Dura Automotive Systems, Inc. Reports Q1 Revenues and Income
16 April 1998
Dura Automotive Systems, Inc. Announces Increased Revenues, Operating Income and Net Income for the First Quarter
MINNEAPOLIS, April 16 -- Dura Automotive Systems, Inc.
, today announced increased revenues, operating income and net
income for the first quarter ended March 31, 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. Certain expenses that were reported as cost
of sales for the quarter ended March 31, 1997 have been reclassified to
selling, general and administrative expenses to conform to the 1998
presentation. This reclassification had no effect on previously reported
operating income or net income.
For the first quarter of 1998, revenues were $125.7 million, a significant
increase compared with $107.4 million in the 1997 period. Operating income
rose to $10.9 million from $7.8 million reported last year. Net income for
the first quarter of 1998 was $4.6 million, or 52 cents per diluted share
outstanding, versus $3.5 million, or 40 cents per diluted share, in the
comparable 1997 period.
On March 20, 1998, Dura Automotive completed the offering of 2.2 million
shares of the 7 + % Convertible Trust Preferred Securities of Dura Automotive
Systems Capital Trust resulting in net proceeds of approximately
$52.6 million. Approximately $47 million of the net proceeds were on hand at
the end of the first quarter and were used to retire outstanding debt during
April.
On April 9, 1998, the company announced that it entered into a definitive
merger agreement with Trident Automotive plc. ("Trident"). Trident had
revenues of approximately $300 million in 1997, of which 69 percent were
derived from sales of cable assemblies and the balance from door handle
assemblies, lighting and other products. Trident's operations are
headquartered in Michigan with manufacturing and technical facilities in
Michigan, Tennessee, Arkansas, Canada, the United Kingdom, Germany, France and
Brazil. The agreement is subject to regulatory approval and the transaction
is expected to close during the second quarter.
Karl Storrie, president and chief executive officer of Dura Automotive,
said, "Our revenues and earnings met our expectations for the quarter as we
continued to realize the benefits and synergies from integrating our recent
acquisitions of GT Automotive, REOM and Universal. In addition, we are very
excited about our anticipated merger with Trident Automotive which will
solidify our position as the global leader for driver control systems."
Dura Automotive Systems, Inc., is a leading designer and manufacturer of
driver control systems, engineered mechanisms and cable-related systems for
the global automotive industry. The company's products include parking brake
systems, automotive cables, transmission shifter systems, latches, underbody
tire carriers, jacks, brake, clutch and accelerator pedals and other
mechanical assemblies. The company's products are sold to major North
American original equipment manufacturers (OEMs), including Ford, General
Motors and Chrysler, as well as Japanese OEMs, including Toyota and Honda.
The company's European and Latin American facilities support Ford, GM,
Volkswagen, Mercedes, BMW, PSA (Peugeot and Citroen) and various other OEMs.
Dura's operating headquarters is in Rochester Hills, Mich., and its
corporate office is in Minneapolis, Minn.
DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands except per share amounts - unaudited)
Three Months Ended March 31,
1998 1997
Revenues $125,746 $107,367
Cost of sales 104,471 90,785
Gross profit 21,275 16,582
Selling, general and administrative expenses 9,160 7,896
Amortization expense 1,251 883
Operating income 10,864 7,803
Interest expense, net 2,938 1,896
Income before provision for income
taxes and minority interest 7,926 5,907
Provision for income taxes 3,274 2,363
Minority interest, representing interest on
convertible preferred securities 76 --
Net income $4,576 $3,544
Basic earnings per share $0.52 $0.40
Basic shares outstanding 8,826 8,801
Diluted earnings per share $0.52 $0.40
Diluted shares outstanding 9,012 8,856
DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
Assets March 31, December 31,
1998 1997
(unaudited)
Current assets:
Cash and cash equivalents $46,938 $4,148
Accounts receivable 89,385 79,032
Inventories 32,404 30,301
Other current assets 24,943 24,800
Total current assets 193,670 138,281
Property, plant and equipment, net 106,224 101,538
Goodwill, net 177,459 160,063
Other assets, net 23,253 19,382
$500,606 $419,264
Liabilities and Stockholders' Investment
Current liabilities:
Current maturities of long-term debt $2,193 $2,241
Accounts payable 45,153 49,153
Accrued liabilities 43,258 36,583
Total current liabilities 90,604 87,977
Long-term debt, net of current maturities 192,245 178,081
Other noncurrent liabilities 56,738 51,498
Mandatorily redeemable convertible trust
preferred securities 55,250 --
Stockholders' investment:
Preferred stock -- --
Common stock - Class A 42 42
Common stock - Class B 46 46
Additional paid-in capital 63,754 63,402
Retained earnings 45,604 41,028
Cumulative translation adjustment (3,677) (2,810)
Total stockholders' investment 105,769 101,708
$500,606 $419,264
SOURCE Dura Automotive Systems, Inc.