Dura Announces Increased Q3 and 9 Month Results
15 October 1998
Dura Automotive Systems, Inc., Announces Increased Third-Quarter and Nine-Month Operating Results
MINNEAPOLIS, Oct. 15 -- Dura Automotive Systems, Inc.
, today announced increased operating results for the quarter
and nine months ended September 30, 1998. Earnings per share for the quarter
and nine 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 third quarter of 1998, revenues were $185.2 million compared to
$101.9 million reported in the third quarter of 1997. Operating income of
$15.6 million was more than double last year's $6.9 million. Net income for
third quarter of 1998 was $5.2 million, or 43 cents per diluted share
outstanding, compared to $2.7 million, or 30 cents per diluted share, based on
a lower share base in 1997.
For the nine months ended September 30, 1998, revenues of $498.4 million
compared with $324.6 million in the same period in 1997. Operating income
increased to $44.4 million in 1998 from $25.5 million in 1997. Net income
before extraordinary item, was $16.4 million, or $1.58 per diluted share
outstanding, in 1998 versus $11.3 million, or $1.27 per diluted share based on
a lower share base in 1997. During the second quarter of 1998 the company
reported an extraordinary loss net of taxes of $3.3 million or $.29 per
diluted share, related to the early extinguishment of debt.
Commenting on the results Karl Storrie, chief executive officer, said, "We
are pleased with our third quarter performance. General Motors business
represents 25 percent of our revenues, and while the strike at GM reduced our
revenues for the quarter by over $11 million, we were able to mitigate the
effect on operating income by intensifying our ongoing cost containment
program that included such things as just-in-time material reductions,
layoffs, voluntary leaves of absence, and overtime reductions. These actions,
combined with the strong performance of Trident which we acquired in April
1998, allowed us to post increased operating margins as compared to last
year."
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 Citrokn) 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 - Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
1998 1997 1998 1997
Revenues $185,204 $101,862 $498,383 $324,579
Cost of sales 153,345 86,413 413,230 273,309
Gross profit 31,859 15,449 85,153 51,270
Selling, general and
administrative expenses 13,103 7,497 33,986 22,972
Amortization expense 3,128 1,032 6,724 2,806
Operating income 15,628 6,920 44,443 25,492
Interest expense, net 5,377 2,299 14,185 6,152
Income before provision
for income taxes and
minority interest 10,251 4,621 30,258 19,340
Provision for income taxes 4,403 1,964 12,591 8,039
Minority interest 599 -- 1,297 --
Income before
extraordinary item 5,249 2,657 16,370 11,301
Extraordinary item --
loss on early
extinguishment of debt -- -- 3,250 --
Net income $5,249 $2,657 $13,120 $11,301
Basic earnings per
common share:
Income before
extraordinary item $0.43 $0.30 $1.61 $1.28
Extraordinary item -- -- 0.32 --
Net income $0.43 $0.30 $1.29 $1.28
Basic shares outstanding 12,342 8,809 10,160 8,805
Diluted earnings per
common share:
Income before
extraordinary item $0.43 $0.30 $1.58 $1.27
Extraordinary item -- -- 0.29 --
Net income $0.43 $0.30 $1.29 $1.27
Diluted shares
outstanding 13,707 8,874 11,158 8,864
DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands)
September 30, December 31,
Assets 1998 1997
(unaudited)
Current assets:
Cash and cash equivalents $13,014 $4,148
Accounts receivable 163,270 79,032
Inventories 54,083 30,301
Other current assets 43,401 24,800
Total current assets 273,768 138,281
Property, plant and equipment, net 180,776 101,538
Goodwill, net 396,886 160,063
Deferred income taxes
and other assets, net 49,026 19,382
-- $900,456 $419,264
Liabilities and Stockholders'
Investment
Current liabilities:
Current maturities of long-term debt $7,906 $2,241
Accounts payable 91,285 49,153
Accrued liabilities 106,351 36,583
Total current liabilities 205,542 87,977
Long-term debt, net of
current maturities 238,771 178,081
10% Senior subordinated notes 75,000 --
Other noncurrent liabilities 99,221 51,498
Mandatorily redeemable
convertible trust 55,250 --
preferred securities
Stockholders' investment:
Preferred stock -- --
Common stock - Class A 90 42
Common stock - Class B 33 46
Additional paid-in capital 171,252 63,402
Retained earnings 54,148 41,028
Cumulative translation adjustment 1,149 (2,810)
Total stockholders' investment 226,672 101,708
-- $900,456 $419,264