AETNA industries inc. Reports Second Quarter Results
28 July 1997
AETNA industries inc. Reports Second Quarter Results
CENTER LINE, Mich., July 28 -- AETNA industries, inc.
announced financial results for the second quarter and six months ended June
29, 1997.
Net sales for the second quarter of 1997 were $48.7 million, or 20.1%
lower than second quarter 1996 sales of $61.0 million. Production sales of
$47.0 million in the second quarter of 1997 were down $12.0 million from $59.0
million in the second quarter of 1996, while tooling and prototype sales were
down $.3 million for the same period. Production sales were unfavorably
impacted by the five week Chrysler strike and the planned phase outs of two
General Motors programs: the cargo van floor pan and side rail assemblies and
the small truck door beam program during the second quarter of 1996.
Gross profit was $6.0 million, or 12.3% of net sales, for the second
quarter of 1997 compared to $9.8 million, or 16.0% of net sales, for the same
period in 1996. The decrease in gross profit from the prior year was due to
the five week Chrysler strike.
Selling, general and administrative expenses for the second quarter of
1997 were $4.0 million, or 8.1% of net sales, compared to $4.0 million, or
6.5% of net sales, for the same period in 1996. The increase, as a percentage
of sales, was due to decreased production sales volume and additional
engineering and quality assurance staff in support of new platforms and
factory assist quotations.
Net loss for the second quarter of 1997 was $0.4 million compared with net
income of $2.1 million for the second quarter of 1996. Net loss for the
second quarter of 1997 was negatively impacted by the Chrysler strike and
increased interest expense due to higher levels of debt outstanding, partially
offset by $1.9 million lower income tax expense.
EBITDA was $3.9 million for the second quarter of 1997, down $3.7 million
from the same period in 1996.
Capital expenditures for the second quarter of 1997 were $2.9 million as
compared to $2.1 million for the same period in the prior year. The major
capital project during this period has been the construction of Plant 10 which
will be used in the production of the new Jeep Grand Cherokee (WJ), for $1.7
million.
For the six months ended June 29, 1997, AETNA reported net sales of $103.8
million, down from the $114.9 million reported for the six months ended June
30, 1996. Production sales decreased $8.4 million while tooling sales
decreased $2.7 million. The decrease in production sales was principally due
to the five week Chrysler strike and the planned phase outs of two General
Motors programs: the cargo van floor pan and side rail assemblies and the
small truck door beam program during the second quarter of 1996.
Gross profit was $14.1 million, or 13.6% of net sales, for the six months
ended June 29, 1997 compared to $16.5 million, or 14.3% of net sales, for the
same period in 1996. The decrease in gross profit from the prior year was due
to the Chrysler strike, partially offset by an increase in tooling gross
margin and lower material costs due to outsourcing certain parts.
Selling, general and administrative expenses for the six months ended June
29, 1997 were $7.8 million, or 7.5% of net sales, compared to $7.4 million, or
6.4% of net sales, for the same period in 1996. As a percentage of sales, the
increase was due to the interruption of production sales during the Chrysler
strike and additional engineering and quality assurance staff in support of
new platforms and factory assist quotations.
Net income for the six months ended June 29, 1997 was $0.6 million
compared with $2.8 million for the same period in 1996. Net income for the
six months ended June 29, 1997 was negatively impacted by the Chrysler strike
and increased interest expense due to higher levels of debt outstanding,
partially offset by $1.7 million decreased income tax expense.
EBITDA was $10.0 million for the six months ended June 29, 1997, down $2.8
million from $12.8 million for the same period in 1996.
Capital expenditures for the six months ended June 29, 1997 were $5.9
million as compared to $2.7 million for the same period in 1996. The major
capital project during 1997 has been the construction of Plant 10 which will
be used in the production of the new Jeep Grand Cherokee (WJ).
As part of its growth strategy, the company continues to seek and review
acquisition candidates.
AETNA INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands)
Three Months Ended Six Months Ended
June 29, June 30, June 29, June 30,
1997 1996 1997 1996
Net sales $48,692 $60,951 $103,789 $114,944
Cost of sales 42,712 51,198 89,687 98,472
Selling, general
& administrative 3,963 3,961 7,792 7,371
Operating income 2,017 5,792 6,310 9,101
Interest expense, net 2,709 2,092 5,270 4,132
Income (loss) before
income taxes (692) 3,700 1,040 4,969
Income tax provision (252) 1,611 417 2,163
Net income (loss) $(440) $2,089 $623 $2,806
AETNA INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
June 29, December 29,
1997 1996
ASSETS
Current Assets
Cash $40 $4,011
Accounts receivable
(less allowance for doubtful
accounts of $333 and $510,
respectively) 44,025 32,753
Inventories, including tooling 8,391 10,348
Other current assets 1,000 969
Total current assets 53,456 48,081
Property, plant and
equipment, net 52,345 49,434
Deferred costs and other assets 5,899 5,769
Cost in excess of net assets
acquired 25,374 25,774
$137,074 $129,058
LIABILITIES AND STOCKHOLDER'S EQUITY
Current Liabilities
Accounts payable $31,881 $24,958
Accrued expenses 10,597 12,104
Current portion of
long-term debt 2,176
Total current liabilities 44,654 37,062
Long-term debt, less current
portion 85,000 85,000
Deferred income taxes 7,937 8,136
Stockholder's equity
Common stock - $.01 par value;
1,000 issued and outstanding
Contributed capital 9,024 9,024
Retained earnings
(accumulated deficit) (9,541) (10,164)
(517) (1,140)
$137,074 $129,058
SOURCE Aetna Industries, Inc.