Dura Automotive Systems Sales Reach $2.2 Billion for 1999
7 February 2000
Dura Automotive Systems Sales Reach $2.2 Billion for 1999; Strong Fourth-Quarter and Year-End Results
MINNEAPOLIS, Feb. 7 --
Dura Automotive Systems, Inc. , today reported their financial
results for the fourth quarter and year ended December 31, 1999. Highlights
for 1999 include:
-- Revenues up almost 200 percent to $2.2 billion;
-- The completion of 5 strategic acquisitions;
-- The achievement of synergy savings through the integration of
operations and administrative functions; and
-- Record earnings per share.
During the fourth quarter of 1999, the company finalized its plans for
integrating its acquisitions which result in the consolidation of certain
operating facilities. Since some of the facilities being consolidated were
original Dura facilities, the company was required to recognize a
$16.2 million pre-tax facility consolidation charge consisting primarily of
employee severance costs. Net of the related income tax benefit, this charge
reduced fourth-quarter 1999 diluted earnings per share by 50 cents and reduced
full-year 1999 diluted earnings per share by 53 cents. The company expects
the benefits of these actions will significantly exceed the charge and will
begin to be realized in 2000.
For the fourth quarter of 1999, revenues were $669.6 million, a
significant increase compared with $241.1 million in the 1998 period.
Excluding the one-time facility consolidation charge, fourth-quarter operating
income rose to $61.6 million in 1999 from $26.8 million reported last year,
and net income increased to $20.2 million, or $1.10 per diluted share
outstanding, versus $10.3 million, or 80 cents per diluted share, in the
comparable 1998 period.
For the year ended December 31, 1999, revenues increased nearly
200 percent to $2.2 billion from $739.5 million in 1998. Excluding the
facility consolidation charge, 1999 operating income rose $115.8 million to
$187.1 million from $71.3 million reported in 1998, and net income before the
extraordinary item and accounting change increased $32.5 million to
$59.2 million, or $3.47 per share on a diluted basis, compared with
$26.7 million, or $2.42 per share on a diluted basis, in 1998.
Karl Storrie, president and chief executive officer of Dura Automotive,
stated, "1999 was a tremendous year for Dura. Our revenues and earnings
reached record levels, which we are very proud of, but there were many other
accomplishments throughout the year as well. Through the acquisitions of
Excel and Adwest, we significantly increased our product offerings and our
global presence. In fact, over 30 percent of our revenues now come from
outside North America. By implementing integration and consolidation
programs, we are lowering our overall cost structure and we are better
positioning ourselves to handle fluctuations in vehicle production levels.
Finally, we have reorganized the company into four product focused divisions
with a mission to enhance our technical capabilities and to globally drive
value for our customers and shareholders in 2000 and beyond."
Dura Automotive Systems, Inc., is the world's largest independent designer
and manufacturer of driver control systems and a leading global supplier of
door systems, window systems and engineered mechanical components for the
global automotive industry. The company is also a leading supplier of similar
products to the North American recreational vehicle, mass transit and heavy
truck market. The company's products include door modules, parking brake
systems, automotive cables, transmission shifter systems, encapsulated and
sliding windows, window regulators, hinges, latches, seating systems, engine
control products, underbody tire carriers, jacks, brake, clutch and
accelerator pedals and other mechanical assemblies. The company's products
are sold to every North American, European and Japanese original equipment
manufacturers, including Ford, General Motors, DaimlerChrysler, Volkswagen,
BMW, Toyota, Honda, Nissan, PSA (Peugeot and Citroen) and Renault. Dura's
operating headquarters is in Rochester Hills, Mich., and its corporate office
is in Minneapolis, Minn.
