Shiloh Industries Reports Year End Results
17 December 1999
Shiloh Industries Reports Year End Results; Record Revenues and Operating Income for Fourth Quarter
CLEVELAND, Dec. 17 -- Shiloh Industries, Inc. ,
a leading supplier of blanks, stampings and processed steel for the
automotive, truck and other industries, today announced financial results for
its fourth quarter and fiscal year ended October 31, 1999.
For the fourth quarter of fiscal 1999, net income increased by 186% to
$5.1 million, or $0.39 per basic and diluted share, from $1.8 million, or
$0.14 per basic and diluted share, in the fourth quarter of fiscal 1998.
Operating income for the fourth quarter of fiscal 1999 increased by 100% to a
record $10.2 million from $5.1 million in the fourth quarter of fiscal 1998.
Revenues for the fourth quarter of fiscal 1999 increased 26% to a record
$99.2 million, from revenues of $79.0 million in the comparable period of
fiscal 1998.
For the twelve months ended October 31, 1999 net income was $15.3 million,
or $1.17 per basic and diluted share, compared with net income of
$15.5 million, or $1.19 per basic and diluted share, for the prior year.
Operating income for fiscal 1999 was $31.5 million, compared with operating
income of $30.0 million for fiscal 1998. Revenues increased by 18% to
$354.2 million, from $299.4 million in fiscal 1998.
"The strong revenue growth for the fourth quarter and year reflects
improvement in our tool and die, stamping and blanking operations, including
increased revenue at Greenfield Stamping; a full year of results of new
operations at Jefferson Blanking which came online at the end of fiscal 1998;
and the launch of the new tailor-welded blanking program at Medina Blanking.
The surge in fourth-quarter results is attributable to improvements in
operations and strong sales of tailor-welded blanks to the automotive and
truck industries," said John F. Falcon, President and CEO.
"Fiscal 1999 was a positive year for our company despite the relatively
flat earnings, which relate principally to operating challenges in our tooling
business. The second half of the year was noticeably stronger than the first,
which reflects the success of new products and programs, the positive impact
of our new management team and centralization of some operational functions.
The improvement also represents the growing volume of business coming from the
automotive industry as it outsources more work and consolidates the number of
approved suppliers," Mr. Falcon noted.
Among other highlights for the fiscal year and thereafter:
The Company started construction of a 125,000 square-foot state-of-the-art
blanking plant in Mexico to supply tailor-welded blanks to the General Motors
facilities located in close proximity to our facility. Operations at this new
facility are expected to commence in the second half of fiscal 2000.
On November 1, 1999, the Company completed the acquisition of MTD
Automotive, a Tier 1 supplier to the automotive industry. The acquisition of
MTD Automotive is expected to increase revenues and expand Shiloh's
engineering, tooling and stamping capabilities. MTD Automotive is a key link
in Shiloh's ability to directly serve automotive manufacturers (OEMs) and
Tier 1 suppliers by providing them with high-quality, value-added engineered
components.
Mr. Falcon noted: "We are very optimistic about fiscal 2000. Our product
mix is diverse. We supply components for some for the hottest selling
vehicles and platforms. Plus, we have been awarded new business for several
attractive new platforms. Our new plant in Mexico should contribute modestly
to fiscal 2000 revenues. We anticipate opening a new Sales and Engineering
office near Detroit by the middle of the fiscal year. This will enable us to
improve contact with and better serve the OEM sector. We have a much more
focused company and management team. And we are aiming directly at gaining
profitable marketshare in the automotive sector."
Headquartered in Cleveland, Shiloh Industries is a leading supplier of
blanks, stampings and processed steel for the automotive, truck and other
industries. The company operates 15 facilities in Ohio, Michigan and Georgia
and employs more than 3,000 people.
The forward-looking statements in this press release involve a number of
risks and uncertainties. Among the factors that could cause actual results to
differ materially are the following: a downturn in the automotive industry
and the general economy; competitive factors such as increases in the price
of, or limitations on the availability of steel; the ability of the Company to
successfully integrate the operations of MTD Automotive; the ability to
commence operations and minimize start-up costs at new facilities, including
the Mexico facility; potential disruptions in operations due to, or during
facility expansions; delays in, or cancellations of, customer programs; the
risks and uncertainties related to commencing foreign operations; a labor
dispute involving Shiloh, its customers or suppliers; and other risks and
uncertainties that may be identified from time to time in the company's
reports to the Securities and Exchange Commission.
SHILOH INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Amounts in Thousands)
(Unaudited)
Three months ended Twelve months ended
October 31 October 31
1999 1998 1999 1998
Revenues $99,185 $79,015 $354,220 $299,350
Cost of sales 80,056 66,489 291,265 242,499
Gross Profit 19,129 12,526 62,955 56,851
Selling, general and
administrative expenses
Operating income 10,210 5,097 31,514 30,019
Interest expense 1,938 2,234 7,489 5,303
Interest income 18 51 109 173
Minority interest 53 177 474 342
Other income (expense),
net income before income
taxes 8,259 2,917 24,674 25,215
Provision for income
taxes net income $ 5,133 $ 1,794 $15,311 $15,542
Earnings per share:
Basic Earnings per
share $ .39 $ .14 $ 1.17 $ 1.19
Basic Weighted Average
Number of Common
Shares 13,081 13,081 13,081 13,081
Diluted Earnings per
share $ .39 $ .14 $ 1.17 $ 1.19
Diluted Weighted Average
Number of Common
shares 13,085 13,098 13,085 13,103
SHILOH INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amount in thousands)
October 31, October 31,
1999 1998
Assets
Current assets:
Cash and cash equivalents $ 1,576 $ 642
Accounts receivable 79,670 46,802
Inventory 47,119 44,784
Deferred income taxes 1,581 1,290
Prepaid expenses 7,447 3,545
Total current assets 137,393 97,063
Property, plant and equipment, net 269,627 240,441
Goodwill and other intangible
assets, net 11,647 12,056
Other long-term assets 6,538 4,389
Total assets $ 425,205 $ 353,949
Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable 38,677 12,056
Accrued income taxes 1,294 1,020
Advanced billings 225 2,836
Other accrued expenses 12,176 12,984
Total current liabilities 52,372 40,703
Long-term debt 171,450 135,865
Deferred Income taxes 22,309 13,563
Other liabilities 946 --
Total current liabilities 247,077 191,131
Stockholders' equity:
Common stock 131 131
Additional paid-in capital 39,400 39,400
Retained earnings 138,597 123,287