MSX International Announces Third Quarter Results
9 November 1998
MSX International Announces Third Quarter Results
AUBURN HILLS, Mich., Nov. 6 -- MSX International sales for
the third quarter 1998 increased 90% to $273 million from $144 million in
1997. Operating income for the third quarter of 1998 was $5.8 million
compared with operating income of $1.6 million in 1997. Net income for the
third quarter of 1998 was $0.9 million compared to a net loss of $0.9 million
in 1997. The increase in net income was due to increased sales from internal
growth and acquisitions. In addition, the prior year period was adversely
impacted by restructuring costs of approximately $1.2 million after tax.
MSX International's Chairman and Chief Executive Officer Bill Billig
commented, "Our third quarter results build on our strong performance in
previous quarters. We continue to cross-sell our services among existing and
new customers, as well as emphasizing growth opportunities outside our
traditional automotive markets. We are also pleased with our progress in
successfully integrating our recent acquisitions. Both value-added sales and
operating income increased over the prior quarter."
"We acquired three information technology staffing companies in the third
quarter, Gold Arrow Contract Services Limited, Lexstra International, Inc. and
Lexus Temporaries, Inc. We continue to evaluate strategic acquisitions to
complement our internal growth strategies."
With annual sales exceeding $1 billion, MSX International employs more
than 12,000 professional staff and contract personnel in over 55 operating
locations and in 22 countries worldwide. MSX International offers its
customers a wide range of technology-based services both on-site and off-site,
including product engineering and manufacturing engineering services; contract
and temporary staffing; training services; purchasing support services;
electronic document and information storage and retrieval services; process
improvement consulting services; and marketing support services.
This news release contains statements which constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. Such forward-looking statements are not guarantees of future
performance and involve significant risks and uncertainties. Actual results
may vary materially from those in the forward-looking statements as a result
of any number of factors, many of which are beyond the control of management.
These important factors are discussed in the Company's Registration Statement
on Form S-4 (dated July 22, 1998) and in other filings with the Securities and
Exchange Commission.
MSX International's headquarters is in Auburn Hills, Michigan. Visit MSX
International's web site at http://www.msxi.com. MSX International's news
releases are also available at http://www.prnewswire.com.
MSX International, Inc.
Condensed Consolidated Statement of Operations
For the fiscal quarters and fiscal nine-month periods ended September 27,
1998 and September 28, 1997
(unaudited)
Fiscal Quarters Fiscal Nine Months
1998 1997 1998 1997
(dollars in thousands)
Net sales $273,383 $143,955 $783,749 $310,500
Cost of sales (251,934) (131,212) (723,722) (278,150)
Gross profit 21,449 12,743 60,027 32,350
Selling, general and
administrative expenses (14,644) (8,424) (41,069) (22,260)
Michigan Single Business Tax (990) (735) (2,733) (2,150)
Restructuring costs - (2,000) - (2,000)
Operating income 5,815 1,584 16,225 5,940
Other income (expense), net:
Interest expense, net (4,263) (1,567) (11,936) (3,090)
Interest expense, related
parties - (1,685) (1,040) (5,960)
(4,263) (3,252) (12,976) (9,050)
Income (loss) before
income taxes 1,552 (1,668) 3,249 (3,110)
Income tax provision
(benefit) 684 (721) 1,728 (1,090)
Net income (loss) $868 $(947) $1,521 $(2,020)