Tower Automotive, Inc., Announces Increased Revenues, Operating Income
15 July 1999
Tower Automotive, Inc., Announces Increased Revenues, Operating Income and Net Income for the Second Quarter Ended June 30, 1999
MINNEAPOLIS, July 15 -- Tower Automotive, Inc. ,
today announced increased operating results for the second quarter and six
months ended June 30, 1999.
For the second quarter of 1999, revenues were $531 million, a 14 percent
increase, compared with $466 million in the 1998 period. Operating income
increased 26 percent to $59 million versus $47 million reported last year.
Net income for the second quarter of 1999 was $33 million, or 58 cents per
diluted share outstanding, versus $24 million, or 46 cents per diluted share,
in the comparable 1998 period.
For the six months ended June 30, 1999, revenues were $1,029 million an
11 percent increase compared with $923 million in the same period for 1998.
Operating income rose 30 percent to $112 million from $86 million reported
last year. Net income for the six months ended June 30, 1999 was $61 million,
or $1.08 per diluted share outstanding, versus $43 million, or 83 cents per
diluted share, in the comparable 1998 period.
In commenting on second-quarter and six-months results, Dugald K.
Campbell, president and chief executive officer of Tower Automotive, said, "We
are very encouraged with the improvements in our operating results for the
second quarter. Strong sales growth for the quarter and the first six months
of 1999 continue to provide a solid contribution, resulting in increases in
both gross and operating margins compared with a year ago. Additionally,
continuing productivity and increased attention to maximizing resource and
capital utilization are providing a positive impact to the earnings for the
company."
Tower Automotive, Inc., produces a broad range of assemblies and modules
for vehicle structures and suspension systems for original equipment
manufacturers of automobiles 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 Six Months Ended
June 30, June 30,
1999 1998 1999 1998
Revenues $530,680 $465,874 $1,029,252 $923,003
Cost of sales 443,651 395,020 862,776 788,960
Gross profit 87,029 70,854 166,476 134,043
Selling, general and
administrative expenses 24,584 20,825 47,004 41,965
Amortization expense 3,741 3,309 7,191 6,573
Operating income 58,704 46,720 112,281 85,505
Interest expense, net 7,262 12,695 14,529 24,610
Income before provision for
income taxes 51,442 34,025 97,752 60,895
Provision for income taxes 20,577 13,612 39,101 24,360
Income before equity in
earnings of joint ventures
and minority interest 30,865 20,413 58,651 36,535
Equity in earnings of
joint ventures 4,382 3,973 7,295 6,671
Minority interest -- dividends
on trust preferred
securities, net (2,619) (640) (5,242) (640)
Net income $32,628 $23,746 $60,704 $42,566
Basic earnings
per common share $0.69 $0.51 $1.30 $0.92
Basic shares outstanding 46,965 46,204 46,766 46,142
Diluted earnings
per common share $0.58 $0.46 $1.08 $0.83
Diluted shares outstanding 64,143 57,133 63,966 55,995
TOWER AUTOMOTIVE, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands)
June 30, December 31,
Assets 1999 1998
(unaudited)
Current assets:
Cash and cash equivalents $877 $3,434
Accounts receivable 309,371 239,888
Inventories 80,719 76,913
Prepaid tooling and other 82,734 115,859
Total current assets 473,701 436,094
Property, plant and equipment, net 886,109 821,873
Restricted cash -- 2,677
Investments in joint ventures 219,115 209,625
Goodwill and other assets, net 463,047 465,898
$2,041,972 $1,936,167
Liabilities and Stockholders' Investment
Current liabilities:
Current maturities of long-term
debt and capital lease Obligations $23,400 $18,191
Accounts payable 208,329 214,194
Accrued liabilities 124,482 96,773
Total current liabilities 356,211 329,158
Long-term debt, net of current maturities 351,048 316,579
Obligations under capital leases,
net of current maturities 23,435 25,770
Convertible subordinated notes 200,000 200,000
Deferred income taxes 20,376 20,376
Other noncurrent liabilities 157,336 178,738
Total noncurrent liabilities 752,195 741,463
Mandatorily redeemable trust
convertible preferred securities 258,750 258,750
Stockholders' investment:
Preferred stock -- --
Common stock 470 463
Warrants to acquire common stock 2,000 2,000
Additional paid-in capital 434,799 426,471
Retained earnings 238,138 177,434
Accumulated other comprehensive income (591) 428
Total stockholders' investment 674,816 606,796
$2,041,972 $1,936,167