Harvard Industries, Inc. Reports 1997 Operating Results
29 December 1997
Harvard Industries, Inc. Reports 1997 Operating Results
TAMPA, Fla., Dec. 29 -- Harvard Industries, Inc.,
(Debtor-In-Possession "DIP"), a major producer of OEM automotive parts
and accessories today filed their Annual Report on Form 10K for the year ended
September 30, 1997.
Consolidated net sales amounted to $810,769,000 for the year ended
September 30, 1997, compared with $824,837,000 for 1996.
After deducting accrued dividends and accretions of $10,142,000 related
to the Company's 14-1/4% PIK Preferred Stock, the net loss for the year ended
September 30, 1997 attributable to common shareholders was
$399,571,000. In 1996, after deducting accrued dividends and accretions
of $14,844,000, the net loss attributed to common shareholders was
$83,556,000.
Harvard Industries , Inc., through its subsidiaries, designs, develops
and manufactures a broad range of components for original equipment
manufacturers, producing cars and light trucks in North America and
abroad.
HARVARD INDUSTRIES, INC. (Debtor-In-Possession)
Consolidated Balance Sheets
September 30, 1997 and September 30, 1996
(In Thousands of Dollars)
September 30, 1997 September 30, 1996
ASSETS
Current assets:
Cash and cash equivalents $9,212 $1,107
Accounts receivable, net of
allowance of $2,588
in 1997 and $744 in 1996 76,190 99,581
Inventories 54,218 53,901
Prepaid expenses and
other current assets 7,602 1,637
Total current assets 147,222 156,226
Property, plant and equipment, net 132,266 300,673
Intangible assets, net 4,417 127,250
Other assets, net 23,589 33,556
$307,494 $617,705
LIABILITIES AND SHAREHOLDERS' DEFICIENCY
Current liabilities:
Current portion of
Debtor-in-Possession (DIP) Loans $36,436 $ --
Current portion of long term debt 1,748 1,487
Accounts payable 32,267 89,073
Accrued expenses 72,235 66,949
Income taxes payable 2,440 5,875
Total current liabilities 145,126 163,384
Liabilities subject to compromise 397,319 --
DIP Loans 51,035 --
Long-term debt 12,339 359,116
Postretirement benefits
other than pensions 96,929 100,464
Other 27,237 25,970
Total liabilities 729,985 648,934
14-1/4% Pay-In-Kind Exchangeable
Preferred Stock,
(At September 30, 1997
- includes $10,142 of
undeclared accrued dividends) 124,637 114,495
Shareholders' deficiency:
Common Stock, $.01 par value;
15,000,000 shares authorized;
shares issued and outstanding:
7,026,437 at September 30, 1997
and 7,014,357 at September 30, 1996 70 70
Additional paid-in capital 32,134 42,245
Additional minimum pension liability (3,665) (1,767)
Foreign currency transaction adjustment (1,930) (1,964)
Accumulated deficit (573,737) (184,308)
Total shareholders' (deficiency) (547,128) (145,724)
Commitments and contingent liabilities $307,494 $617,705
HARVARD INDUSTRIES, INC. (Debtor-In-Possession)
Consolidated Statements of Operations
Years Ended September 30, 1997, 1996, and 1995
(In Thousands of Dollars, Except Share and Per Share Data)
1997 1996 1995
Sales $810,769 $824,837 $631,832
Costs and expenses
Cost of sales 797,774 776,141 557,340
Selling, general and administrative 45,822 42,858 33,037
Interest expense (contractual interest 36,659 47,004 19,579
interest of $50,264 in 1997)
Amortization of goodwill 8,448 15,312 2,986
Impairment of long-lived assets and
restructuring costs 288,545 -- --
Other (income) expense, net 5,530 1,538 (1,789)
Total costs and expenses 1,182,778 882,853 611,153
Income (loss) from continuing
operations before reorganization
items, income taxes and
extraordinary item (372,009) (58,016) 20,679
Reorganization items 16,216 -- --
Income (loss) from
continuing operations before
income taxes and extraordinary item (388,225) (58,016) 20,679
Provision for income taxes 1,204 3,196 11,566
Income (loss) from
continuing operations before
