Harvard Industries, Inc. Reports First Quarter Results
16 February 1998
Harvard Industries, Inc. Reports First Quarter Results
TAMPA, Fla., Feb. 13 -- Harvard Industries Inc.
(OTC Bulletin Board: HAVAQ) (Debtor-In-Possession "DIP"), a major producer of
OEM automotive parts and accessories today filed their Report on Form 10Q for
the quarter ended December 31, 1997.
Consolidated net sales amounted to $197,052,000 for the quarter ended
December 31, 1997, compared with $187,261,000 for quarter ended
December 31, 1996.
The net loss for the quarter ended December 31, 1997 attributable to
common shareholders was $5,519,000. After deducting accrued dividends and
accretions of $4,224,000 related to the Company's 14 1/4 PIK Preferred stock,
the net loss attributed to common shareholders was $34,392,000 for the quarter
ended December 31, 1996.
"We are encouraged by the upward trend of our financials as we continue
our restructuring," said Roger Pollazzi, Harvard's chief operating officer.
"The core elements of our business continue to play a critical role in the
automotive industry and form the foundation for our vision of Harvard's
future. We are confident that, when complete, our strategic plan will return
Harvard Industries to the top echelon of the automotive OEM industry."
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
December 31, 1997 And September 30, 1997
(In thousands of dollars)
December 31, September 30,
1997 1997
(Unaudited) (Audited)
ASSETS
Current assets:
Cash and cash equivalents $6,695 $9,212
Accounts receivable, net 71,967 76,190
Inventories 46,966 54,218
Prepaid expenses and other current assets 8,836 7,602
Total current assets 134,464 147,222
Property, plant and equipment, net 125,051 132,266
Intangible assets, net 4,021 4,417
Other assets, net 24,245 23,589
287,781 307,494
LIABILITIES AND SHAREHOLDERS' DEFICIENCY
Current liabilities:
Current portion of Debtor-in-possession (DIP)
loans $19,409 36,436
Current portion of long term debt 1,913 1,748
Accounts payable 32,407 32,267
Accrued expenses 83,189 72,235
Income taxes payable 2,906 2,440
Total current liabilities 139,824 145,126
Liabilities subject to compromise 397,020 397,319
DIP loans 40,428 51,035
Long-term debt 11,783 12,339
Postretirement benefits other than pensions 98,404 96,929
Other 28,780 27,237
Total liabilities 716,239 729,985
14-1/4% Pay-In-Kind Exchangeable Preferred Stock,
(Includes $10,142 of undeclared
accrued dividends) 124,637 124,637
Shareholders' deficiency:
Common Stock, $.01 par value; 15,000,000 shares
authorized; shares issued and outstanding:
7,026,437 at December 31, 1997
and at September 30, 1997 70 70
Additional paid-in capital 32,134 32,134
Additional minimum pension liability (3,665) (3,665)
Foreign currency translation adjustment (2,378) (1,930)
Accumulated deficit (579,256) (573,737)
Total shareholders' deficiency (553,095) (547,128)
Commitments and contingent liabilities $287,781 $307,494
HARVARD INDUSTRIES, INC.
(Debtor-In-Possession)
Consolidated Statements Of Operations
Three Months Ended December 31, 1997 And 1996
(In thousands of dollars, except share and per share data)
1997 1996
Sales $197,052 $187,261
Costs and expenses:
Cost of sales 191,722 190,462
Selling, general and administrative 9,835 10,205
Interest expense (contractual interest of
$12,758 in 1997) 3,853 12,188
Restructuring charges 5,000 --
Gain on sale of operation (11,354) --
Amortization of goodwill 396 3,828
Other (income) expense, net 8 258
Total costs and expenses 199,460 216,941
Loss before reorganization items and income taxes(2,408) (29,680)
Reorganization items 2,942 --
Loss before income taxes (5,350) (29,680)
Provision for income taxes 169 488
Net loss $(5,519) $(30,168)
PIK preferred dividends and accretion
(contractual amount for the three months ended
December 31, 1997 was $4,763) $-- $4,224
Net loss attributable to common shareholders $(5,519) $(34,392)
Loss per common share $(0.79) $(4.90)
Weighted average number of
common shares outstanding 7,026,437 7,015,093
HARVARD INDUSTRIES, INC.
(Debtor-In-Possession)
Consolidated Statements Of Cash Flows
Three Months Ended December 31, 1997 And 1996
(In thousands of dollars)
1997 1996
Cash flows related to operating activities:
Loss from continuing operations
before reorganization items $(2,577) $(30,168)
Add back (deduct) items not affecting cash
and cash equivalents:
Depreciation and amortization 8,108 17,236
Gain on sale of operation (11,354) --
Loss on disposition of property,
plant and equipment 15 308
Postretirement benefits 1,475 1,666
Changes in operating assets and liabilities
of continuing operations, net of effects of
divestitures and reorganization items:
Accounts receivable 878 18,788
Inventories 5,882 (6,855)
Other current assets (1,234) (181)
Accounts payable (27) (15,590)
Accrued expenses and income taxes payable 5,881 3,857
Other noncurrent liabilities 2,602 1,101
Net cash provided by (used in) continuing operations
before reorganization items 9,649 (9,838)
Net cash used by reorganization items (2,445) --
Net cash provided by (used in) continuing operation 7,204 (9,838)
Cash flows related to investing activities:
Acquisition of property, plant and equipment (1,354) (9,910)
Net proceeds from sale of operation 16,391 --
Proceeds from disposition of property,
plant and equipment -- 3
Net change in other noncurrent accounts (1,697) (1,084)
Net cash provided by (used in)
investing activities 13,340 (10,991)
Cash flows related to financing activities:
Net borrowings (repayments) under
DIP financing agreement (27,634) 23,529
Advance payment from customer 5,000 --
Proceeds from sale of stock and exercise
of stock options -- 12
Repayments of long-term debt (391) (392)
Pension fund payments pursuant to PBGC
settlement agreement -- (1,500)
Payment of EPA settlements (36) (610)
Net cash provided by (used in)
financing activities (23,061) 21,039
Net increase (decrease) in cash
and cash equivalents (2,517) 210
Beginning of period 9,212 1,107
End of period $6,695 $1,317
SOURCE Harvard Industries, Inc.