Tower Automotive Announces Increased Revenues
15 October 1999
Tower Automotive Announces Increased Revenues, Operating Income and Net Income For the Third Quarter Ended September 30, 1999
MINNEAPOLIS, Oct. 15 -- Tower Automotive, Inc.,
announced increased operating results for the third quarter and nine
months ended September 30, 1999.
For the third quarter of 1999, revenues were $536 million, a 20 percent
increase, compared with $445 million in the 1998 period. Operating income
increased 20 percent to $48 million versus $40 million reported last year.
Net income for the third quarter of 1999 was $24 million, or 44 cents per
diluted share outstanding, versus $18 million, or 36 cents per diluted share,
in the comparable 1998 period.
For the nine months ended September 30, 1999, revenues were
$1,565 million, a 14 percent increase, compared with $1,368 million in the
same period for 1998. Operating income rose 29 percent to $161 million from
$125 million reported last year. Net income for the nine months ended
September 30, 1999 was $84 million, or $1.52 per diluted share outstanding,
versus $61 million, or $1.18 per diluted share, in the comparable 1998 period.
In commenting on third-quarter and nine-months results, Dugald K.
Campbell, president and chief executive officer of Tower Automotive, said,
"Strong sales growth for the quarter and the first nine months of 1999
continues to provide solid contributions resulting in increases in both gross
and operating margins compared with a year ago. During the quarter, the
company experienced significant launch activity including new platform
launches on the Ford Excursion, Focus and Lincoln LS/Jaguar S Type, Toyota
Camry and Tundra, Nissan Xterra and the new Quad Cab Dakota based on the
Chrysler Durango/Dakota platforms. Traditional excess costs normally incurred
during launch were mitigated by continued operating improvement."
On July 29, 1999, the company acquired all of the outstanding common stock
of Active Tool & Manufacturing Co., Inc., and its affiliate, Active Products
Company ("Active"). Net consideration paid for the acquisition was
approximately $305 million. Active is a leading North American producer of
large structural stampings and assemblies, including Class A exposed metal
surfaces. Active's primary customers include DaimlerChrysler, Ford, General
Motors and Saturn.
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 Nine Months Ended
September 30, September 30,
1999 1998 1999 1998
Revenues $536,152 $444,851 $1,565,404 $1,367,854
Cost of sales 453,851 377,862 1,316,627 1,166,822
Gross profit 82,301 66,989 248,777 201,032
Selling, general
and administrative
expenses 29,382 24,003 76,386 65,968
Amortization expense 4,451 3,461 11,642 10,034
Operating income 48,468 39,525 160,749 125,030
Interest expense, net 10,642 8,620 25,171 33,230
Income before provision
for income taxes 37,826 30,905 135,578 91,800
Provision for
income taxes 15,130 12,362 54,231 36,722
Income before equity
in earnings of joint
ventures and
minority interest 22,696 18,543 81,347 55,078
Equity in earnings
of joint ventures 3,664 2,342 10,959 9,013
Minority interest
-- dividends on
trust preferred
securities, net (2,619) (2,619) (7,861) (3,259)
Net income $23,741 $18,266 $84,445 $60,832
Basic earnings
per common share $0.50 $0.40 $1.80 $1.32
Basic shares
outstanding 47,081 46,236 46,871 46,174
Diluted earnings
per common share $0.44 $0.36 $1.52 $1.18
Diluted shares
outstanding 64,099 63,355 64,010 58,445
TOWER AUTOMOTIVE, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
September 30, December 31,
Assets 1999 1998
(unaudited)
Current assets:
Cash and cash equivalents $1,067 $3,434
Accounts receivable 359,362 239,888
Inventories 115,863 76,913
Prepaid tooling and other 99,011 115,859
Total current assets 575,303 436,094
Property, plant and equipment, net 1,047,872 821,873
Restricted cash -- 2,677
Investments in joint ventures 220,902 209,625
Goodwill and other assets, net 654,651 465,898
$2,498,728 $1,936,167
Liabilities and Stockholders' Investment
Current liabilities:
Current maturities of long-term
debt and capital lease
obligations $6,303 $18,191
Accounts payable 245,620 214,194
Accrued liabilities 158,337 96,773
Total current liabilities 410,260 329,158
Long-term debt, net of current maturities 710,012 316,579
Obligations under capital leases,
net of current maturities 23,246 25,770
Convertible subordinated notes 200,000 200,000
Deferred income taxes 3,510 20,376
Other noncurrent liabilities 193,148 178,738
Total noncurrent liabilities 1,129,916 741,463
Mandatorily redeemable trust
convertible preferred securities 258,750 258,750
Stockholders' investment:
Common stock 471 463
Warrants to acquire common stock 2,000 2,000
Additional paid-in capital 435,710 426,471
Retained earnings 261,879 177,434
Accumulated other comprehensive
income (loss) (258) 428
Total stockholders' investment 699,802 606,796
$2,498,728 $1,936,167