new business on several
models where we will be supplying both the carpet and acoustics. This
demonstrates the benefits of our ability to deliver acoustical products and
carpet together, as a system."
The Company's Akro sales were up slightly from $36.4 million in the 1996
comparable period to $37.1 million in the second quarter of 1997, despite the
effects of the automotive strikes.
Sales of convertible top systems were off in the second quarter, due to a
slightly lower convertible build overall. For the balance of the year, the
Company expects convertible sales to continue to be below last year's
outstanding performance.
Manchester Plastics' revenues were up 69 percent compared to the second
quarter of 1996. The increase was driven by a strong book of business in the
second quarter of 1997.
This press release, other than historical financial information, contains
forward-looking statements that involve a number of risks and uncertainties.
Important factors that could cause actual results to vary materially from
those anticipated in the forward-looking statements are set forth in Collins &
Aikman's Securities and Exchange filings, including, without limitation, in
Items 1 and 7 of the Company's Transition Report on Form 10-K for the
transition period from January 28, 1996 to December 28, 1996.
Collins & Aikman Corporation is a global supplier of automotive interior
systems, including textile and plastic trim, acoustics and convertible top
systems. Headquartered in Charlotte, NC, the Company's recent acquisitions of
JPS Automotive and Perstorp Components significantly expanded Collins &
Aikman's product offering and international presence to include additional
operations in the U.S., Mexico, Spain, Canada, Sweden, Belgium, France and the
U.K. The Company employs more than 13,000 employees and operates 56
manufacturing facilities in 8 countries.
COLLINS & AIKMAN CORPORATION AND SUBSIDIARIES
Consolidated Statements Of Operations
(Unaudited)
(in thousands, except for per share data)
Quarter Ended Six Months Ended
June 28, June 22, June 28, June 22,
1997 1996 1997 1996
Net sales $ 416,018 $ 302,831 $ 831,578 $ 560,508
Cost of goods sold 343,829 242,455 689,144 453,545
Selling, general
and administrative
expenses 30,030 22,607 60,256 46,572
373,859 265,062 749,400 500,117
Operating income 42,159 37,769 82,178 60,391
Interest expense, net 19,305 8,827 38,084 16,886
Loss on sale of
receivables 1,562 1,218 2,763 2,584
Other expense (income) 501 672 972 (387)
Income from continuing
operations before
income taxes 20,791 27,052 40,359 41,308
Income tax expense
(benefit) 9,191 11,298 17,494 (132,852)
Income from continuing
operations 11,600 15,754 22,865 174,160
Income (loss) from
discontinued operations,
net of income taxes 3,881 4,980 4,802 (17,062)
Gain on sale of
discontinued operations,
net of income taxes -- -- 85,292 --
Income before
extraordinary loss 15,481 20,734 112,959 157,098
Extraordinary loss,
net of income taxes (721) (6,610) (721) (6,610)
Net income $ 14,760 $ 14,124 $ 112,238 $ 150,488
Net income per primary
common share:
Continuing operations $ .17 $ .22 $ .34 $ 2.49
Income (loss) from
discontinued operations .06 .07 .07 (.25)
Gain on sale of discontinued
operations -- -- 1.26 --
Extraordinary loss (.01) (.09) (.01) (.09)
Net income $ .22 $ .20 $ 1.66 $ 2.15
Net income per fully
diluted common share:
Continuing operations $ .17 $ .22 $ .34 $ 2.49
Income (loss) from
discontinued
operations .06 .07 .07 $ (.25)
Gain on sale of
discontinued operations -- -- 1.25 --
Extraordinary loss (.01) (.09) (.01) (.09)
Net income $ .22 $ .20 $ 1.65 $ 2.15
Average common
shares outstanding:
Primary 67,402 70,031 67,761 70,062
Fully diluted 67,421 70,031 67,912 70,062
EBITDA:
Continuing operations $ 55,971 $ 46,214 $ 109,801 $ 76,358
Mastercraft Group $ 13,521 $ 11,010 $ 22,626 $ 19,074
COLLINS & AIKMAN CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands)
(Unaudited)
June 28, December 28,
ASSETS 1997 1996
Current Assets:
Cash and cash equivalents $ 12,421 $ 14,314