This press release contains forward-looking statements that are subject to
risks and uncertainties. These statements often include words such as
"believe," "expect," "anticipate," "intend," "plan," "estimate," or similar
expressions. These statements are based on certain assumptions that the
company has made in light of its experience in the industry as well as its
perspective of historical trends, current conditions, expected future
developments and other factors it believes are appropriate in the
circumstances. Actual results may differ materially from the anticipated
results because of certain risks and uncertainties, including but not limited
to (i) expected synergies, economies of scale and cost savings from the
company's acquisitions not being fully realized or realized within the
expected times frames; (ii) unanticipated difficulties servicing the
substantially higher level of indebtedness at the company; (iii) costs or
operational difficulties related to integrating the operations of the acquired
entities with those of the company being greater than expected; (iv) labor
disputes involving the company or its significant customers; (v) risks
associated with conducting business in foreign countries; and (vi) general
economic or business conditions affecting the automotive industry, either
nationally or regionally, being less favorable than expected.
DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share amounts - unaudited)
Three Months Ended Year Ended
Dec. 31, Dec. 31,
1999 1998 1999 1998
Revenues $669,631 $241,084 $2,200,385 $739,467
Cost of sales 562,339 195,288 1,854,705 608,518
Gross profit 107,292 45,796 345,680 130,949
Selling, general and
administrative expenses 37,759 15,839 130,079 49,825
Facility consolidation charge 16,246 -- 16,246 --
Amortization expense 7,934 3,144 28,476 9,868
Operating income 45,353 26,813 170,879 71,256
Interest expense, net 24,515 6,082 76,703 20,267
Income before provision for
income taxes, equity in losses
of affiliate and minority
interest 20,838 20,731 94,176 50,989
Provision for income taxes 8,389 8,342 37,984 20,933
Minority interest and equity
in losses of affiliate, net 1,070 1,481 3,978 1,481
Minority interest -- dividends
on trust preferred securities,
net 611 611 2,445 1,908
Income before extraordinary
item and accounting change 10,768 10,297 49,769 26,667
Extraordinary item -- loss on
early extinguishment of debt,
net -- -- 5,402 643
Cumulative effect of change in
accounting, net -- -- 3,147 --
Net income $10,768 $10,297 $41,220 $26,024
Basic earnings per common share:
Income before extraordinary
item and accounting change $0.62 $0.83 $3.06 $2.49
Extraordinary item -- -- (0.33) (0.06)
Cumulative effect of change
in accounting -- -- (0.20) --
Net income $0.62 $0.83 $2.53 $2.43
Basic shares outstanding 17,421 12,350 16,263 10,708
Diluted earnings per common share:
Income before extraordinary
item and accounting change $0.60 $0.80 $2.94 $2.42
Extraordinary item -- -- (0.30) (0.05)
Cumulative effect of change
in accounting -- -- (0.18) --
Net income $0.60 $0.80 $2.46 $2.37
Diluted shares outstanding 18,920 13,704 17,767 11,795
DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
December 31, December 31,
Assets 1999 1998
Current assets:
Cash and cash equivalents $23,697 $20,544
Accounts receivable, net 478,542 158,465
Inventories 136,562 50,498
Other current assets 154,704 45,924
Total current assets 793,505 275,431
Property, plant and equipment, net 500,894 188,732
Goodwill, net 1,067,937 435,960
Deferred income taxes and other assets, net 125,908 29,260
$2,488,244 $929,383
Liabilities and Stockholders' Investment
Current liabilities:
Short-term notes payable $20,207 $--
Current maturities of long-term debt 32,505 15,489
Accounts payable 281,413 99,512
Accrued liabilities 296,431 96,664
Total current liabilities 630,556 211,665
Long-term debt, net of current maturities 776,750 316,417
Subordinated notes 401,560 --
Other noncurrent liabilities 193,132 108,014
Mandatorily redeemable convertible trust
preferred securities 55,250 55,250
Stockholders' investment:
Common stock - Class A 141 90
Common stock - Class B 33 33
Additional paid-in capital 339,041 171,377
Retained earnings 108,272 67,052
Accumulated other comprehensive
loss -- cumulative translation adjustment (16,491) (515)
Total stockholders' investment 430,996 238,037
$2,488,244 $929,383