Viasystems, Inc. Reports Results for 1999 First Quarter
19 May 1999
Viasystems, Inc. Reports Results for 1999 First Quarter
ST. LOUIS--May 18, 1999--Viasystems, Inc. (the "Company") and its wholly owned subsidiaries today announced financial results for the first quarter ending March 31, 1999.Net sales for the period were $260.0 million, up 7.3% from the first quarter 1998. The sales growth was due primarily to the acquisitions of the Ericsson facility, Mommers and Zincocelere completed in the first quarter of 1998 and volume growth partially offset by contractual price reductions, typical, industry wide pricing pressures as well as the negative impact of the stronger U.K. pound as it relates to continental European currencies. Earnings before interest, taxes, depreciation and amortization ("EBITDA") was $38.2 million, or 14.7% of sales, or 3.0% higher than first quarter 1998. Cost of goods sold for the first quarter was $194.8 million, or 74.9% of net sales compared to $177.7 million, or 73.3% of net sales for the same period last year. Cost of goods sold as a percentage of net sales increased slightly due to product mix changes from the 1998 acquisitions as well as the above mentioned industry wide price and volume pressure, partially offset by cost containment and reduction activities.
Selling, general and administrative expenses for the three months ending March 31, 1999, were $27.0 million, or 10.4% of sales, compared to $27.7 million, or 11.4% of sales, for the same period in 1998. The Company provided net cash of $26.4 million from operating activities and invested $20.1 million in capital expenditures during the first quarter of 1999. For the same period in 1998, the Company's operating cash flow was a use of $39.8 million and capital expenditures were $33.0 million.
James N. Mills, Chairman, said, "We are encouraged by the first quarter performance, but continue to experience market dynamics that have resulted in significant downward pricing pressures. We continue to address these pressures by emphasizing operational improvements in the areas of quality, delivery and cost position."
Viasystems, headquartered in St. Louis, Missouri, is one of the largest manufacturers and marketers of printed circuit boards ("PCBs") and backplanes in the world. PCBs are the basic platforms used to interconnect microprocessors, integrated circuits and other components essential to the functioning of virtually all electronic systems, ranging from sophisticated computers and industrial products to basic household appliances. Backplanes are used in electronic systems to distribute and ground power, to connect PCBs, power supplies and other elements, and to relay information into and out of electronic systems. The Company supplies over 800 customers globally, serving, among others, the telecommunications, computer, automotive, industrial and instrumentation, military, and consumer electronics industries.
This press release contains forward-looking statements as defined by the federal securities laws, and these statements are based upon Viasystems, Inc.'s current expectations and assumptions, which are inherently subject to various risks and uncertainties that could cause actual results to differ from those anticipated, projected, or implied. Certain factors that could cause actual results to differ are indicated in Viasystems, Inc.'s filings with the Securities and Exchange Commission.