Tower Automotive, Inc. Announces Increased Fourth-Quarter and Year-End Results
29 January 1998
Tower Automotive, Inc. Announces Increased Fourth-Quarter and Year-End Results
MINNEAPOLIS, Jan. 29 -- Tower Automotive, Inc. ,
today announced increased operating results for the fourth quarter and year
ended December 31, 1997. Operating results for these periods reflect the
company's acquisitions of the Automotive Products Company division (APC) of
A.O. Smith Corporation in April 1997, Societu Industria Meccanica e Stampaggio
S.p.A. (SIMES) in May 1997 and the company's joint venture in Metalsa in
October 1997. Earnings per share for all periods have been restated to
reflect the company's adoption of a new accounting pronouncement which
requires disclosure of basic and diluted earnings per share.
For the fourth quarter of 1997, revenues were $434 million, a substantial
increase compared with $120 million in the 1996 period. Operating income rose
to $41 million from $12 million reported last year. Net income for the fourth
quarter of 1997 was $17 million, or 74 cents per basic share outstanding,
versus $7 million, or 48 cents per basic share, in the comparable 1996 period.
On a diluted basis, earnings per share rose to 68 cents in 1997 from 47 cents
in the fourth quarter of 1996. Interest expense for the fourth quarter of
1997 includes a $2 million non-cash charge related to the recognition of a
loss position on an interest rate contract.
For the year ended December 31, 1997, revenues increased to over
$1.2 billion from $400 million in the year-ago period. Operating income of
$110 million is a significant increase over $39 million reported last year.
Net income, before the effects of a $2.4 million extraordinary loss on early
extinguishment of debt, was $49 million, or $2.28 per share on a diluted
basis, in 1997 compared with $21 million, or $1.55 per share on a diluted
basis in 1996.
In commenting on the results, Dugald K. Campbell, president and chief
executive officer of Tower Automotive, said, "We are very pleased with our
fourth quarter results. Our revenues were up dramatically as a result of new
business and strong production of light truck models served. Our ability to
convert on the revenue increase enabled us to exceed earnings expectations,
despite a $2 million pretax charge related to an interest rate contract.
"From an operating standpoint, we have successfully completed frame
launches for the new Dodge Durango and the redesigned Ford Ranger and made
substantial progress in the assimilation of APC. For 1998, we look forward to
the continued pursuit of opportunities created by the supply base
consolidation, our global expansion activities and complementary product
offerings, as well as the additional benefits from completing the integration
of APC."
Tower Automotive, Inc., produces a broad range of stamped and welded
assemblies for vehicle body structures and suspension systems for the
automotive manufacturers, including Ford, Chrysler, General Motors, Honda,
Toyota, Nissan, Mazda, Fiat and BMW. Products include body structural
assemblies such as pillars and package trays, control arms, suspension links,
engine cradles and full frame assemblies. The company has its operating
headquarters in Grand Rapids, Mich., and a corporate office in Minneapolis,
Minn.
TOWER AUTOMOTIVE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in Thousands Except per Share Amounts Unaudited)
Three Months
Ended Dec. 31 Years Ended Dec. 31
1997 1996 1997 1996
Revenues $433,933 $119,900 $1,235,829 $399,925
Cost of sales 369,154 101,172 1,058,720 338,290
Gross profit 64,779 18,728 177,109 61,635
Selling, general and
administrative expenses19,505 5,710 57,869 20,004
Amortization expense 4,290 666 9,537 2,191
Operating income 40,984 12,352 109,703 39,440
Interest expense, net 13,110 801 28,962 5,103
Equity in earnings of
joint ventures, net (227) - (227) -
Income before provision
for income taxes 28,101 11,551 80,968 34,337
Provision for income
taxes 11,150 4,640 32,290 13,700
Income before
extraordinary item 16,951 6,911 48,678 20,637
Extraordinary item - loss
on early extinguishment
of debt, net of income
taxes - - 2,434 -
Net income $16,951 $6,911 $46,244 $20,637
Basic earnings per
common share:
Income before
extraordinary item $0.74 $0.48 $2.39 $1.63
Extraordinary item - - (0.12) -
Net income $0.74 $0.48 $ 2.27 $1.63
Basic shares outstanding22,979 14,261 20,360 12,683
Diluted earnings per
common share:
Income before
extraordinary item $0.68 $0.47 $2.28 $1.55
Extraordinary item - - (0.10) -
Net income $0.68 $0.47 $2.18 $1.55
Diluted shares
outstanding 27,388 14,887 22,601 13,423
TOWER AUTOMOTIVE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
December 31, December 31,
Assets 1997 1996
Current assets:
Cash and cash equivalents $- $39,596
Accounts receivable 219,256 61,073
Inventories 73,809 21,864
Other current assets 78,217 18,421
Total current assets 371,282 140,954
Property, plant and equipment,
net 698,511 156,248
Restricted cash 7,902 10,833
Deferred income taxes 14,108 -
Investments in joint ventures 147,188 -
Goodwill and other intangible
assets, net 441,097 94,560
$1,680,088 $402,595
Liabilities and Stockholders'
Investment
Current liabilities:
Current maturities of long-term
debt and capital lease
obligations $5,004 $722
Accounts payable 143,902 32,280
Accrued liabilities 81,784 22,429
Total current liabilities 230,690 55,431
Long-term debt, net of current
maturities 513,653 113,460
Obligations under capital
leases, net of current
maturities 30,281 -
5% convertible subordinated
notes 200,000 -
Deferred income taxes - 16,290
Other noncurrent liabilities 190,185 35,537
Stockholders' investment:
Preferred stock -- --
Common stock 230 143
Warrants to acquire common stock2,000 2,000
Additional paid-in capital 423,655 136,584
Retained earnings 89,394 43,150
Total stockholders' investment515,279 181,877
$1,680,088 $402,595
SOURCE Tower Automotive, Inc.