Safelite Glass Corp. Announces Quarter Ended January 2, 1999 Results
8 February 1999
Safelite Glass Corp. Announces Quarter Ended January 2, 1999 Results
COLUMBUS, Ohio, Feb. 5 -- Safelite Glass Corp., a leader in
the automotive glass replacement and repair industry, announced today the
results for its fiscal quarter ended January 2, 1999.
Quarter Ended January 2, 1999 Results
The Company reported total sales of $186.0 million for the quarter ended
January 2, 1999, an increase of 55% over the quarter ended January 3, 1998
sales of $120.1 million. Safelite's earnings before interest, taxes,
depreciation, amortization, restructuring and other one-time charges
("Adjusted EBITDA") were $0.4 million for the quarter ended January 2, 1999
compared with $7.8 million for the same quarter in 1997. The Company recorded
an operating loss of $5.2 million and a net loss of $11.2 million for the
quarter compared with an operating loss of $3.4 million and a net loss of
$0.3 million in the corresponding prior year period. Results for the quarter
were adversely impacted by consolidation activities related to the Company's
December 1997 merger with Vistar, Inc., which took longer and were more
disruptive to the business than originally planned, along with lower overall
automotive glass industry replacement volumes. In the quarter ended January
3, 1998, net loss was affected by a $2.8 million extraordinary charge for
early extinguishment of the Company's credit facility, offset by $5.7 million
of previously unrecognized tax benefits resulting from the sale of the
Company's former subsidiary, Lear Siegler.
For the nine months ended January 2, 1999, total sales were
$659.0 million, an increase of 76% over the corresponding prior year period.
The Company's Adjusted EBITDA for the nine months ended January 2, 1999 were
$47.0 million compared with $41.3 million, excluding operations of the
Company's former subsidiary, Lear Siegler, for the corresponding prior year
period.
On January 29, 1999, Safelite completed the sale of $50 million in Series
A Convertible Participating Preferred Stock. The proceeds from this along
with the net proceeds from a $55 million Senior Subordinated Note Offering
completed December 18, 1998 were used to pay down approximately $61.4 million
in term loans and $35.0 million in revolver loans, with no reduction to the
revolving credit facility. The attached balance sheet does not reflect the
impact of the Series A Convertible Participating Preferred Stock issuance as
it occurred subsequent to the quarter end.
John F. Barlow, Chief Executive Officer of the Company stated, "During the
third quarter, the Company worked through some merger related organizational
changes. Sales momentum increased toward the end of the quarter and this
momentum has continued into January. With the additional flexibility provided
by the recent consummation of a preferred equity offering and subordinated
note placement, the Company is well positioned to capitalize on its
competitive advantages and continue to grow sales to large insurance and fleet
customers."
Statements contained herein that are prefaced with the words "may,"
"will," "expect," "anticipate," "continue," "estimate," "project," "intend,"
"designed" and similar expressions, are intended to identify forward-looking
statements regarding events, conditions and financial trends that may affect
the Company's future plans of operations, business strategy, results of
operations and financial position. In addition, statements made herein with
respect to sales growth, cost savings programs, the integration process and
net synergies currently expected to be realized by the Company are forward
looking statements that involve a number of risks and uncertainties, many of
which are not within the control of the Company. These statements are based
on the Company's current expectations and estimates as to prospective events
and circumstances about which the Company can give no firm assurance.
Further, any forward-looking statement speaks only as of the date on which
such statement is made, and the Company undertakes no obligation to update any
forward-looking statement to reflect events or circumstances after the date on
which such statement is made. As it is not possible to predict every new
factor that may emerge, forward-looking statements should not be relied upon
as a prediction of actual future financial condition or results. These
forward-looking statements, like any forward-looking statements, involve risks
and uncertainties that could cause actual results to differ materially from
those projected or anticipated. Such risks and uncertainties include product
demand, regulatory uncertainties, the effect of economic conditions, the
impact of competitive products and pricing, changes in customers' ordering
patterns and other risk factors listed from time to time in the Company'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
1/2/99 1/3/98
Sales $186.0 $120.1
Cost of sales 146.3 85.4
Selling, general & administrative expenses 44.9 29.5
Loss on sale of subsidiary -- --
Other operating expenses (a) -- 5.7
Restructuring -- 2.9
Operating loss (5.2) (3.4)
Interest expense (11.8) (7.9)
Interest income 0.2 0.4
Loss before income taxes (16.8) (10.9)
Income tax benefit 5.6 13.4
Net income (loss) before extraordinary item (11.2) 2.5
Extraordinary item - early
extinguishment of debt -- (2.8)
Net loss $(11.2) $(0.3)
Depreciation and amortization $5.6 $2.6
Capital expenditures $7.8 $4.7
Adjusted EBITDA $0.4 $7.8
(a) Other operating expenses consist of one-time integration costs
associated with the Vistar Merger.
SAFELITE GLASS CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
($ IN MILLIONS)
Nine Months Ended
1/2/99 1/3/98
Sales $659.0 $375.5
Cost of sales 488.5 255.9
Selling, general & administrative expenses 140.7 85.8
Loss on sale of subsidiary -- 5.4
Other operating expenses (a) 3.6 5.7
Restructuring 4.2 2.9
Operating income 22.0 19.8
Interest expense (34.3) (21.2)
Interest income 0.4 1.0
Income (loss) before income taxes (11.9) (0.4)
Income tax benefit 1.8 6.9
Net income (loss) before extraordinary item (10.1) 6.5
Extraordinary item - early
extinguishment of debt -- (2.8)
Net income (loss) $(10.1) $3.7
Depreciation and amortization $17.2 $6.7
Capital expenditures $17.1 $9.6
Adjusted EBITDA $47.0 $41.3
(a) Other operating expenses consist of one-time integration costs
associated with the Vistar Merger.
SAFELITE GLASS CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
($ IN MILLIONS)
1/2/99 4/4/98
ASSETS
CURRENT ASSETS:
Cash and short term investments $7.8 $10.3
Accounts receivable, net 62.2 62.0
Inventories 53.0 50.5
Other 26.0 29.8
Total 149.0 152.6
PROPERTY, PLANT AND EQUIPMENT, NET 62.0 62.0
INTANGIBLE ASSETS, NET 290.9 292.3
RESTRICTED CASH - collateralizing bonds
closed into escrow 46.4 --
OTHER 71.8 69.5
TOTAL ASSETS $620.1 $576.4
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $43.1 $43.5
Accrued expenses 39.1 62.9
Current portion of long-term debt 15.5 5.9
Total 97.7 112.3
BONDS CLOSED INTO ESCROW - collateralized by
restricted cash 50.5 --
LONG-TERM DEBT, less current portion 521.6 497.6
OTHER LONG TERM LIABILITIES 8.8 14.9
STOCKHOLDERS EQUITY (DEFICIT) (58.5) (48.4)
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIT) $620.1 $576.4