LDM Technologies Announces First Quarter Earnings And Acquisition of Huron Plastics Group
13 February 1998
LDM Technologies Announces First Quarter Earnings And Acquisition of Huron Plastics Group
AUBURN HILLS, Mich., Feb. 13 -- LDM Technologies, Inc.
reports net sales for its first quarter ended December 28, 1997 (first quarter
1998) were $100.3 million, an increase of $48.0 million, or 91.8%, from the
first quarter of FY1997. First quarter l998 net sales were comprised of $89.O
million of automotive product sales, $4.7 million of consumer and other
product sales, and $6.6 million of mold sales. The strong sales growth was
mainly attributable to increased automotive product sales related to
acquisitions made over the last twelve months.
Operating profit was $6.8 million, or 6.8% of net sales, for the first
quarter 1998 compared to $1.7 million, or 3.3% of net sales, for the same
period in 1997. The increase was due to additional operating profit generated
by acquisitions made over the last twelve months and operating improvements
made at LDM's other operating facilities.
Interest expense was $3.9 million for the first quarter 1998 compared to
$1.1 million for the first quarter 1997. The increased interest expense was
primarily due to the incurrence of additional debt related to recent
acquisitions, and the incremental interest expense related to LDM's January
1997 issuance of $110 million of 1O 3/4% Senior Subordinated Notes.
Net income for the first quarter 1998 was $1.5 million, or 1.5% of net
sales compared to $0.5 million, or 1.0% of net sales, in the second quarter
1996.
On February 6, 1998, LDM acquired the stock of Huron Plastics Group, Inc.
and substantially all the assets of Tadim, Inc. (collectively referred to
herein as "HPG") for $65.1 million in cash and the assumption of certain
liabilities. The transaction was funded with proceeds from a $66.0 million
dollar term loan issued by the Company's senior lender. HPG's sales and net
income for its fiscal year ended March 31, 1997 were $88.1 million and $0.8
million, respectively. HPG manufactures a wide variety of interior trim,
underhood and functional components for many automotive customers, including
Ford, Chrysler, General Motors, Bundy, TRW, and Johnson Controls. HPG
concentrates on precision molding of highly-engineered components and
subassemblies, specializing in dual durometer (two-shot) molding, insert
molding and other advanced injection molding technologies. HPG has developed
design capabilities to meet full-service requirements of automotive customers,
and has alliances to meet customer needs in major global automotive markets.
LDM's pro forma net sales, net income and earnings before interest, taxes,
depreciation and amortization for the twelve months ended December 28, 1997
(as if the Huron acquisition and all previous acquisitions had taken place on
December 29, 1996) were $521.2 million, $4.0 million and $53.4 million,
respectively.
SOURCE LDM Technologies, Inc.