Aetna Industries Inc. Reports First Quarter Results
21 April 1998
Aetna Industries Inc. Reports First Quarter Results
CENTER LINE, Mich., April 21 -- Aetna Industries, Inc.
announced financial results for the first quarter ended March 29, 1998.
Net sales for the first quarter of 1998 were $53.1 million, or 3.7%, lower
than first quarter 1997 sales of $55.1 million. Production sales of $52.6
million in the first quarter of 1998 were down $1.2 million from $53.8 million
in the first quarter of 1997, while tooling and prototype sales were down $0.8
million for the same period. Production sales were unfavorably impacted by
the disposal of low volume, marginally profitable roll from jobs and the
balance out of production related to the General Motors' C/K truck sales due
to a platform change that was begun last year. This decrease was partially
offset by an increase in Jeep Cherokee (XJ) sales.
Gross profit was $8.1 million, or 15.3% of net sales, for the first
quarter of 1998 compared to $8.1 million, or 14.7% of net sales, for the same
period in 1997. The increase in gross profit from the prior year was due to
short-term factory assist work running more efficiently in the first quarter
compared to previous quarters.
Selling, general and administrative expenses for the first quarter of 1998
were $4.5 million, or 8.5% of net sales, compared to $3.8 million, or 6.9% of
net sales, for the same period in 1997. The increase, as a percentage of
sales, was due to start up costs and additional staff in support of new
platforms, especially the new Chrysler Jeep Grand Cherokee, the Saturn LS and
new CAMI J2 programs.
Net income for the first quarter of 1998 was $0.5 million compared with
net income of $1.1 million for the first quarter of 1997.
EBITDA was $5.6 million for the first quarter of 1998 compared to $6.1
million for the same period in 1997.
Capital expenditures for the first quarter of 1998 were $3.2 million
compared to $2.9 million for the same period in the prior year. The major
capital projects during this period have been the renovation of Plant 7 which
will be used to stamp the majority of the new Saturn LS jobs at Aetna and the
purchase of equipment for the start up of the Aetna Manufacturing Canada plant
in London, Ontario serving CAMI's J2 platform.
On April 14, 1998, MS Acquisition Corp., the holding company of Aetna
Industries, Inc., purchased all of the outstanding capital stock of Societe
Financiere de Developpement Industriel et Technologique, a French societe
anonyme (Sofedit). The consideration paid to the stockholders of Sofedit
consisted of promissory notes in the aggregate principal amount of
approximately $41 million, preferred stock in the aggregate stated amount of
$27 million and 3,000,000 shares of common stock of MS Acquisition Corp.
(representing approximately 75% of the fully-diluted common stock ownership).
In addition, approximately $12 million of debt of the Sofedit group has been
assumed in connection with the transaction. This merger strongly positions
the Company to compete on a global basis and take advantage of the many large,
international programs sourced by auto makers in the future.
AETNA INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands)
Three Months Ended
March 29, March 30,
1998 1997
Net sales $53,085 $ 55,097
Cost of sales 44,974 46,975
Selling, general & administrative expenses 4,486 3,829
Operating income 3,625 4,293
Interest expense, net 2,866 2,561
Income before income taxes 759 1,732
Income tax provision 235 669
Net income $524 $1,063
AETNA INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
March 29, December 28,
1998 1997
ASSETS
Current Assets
Cash $264 $23
Accounts receivable
(less allowance for
doubtful accounts of
$372 and $359, respectively) 46,988 40,665
Inventories, including tooling 26,871 18,686
Other current assets 2,186 1,661
Total current assets 76,309 61,035
Property, plant and equipment, net 53,194 51,572
Deferred costs and other assets 5,341 5,489
Cost in excess of net assets acquired 24,773 24,973
$159,617 $143,069
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $40,348 $33,485
Accrued expenses 13,394 9,508
Short-term borrowings 18,805 13,530
Total current liabilities 72,547 56,523
Long-term debt, less current portion 85,000 85,000
Deferred income taxes 7,432 7,432
Stockholder's equity
Common stock - $.01 par value;
1,000 issued and Outstanding
Contributed capital 9,024 9,024
Retained earnings
(accumulated deficit) (14,386) (14,910)
(5,362) (5,886)
$159,617 $143,069
SOURCE Aetna Industries, Inc.
