AETNA Industries Inc. Reports Fourth Quarter Results
23 February 1998
AETNA Industries Inc. Reports Fourth Quarter Results
CENTER LINE, Mich., Feb. 23 -- AETNA industries, inc.
announced financial results for the fourth quarter and twelve months ended
December 28, 1997.
Net sales for the fourth quarter of 1997 were $56.4 million, or 18.2%
higher than fourth quarter 1996 sales of $47.7 million. Production sales of
$55.9 million in the fourth quarter of 1997 were up $10.2 million from $45.7
million in the fourth quarter of 1996, while tooling and prototype sales were
down $1.5 million for the same period. Production sales were favorably
impacted by increased Jeep Cherokee (XJ) and Jeep Grand Cherokee (ZJ) sales.
Gross profit was $5.7 million, or 10.2% of net sales, for the fourth quarter
of 1997 compared to $8.0 million, or 16.8% of net sales, for the same period
in 1996. The decrease in gross profit from the prior year was due to the
fourth quarter 1997 revision of ZJ fixed assets depreciable lives and the
fourth quarter 1996 reduction in inventory reserves.
Selling, general and administrative expenses for the fourth quarter of
1997 were $5.2 million, or 9.1% of net sales, compared to $4.2 million, or
8.9% of net sales, for the same period in 1996. The increase, as a percentage
of sales, was due to the write off of Saturn project costs and additional
engineering staff in support of new platforms, especially the Chrysler Jeep
Grand Cherokee, the Saturn Innovate and new CAMI Sidekick programs.
Net loss for the fourth quarter of 1997 was $1.3 million compared with net
income of $0.9 million for the fourth quarter of 1996.
EBITDA was $4.9 million for the fourth quarter of 1997 compared to $6.0
million for the same period in 1996.
Capital expenditures for the fourth quarter of 1997 were $2.3 million
compared to $3.5 million for the same period in the prior year. The major
capital projects during this period have been the completion of Plant 10 which
will be used in the production of the new Chrysler Jeep Grand Cherokee (WJ)
and the renovation of Plant 7 which will be used to stamp the majority of the
new Saturn Innovate.
For the twelve months ended December 28, 1997, AETNA Industries, Inc.
reported net sales of $205.7 million, down from the $211.5 million reported
for the twelve months ended December 29, 1996. Production sales increased
$1.7 million while tooling sales decreased $7.5 million. The increase in
production sales was due to increased Chrysler mini-van sales and factory
assist work, partially offset by the planned phase out of two programs in
1996: a cargo van floor pan and side rail assemblies and a small truck door
beam job during the second quarter of 1996. Tooling sales in 1996 were
favorably impacted by prototypes and tooling for Jeep Grand Cherokee (WJ)
platform work.
Gross profit was $24.4 million, or 11.9% of net sales, for the twelve
months ended December 28, 1997 compared to $30.5 million, or 14.4% of net
sales, for the same period in 1996. The decrease in gross profit from the
prior year was due to inefficiencies related to short-term factory assist
work. Selling, general and administrative expenses for the twelve months
ended December 28, 1997 were $17.6 million, or 8.6% of net sales, compared to
$15.6 million, or 7.4% of net sales, for the same period in 1996. As a
percentage of sales, the increase was due to additional engineering and
quality assurance staff in support of new platforms.
Net loss for the twelve months ended December 28, 1997 was $2.4 million
compared with net income of $2.5 million for the same period in 1996. 1996
results include $1.2 million of non-recurring extraordinary costs recorded in
the third quarter of 1996 related to the early retirement of the Company's
subordinated debt.
EBITDA was $16.8 million for the twelve months ended December 28, 1997,
compared to $22.7 million for the same period in 1996.
Capital expenditures for the twelve months ended December 28, 1997 were
$10.7 million as compared to $7.0 million for the same period in 1996. The
major capital projects during 1997 have been the completion of Plant 10 which
will be used in the production of the new Chrysler Jeep Grand Cherokee (WJ)
and the renovation of Plant 7 which will be used to stamp the majority of the
new Saturn Innovate.
As part of its growth strategy, the company continues to seek and review
acquisition candidates.
AETNA INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands)
Three Months Ended Twelve Months Ended
Dec. 28, Dec. 29, Dec. 28, Dec. 29,
1997 1996 1997 1996
Net sales $56,353 $47,657 $205,741 $211,462
Cost of sales 50,627 39,640 181,336 180,998
Selling, general
& administrative expenses 5,154 4,223 17,602 15,644
Operating income 572 3,794 6,803 14,820
Interest expense, net 2,277 2,621 10,263 9,022
Income (loss) before
income taxes (1,705) 1,173 (3,460) 5,798
Income tax provision (credit) (397) 289 (1,099) 2,105
Income (loss) before
extraordinary item (1,308) 884 (2,361) 3,693
Extraordinary item (net of
income taxes of $594) -- -- -- (1,153)
Net income (loss) $(1,308) $884 $(2,361) $2,540
AETNA INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
December 28, December 29,
1997 1996
ASSETS
Current Assets
Cash $23 $4,011
Accounts receivable (less allowance for doubtful
accounts of $359 and $510, respectively) 40,665 32,753
Inventories, including tooling 18,686 10,348
Other current assets 1,661 969
Total current assets 61,035 48,081
Property, plant and equipment, net 51,572 49,434
Deferred costs and other assets 5,489 5,769
Cost in excess of net assets acquired 24,973 25,774
$143,069 $129,058
LIABILITIES AND STOCKHOLDER'S EQUITY
Current Liabilities
Accounts payable $33,485 $24,958
Accrued expenses 9,508 12,104
Current portion of long-term debt 13,530
Total current liabilities 56,523 37,062
Long-term debt, less current portion 85,000 85,000
Deferred income taxes 7,432 8,136
Stockholder's equity
Common stock - $.01 par value; 1,000 issued and
outstanding
Contributed capital 9,024 9,024
Retained earnings (accumulated deficit)
(14,910) (10,164)
(5,886) (1,140)
$143,069 $129,058
SOURCE AETNA industries, inc.