Safety Components Reports Restated Financial Results
3 February 2000
Safety Components Reports Restated Financial Results and the Delisting of Its Common Stock From Nasdaq
GREENVILLE, S.C., Feb. 2 -- Safety Components International,
Inc., one of the world's leading manufacturers of automotive airbag fabrics
and cushions, today announced that the audit of its financial statements, as
restated, is substantially complete. Completion of the audit and public
release of the audited financial statements is subject to the successful
completion of the previously announced efforts to restructure the Company's
balance sheet and the completion of certain administrative audit procedures by
the auditors. The balance sheet restructuring entails a negotiated arrangement
with the Company's senior and subordinated lenders. As previously announced,
the Company is seeking to negotiate such arrangement during the 30 day grace
period for its January 15, 2000 interest payment on the senior notes. The
Company further stated that, following extensive consultation among its
auditors, the Company's audit committee and the committee's special counsel in
its previously announced investigation, the Company has quantified the
adjustments to its financial statements, as restated. The adjustments, which
are slightly higher, on a cumulative basis, than previously reported are shown
below.
Sales FY 1998 Q1 1999 Q2 1999 Q3 1999 Q4 1999 FY1999
Originally
Filed $170,310 $51,449 $53,059 $61,056 $55,715 $221,279
Previously
Reported
Adjustments (3,881) (84) (408) (556) - (1,048)
Subtotal 166,429 51,365 52,651 60,500 55,715 220,231
Additional
Adjustments (355) (300) (350) 400 - (250)
As Restated $166,074 $51,065 $52,301 $60,900 $55,715
$219,981
Net Income FY1998 Q1 1999 Q2 1999 Q3 1999 Q4 1999 FY1999
Originally Filed $6,008 $1,547 $158 $(3,772)
$(10,799)
$(12,866)
Previously Reported
Adjustments (2,328) (52) (251) (398) (199) (900)
Subtotal 3,680 1,495 (93) (4,170) (10,998) (13,766)
Additional
Adjustments (334) (606) (227) 471 465 103
As Restated $3,346 $889 $(320) $(3,699)
$(10,533)
$(13,663)
Sales Q1 2000 Q2 2000 YTD 2000
Originally
Filed $63,845 $53,391 $117,236
Previously
Reported
Adjustments - - -
Subtotal 63,845 53,391 117,236
Additional
Adjustments - - -
As Restated $63,845 $53,391 $117,236
Net Income Q1 2000 Q2 2000 YTD 2000
Originally Filed $620 $(1,424) $(804)
Previously Reported
Adjustments 29 - 29
Subtotal 649 (1,424) (775)
Additional
Adjustments (8) (7) (15)
As Restated $641 $(1,431) $(790)
Note: Above noted financials are subject to completion of certain
administrative audit procedures by the auditors.
Robert A. Zummo, Chairman and Chief Executive Officer of the Company
stated: "We are very pleased that we are now able to provide a draft of the
financial statements, as restated, to our current and prospective lenders
which should accelerate the restructuring process. We thank our customers
and vendors for their continued patience and support during this process.
Discussions with our banks and senior note holders continue and we remain
optimistic that a negotiated arrangement can be reached."
The Company also stated, that as previously announced, NASDAQ had been
reviewing its continued listing status as a result of its noncompliance with
NASDAQ's public float and minimum bid price requirements as well as its delay
in complying with NASDAQ's reporting obligations pending filing of financial
statements, as restated. NASDAQ advised the Company late yesterday that its
stock would be delisted effective today. The Company anticipates that its
stock will be quoted on the NASD Bulletin Board as soon as its financial
statements, as restated, are filed with the Securities and Exchange
Commission. Pending quotation on the NASD Bulletin Board, quotations will be
available on the pink sheets through the National Quotation Bureau.
This press release contains forward looking statements. The Company wishes
to caution the reader of this press release that such forward looking
statements are subject to various known and unknown risks and uncertainties
including our ability to successfully negotiate the restructuring of our
balance sheet; the effect of further delays in the negotiating process on
lenders, customers and suppliers; and the absence of readily available
quotations for the Company's Common Stock pending commencement of quotation on
the NASD Bulletin Board. Additional information on factors that could
potentially affect the Company's financial results may be found in the
Company's filings with the Securities and Exchange Commission.
Safety Components International, Inc. is a leading low cost supplier of
automotive airbag fabric and cushions with operations in North America and
Europe. The Company is also a leading manufacturer of value-added synthetic
fabrics used in a variety of niche industrial and commercial applications. In
addition, Safety Components supplies metal airbag components to its airbag
customers utilizing its machining and stamping capabilities gained from years
of experience as a military ordnance manufacturer and continues as a systems
integrator and manufacturer for ordnance programs.