Tower Automotive Announces Increased Revenues
28 January 2000
Tower Automotive Announces Increased Revenues, Operating Income and Net Income for the Fourth Quarter and Year Ended December 31, 1999
MINNEAPOLIS, Jan. 28 -- Tower Automotive, Inc. ,
today announced increased operating results for the fourth quarter and year
ended December 31, 1999.
For the fourth quarter of 1999, revenues were $605 million, a 29 percent
increase compared with $469 million in the 1998 period. Operating income
increased 25 percent to $64 million versus $51 million reported last year.
Net income for the fourth quarter of 1999 was $33 million, or 58 cents per
diluted share outstanding, versus $27 million, or 50 cents per diluted share,
in the comparable 1998 period.
For the year ended December 31, 1999, revenues were $2.2 billion compared
with $1.8 billion last year. Operating income rose to $225 million from
$176 million reported last year. Net income for the year ended December 31,
1999 was $117 million, or $2.10 per diluted share outstanding, versus
$88 million, or $1.68 per diluted share, in 1998.
"The performance of Tower Automotive during 1999 reflects our ability to
improve operating results by continuous enhancement of our business
processes," stated Dug Campbell, president and chief executive officer of
Tower Automotive. "Earnings per share were up 16 percent for the quarter and
25 percent for the full year reflecting continued strong sales for the light
trucks and car models we serve. Additionally, our new capability to produce
large structural stampings and vehicle surface panels increased our content
per vehicle and contributed to increased earnings for the quarter and the
year."
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, floor pans, surface panels 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 Year Ended
December 31, December 31,
1999 1998 1999 1998
Revenues $604,599 $468,625 $2,170,003 $1,836,479
Cost of sales 506,476 395,345 1,823,103 1,562,167
Gross profit 98,123 73,280 346,900 274,312
Selling, general and
administrative Expenses 29,564 19,201 105,950 85,169
Amortization expense 4,161 3,438 15,803 13,472
Operating income 64,398 50,641 225,147 175,671
Interest expense, net 12,810 7,088 37,981 40,318
Income before provision
for income taxes 51,588 43,553 187,166 135,353
Provision for income taxes 20,635 17,421 74,866 54,143
Income before equity in
earnings ofjoint ventures
and minority interest 30,953 26,132 112,300 81,210
Equity in earnings of joint
ventures 4,309 3,695 15,268 12,708
Minority interest -- dividends
on trust preferred securities,
net (2,619) (2,619) (10,480) (5,878)
Net income $32,643 $27,208 $117,088 $88,040
Basic earnings per
common share $0.70 $0.59 $2.50 $1.91
Basic shares outstanding 46,879 46,280 46,751 46,204
Diluted earnings per
common share $0.58 $0.50 $2.10 $1.68
Diluted shares outstanding 63,864 63,491 63,974 59,711
TOWER AUTOMOTIVE, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands)
December 31, December 31,
Assets 1999 1998
Current assets:
Cash and cash equivalents $3,617 $3,434
Accounts receivable 353,351 239,888
Inventories 110,897 76,913
Prepaid tooling and other 90,191 115,859
Total current assets 558,056 436,094
Property, plant and equipment, net 1,075,861 821,873
Restricted cash -- 2,677
Investments in joint ventures 290,705 209,625
Goodwill and other assets, net 627,928 465,898
$2,552,550 $1,936,167
Liabilities and Stockholders' Investment
Current liabilities:
Current maturities of long-term debt
and capital lease
Obligations $13,876 $18,191
Accounts payable 276,673 214,194
Accrued liabilities 140,567 96,773
Total current liabilities 431,116 329,158
Long-term debt, net of current maturities 699,678 316,579
Obligations under capital leases,
net of current maturities 21,543 25,770
Convertible subordinated notes 200,000 200,000
Deferred income taxes 50,736 20,376
Other noncurrent liabilities 163,592 178,738
Total noncurrent liabilities 1,135,549 741,463
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 437,216 426,471
Retained earnings 294,522 177,434
Treasury stock (4,492) --
Accumulated other comprehensive income (loss) (2,582) 428
Total stockholders' investment 727,135 606,796
$2,552,550 $1,936,167