Autocam Reports First Quarter Results
21 October 1997
Autocam Reports First Quarter Results
KENTWOOD, Mich., Oct. 21 -- Autocam Corporation
today reported its operating results for the quarter ended
September 30, 1997. The Kentwood, Michigan-based manufacturer of precision-
machined parts reported net income of $1,135,523, or 20 cents per share, on
sales of $17,429,456, versus net income of $1,403,795, or 24 cents per share,
on sales of $14,647,819 for the first fiscal quarter of 1997.
"The addition of new braking systems business through the June 1997
acquisition of The Hamilton Group drove sales growth during the quarter,"
Autocam President John C. Kennedy said. "However, we did not expect to match
last year's earnings because of a significant reduction in the shipment of our
mature fuel systems components due to the lingering effects of customer
strikes and longer than expected Summer model changeover shutdowns."
Sales of fuel systems components declined 5% for the first quarter ended
September 30, 1997 as compared to the same period in fiscal 1997. "The
seasonal decline in sales to our largest customer has been partially offset by
continued growth in orders from other fuel systems customers, including diesel
fuel injector manufacturers," Kennedy said. Sales to those customers
increased by nearly $900,000, or 24% when comparing the three months ended
September 30, 1997 to the same period in 1996.
The acquisition of The Hamilton Group added $2.9 million in sales of
braking systems components during the quarter ended September 30 versus the
same period in fiscal 1997. "The integration of The Hamilton Group companies
is progressing well," Kennedy said. "Our customer base has welcomed the
purchase, and the financial performance of these facilities equaled our
expectations during the first three months."
The Company reported modest gains in sales of medical device and computer
electronics components between the two quarters. The Company continues to
experience growth in shipments to companies developing coronary implants,
commonly known as stents. It has also launched production of a key component
used in computer microprocessor subassemblies. Kennedy indicated that both of
these product lines should experience significant growth throughout fiscal
1998.
Kennedy indicated that the Company expects to post second quarter earnings
that will be significantly better than those from one year ago. "As our fuel
systems and computer electronics component sales improve, and we further
integrate the companies of the Hamilton acquisition and streamline their
manufacturing processes, we expect comparatively positive financial results
next quarter," he said.
Operating cash flows for the three months ended September 30, 1997 were
$4.3 million. Such funds were used primarily to purchase equipment for new
fuel system, computer electronics and medical device programs and reduce debt
obligations. The Company expects to purchase $12 million in equipment and
invest $2 million in facilities in the last three quarters of fiscal 1998 in
order to meet new customer demands.
The Company announced that, for the sixth consecutive year, it will issue
a 5% share dividend on November 17, 1997 to shareholders of record on
November 3, 1997.
The Company also announced that it will pay its regular quarterly cash
dividend of 2 cents per common share (on a pre-share dividend basis) on
November 17, 1997 to shareholders of record on November 3, 1997.
The Company also announced the addition of Mark J. Bissell to its Board of
Directors. Mr. Bissell is President and Chief Executive Officer of BISSELL
Inc., a manufacturer of floor care cleaning products. "Mark brings
significant manufacturing and marketing experience to our Board. His
knowledge of and insights into international business matters will be
invaluable as we expand into markets outside the United States," Kennedy said.
This release contains forward-looking statements relating to future
financial results. Actual results may differ materially as a result of
factors over which the Company has no control. These risk factors and
additional information are included in the Company's reports on Form 10-K on
file with the Securities and Exchange Commission.
Autocam manufactures precision-machined parts used in automotive fuel and
braking systems, automotive electric motor assemblies, medical devices, and
computer electronics. Autocam's common stock trades on the Nasdaq National
Market under the symbol "ACAM". For more information on the Company, visit
our Internet website at http://www.autocam.com.
AUTOCAM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended
September 30,
1997 1996
$$ % $$ %
Sales $17,429,456 100.0% $14,647,819 100.0%
Cost of sales 14,015,745 80.4% 11,317,214 77.3%
Gross profit 3,413,711 19.6% 3,330,605 22.7%
Selling, general
and administrative 1,000,698 5.7% 796,035 5.4%
Other operating
expenses 51,875 0.3% 51,875 0.4%
Income from operations 2,361,138 13.5% 2,482,695 16.9%
Interest and other
expense, net 607,815 3.5% 326,761 2.2%
Income before tax
provision 1,753,323 10.1% 2,155,934 14.7%
Tax provision 617,800 3.5% 752,139 5.1%
Net income $1,135,523 6.5% $1,403,795 9.6%
Net income per share $0.20 $0.24
Weighted average shares
outstanding 5,818,679 5,755,394
CONSOLIDATED CONDENSED BALANCE SHEETS
September 30, June 30,
1997 1996
Assets:
Cash and equivalents $486,897 $2,510,500
Accounts receivable 8,080,850 8,841,516
Inventories 5,396,663 5,444,420
Other current assets 945,750 722,020
Total current assets 14,910,160 17,518,456
Fixed assets, net 55,062,931 53,291,418
Goodwill and other
intangible assets 6,271,136 6,443,364
Other long-term assets 6,759,037 6,384,590
Total assets $83,003,264 $83,637,828
Liabilities and shareholders' equity:
Current maturities of
long-term obligations $6,170,424 $5,905,541
Accounts payable 4,852,802 4,398,050
Accrued liabilities 3,023,817 2,911,939
Total current liabilities 14,047,043 13,215,530
Long-term obligations, net
of current maturities 22,356,824 25,191,778
Other long-term liabilities 8,798,040 8,615,550
Shareholders' equity 37,801,357 36,614,970
Total liabilities and
shareholders' equity $83,003,264 $83,637,828
SOURCE Autocam Corporation