Dura Automotive Announces Increased Q1 Operating Results
29 April 1999
Dura Automotive Systems, Inc., Announces Increased First-Quarter Operating Results
MINNEAPOLIS, April 29 -- Dura Automotive Systems, Inc.
, today announced increased revenues, operating income and net
income for the first quarter ended March 31, 1999.
For the first quarter of 1999, revenues were $264.7 million, a significant
increase compared with $125.7 million in the 1998 period. Operating income
rose to $25.9 million from $10.9 million reported last year. Income before
extraordinary item and accounting change for the first quarter of 1999 was
$9.3 million, or 70 cents per diluted share outstanding, versus $4.6 million,
or 52 cents per diluted share, in the comparable 1998 period.
On March 23, 1999, the company announced both the completion of the merger
between Dura and Excel Industries, Inc. ("Excel") and the
completion of the acquisition of Adwest Automotive Plc ("Adwest") (London
Exchange: AWST). The first quarter 1999 results of operations include Excel
and Adwest from their date of acquisition.
Karl Storrie, president and chief executive officer of Dura Automotive,
said, "This has been an exciting first quarter for Dura. Strong production
volumes and continued progress in improving our operating efficiencies
contributed to solid revenue growth and operating performance at our core
operating locations. Completing the acquisitions of Adwest and Excel late in
the first quarter was also a major step in Dura's growth. As a result of the
timing of these acquisitions, neither company's operations had a significant
financial impact on the quarter; however, their immediate impact on our global
strategy is well underway."
During the first quarter of 1999, the company reported an extraordinary
loss of $2.7 million on the early extinguishment of debt. The loss was the
result of the write-off of deferred financing charges, net of income taxes,
related to the company's credit facility that was refinanced in connection
with the acquisitions of Excel and Adwest. In addition, the company reported
a cumulative effect of a change in accounting of $3.1 million, net of income
taxes, during the first quarter. This cumulative effect of a change in
accounting is the result of the company's adoption of Statement of Position
98-5, "Reporting on the Costs of Start-Up Activities," which states that
preproduction costs, such as design and engineering related to new business
awards, should be charged to expense as incurred. Such costs had previously
been capitalized by the company and amortized over the life of the related
product. The company does not expect this change to have a material effect on
future operating results.
On April 23, the company announced that its principal operating
subsidiary, Dura Operating Corp., had completed an offering of $300 million
and Euro 100 million of senior subordinated notes to qualified institutional
buyers in a private placement pursuant to Rule 144A under the Securities Act
of 1933, as amended (the "Securities Act"). The notes bear interest at 9
percent per year and mature in May 2009. The net proceeds from the offering
were used by the company to repay a portion of the indebtedness outstanding
under its new credit facility incurred to fund the acquisitions of Adwest and
Excel as well as for general corporate purposes.
Dura Automotive Systems, Inc., is the world's largest independent designer
and manufacturer of driver control systems and a leading global supplier of
door systems, window systems and engineered mechanical components for the
global automotive industry. The company is also a leading supplier of similar
products to the North American recreational vehicle, mass transit and heavy
truck market. The company's products include door modules, parking brake
systems, automotive cables, transmission shifter systems, encapsulated and
sliding windows, window regulators, hinges, latches, seating systems, engine
control products, underbody tire carriers, jacks, brake, clutch and
accelerator pedals and other mechanical assemblies. The company's products
are sold to every North American, European and Japanese original equipment
manufacturers, including Ford, General Motors, DaimlerChrysler, Volkswagen,
BMW, Toyota, Honda, Nissan, PSA (Peugeot and Citroen) and Renault. Dura's
operating headquarters is in Rochester Hills, Mich., and its corporate office
is in Minneapolis, Minn.
This press release contains forward-looking statements that are subject to
risks and uncertainties. These statements often include words such as
"believe," "expect," "anticipate," "intend," "plan," "estimate," or similar
expressions. These statements are based on certain assumptions that the
company has made in light of its experience in the industry as well as its
perspective of historical trends, current conditions, expected future
developments and other factors it believes are appropriate in the
circumstances. Actual results may differ materially from the anticipated
results because of certain risks and uncertainties, including but not limited
to (i) expected synergies, economies of scale and cost savings from the
acquisitions of Adwest and Excel not being fully realized or realized within
the expected times frames; (ii) unanticipated difficulties servicing the
substantially higher level of indebtedness at the company, (iii) costs or
operational difficulties related to integrating the operations of Excel and
Adwest with those of the company being greater than expected; (iv) labor
disputes involving the company or its significant customers, (v) risks
associated with conducting business in foreign countries, and (vi) general
economic or business conditions affecting the automotive industry, either
nationally or regionally, being less favorable than expected.
DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share amounts - unaudited)
Three Months Ended Mar. 31,
1999 1998
Revenues $ 264,701 $125,746
Cost of sales 218,219 104,471
Gross profit 46,482 21,275
Selling, general and
administrative expenses 16,897 9,160
Amortization expense 3,685 1,251
Operating income 25,900 10,864
Interest expense, net 6,895 2,938
Income before provision for income
taxes, equity in losses of affiliate
and minority interest 19,005 7,926
Provision for income taxes 7,711 3,274
Equity in losses of affiliate, net 1,342 --
Minority interest - dividends on
trust preferred securities, net 611 76
Income before extraordinary item and
accounting change 9,341 4,576
Extraordinary item -- loss on early
extinguishment of debt, net (2,702) --
Cumulative effect of change in
accounting, net (3,147) --
Net income $3,492 $4,576
Basic earnings per common share:
Income before extr. item and
accounting change $0.73 $0.52
Extraordinary item (0.21) --
Cumulative effect of change in
accounting (0.25) --
Net income $0.27 $0.52
Basic shares outstanding 12,877 8,826
Diluted earnings per common share:
Income before extr. Item and
accounting change $0.70 $0.52
Extraordinary item (0.19) --
Cumulative effect of change in
accounting (0.22) --
Net income $0.29 $0.52
Diluted shares outstanding 14,253 9,012
DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
March 31, December 31,
Assets 1999 1998
(unaudited)
Current assets:
Cash and cash equivalents $ 39,267 $ 20,544
Accounts receivable, net 471,282 158,465
Inventories 150,471 50,498
Other current assets 129,082 45,924
Total current assets 790,102 275,431
Property, plant and equipment, net 523,287 188,732
Goodwill, net 898,342 435,960
Deferred income taxes and other assets, net 48,836 29,260
$2,260,567 $ 929,383
Liabilities and Stockholders' Investment
Current liabilities:
Current maturities of long-term debt $ 14,945 $ 15,489
Accounts payable 237,832 99,512
Accrued liabilities 317,194 96,664
Total current liabilities 569,971 211,665
Long-term debt, net of current maturities 1,011,387 316,417
Other noncurrent liabilities 230,497 108,014
Mandatorily redeemable convertible trust
preferred securities 55,250 55,250
Stockholders' investment:
Preferred stock -- --
Common stock -- Class A 140 90
Common stock -- Class B 33 33
Additional paid-in capital 335,884 171,377
Retained earnings 70,544 67,052
Accumulated other comprehensive loss --
cumulative translation adjustment (13,139) (515)
Total stockholders' investment 393,462 238,037
$2,260,567 $ 929,383