Safelite Glass Corp. Announces Quarter Ended July 4, 1998 Results
8 September 1998
Safelite Glass Corp. Announces Quarter Ended July 4, 1998 Results
COLUMBUS, Ohio, Sept. 4 -- Safelite Glass Corp., a leader in
the automotive glass replacement and repair industry, announced today the
results for its fiscal quarter ended July 4, 1998.
Quarter Ended July 4, 1998 Results
The Company reported total sales of $241.2 million for the quarter ended
July 4, 1998, an increase of 87% over the quarter ended June 28, 1997 sales of
$129.1 million. Safelite's earnings before interest, taxes, depreciation,
amortization, restructuring and other one-time charges were $29.0 million for
the quarter ended July 4, 1998 compared with $17.4 million, excluding the
operations of the Company's former subsidiary, Lear Siegler, for the same
quarter in 1997. The results for the quarter 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 $18.5 million and net income of $3.4 million for
the quarter compared with operating income of $14.7 million and net income of
$5.1 million in the corresponding prior year period. The decrease in net
income resulted primarily from $4.5 million in restructuring and one-time
integration costs associated with Safelite's acquisition of Vistar, Inc. and
$4.8 million in increased interests costs.
John F. Barlow, Chief Executive Officer of the Company stated, "first
quarter results for our new fiscal year ending March 1999 were in line with
our expectations. We also made very positive steps toward completing the
integration of Safelite and Vistar. Much of the remaining corporate
activities of Vistar were consolidated and moved to Columbus, Ohio in May and
the rationalization of overlapping service center locations for most of our
major markets was completed without impacting customer coverage or service.
We are beginning to realize merger synergies and 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
6/28/97 7/04/98
Sales $129.1 $241.2
Cost of sales 85.1 170.7
Selling, general & administrative expenses 29.3 47.5
Other operating expenses(a) -- 1.0
Restructuring -- 3.5
Operating income 14.7 18.5
Interest expense (6.4) (11.2)
Interest income 0.3 0.1
Income from continuing operations
before income taxes 8.6 7.4
Income tax (provision) benefit (3.5) (4.0)
Net loss $5.1 $3.4
Depreciation and amortization $2.1 $6.0
Capital expenditures $2.8 $4.3
Adjusted EBITDA $17.4 $29.0
(a) Other operating expenses for the quarter ended July 4, 1998 consist of
one-time integration costs associated with the Vistar Merger.
SAFELITE GLASS CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
($ IN MILLIONS)
4/04/98 7/04/98
ASSETS
CURRENT ASSETS:
Cash and short term investments $10.3 $8.8
Accounts receivable, net 62.0 70.2
Inventories 50.5 54.5
Other 29.8 25.8
Total 152.6 159.3
PROPERTY, PLANT AND EQUIPMENT, NET 62.0 57.1
INTANGIBLE ASSETS, NET 292.3 292.0
OTHER 69.5 66.8
TOTAL ASSETS $576.4 $575.2
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $43.5 $52.6
Accrued expenses 62.9 47.9
Current portion of long-term debt 5.9 5.7
Total 112.3 106.2
LONG-TERM DEBT, less current portion 497.6 502.5
OTHER LONG TERM LIABILITIES 14.9 11.5
STOCKHOLDERS EQUITY (DEFICIT) (48.4) (45.0)
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIT) $576.4 $575.2