Harvard Industries Reports Strong First Quarter Results
17 February 2000
Harvard Industries Reports Strong First Quarter Results; EBITDA Totals $4.2 Million For First Three Months
LEBANON, N.J.--Feb. 16, 2000--Harvard Industries, Inc. , a manufacturing company which emerged from Chapter 11 bankruptcy in November, 1998, announced sales and EBITDA for the three months ended December 31, 1999, of $83.6 million and $4.2 million respectively.As a result of its emergence from Chapter 11 and the prospective effects of "Fresh Start Reporting", the Company does not believe that its historical results from operations are necessarily indicative of its results as an on-going entity. However, for comparative purposes the two-month period ended November 29, 1998 (pre-emergence) has been combined with the one-month period ended January 3, 1999 (post-emergence) into a pro-forma three-month period.
On a pro forma basis for the corresponding three-month period a year earlier, the Company had sales and EBITDA of $80.7 million and $1.2 million, respectively, after adjusting the prior period sales and EDITDA by $48.5 million and $6.3 million respectively for operations divested in the twelve-month period ended September 30, 1999. These divestitures were made to enable the Company to advance its diversification.
Harvard believes that EBITDA, defined as earnings before interest, income taxes, depreciation, amortization, reorganization items, extraordinary items and one-time items such as the gain or loss on the sale of operations, is the best benchmark of its performance since it bears a closer relationship to real cash earnings than earnings per share.
Roger Pollazzi, Chairman and Chief Executive Officer, noted, "The Company is making excellent progress in its renewal effort. We are on plan in developing our higher value added business. Our operating margins are improving and our balance sheet is debt-free - and thus interest expense declined $2.4 million year-to-year."
Harvard Industries, Inc. designs, develops, and manufactures a broad range of components for OEM manufactures and the automotive aftermarket, as well as aerospace and industrial and construction equipment applications worldwide. The Company has approximately 2,500 employees at 10 plants in the United States and Canada.
Statements herein regarding the Company's future performance, including the Company's ability to consummate transactions, constitute forward-looking statements within the meaning of Securities Act of 1933 and the Securities Exchange Act of 1934. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. With respect to the Company's long-term business strategies, management has made certain assumptions regarding the Company's performance which may change or be affected by, among other things, customer demand for the Company's products, and adverse changes in general, market and industry conditions. In addition, there can be no assurance that the Company will be able to successfully identify, negotiate or complete any acquisitions or divestiture transaction, which the Company may be currently contemplating. Management believes that forward-looking statements are reasonable, however undue reliance should not be placed on such forward-looking statements, which are based on current expectations.
HARVARD INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Two Months Ended November 29, 1998 (Pre-Confirmation)
One Month Ended January 3, 1999 And
Three Months Ended December 31, 1999 (Post-Confirmation)
(In thousands of dollars, except share and per share data)
Pre- Post-
Confirmation Confirmation
---------------- ------------------------
One
Month
Two Months Ended Three Months
Ended January 3, Ended
November 29, 1999 December 31,
1998 1999
---------------- ------------- ------------
Sales $89,050 $40,166 $83,624
---------------- ------------- ------------
(Loss) income before
reorganization items and
income taxes 2,405 (4,705) (1,561)
Reorganization items 50,384 - -
---------------- ------------- -------------
Loss before income taxes and
extraordinary item (47,979) (4,705) (1,561)
---------------- ------------- ------------- -------------
Provision for income taxes 584 292 385
---------------- ------------ -------------
Loss before extraordinary item (48,563) (4,997) (1,946)
---------------- ------------ -------------
Extraordinary item-(gain) on
forgiveness of debt (206,363) - -
---------------- ------------- -------------
Net (loss) income $157,800 $(4,997) $(1,946)
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Basic and diluted earnings
per share:
Loss before extraordinary
item $(6.91) $(0.61) $(0.20)
Income from extraordinary
item 29.37 - -
-------------- ------------- --------------
Net (loss) income per share $22.46 $(0.61) $(0.20)
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Weighted average number of
common shares outstanding 7,026,437 8,240,295 9,651,122
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