Motor Coach Industries International, Inc. Announces Third Quarter, Year to Date Results
24 November 1999
Motor Coach Industries International, Inc. Announces Third Quarter, Year to Date Results
DES PLAINES, Ill., Nov. 23 -- Motor Coach Industries
International, Inc. announces today the following results for the three and
nine month periods ended September 30, 1999.
Three Months Ended Nine Months Ended
(In millions of dollars) September 30 September 30
1999 1998 1999 1998
Total Revenue $187.6 $181.4 $674.9 $666.1
Operating Income $12.2 $8.3 $44.4 $48.2
Net Income (Loss) $(0.9) $0.0 $(9.3) $9.4
Operating Income before
non-cash inventory charge $12.2 $8.3 $65.4 $48.2
Depreciation and Amortization $6.0 $7.0 $18.3 $18.9
EBITDA before Non-Cash Charge $18.2 $15.3 $83.7 $67.1
Interest Expense, Net $14.6 $11.0 $42.5 $31.3
Foreign Currency Translation
Gain (Loss) $(0.7) $1.6 $(1.6) $3.6
Gain on Sale of Investment $0.0 $7.0 $0.0 $7.0
Extraordinary (Loss) on Early
Extinguishment of Debt
(net of tax) $0.0 $0.0 $(2.6) $0.0
As of As of
9/30/99 9/30/98
Long Term Debt $531.0 $521.0
Total revenues for the three months ended September 30, 1999 were
$187.6 million, an increase of $6.2 million or 3.4% from the comparable period
of 1998. Included in the 1998 revenue for the quarter is $5.0 million of
revenue ($5.7 million year-to-date) generated from the Mexican replacement
parts subsidiary that did not reoccur in 1999 because the Company contributed
this subsidiary to Grupo Dina as part of the financial restructuring completed
on June 16, 1999. Exclusive of this impact, the Company's revenue grew
$11.2 million or 6.3% for the three-month period ended September 30, 1999 due
to an increase of approximately $25 million in new coach revenue generated by
an increase in number of units sold, partially offset by a decline of
approximately $13 million in used coach revenue due primarily to a decline in
used coach units sold. Total revenues of $674.9 million for the nine months
ended September 30, 1999 increased $14.5 million or 2.2% over the comparable
period of 1998 after adjusting for the $5.7 million of revenue generated from
the former Mexican replacement parts subsidiary. This revenue increase is
attributed primarily to an increase of 8% in new coach revenue due equally to
price and volume, after adjusting 1998 units and revenue for a one-time sale
of 209 low-priced, low-margin Mexican inter-city transit buses. Partially
offsetting this year over year new coach revenue growth is a decline of 21% in
used coach revenue due primarily to a decline in used coach pricing and
product mix.
Operating income for the three-month period ended September 30, 1999 was
$12.2 million compared to $8.3 million for the comparable period of 1998.
Operating income for the nine-month period ended September 30, 1999, excluding
the impact of the $21.0 million non-cash inventory charge taken during the
second quarter, was $65.4 million compared to $48.2 million for the comparable
period of 1998. Operating income margins improved from 4.6% for the three
months ended September 30, 1998 to 6.5% for the comparable period of 1999 and
from 7.2% for the nine months ended September 30, 1998 to 9.7% for the
comparable period of 1999 excluding the second quarter inventory charge. The
operating income margin improvement is largely due to improved margin mix on
new coach sales, an improvement in labor costs, and the elimination of certain
Dina management and royalty fees, partially offset by increased selling
expense for new coaches in the domestic market.
Interest expense-net, of $14.6 million and $42.5 million for the three and
nine month periods ended September 30, 1999, respectively, were $3.6 million
and $11.2 million higher than their comparable periods of 1998. The increased
interest expense is primarily due to higher effective interest rates
associated with the new borrowings and the bridge financing used during the
first six months of 1999 while the financial restructuring plan was being
developed. The average balance of outstanding borrowing in 1999 was also
higher than 1998, which contributed to the higher interest expense.
Net income for the three-month and nine-month periods ended September 30,
1999 is lower than 1998 due to the impact of the changes in operating income
and interest expense coupled with changes in foreign currency translation gain
(loss), the extraordinary loss recorded on the early retirement of debt in the
second quarter of 1999 and the gain on the sale of the investment in Mexicana
de Autobuses, S.A. de C.V. recorded in 1998.
Motor Coach Industries International, Inc. is the leading designer,
manufacturer and marketer of inter-city coaches and related replacement parts
for the North American market.