Dura Automotive Systems, Inc. Announces Increases in Q2
16 July 1998
Dura Automotive Systems, Inc. Announces Increased Revenues And Operating Income for the Second Quarter
MINNEAPOLIS, July 16 -- Dura Automotive Systems, Inc.
today announced increased revenues and operating income for the
second quarter and six months ended June 30, 1998. Earnings per share for the
quarter and six months of the prior-year periods 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 1997 periods were 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 second quarter of 1998, revenues were $187.4 million, a
significant increase compared with $115.4 million in the 1997 period.
Operating income rose to $18.0 million from $10.8 million reported last year.
Net income, before extraordinary item, for the second quarter of 1998 was
$6.5 million, or 67 cents per diluted share outstanding, versus $5.1 million,
or 58 cents per diluted share, in the comparable 1997 period.
For the six months ended June 30, 1998, revenues were $313.2 million
compared to $222.7 million in the year-ago period. Operating income rose to
$28.8 million compared to $18.6 million reported last year. Net income for
the six months ended June 30, 1998, before extraordinary item, was
$11.1 million, or $1.20 per share on a diluted basis, compared with
$8.6 million, or 98 cents per share on a diluted basis, in 1997.
During the second quarter of 1998, the company reported an extraordinary
loss of $3.3 million on the early extinguishment of debt. The loss was the
result of the write-off of deferred financing charges, net of income taxes,
related to the company's former credit facility. The company entered into a
new credit facility on April 30, 1998 in connection with the acquisition of
Trident Automotive, plc. Dura Automotive also completed the public offering
of 3.1 million shares of Class A common stock during the second quarter of
1998. Net proceeds from the offering, approximately $95 million, were used to
retire outstanding indebtedness. On July 1, 1998, the company sold an
additional 400,000 shares of Class A common stock pursuant to the
underwriters' overallotment option which resulted in net proceeds of
$12.4 million.
Karl Storrie, president and chief executive officer of Dura Automotive,
said, "We are very pleased with our second quarter results given the effects
of the strike at General Motors. We are continuing to experience operating
margin improvements as we realize the synergies of our recent acquisitions.
We expect to see further improvements as we integrate our current acquisitions
and pursue our growth strategy."
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)
Three Months Ended Six Months Ended
June 30, June 30,
1998 1997 1998 1997
Revenues $ 187,433 $ 115,350 $ 313,179 $ 222,717
Cost of sales 155,414 96,111 259,885 186,896
Gross profit 32,019 19,239 53,294 35,821
Selling, general and
administrative expenses 11,723 7,579 20,883 15,475
Amortization expense 2,345 891 3,596 1,774
Operating income 17,951 10,769 28,815 18,572
Interest expense, net 5,870 1,957 8,808 3,853
Income before provision
for income taxes and
minority interest 12,081 8,812 20,007 14,719
Provision for income taxes 4,914 3,712 8,188 6,075
Minority interest 622 -- 698 --
Income before
extraordinary item 6,545 5,100 11,121 8,644
Extraordinary item -- loss
on early extinguishment
of debt 3,250 -- 3,250 --
Net income $ 3,295 $ 5,100 $ 7,871 $ 8,644
Basic earnings per common share:
Income before
extraordinary item $ 0.70 $ 0.58 $ 1.23 $ 0.98
Extraordinary item (0.35) -- (0.36) --
Net income $ 0.35 $ 0.58 $ 0.87 $ 0.98
Basic shares outstanding 9,311 8,805 9,069 8,803
Diluted earnings per common share:
Income before
extraordinary item $ 0.67 $ 0.58 $ 1.20 $ 0.98
Extraordinary item (0.30) -- (0.33) --
Net income $ 0.37 $ 0.58 $ 0.87 $ 0.98
Diluted shares
outstanding 10,714 8,863 9,884 8,860
DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
June 30, December 31,
Assets 1998 1997
(unaudited)
Current assets:
Cash and cash equivalents $ 14,289 $ 4,148
Accounts receivable 147,642 79,032
Inventories 43,869 30,301
Other current assets 32,876 24,800
Total current assets 238,676 138,281
Property, plant and equipment, net 162,378 101,538
Goodwill, net 376,983 160,063
Deferred income taxes 15,783 --
Other assets, net 32,652 19,382
$ 826,472 $ 419,264
Liabilities and Stockholders' Investment
Current liabilities:
Current maturities
of long-term debt $ 4,816 $ 2,241
Accounts payable 83,355 49,153
Accrued liabilities 84,135 36,583
Total current liabilities 172,306 87,977
Long-term debt, net
of current maturities 282,382 178,081
Other noncurrent liabilities 112,525 51,498
Mandatorily redeemable convertible
trust preferred securities 55,250 --
Stockholders' investment:
Preferred stock -- --
Common stock -- Class A 86 42
Common stock -- Class B 33 46
Additional paid-in capital 158,621 63,402
Retained earnings 48,899 41,028
Cumulative translation adjustment (3,630) (2,810)
Total stockholders' investment 204,009 101,708
$ 826,472 $ 419,264