Safelite Glass Corp. Announces Quarterly Results
9 July 1998
Safelite Glass Corp. Announces Quarter Ended April 4, 1998 Results
COLUMBUS, Ohio, July 9 -- Safelite Glass Corp., a leader in
the automotive glass replacement and repair industry, announced today the
results for its fiscal quarter ended April 4, 1998. This announcement
represents the first quarterly earnings release for the Company since its
merger with Vistar, Inc. on December 19, 1997. On May 18, 1998, the Company
announced that it was changing its fiscal year end to the Saturday closest to
March 31 effective for its fiscal year beginning April 5, 1998.
Quarter Ended April 4, 1998 Results
The Company reported total sales of $213.8 million for the quarter ended
April 4, 1998, more than doubling its sales for the quarter ended March 29,
1997 of $107.8 million. Safelite's earnings before interest, taxes,
depreciation, amortization, restructuring and other one-time charges were
$18.2 million for the quarter ended April 4, 1998 compared with $8.7 million,
excluding the operations of the Company's former subsidiary, Lear Siegler, for
the same quarter in 1997. The results for 1998 do not reflect the full impact
of management's estimated net synergies from the consolidation of overlapping
field and corporate activities resulting from the Vistar merger. The Company
recorded operating income of $4.9 million and a net loss of $4.3 million for
the quarter compared with operating income of $6.0 million and a net loss of
$0.1 million in the corresponding prior year period. The decrease in income
resulted primarily from $6.9 million in restructuring and one-time integration
costs associated with Safelite's acquisition of Vistar, Inc. and $4.6 million
in increased interest costs.
John F. Barlow, Chief Executive Officer of the Company stated, "The first
quarter of 1998 was marked by many merger-related accomplishments. We were
successful in converting all former Vistar locations to Safelite's point-of-
sale systems in a six-week period, many key financial systems conversions were
completed and the rationalization of service center locations was completed
for a number of our major markets. Our results are only beginning to reflect
the full synergies we expect from the merger and we remain confident of
ongoing annual net synergies of between $30 - $35 million."
The statements made herein with respect to pro forma financial statements
and expected net synergies contemplate certain net synergies currently
expected to be realized by Safelite and are therefore forward looking
statements that involve a number of risks and uncertainties, many of which are
not within the control of Safelite. Among the factors that could cause actual
net synergies to differ materially from those reflected above are the
following: the timing and success in integrating Vistar's personnel, products
and operations; implementation of the reduction in the number of service
centers in a cost effective and timely manner; the implementation and
integration of business and financial controls for Vistar's operations so as
to be consistent with those of Safelite prior to the Vistar merger; the
ability of Safelite to maintain business of key customers of Vistar; and other
risk factors listed from time to time in Safelite's reports delivered to
bondholders and documents filed with the Securities and Exchange Commission.
SAFELITE GLASS CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
($ IN MILLIONS)
Quarter Ended
4/04/98 3/29/97
Sales $213.8 $107.8
Cost of sales 155.5 75.8
Selling, general & administrative expenses 46.5 26.0
Other operating expenses (a) 3.1 --
Loss on sale of Lear Siegler -- --
Restructuring 3.8 --
Operating income 4.9 6.0
Interest expense (11.0) (6.3)
Interest income 0.2 0.3
Income (loss) from continuing operations
before income taxes (5.9) 0.0
Income tax (provision) benefit 1.6 (0.1)
Net loss $ (4.3) $ (0.1)
Depreciation and amortization $ 6.4 $ 2.0
Capital expenditures $ 2.4 $ 4.2
Adjusted EBITDA $ 18.2 $ 8.7
(a) Other operating expenses for the quarter ended April 4, 1998 consists
of one-time integration costs associated with the Vistar merger.
SAFELITE GLASS CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
($ IN MILLIONS)
4/04/98 1/03/98
ASSETS
CURRENT ASSETS:
Cash and short term investments $ 10.3 $ 7.4
Accounts receivable, net 62.0 54.9
Inventories 50.5 48.1
Other 29.8 31.1
Total 152.6 141.5
PROPERTY, PLANT AND EQUIPMENT, NET 62.0 63.8
INTANGIBLE ASSETS, NET 292.3 292.0
OTHER 69.5 60.7
TOTAL ASSETS $576.4 $558.0
LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 43.5 $ 45.3
Accrued expenses 62.9 61.6
Current portion of long-term debt 5.9 6.4
Total 112.3 113.3
LONG-TERM DEBT, less current portion 497.6 473.5
OTHER LONG TERM LIABILITIES 14.9 18.1
STOCKHOLDERS EQUITY (DEFICIT) (48.4) (46.9)
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIT) $576.4 $558.0