Accounts and other
receivables, net 179,302 200,763
Inventories 126,345 121,971
Net assets of discontinued
operations 232,486 263,523
Other 124,297 128,762
Total current assets 674,851 729,333
Property, plant and equipment, net 350,028 351,282
Deferred tax assets 41,366 91,690
Goodwill, net 279,629 283,271
Other assets 79,674 74,713
$ 1,425,548 $ 1,530,289
LIABILITIES AND COMMON STOCKHOLDERS' DEFICIT
Current Liabilities:
Notes payable $ 1,643 $ 1,920
Current maturities of
long-term debt 51,632 37,565
Accounts payable 127,596 123,899
Accrued expenses 141,457 176,147
Total current liabilities 322,328 339,531
Long-term debt 944,460 1,138,029
Other, including postretirement
benefit obligation 258,701 247,307
Commitments and contingencies
Common stock (150,000 shares
authorized, 70,521 shares issued
and 66,101 shares outstanding at
June 28, 1997 and 70,521 shares
issued and 67,723 shares
outstanding at December 28, 1996) 705 705
Other paid-in capital 586,495 585,207
Accumulated deficit (618,945) (729,315)
Foreign currency translation
adjustments (23,779) (20,798)
Pension equity adjustment (10,165) (10,165)
Treasury stock, at cost (4,420
shares at June 28, 1997 and 2,798
shares at December 28, 1996) (34,252) (20,212)
Total common stockholders' deficit (99,941) (194,578)
$ 1,425,548 $ 1,530,289
COLLINS & AIKMAN CORPORATION AND SUBSIDIARIES
Consolidated Statements Of Cash Flows
(Unaudited)
(in thousands)
Quarter Ended Six Months Ended
June 28, June 22, June 28, June 22,
1997 1996 1997 1996
OPERATING ACTIVITIES
Income from continuing
operations $ 11,602 $ 15,754 $ 22,867 $ 174,160
Adjustments to derive cash
flow from continuing
operating activities:
Deferred income tax
expense (benefit) 3,240 6,158 6,784 (139,164)
Depreciation and
leasehold amortization 10,611 6,542 21,480 12,564
Amortization of
goodwill 1,613 1,032 3,457 1,936
Amortization of
other assets 1,562 1,706 3,443 3,228
Decrease (increase)
in accounts and other
receivables (19,829) (33,336) 6,288 (44,142)
Decrease (increase)
in inventories (3,783) 7,092 (4,374) 9,807
Increase in
accounts payable 7,400 2,430 7,642 11,746
Increase (decrease)
in interest payable (14,370) (2,093) (787) 1,392
Other, net (5,199) 9,886 (6,951) 2,964
Net cash provided by
(used in) continuing
operating
activities (7,153) 15,171 59,849 34,491
Cash provided by
Wallcoverings,
Floorcoverings,
Airbag and the
Mastercraft Group
discontinued
operations 5,049 4,108 5,886 10,469
Cash provided by (used in)
other discontinued
operations (1,027) (3,506) (4,728) 3,932
Net cash provided by
discontinued
operations 4,022 602 1,158 14,401
INVESTING ACTIVITIES
Additions to property,
plant and equipment (18,099) (20,851) (34,850) (44,348)
Sales of property, plant
and equipment 443 1,832 772 3,046
Proceeds from disposition
of discontinued
operations -- -- 195,600 --
Acquisition of businesses,
net of cash acquired -- (4,930) -- (188,029)
Proceeds from sale-leaseback
arrangement -- -- -- 7,404
Other, net (18,694) (3,342) (36,754) (4,919)
Net cash provided by
(used in) investing
activities (36,350) (27,291) 124,768 (226,846)
FINANCING ACTIVITIES
Issuance of long-term
debt -- 400,000 4,495 597,546
Repayment of long-term
debt (32,717) (269,055) (42,000) (277,020)
Proceeds from sales of a
participating interest in
accounts receivable, net
of redemptions 30,000 (18,000) 12,000 (24,000)
Net borrowings (repayments)
on revolving
credit facilities 35,000 (80,000) (144,000) (92,000)
Net repayments on
notes payable (231) (995) (180) (906)
Purchase of treasury stock (4,426) -- (16,237) (1,949)
Proceeds from exercise of
stock options 189 -- 328 266
Other, net (2,109) (17,104) (2,074) (17,170)
Net cash provided by
(used in) financing
activities 25,706 14,846 (187,668) 184,767
Net increase (decrease) in
cash and cash
equivalents (13,775) 3,328 (1,893) 6,813
Cash and cash equivalents
at beginning of period 26,196 4,446 14,314 961
Cash and cash equivalents
at end of period $ 12,421 $ 7,774 $ 12,421 $ 7,774
SOURCE Collins & Aikman Corporation