extraordinary item (389,429) (61,212) 9,113
Loss from discontinued operations -- (7,500) --
Income (loss) before extraordinary item (389,429) (68,712) 9,113
Extraordinary item - early
extinguishment of debt
(net of income tax benefit of $1,200) -- -- (2,192)
Net income (loss) $(389,429) $(68,712) $6,921
PIK preferred dividends
and accretion (contractual
amount of $16,891 in 1997) $10,142 $14,844 $14,809
Net loss attributable
to common shareholders $(399,571) $(83,556) $(7,888)
Primary per common
and common equivalent share:
Loss from continuing
operations before
extraordinary item $(56.91) $(10.87) $(0.83)
Loss from discontinued operations -- (1.07) --
Extraordinary item -- -- (0.32)
Loss per common and
common equivalent share $(56.91) $(11.94) $(1.14)
Weighted average number of common and
common equivalent shares outstanding 7,020,692 6,999,279 6,894,093
HARVARD INDUSTRIES, INC. (Debtor-In-Possession)
Consolidated Statements of Cash Flows
Years Ended September 30, 1997, 1996, and 1995
(In Thousands of Dollars)
1997 1996 1995
Cash flows related to
operating activities:
Loss from continuing operations
before reorganization items $(373,213) $(61,212) $9,113
Add back (deduct) items
not affecting cash and
cash equivalents:
Income tax allocation
related to reorganization
value, exercise of stock options
and discontinued operations -- -- 6,251
Depreciation and amortization 60,186 65,658 34,856
Impairment of long-lived assets and
restructuring charges 288,545 -- --
Loss on disposition of property,
plant and equipment
and property held for sale 1,931 2,053 461
Postretirement benefits (4,138) 5,822 4,373
Write-off of deferred debt expense 1,792 -- --
Senior notes interest accrued not paid 9,728 -- --
Changes in operating assets
and liabilities of continuing
operations, net of effects from
acquisitions and reorganization items:
Accounts receivable 22,798 3,133 (9,865)
Inventories (7,225) 7,112 880
Other current assets (5,965) (222) 1,712
Accounts payable (56,806) 9,371 1,696
Accounts payable prepetition 81,429 -- --
Accrued expenses and
income taxes payable (10,254) (30,444) (21,954)
Other noncurrent liabilities 6,933 819 (2,472)
Net cash provided by
continuing operations before
reorganization items 15,741 2,090 25,051
Net cash used in reorganization items (2,864) -- --
Net cash provided by
continuing operations 12,877 2,090 25,051
Cash flows related
to investing activities:
Acquisition of property,
plant and equipment (36,572) (40,578) (22,080)
Cash flows related
to discontinued operations 713 (3,332) 5,029
Proceeds from disposition
of property, plant
and equipment 1,703 909 1,259
Acquisition of Boehler-Jarvis,
including debt refinancing,
net of cash acquired -- -- (210,231)
Net change in other
noncurrent accounts (1,832) (5,223) (746)
Net cash used in investing activities (35,988) (48,224) (226,769)
Cash flows related
to financing activities:
Proceeds from Senior Notes Offering -- -- 200,000
Insurance costs of Senior Notes and
financing agreements (2,200) -- (11,804)
Net borrowings and (repayments)
under credit agreement (38,834) 38,834 --
Net borrowings under
DIP financing agreement 87,471 -- --
Redemption of PIK preferred stock -- -- (15,000)
Proceeds from sale
of stock and exercise
of stock options 31 190 2,419
Repayments of long-term debt (7,682) (3,032) (5,820)
Pension fund payments pursuant
to PBGC settlement agreement (6,000) (6,000) (6,000)
Payment of EPA settlements (1,570) (2,676) (2,512)
Net cash provided
by financing activities 31,216 27,316 161,283
Net increase (decrease)
in cash and cash equivalents 8,105 (18,818) (40,435)
Beginning of period 1,107 19,925 60,360
End of period $9,212 $1,107 $19,925
Supplemental disclosure
of cash flow information:
Interest paid $37,328 $41,868 $16,042
Income taxes paid $2,244 $5,092 $4,782
SOURCE Harvard Industries, Inc.