Dura Automotive Announces Record Third-Quarter Operating Results
20 October 1999
Dura Automotive Systems, Inc., Announces Record Third-Quarter Operating Results
MINNEAPOLIS, Oct. 20 -- Dura Automotive Systems, Inc.
, today announced record revenues, operating income and net
income for the third quarter and nine months ended September 30, 1999.
For the third quarter of 1999, revenues were $580.9 million, a significant
increase compared with $185.2 million in the 1998 period. Operating income
rose to $43.8 million from $15.6 million reported last year. Net income was
$11.3 million, or 63 cents per diluted share outstanding, in 1999 versus
$5.2 million, or 43 cents per diluted share, in the comparable 1998 period.
For the nine months ended September 30, 1999, revenues were
$1,530.8 million, operating income was $125.5 million and net income before
extraordinary item and accounting change was $39.0 million, or $2.35 per
diluted share outstanding. These results represent significant increases
compared to the same period in 1998, which had revenues of $498.4 million,
operating income of $44.4 million and net income before extraordinary item of
$16.4 million, or $1.58 per diluted share outstanding.
Karl Storrie, president and chief executive officer of Dura Automotive,
said, "We are very pleased with our third-quarter results which reflect some
of the benefits of integrating our recent acquisitions. Our ability to
acquire and integrate companies quickly has enabled us to manage our growth
profitably. This ability, along with strong North American vehicle production
and our continuous improvement programs, is making 1999 a great year for
Dura."
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 Nine Months Ended
Sept. 30, Sept. 30,
1999 1998 1999 1998
Revenues $580,886 $185,204 $1,530,754 $498,383
Cost of sales 491,479 153,345 1,292,366 413,230
Gross profit 89,407 31,859 238,388 85,153
Selling, general and
administrative expenses 37,344 13,103 92,320 33,986
Amortization expense 8,218 3,128 20,542 6,724
Operating income 43,845 15,628 125,526 44,443
Interest expense, net 22,863 5,377 52,188 14,185
Income before provision
for income taxes, equity
in losses of affiliate
and minority interests 20,982 10,251 73,338 30,258
Provision for income taxes 8,664 4,403 29,588 12,591
Minority interest and
equity in losses of
affiliates, net 415 -- 2,915 --
Minority interest -
dividends on trust
preferred securities, net 612 599 1,834 1,297
Income before extraordinary
item and accounting change 11,291 5,249 39,001 16,370
Extraordinary item - loss
on early extinguishment
of debt, net -- -- 5,402 643
Cumulative effect of change
in accounting, net -- -- 3,147 --
Net income $11,291 $5,249 $30,452 $15,727
Basic earnings per
common share:
Income before extr. item
and accounting change $0.68 $0.43 $2.57 $1.61
Extraordinary item -- -- (0.34) (0.06)
Cumulative effect of
change in accounting -- -- (0.20) --
Net income $0.68 $0.43 $2.03 $1.55
Basic shares outstanding 17,407 12,342 15,877 10,160
Diluted earnings per
common share:
Income before extr. item
and accounting change $0.63 $0.43 $2.35 $1.58
Extraordinary item -- -- (0.31) (0.05)
Cumulative effect of change
in accounting -- -- (0.18) --
Net income $0.63 $0.43 $1.86 $1.53
Diluted shares outstanding 18,971 13,707 17,382 11,158
DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
Sept. 30, December 31,
Assets 1999 1998
(unaudited)
Current assets:
Cash and cash equivalents $17,729 $20,544
Accounts receivable, net 458,097 158,465
Inventories 137,886 50,498
Other current assets 118,506 45,924
Total current assets 732,218 275,431
Property, plant and equipment, net 487,360 188,732
Goodwill, net 1,022,439 435,960
Deferred income taxes and other assets, net 85,528 29,260
$2,327,545 $929,383
Liabilities and Stockholders' Investment
Current liabilities:
Current maturities of long-term debt $11,395 $15,489
Accounts payable 250,582 99,512
Accrued liabilities 288,912 96,664
Total current liabilities 550,889 211,665
Long-term debt, net of current maturities 670,521 316,417
Subordinated notes 404,470 --
Other noncurrent liabilities 228,528 108,014
Mandatorily redeemable convertible trust
preferred securities 55,250 55,250
Stockholders' investment:
Common stock -- Class A 140 90
Common stock -- Class B 33 33
Additional paid-in capital 338,859 171,377
Retained earnings 97,504 67,052
Accumulated other comprehensive loss --
cumulative translation adjustment (18,649) (515)
Total stockholders' investment 417,887 238,037
$2,327,545 $929,383