Tower Automotive, Inc. Reports Revenues and Q1 Income
16 April 1998
Tower Automotive, Inc. Announces Increased Revenues, Operating Income and Net Income for the First Quarter
MINNEAPOLIS, April 16 -- Tower Automotive, Inc. ,
today announced increased operating results for the first quarter ended March
31, 1998. Results for this period reflect the company's equity interest in
Metalurgica Caterina S.A., acquired in March 1998. Earnings per share for the
quarter ended March 31, 1997 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 first quarter of 1998, revenues were $457.1 million, a substantial
increase compared with $125.1 million in the 1997 period. Operating income
rose to $38.8 million from $12.5 million reported last year. Net income for
the first quarter of 1998 was $18.8 million, or 82 cents per basic share,
versus $6.7 million, or 47 cents per basic share, in the comparable 1997
period. On a diluted basis, earnings per share rose to 75 cents in 1998 from
45 cents in the first quarter of 1997.
On March 11, 1998, Tower Automotive acquired a 40 percent equity interest
in Metalurgica Caterina S.A. ("Caterina"), a supplier of structural stampings
and assemblies to the Brazilian automotive market. In addition, the company
also has the right to acquire the remaining 60 percent of the equity of
Caterina in the future. This investment added Volkswagen and Mercedes as new
customers.
In commenting on the first quarter results, Dugald K. Campbell, president
and chief executive officer of Tower Automotive, said, "We are very pleased to
announce that our earnings and operating results for the quarter exceeded our
expectations. These results were driven by solid production volumes on our
major programs. More importantly, the company is beginning to see the
benefits of productivity initiatives being implemented at many of its larger
facilities, including those acquired in the APC transaction. We look forward
to continued realization of the benefits and synergies associated with these
initiatives."
Tower Automotive, Inc., produces a broad range of assemblies and modules
for vehicle body structures and suspension systems for the automotive
manufacturers, including Ford, Chrysler, General Motors, Honda, Toyota,
Nissan, Mazda, Fiat, BMW, Volkswagen and Mercedes. 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 March 31,
1998 1997
Revenues $ 457,129 $ 125,117
Cost of sales 393,940 106,105
Gross profit 63,189 19,012
Selling, general and administrative expenses 21,140 5,812
Amortization expense 3,264 660
Operating income 38,785 12,540
Interest expense, net 11,915 1,348
Income before provision for income taxes 26,870 11,192
Provision for income taxes 10,748 4,474
Income before equity in
earnings of joint ventures 16,122 6,718
Equity in earnings of joint ventures 2,698 --
Net income $ 18,820 $ 6,718
Basic earnings per share $ 0.82 $ 0.47
Basic shares outstanding 23,041 14,338
Diluted earnings per share $ 0.75 $ 0.45
Diluted shares outstanding 27,429 14,977
TOWER AUTOMOTIVE, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
March 31, December 31,
Assets 1998 1997
(unaudited)
Current assets:
Cash and cash equivalents $ 277 --
Accounts receivable 285,397 219,256
Inventories 79,151 73,809
Prepaid tooling and other 85,175 78,217
Total current assets 450,000 371,282
Property, plant and equipment, net 715,476 698,511
Restricted cash 7,993 7,902
Deferred income taxes 14,108 14,108
Investments in joint ventures 198,813 147,188
Goodwill and other assets, net 441,924 441,097
$1,828,314 $1,680,088
Liabilities and Stockholders' Investment
Current liabilities:
Current maturities of long-term debt and
capital lease obligations $ 5,004 $ 5,004
Accounts payable 193,063 143,902
Accrued liabilities 89,932 81,784
Total current liabilities 287,999 230,690
Long-term debt, net of current maturities 590,920 513,653
Obligations under capital leases,
net of current maturities 29,179 30,281
Convertible subordinated notes 200,000 200,000
Other noncurrent liabilities 184,758 190,185
Stockholders' investment:
Preferred stock -- --
Common stock 231 230
Warrants to acquire common stock 2,000 2,000
Additional paid-in capital 425,013 423,655
Retained earnings 108,214 89,394
Total stockholders' investment 535,458 515,279
$1,828,314 $1,680,088
SOURCE Tower Automotive, Inc.