Tower Automotive, Inc., Announces Net Income for the First Quarter
19 April 1999
Tower Automotive, Inc., Announces Increased Revenues, Operating Income and Net Income for the First Quarter
MINNEAPOLIS, April 19 -- Tower Automotive, Inc. ,
today announced increased operating results for the first quarter ended
March 31, 1999. In May 1998, the company's board of directors approved a
two-for-one stock split, which was effected as a stock dividend 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 first quarter of 1999, revenues were $499 million, a 9 percent
increase, compared with $457 million in the 1998 period. Operating income
rose 38 percent to $54 million from $39 million reported last year. Net
income for the first quarter of 1999 was $28 million, or 51 cents per diluted
share outstanding, versus $19 million, or 37 cents per diluted share, in the
comparable 1998 period.
In commenting on first quarter results, Dugald K. Campbell, president and
chief executive officer of Tower Automotive, said, "We are pleased with our
first quarter operating results. Our performance reflects the continuing
enhancements in business and manufacturing processes, which drive margin
improvements. The growing understanding of sound business principles by all
of our colleagues is continuing to have a positive influence on our earnings
in both consistency and scale."
Tower Automotive, Inc., produces a broad range of assemblies and modules
for vehicle structures and suspension systems for the automotive
manufacturers, including Ford, DaimlerChrysler, GM, Honda, Toyota, Nissan,
Auto Alliance, Fiat, BMW and Volkswagen. 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 Ended Mar. 31,
1999 1998
Revenues $498,572 $457,129
Cost of sales 419,125 393,940
Gross profit 79,447 63,189
Selling, general and administrative
Expenses 22,420 21,140
Amortization expense 3,450 3,264
Operating income 53,577 38,785
Interest expense, net 7,267 11,915
Income before provision for
income taxes 46,310 26,870
Provision for income taxes 18,524 10,748
Income before equity in earnings of
joint ventures and minority interest 27,786 16,122
Equity in earnings of joint ventures 2,913 2,698
Minority interest -- dividends on trust
preferred securities, net (2,623) --
Net income $28,076 $18,820
Basic earnings per common share $0.60 $0.41
Basic shares outstanding 46,567 46,041
Diluted earnings per common share $0.51 $0.37
Diluted shares outstanding 63,789 54,858
TOWER AUTOMOTIVE, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands)
March 31, December 31,
Assets 1999 1998
(unaudited)
Current assets:
Cash and cash equivalents $4,982 $3,434
Accounts receivable 296,589 239,888
Inventories 84,104 76,913
Prepaid tooling and other 97,907 115,859
Total current assets 483,582 436,094
Property, plant and equipment, net 852,481 821,873
Restricted cash 2,705 2,677
Investments in joint ventures 212,537 209,625
Goodwill and other assets, net 460,030 465,898
$2,011,335 $1,936,167
Liabilities and Stockholders' Investment
Current liabilities:
Current maturities of
long-term debt and capital
lease obligations $21,309 $18,191
Accounts payable 209,337 214,194
Accrued liabilities 104,468 96,773
Total current liabilities 335,114 329,158
Long-term debt, net of current
maturities 374,155 316,579
Obligations under capital leases,
net of current maturities 24,611 25,770
Convertible subordinated notes 200,000 200,000
Deferred income taxes 20,376 20,376
Other noncurrent liabilities 159,035 178,738
Total noncurrent liabilities 778,177 741,463
Mandatorily redeemable trust
convertible preferred securities 258,750 258,750
Stockholders' investment:
Preferred stock -- --
Common stock 469 463
Warrants to acquire common stock 2,000 2,000
Additional paid-in capital 433,695 426,471
Retained earnings 205,510 177,434
Accumulated other comprehensive
income (2,380) 428
Total stockholders'
investment 639,294 606,796
$2,011,335 $1,936,167