Autocam Reports Record Year-End Financial Results
7 August 1998
Autocam Reports Record Year-End Financial Results
KENTWOOD, Mich., Aug. 7 -- Autocam Corporation
today reported record financial results for the fourth quarter
and year ended June 30, 1998. The Kentwood, Michigan-based manufacturer of
precision-machined parts reported net income for the three months ended
June 30, 1998 of $2,019,404, or 32 cents per diluted share, on sales of
$26,347,148, versus net income of $1,385,642, or 23 cents per diluted share,
on sales of $16,011,122 for the fourth quarter of fiscal 1997. For the year
ended June 30, 1998, the Company reported net income of $7,741,380, or
$1.24 per diluted share, on sales of $90,361,063, versus net income of
$5,410,966, or 89 cents per diluted share, on sales of $61,986,238 for the
same period in fiscal 1997.
"We are very proud of our financial performance during the fourth quarter
and year," Autocam President John C. Kennedy said. "Although the effects of
the GM strike negatively impacted our business late in the fourth quarter, the
double-digit growth rates in the transportation and medical devices sectors of
our business during the quarter and year helped push sales and earnings to
their highest levels in Company history."
The acquisition of The Hamilton Group in June 1997 added $4.1 million and
$14.4 million in sales, primarily of braking systems components, during the
three and twelve months ended June 30, 1998, respectively, versus the same
periods in fiscal 1997. "Sales and profits have met with expectations during
the first year; however, we expect continued growth in fiscal 1999 as the
Company begins production on a new program for an important braking systems
customer," Kennedy commented.
The Company also reported strong gains in sales of medical device
components, primarily coronary stents, which contributed significantly to
earnings during the fourth quarter and year. A long-term supply agreement was
completed during the quarter with a large stent customer that management
expects will provide a steady source of earnings to fund expansion of medical
device sales.
Kennedy indicated that although earnings during the first quarter of
fiscal 1999 will not compare favorably with those of one year ago due to the
GM strike, the Company expects fiscal 1999 earnings growth. "Our base
business growth has certainly been affected by the strike. Our orders from
Delphi Automotive were down significantly in July and are not expected to
recover to pre-strike levels until late August," Kennedy said.
The Company disclosed that it's progressing well on due diligence efforts
to acquire Frank & Pignard ("F&P"), a precision metal machining company with
two facilities located in Cluses, France. "Our ongoing analysis of the
company has only confirmed that F&P is a premier supplier that will further
our global initiative to become a market leader in the production of precision
metal-machined components to the transportation industry," Kennedy said. He
further indicated that the Company is still expecting to close the purchase in
October 1998.
The Company also announced that it would pay its regular quarterly cash
dividend of 2 cents per common share on August 24, 1998 to shareholders of
record on August 10, 1998.
Autocam manufactures precision-machined parts used in automotive fuel and
braking systems, automotive electric motor assemblies, medical devices, and
computer electronics. Autocam's common stock trades on the Nasdaq National
Market under the symbol "ACAM". For more information on the Company, visit
our Internet website at http://www.autocam.com.
This release may contain forward-looking statements relating to future
financial and other results. Forward-looking statements include statements
concerning plans, objectives, goals, strategies, future events or performance
and underlying assumptions and other statements that are other than statements
of historical facts. Such forward-looking statements may be identified by the
use of the words "anticipates," "estimates," "expects," "intends," "plans,"
"predicts," "projects," and similar expressions. These cautionary statements
and any other cautionary statements that may accompany the forward-looking
statements expressly qualify all such statements. Forward-looking statements
involve risk and uncertainties that could cause actual results or outcomes to
differ materially form those expressed in the forward-looking statements.
AUTOCAM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended
June 30,
1998 1997
$$ % $$ %
Sales $26,347,148 100.0% $16,011,122 100.0%
Cost of sales 20,650,405 78.4% 12,707,245 79.4%
Gross profit 5,696,743 21.6% 3,303,877 20.6%
Selling, general
and administrative 1,889,549 7.2% 860,521 5.5%
Other operating
expenses 51,875 0.2% 51,875 0.3%
Income from operations 3,755,319 14.2% 2,391,481 14.8%
Interest and other
expense, net 662,427 2.5% 326,539 1.9%
Minority interest in
net income 85,128 0.2% -- --
Income before tax
provision 3,007,764 11.5% 2,064,942 12.9%
Tax provision 988,360 3.8% 679,300 4.2%
Net income $2,019,404 7.7% $1,385,642 8.7%
Basic net income
per share $0.33 -- $0.23 --
Diluted net income
per share $0.32 -- $0.23 --
Basic weighted average
shares outstanding 6,085,521 -- 5,995,839 --
Diluted weighted average
shares outstanding 6,336,571 -- 6,070,136 --
AUTOCAM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Year Ended
June 30,
1998 1997
$$ % $$ %
Sales $90,361,063 100.0% $61,986,238 100.0%
Cost of Sales 69,435,961 76.8% 48,617,727 78.4%
Gross profit 20,925,102 23.2% 13,368,511 21.6%
Selling, general
and administrative 5,878,853 6.6% 3,577,373 5.9%
Other operating
expenses 207,500 0.2% 207,500 0.3%
Income from
operations 14,838,749 16.4% 9,583,638 15.4%
Interest and other
expense, net 2,718,720 3.0% 1,345,533 2.2%
Minority interest in
net income 166,067 0.2% -- --
Income before tax
provision 11,953,962 13.2% 8,238,105 13.2%
Tax provision 4,212,582 4.6% 2,827,139 4.5%
Net income $7,741,380 8.6% $5,410,966 8.7%
Basic net income
per share $1.28 -- $0.90 --
Diluted net income
per share $1.24 -- $0.89 --
Basic weighted average
shares outstanding 6,040,147 -- 5,989,674 --
Diluted weighted average
shares outstanding 6,245,711 -- 6,066,899 --
CONSOLIDATED BALANCE SHEETS
June 30, June 30,
1998 1997
Assets:
Cash $1,643,539 $2,510,500
Accounts receivable 11,679,824 8,841,516
Inventories 6,389,448 5,444,420
Other current assets 1,088,543 722,020
Total current assets 20,801,354 17,518,456
Fixed assets, net 64,421,470 53,291,418
Goodwill and other
intangible assets 14,365,729 6,443,364
Other assets 13,860,818 6,384,590
Total assets $113,449,371 $83,637,828
Liabilities and shareholders' equity:
Current maturities of
long-term debt $6,553,588 $5,905,541
Accounts payable 7,830,564 4,398,050
Accrued liabilities 3,291,195 2,911,939
Total current liabilities 17,675,347 13,215,530
Long-term obligations, net
of current maturities 37,850,874 25,191,778
Other liabilities 10,612,306 8,615,550
Minority interest 2,249,935 --
Shareholders' equity 45,060,909 36,614,970
Total liabilities and
shareholders' equity $113,449,371 $83,637,828