Safety Components International, Inc. Announces Q1 Results
14 August 1997
Safety Components International, Inc. Announces Fiscal 1998 First Quarter Results
COSTA MESA, Calif., Aug. 14 -- Safety Components
International, Inc., , one of the world's leading manufacturers
of automotive airbag fabric and cushions, today reported results for its first
quarter ended June 30, 1997. Sales for the first quarter increased to
$27,629,000 from $16,172,000 for the previous year's comparable quarter.
Safety Components reported net income of $1,435,000, or $0.29 per share, for
the quarter, compared to net income of $853,000, or $0.17 per share, for the
same period in the prior year. The first quarter included six weeks of revenue
contributions by recently acquired Valentec International Corporation. The
acquisition was immediately accretive to Safety Component's earnings.
Of particular note, earnings before interest, taxes, depreciation and
amortization (EBITDA) increased $2,239,000 to $4,022,000, or $0.80 per share,
for the first quarter of fiscal 1998, compared to $1,783,000, or $0.35 per
share, in the comparable 1997 quarter.
"These results are evidence of the significant progress achieved in our
core airbag component business," said Robert A. Zummo, Chairman, President and
Chief Executive Officer of Safety Components International. "Our purchase of
Valentec during the quarter should advance the company in two specific areas:
1) Safety Component's bottom line benefits from the economies of scale that
result from the integration of our airbag business, as Valentec is a supplier
of metal parts for our airbag operations, and 2) Valentec's expertise in metal
stamping affords us a significant opportunity to expand Safety Component's
product offerings to the airbag industry."
Subsequent to the close of the first quarter, Safety Components achieved a
number of significant accomplishments:
Strategic Acquisitions -- Safety Components has dramatically expanded
manufacturing capabilities through its recent acquisition of the Air Restraint
and Industrial Fabrics Division of JPS Automotive from Collins & Aikman
, (now operating as a wholly-owned subsidiary of Safety Components
under the name Safety Components Fabric Technologies, Inc.) This acquisition
is expected to add over $80 million to Safety Components' revenues on an
annualized basis.
Significant New Customers -- Together with its recently acquired fabric
division, the Company now counts among its customer base all major tier-one
suppliers in the automotive airbag industry, including TRW, Allied, Delphi and
AutoLiv (formerly Morton). Further, the company announced in the first quarter
that it's North American Automotive Division was awarded a $5 million contract
from AutoLiv to supply airbags for Model Year 1999.
Closed New Bond Financing -- Safety Components completed the acquisition
of Safety Components Fabric Technologies, Inc. division through a $90 million
144A bond financing, joint lead managed by Bankers Trust and Alex. Brown.
"Safety Components had a tremendous reception in a very crowded market,"
stated Jeffrey J. Kaplan, Executive Vice President and Chief Financial
Officer. "This is evidence of Bankers Trust/Alex. Brown's leading position in
the high-yield market and belief in management's efforts to grow our core
business, as the company emerges as a global, low-cost leader in the
industry."
"We are continuing to look for ways to increase revenues and to improve
manufacturing efficiencies by providing complementary products to new and
existing customers," continued Zummo. "Our past success in utilizing our
manufacturing expertise to develop new products has taught us to be innovative
and flexible as we seek opportunities for diversification."
This release contains forward-looking statements. There are certain
important factors that could cause results to materially differ from those
anticipated from the statements made above. These factors include, but are
not limited to: ability to realize anticipated cost savings and earnings
projections by Valentec, continued performance by the Air Restraint and
Industrial fabrics Division at or above historical levels, world-wide
automotive sales, automotive labor strikes or business interruptions,
fluctuations in world-wide economic conditions, dependence of revenues upon
several major module suppliers and pricing pressures. Additional information
on these and other factors that could potentially affect Safety Components
financial results may be found in Safety Components filings with the
Securities and Exchange Commission.
Safety Components International, Inc. is a leading, low-cost independent
supplier of automotive airbag fabric and cushions with operations in North
America, Europe and Asia. The Company is also a leading manufacturer of
value-added synthetic fabrics used in a variety of niche industrial and
commercial applications. In addition, Safety Components supplies metal airbag
components to its airbag customers utilizing its machining and stamping
capabilities gained from years as a military ordnance manufacturer and
continues as a systems integrator and manufacturer for ordnance programs.
Safety Components International, Inc.
Consolidated Statements of Operations
(in thousands, except share and per share data)
Three Months Ended
June 30,
1997 1996
Net sales $27,629 $16,172
Cost of sales, excluding depreciation 21,156 13,243
Depreciation 805 337
Gross profit 5,668 2,592
Selling and marketing expenses 288 302
General and administrative expenses 2,163 844
Amortization of goodwill 185 ---
Income from operations 3,032 1,446
Other expense (income), net 118 64
Interest expense 523 10
Income before income taxes 2,391 1,372
Provision for income taxes 956 519
Net income $1,435 $853
Net income per share $0.29 $0.17
Weighted average number of shares outstanding 5,021 5,069
EBITDA $4,022 $1,783
EBITDA per share $0.80 $0.35
http://www.safetycomponents.com
SOURCE Safety Components International, Inc.