Autocam Reports Record First Quarter Results
9 November 1999
Autocam Reports Record First Quarter Results
KENTWOOD, Mich., Nov. 8 -- Autocam Corporation
today reported its financial results for the three months ended September 30,
1999. The Kentwood, Michigan-based manufacturer of precision-machined parts
reported net income for the three months ended September 30, 1999 of
$1,519,000, or 23 cents per diluted share, on sales of $46,622,000, versus net
income of $178,000, or 3 cents per diluted share, on sales of $24,020,000 for
the three months ended September 30, 1998. The results for the three months
ended September 30, 1999 include a one-time charge of 4 cents per share
relating to legal and professional service fees incurred in connection with
the contemplated sale of the Company.
The near-doubling of sales when comparing the first quarter of fiscal 2000
to the same period in fiscal 1999 was due primarily to the acquisition of
Frank & Pignard SA ("F&P"), a French manufacturer of precision-machined
components, in October 1998. F&P added $20 million in sales, primarily of
diesel fuel, power steering and braking system components, during the three
months ended September 30, 1999 versus the same period in fiscal 1999.
Autocam President John C. Kennedy indicated the sales and earnings per
share were higher than any first fiscal quarter in the Company's history.
"Operating margin improved, as a percentage of sales, from 6.8% during the
first quarter of fiscal 1999 to 9.3% during the quarter just ended, led by
production improvements at our Kentwood and Marshall facilities, and the
addition of F&P to the Company's operating results," according to Kennedy.
The improvement in operating margins from Kentwood and Marshall, which
produce fuel systems components, were partially offset by the poor operating
performance of the Company's Dowagiac, Michigan facility, which produces
braking system components, and the loss of contract to manufacture coronary
stents during November 1998. "We are pleased regarding the profitability
advancements in our fuel systems business, and although the Dowagiac facility
was unprofitable, operating performance improved throughout the quarter,"
Kennedy said. "There is more work to be done, but we expect the facility to
begin generating a profit later this fiscal year." The coronary stent
contract was lost when a customer made a business decision to exit the
coronary stent market.
Over the remainder of fiscal 2000, the Company expects year-over-year
increases in sales and operating profits in each quarter. "We expect internal
sales growth primarily in Europe and North America as the Company ramps up on
several fuel and braking system programs initiated in fiscal 1999," Kennedy
said. As it continues implementation of Toyota Production Systems techniques
at all domestic and international facilities, management expects to reap
further benefits in the areas of labor efficiency, manufacturing floor
utilization and inventory management.
Autocam manufactures precision-machined components primarily used in fuel,
power steering and braking systems and electric motor assemblies for the
transportation industry, and ophthalmic and cardiovascular devices for the
medical industry. Autocam's common stock trades on the Nasdaq National Market
under the symbol "ACAM". For more information on the Company, visit our
Internet website at http://www.autocam.com . An on-demand webcast of the
Company's quarterly conference call with analysts will be available on-line at
http://www.streetfusion.com .
This release may contain forward-looking statements relating to future
financial and other results. Forward-looking statements include statements
concerning plans, objectives, goals, strategies, future events or performance
and underlying assumptions and other statements that are other than statements
of historical facts. Such forward-looking statements may be identified by the
use of the words "anticipates," "estimates," "expects," "intends," "plans,"
"predicts," "projects," and similar expressions. These cautionary statements
and any other cautionary statements that may accompany the forward-looking
statements expressly qualify all such statements. Forward-looking statements
involve risk and uncertainties that could cause actual results or outcomes to
differ materially from those expressed in the forward-looking statements.
AUTOCAM CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended
September 30,
In thousands, except
per share data 1999 1998
$$ % $$ %
Sales $46,622 100.0% $24,020 100.0%
Cost of sales 39,505 84.7% 20,579 85.7%
Gross profit 7,117 15.3% 3,441 14.3%
Selling, general
and administrative 2,777 6.0% 1,794 7.5%
Income from operations 4,340 9.3% 1,647 6.8%
Interest expense, net 1,939 4.2% 758 3.2%
Minority interest in
net income (loss)
and other (345) -0.8% 185 0.7%
Income before tax
provision 2,746 5.9% 704 2.9%
Tax provision 1,227 2.6% 526 2.2%
Net income $1,519 3.3% $178 0.7%
Basic net income
per share $0.24 $0.03
Diluted net income
per share $0.23 $0.03
Basic weighted average
shares outstanding 6,310 6,410
Diluted weighted average
shares outstanding 6,512 6,611
CONSOLIDATED BALANCE SHEETS
September 30, June 30,
In thousands 1999 1999
Assets:
Cash and equivalents $4,007 $3,654
Accounts receivable 39,038 40,781
Inventories 14,570 15,237
Prepaid expenses and other
current assets 2,436 2,103
Total current assets 60,051 61,775
Property, plant and
equipment, net 131,007 129,744
Assets held for sale 527 534
Goodwill and other
intangible assets, net 28,294 28,376
Equipment deposits and
other long-term assets 8,406 9,062
Total assets $228,285 $229,491
Liabilities and shareholders' equity:
Current maturities of
long-term obligations $6,959 $4,478
Accounts payable 19,999 22,130
Accrued liabilities 13,644 13,063
Total current liabilities 40,602 39,671
Long-term obligations,
net of current maturities 105,851 109,560
Deferred taxes 26,369 25,628
Deferred credits and other 5,504 5,417
Minority interest 2,701 2,813
Shareholders' equity 47,258 46,402
Total liabilities and
shareholders' equity $228,285 $229,491