Safelite Glass Corp. Reports Q4 and Year Ended April 3, 1999 Results
3 May 1999
Safelite Glass Corp. Reports Fourth Quarter and Year Ended April 3, 1999 Results
COLUMBUS, Ohio, May 3 -- Safelite Glass Corp., a leader in
the automotive glass replacement and repair industry, reported today the
results for its fourth quarter and year ended April 3, 1999.
Fourth Quarter and Year Ended April 3, 1999 Results
The Company reported total sales of $217.8 million for its fourth quarter
ended April 3, 1999, an increase of 2% over the same quarter in the prior
year. Safelite's fourth quarter earnings before interest, taxes,
depreciation, amortization, restructuring and other one-time charges
("Adjusted EBITDA") were $20.0 million, an increase of $1.8 million or 10%
over the quarter ended April 4, 1998. Operating income rose to $14.5 million
from $4.9 million in the prior year. The prior year was negatively impacted
by $6.9 million of restructuring and other one-time charges. Net loss for the
quarter was $3.9 million, compared to a loss of $4.3 million in the prior
year. Fourth quarter 1999 net income was adversely impacted by a $4.0 million
extraordinary charge taken in connection with the partial repayment and
refinancing of Safelite's bank credit facilities. Absent this extraordinary
charge, Safelite had net income of $0.1 million for the quarter. Results for
the quarter reflect not only an improvement over the prior year, but also a
significant improvement over Safelite's third quarter results which had been
impacted by both traditional seasonal weakness and disruptions from the
Company's merger with Vistar, Inc. Severe weather in January 1999 also
contributed to the improved performance.
For the year ended April 3, 1999, total sales were $876.8 million, and
Adjusted EBITDA was $67.0 million. This is the first full year in which
Safelite has reported earnings since it changed its fiscal year end to the
Saturday closest to March 31. Sales for the year ended January 3, 1998 were
$483.3 million and Adjusted EBITDA was $49.6 million, excluding the operations
of Safelite's former subsidiary, Lear Siegler.
"Fourth quarter results provided a positive ending to our fiscal year and
reflect the strengthening of our operating team's performance," said John F.
Barlow, Safelite's Chief Executive Officer. "With the Vistar merger
integration tasks now behind us, we are ready to capitalize on our industry
leadership position."
Cautionary Statement
Readers are cautioned that there are statements contained in this document
which are "forward-looking" statements within the meaning of the Private
Securities Litigation Reform Act of 1995 (the "Act"). Forward-looking
statements include statements which are predictive in nature, which depend
upon or refer to future events or conditions, which include words such as
"expects," "anticipates," "intends," "plans," "believes," "estimates," or
similar expressions. In addition, any statements concerning future financial
performance (including future revenues, earnings or growth rates), ongoing
business strategies or prospects, and possible future Company actions, which
may be provided by management are also forward-looking statements as defined
by the Act. Forward-looking statements are based on current expectations and
projections about future events and are subject to risks, uncertainties, and
assumptions about the Company, economic and market factors and the industries
in which Safelite does business, among other things. These statements are not
guaranties of future performance and Safelite has no specific intention to
update these statements.
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. The 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 costs and expenses associated with any Year
2000 issues associated with Safelite, including updating software and hardware
and potential system interruptions. This list should not be construed as
exhaustive.
SAFELITE GLASS CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
($ IN MILLIONS)
Quarter Ended
April 4, 1998 April 3, 1999
Sales $213.8 $217.8
Cost of sales 155.5 157.2
Gross profit 58.3 60.6
Selling, general &
administrative expenses 46.5 46.1
Other operating expenses (a) 3.1 --
Restructuring 3.8 --
Operating income 4.9 14.5
Interest expense (10.9) (12.4)
Interest income 0.1 0.2
Income (loss) before income taxes (5.9) 2.3
Income tax benefit 1.6 (2.2)
Net income (loss) before
extraordinary item (4.3) 0.1
Extraordinary item - early
extinguishment of debt -- (4.0)
Net loss $ (4.3) $ (3.9)
Depreciation and amortization $ 6.4 $ 5.5
Capital expenditures $ 2.4 $ 6.0
Adjusted EBITDA $ 18.2 $ 20.0
(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)
Year Ended (a)
January 3, 1998 April 3, 1999
Sales $483.3 $876.8
Cost of sales 331.7 645.7
Gross profit 151.6 231.1
Selling, general &
administrative expenses 111.8 186.8
Loss on sale of subsidiary 5.4 --
Other operating expenses (b) 5.7 3.6
Restructuring 2.9 4.2
Operating income 25.8 36.5
Interest expense (27.5) (46.7)
Interest income 1.3 0.6
Income (loss) before income taxes (0.4) (9.6)
Income tax (provision) benefit 6.8 (0.4)
Net income (loss) before
extraordinary item 6.4 (10.0)
Extraordinary item - early
extinguishment of debt (2.8) (4.0)
Net income (loss) $ 3.6 $(14.0)
Depreciation and amortization $ 8.7 $ 22.7
Capital expenditures $ 13.9 $ 23.1
Adjusted EBITDA $ 49.6 $ 67.0
(a) Prior to 1998, Safelite's fiscal year ended on the Saturday closest
to December 31 of each year. On May 18, 1998, Safelite changed its
fiscal year to the Saturday closest to March 31.
(b) Other operating expenses consist of one-time integration costs
associated with the Vistar Merger.
SAFELITE GLASS CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
($ IN MILLIONS)
April 4, 1998 April 3, 1999
ASSETS
CURRENT ASSETS:
Cash and short term investments $ 10.3 $ 2.9
Accounts receivable, net 62.0 70.3
Inventories 50.5 50.4
Other 30.8 20.0
Total 153.6 143.6
PROPERTY, PLANT AND EQUIPMENT, NET 62.0 64.1
INTANGIBLE ASSETS, NET 286.5 280.8
OTHER 74.3 85.3
TOTAL ASSETS $576.4 $573.8
LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 43.5 $ 50.3
Accrued expenses 62.9 36.1
Current portion of long-term debt 5.9 4.5
Total 112.3 90.9
LONG-TERM DEBT, less current portion 497.6 482.8
OTHER LONG TERM LIABILITIES 14.9 6.6
STOCKHOLDERS EQUITY (DEFICIT) (48.4) (6.5)
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIT) $576.4 $573.8