Tower Automotive, Inc. Announces Increased Q4 and Year-End Results
2 February 1999
Tower Automotive, Inc. Announces Increased Fourth-Quarter and Year-End Results
MINNEAPOLIS, Feb. 2 -- Tower Automotive, Inc. ,
today announced increased operating results for the fourth quarter and year
ended December 31, 1998. Earnings per share for the quarter and year ended
December 31, 1997 have been restated to reflect the company's adoption of a
new accounting pronouncement that requires disclosure of basic and diluted
earnings per share.
On May 19, 1998, the company's board of directors approved a two-for-one
stock split, which was effected as a stock dividend. On July 15, 1998,
stockholders were issued one additional share of common stock for each share
of common stock held on the record date of June 30, 1998. All references to
the number of common shares and per share amounts have been adjusted to
reflect the stock split on a retroactive basis.
For the fourth quarter of 1998, revenues were $469 million, an 8 percent
increase compared with $434 million in the 1997 period. Operating income rose
24 percent to $51 million from $41 million reported last year. Net income for
the fourth quarter of 1998 was $27 million, or 50 cents per diluted share
outstanding, versus $17 million, or 34 cents per diluted share, in the
comparable 1997 period.
For the year ended December 31, 1998, revenues were more than $1.8 billion
compared with $1.2 billion last year. Operating income rose to $176 million
from $110 million reported last year. Net income was $88 million, or $1.68
per diluted share outstanding in 1998, versus $49 million, or $1.14 per
diluted share, in 1997, before the effects of $2.4 million extraordinary loss
on early extinguishment of debt.
In commenting on results, Dugald K. Campbell, president and chief
executive officer of Tower Automotive, said, "Tower Automotive had its best
year ever by quite a margin. Earnings per share for the quarter and full year
were up 47 percent reflecting the strong base of car and light truck models
that we serve, together with the results of our ongoing integration efforts
and more robust business processes at APC. The performance measures that we
use to judge ourselves internally also showed substantial progress and, most
importantly, we were able to please our customers with innovative new ideas
for technology advances and cost improvement opportunities. Finally, we
finished the year with a strong balance sheet and clear capability to pursue
our future growth objectives."
Tower Automotive, Inc., produces a broad range of assemblies and modules
for vehicle structures and suspension systems for the automotive
manufacturers, including Ford, DaimlerChrysler, General Motors, Honda, Toyota,
Nissan, Auto Alliance, Fiat, BMW, Volkswagen and Mercedes. Products include
body structural assemblies such as pillars and package trays, control arms,
suspension links, engine cradles and full frame assemblies. The company is
based in Grand Rapids, Mich., and has its corporate office in Minneapolis,
Minn.
TOWER AUTOMOTIVE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share amounts - unaudited)
Three Months Year
Ended Dec. 31, Ended Dec. 31,
1998 1997 1998 1997
Revenues $468,625 $433,933 $1,836,479 $1,235,829
Cost of sales 395,345 369,154 1,562,167 1,058,720
Gross profit 73,280 64,779 274,312 177,109
Selling, general and
administrative
expenses 19,201 19,505 85,169 57,869
Amortization expense 3,438 4,290 13,472 9,537
Operating income 50,641 40,984 175,671 109,703
Interest expense, net 7,088 13,110 40,318 28,962
Income before provision
for income taxes 43,553 27,874 135,353 80,741
Provision for income
taxes 17,421 11,150 54,143 32,290
Income before equity in
earnings of joint ventures
and minority interest 26,132 16,724 81,210 48,451
Equity in earnings of
joint ventures 3,695 227 12,708 227
Minority interest --
dividends on trust
preferred securities
(2,619) -- (5,878) --
Income before
extraordinary item 27,208 16,951 88,040 48,678
Extraordinary loss on
early extinguishment of
debt, net of tax -- -- -- 2,434
Net income $27,208 $16,951 $88,040 $46,244
Basic earnings per common
share:
Income before
extraordinary item $0.59 $0.37 $1.91 $1.20
Extraordinary item -- -- -- (0.06)
Net income $0.59 $0.37 $1.91 $1.14
Basic shares
outstanding 46,280 45,958 46,204 40,720
Diluted earnings per
common share:
Income before
extraordinary item $ 0.50 $0.34 $1.68 $1.14
Extraordinary item -- -- -- (0.05)
Net income $ 0.50 $0.34 $1.68 $1.09
Diluted shares
outstanding 63,491 54,776 59,711 45,202
TOWER AUTOMOTIVE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands)
December 31, December 31,
Assets 1998 1997
Current assets:
Cash and cash equivalents $3,434 $--
Accounts receivable 239,888 219,256
Inventories 76,913 73,809
Prepaid tooling and other 125,268 78,217
Total current assets 445,503 371,282
Property, plant and equipment,
net 821,873 698,511
Restricted cash 2,677 7,902
Deferred income taxes -- 14,108
Investments in joint ventures 209,625 147,188
Goodwill and other assets,
net 465,898 441,097
$1,945,576 $1,680,088
Liabilities and Stockholders' Investment
Current liabilities:
Current maturities of
long-term debt and
capital lease obligations $18,191 $5,004
Accounts payable 214,194 143,902
Accrued liabilities 137,963 81,784
Total current
liabilities 370,348 230,690
Long-term debt, net of
current maturities 316,579 513,653
Obligations under capital
leases, net of current
maturities 25,770 30,281
Convertible subordinated
notes 200,000 200,000
Other noncurrent liabilities 167,333 190,185
Total noncurrent
liabilities 709,682 934,119
Mandatorily redeemable trust
convertible preferred
securities 258,750 --
Stockholders' investment:
Preferred stock -- --
Common stock 463 460
Warrants to acquire
common stock 2,000 2,000
Additional paid-in capital 426,471 423,403
Retained earnings 177,434 89,394
Accumulated other
comprehensive income 428 22
Total stockholders'
investment 606,796 515,279
$1,945,576 $1,680,088