Autocam Reports Record Second Quarter and Six-Month Results
29 January 1998
Autocam Reports Record Second Quarter and Six-Month Results
KENTWOOD, Mich., Jan. 29 -- Autocam Corporation
today reported record financial results for the three and six
months ended December 31, 1997. The Kentwood, Michigan-based manufacturer of
precision-machined parts reported net income for the three months ended
December 31, 1997 of $2,103,970, or 34 cents per share, on sales of
$21,794,971, versus net income of $1,541,046, or 25 cents per share, on sales
of $15,269,710 for the second quarter of fiscal 1997. For the six months
ended December 31, 1997, the Company reported net income of $3,239,492, or 52
cents per share, on sales of $39,223,953, versus net income of $2,944,840, or
49 cents per share, on sales of $29,917,529 for the same period in fiscal
1997. The aforementioned per share amounts are presented on a diluted basis.
"We are very proud of the quarter's results," Autocam President John C.
Kennedy said. "As expected, we experienced sales and earnings growth in all
sectors, led by automotive braking systems and computer electronics
components."
The acquisition of The Hamilton Group in June 1997 added $2.8 million and
$5.7 million in sales of braking systems components during the three and six
months ended December 31, 1997, respectively, versus the same period in fiscal
1997. "Sales during the first six months of this year have been consistent
with Hamilton's historical levels; however, we have recently received orders
from an existing braking systems customer which should increase sales by 30%
over the next year without the need to add a significant amount of equipment
or labor," Kennedy said. "Our braking systems customers are rewarding Autocam
for its commitment to becoming a global leader in the production of braking
system components."
The Company reported strong gains in sales of computer electronics
components as it ramped up production of a key component used in computer
microprocessor subassemblies. The Company also reported solid growth in sales
of medical device components, primarily coronary stents. Kennedy indicated
that shipments of these components should continue to grow significantly at
least through the end of fiscal 1998.
Kennedy indicated that the Company expects to post earnings for the second
half of fiscal 1998 that will be significantly better than one year ago. "As
our fuel systems and computer electronics component sales accelerate, and we
further integrate the companies of the Hamilton acquisition and streamline
their manufacturing processes, we expect comparatively positive financial
results in each of the next two quarters," he said. Kennedy added that the
addition of the previously-announced Brazilian acquisition is expected to push
fiscal 1998 sales to over $90 million, a 45% increase over fiscal 1997 sales.
Through this acquisition, the Company has expanded its position as a global
supplier to the world's largest fuel injector manufacturers. Kennedy
indicated that the Company has already received additional orders to deliver
fuel systems components to these customers in the Brazilian market.
Operating cash flows for the six months ended December 31, 1997 were
$9 million. Such funds were used primarily to purchase equipment for new fuel
system, computer electronics and medical device programs, reduce debt
obligations, and provide investment in both the Hamilton and Brazilian
acquisitions. The Company expects to purchase $9.1 million in equipment (of
which $3.3 million in deposits had been placed as of December 31, 1997) and
invest $1.5 million in facilities in the last half of fiscal 1998 in order to
meet new customer demands.
The Company also announced that it will pay its regular quarterly cash
dividend of 2 cents per common share on February 16, 1998 to shareholders of
record on February 2, 1998.
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
December 31,
1997 1996
$$ % $$ %
Sales $21,794,971 100.0% $15,269,710 100.0%
Cost of sales 16,479,932 75.6% 11,643,080 76.2%
Gross profit 5,315,039 24.4% 3,626,630 23.8%
Selling, general and
administrative 1,324,206 6.1% 894,335 5.9%
Other operating expenses 51,875 0.2% 51,875 0.3%
Income from operations 3,938,958 18.1% 2,680,420 17.6%
Interest and other
expense, net 647,088 3.0% 313,774 2.1%
Income before tax
provision 3,291,870 15.1% 2,366,646 15.5%
Tax provision 1,187,900 5.5% 825,600 5.4%
Net income $2,103,970 9.7% $1,541,046 10.1%
Basic net income
per share $0.35 $0.26
Diluted net income
per share $0.34 $0.25
Basic weighted average
shares outstanding 6,023,987 5,986,709
Diluted weighted average
shares outstanding 6,206,684 6,064,916
For the Six Months Ended
December 31,
1997 1996
$$ % $$ %
Sales $39,223,953 100.0% $29,917,529 100.0%
Cost of sales 30,499,977 77.8% 22,960,293 76.7%
Gross profit 8,723,976 22.2% 6,957,236 23.3%
Selling, general and
administrative 2,320,126 5.9% 1,690,370 5.7%
Other operating expenses 103,750 0.3% 103,750 0.3%
Income from operations 6,300,100 16.1% 5,163,116 17.3%
Interest and other
expense, net 1,254,908 3.2% 640,537 2.1%
Income before tax
provision 5,045,192 12.9% 4,522,579 15.1%
Tax provision 1,805,700 4.6% 1,577,739 5.3%
Net income $3,239,492 8.3% $2,944,840 9.8%
Basic net income
per share $0.54 $0.49
Diluted net income
per share $0.52 $0.49
Basic weighted average
shares outstanding 6,013,981 5,986,709
Diluted weighted average
shares outstanding 6,181,344 6,054,921
CONSOLIDATED BALANCE SHEETS
December 31, June 30,
1997 1996
Assets:
Cash and equivalents $9,187,674 $2,510,500
Accounts receivable 10,531,516 8,841,516
Inventories 4,999,843 5,444,420
Other current assets 1,170,802 722,020
Total current assets 25,889,835 17,518,456
Fixed assets, net 54,609,772 53,291,418
Goodwill and other intangible assets 7,023,308 6,443,364
Other assets 8,497,680 6,384,590
Total assets $96,020,595 $83,637,828
Liabilities and shareholders' equity:
Current maturities of long-term debt $6,361,640 $5,905,541
Accounts payable 6,520,865 4,398,050
Accrued liabilities 3,485,869 2,911,939
Total current liabilities 16,368,374 13,215,530
Long-term obligations, net of
current maturities 30,753,845 25,191,778
Other liabilities 8,994,386 8,615,550
Shareholders' equity 39,903,990 36,614,970
Total liabilities and
shareholders' equity $96,020,595 $83,637,828
SOURCE Autocam Corporation