Dura Announces Record Second-Quarter Operating Results
21 July 1999
Dura Automotive Systems, Inc. Announces Record Second-Quarter Operating Results
MINNEAPOLIS, July 21 -- Dura Automotive Systems, Inc.
, today announced record revenues, operating income and net
income for the second quarter ended June30, 1999.
For the second quarter of 1999, revenues were $685.2 million, a
significant increase compared with $187.4 million in the 1998 period.
Operating income rose to $55.8 million from $18.0 million reported last year.
Income before extraordinary item related to the early extinguishment of debt
was $18.4 million, or $1.00 per diluted share outstanding, versus
$6.5 million, or 67 cents per diluted share, in the comparable 1998 period.
The quarter ended June 30, 1999 represents the first full quarter since
the company completed its merger with Excel Industries, Inc. ("Excel")
and its acquisition of Adwest Automotive Plc ("Adwest")
(London Exchange: AWST). Both were completed in March 1999.
For the six months ended June 30, 1999, revenues were $949.9 million,
operating income was $81.7 million and net income before extraordinary item
and accounting change was $27.7 million. These results represent significant
increases compared to the same period in 1998 which had revenues of
$313.2 million, operating income of $28.8 million and net income before
extraordinary item of $11.1 million. An extraordinary loss of $2.7 million,
net of income tax benefit, was recorded in the second quarter of 1999 related
to the early extinguishment of the Trident notes. Trident is a wholly-owned
subsidiary of Dura Automotive.
Karl Storrie, president and chief executive officer of Dura Automotive,
said, "This continues to be an exciting year 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. Integration of the acquisitions of Adwest and Excel with
our existing operations is a primary focus for us. Thus far, we are extremely
pleased with the execution of our integration efforts. These acquisitions
have provided significant growth for our company and are a major step in
maintaining our industry leading position."
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 Six Months Ended
June 30, June 30,
1999 1998 1999 1998
Revenues $685,167 $187,433 $949,868 $313,179
Cost of sales 582,668 155,414 800,887 259,885
Gross profit 102,499 32,019 148,981 53,294
Selling, general and
administrative expenses 38,079 11,723 54,976 20,883
Amortization expense 8,639 2,345 12,324 3,596
Operating income 55,781 17,951 81,681 28,815
Interest expense, net 22,430 5,870 29,325 8,808
Income before provision for
income taxes, equity in
losses of affiliate and
minority interests 33,351 12,081 52,356 20,007
Provision for income taxes 13,220 4,914 20,931 8,188
Minority interest and equity in
losses of affiliates, net 1,151 -- 2,493 --
Minority interest - dividends on
trust preferred securities, net 611 622 1,222 698
Income before extraordinary
item and accounting change 18,369 6,545 27,710 11,121
Extraordinary item -- loss on
early extinguishment of debt,
net (2,700) (3,250) (5,402) (3,250)
Cumulative effect of change in
accounting, net -- -- (3,147) --
Net income $15,669 $3,295 $19,161 $7,871
Basic earnings per common share:
Income before extr. item and
accounting change $1.06 $0.70 $1.83 $1.23
Extraordinary item (0.16) (0.35) (0.35) (0.36)
Cumulative effect of change
in accounting -- -- (0.21) --
Net income $0.90 $0.35 $1.27 $0.87
Basic shares outstanding 17,348 9,311 15,112 9,069
Diluted earnings per common share:
Income before extr. item and
accounting change $1.00 $0.67 $1.74 $1.20
Extraordinary item (0.14) (0.30) (0.32) (0.33)
Cumulative effect of change
in accounting -- -- (0.19) --
Net income $0.86 $0.37 $1.23 $0.87
Diluted shares outstanding 18,922 10,714 16,588 9,884
DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
June 30, December 31,
Assets 1999 1998
(unaudited)
Current assets:
Cash and cash equivalents $91,640 $20,544
Accounts receivable, net 505,902 158,465
Inventories 143,034 50,498
Other current assets 97,315 45,924
Total current assets 837,891 275,431
Property, plant and equipment, net 472,397 188,732
Goodwill, net 1,002,652 435,960
Deferred income taxes and other assets, net 83,030 29,260
$2,395,970 $929,383
Liabilities and Stockholders' Investment
Current liabilities:
Current maturities of long-term debt $10,616 $15,489
Accounts payable 255,619 99,512
Accrued liabilities 250,821 96,664
Total current liabilities 517,056 211,665
Long-term debt, net of current maturities 749,770 316,417
Subordinated notes 408,000 --
Other noncurrent liabilities 261,464 108,014
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 336,493 171,377
Retained earnings 86,213 67,052
Accumulated other comprehensive loss --
cumulative translation adjustment (18,449) (515)
Total stockholders' investment 404,430 238,037
$2,395,970 $929,383