Tower Automotive, Inc., Announces Record Operating Results for Q1
17 April 2000
Tower Automotive, Inc., Announces Record Operating Results for the First Quarter
MINNEAPOLIS, April 17 Tower Automotive, Inc. (NYSE: TWR),
today announced record operating results for the first quarter ended March 31,
2000.
For the first quarter of 2000, revenues were $685 million, a 37 percent
increase, compared with $499 million in the 1999 period. Operating income
rose 33 percent to $72 million from $54 million reported last year. Net
income for the first quarter of 2000 was $37 million, or 65 cents per diluted
share outstanding, versus $28 million, or 51 cents per diluted share, in the
comparable 1999 period.
On February 22, 2000, and effective January 1, 2000, the company acquired
all of the outstanding shares of Dr. Meleghy GmbH & Co. KG Werkzeugbau und
Presswerk, Bergisch Gladbach ("Dr. Meleghy"). Dr. Meleghy designs and
produces structural stampings, assemblies, exposed surface panels and modules
for the European automotive industry. Dr. Meleghy operates three facilities
in Germany and one facility in both Hungary and Poland. Its main customers
include DaimlerChrysler, Audi, Volkswagen, Ford, Opel and BMW.
In commenting on first quarter results, Dugald K. Campbell, president and
chief executive officer of Tower Automotive, said, "Operational improvements
at the Active locations and our newly acquired Dr. Meleghy operations
contributed significantly to the overall increase in gross margin and earnings
per share for the quarter. Our operating results were also positively
impacted by the effects of continued strong sales on the light and medium
truck, sport utility and car models we serve."
Tower Automotive, Inc., produces a broad range of assemblies and modules
for vehicle structures and suspension systems for the automotive
manufacturers, 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 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 Mar. 31,
2000 1999
Revenues $685,364 $498,572
Cost of sales 573,642 419,125
Gross profit 111,722 79,447
Selling, general and administrative expenses 34,656 22,420
Amortization expense 5,099 3,450
Operating income 71,967 53,577
Interest expense, net 13,197 7,267
Income before provision for income taxes 58,770 46,310
Provision for income taxes 23,508 18,524
Income before equity in earnings of joint
ventures and minority interest 35,262 27,786
Equity in earnings of joint ventures 4,480 2,913
Minority interest - dividends on trust
preferred securities, net (2,619) (2,623)
Net income $37,123 $28,076
Basic earnings per common share $0.79 $0.60
Basic shares outstanding 46,964 46,567
Diluted earnings per common share $0.65 $0.51
Diluted shares outstanding 63,926 63,789
TOWER AUTOMOTIVE, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands)
March 31, December 31,
Assets 2000 1999
(unaudited)
Current assets:
Cash and cash equivalents $1,727 $3,617
Accounts receivable 443,144 353,351
Inventories 127,790 110,897
Prepaid tooling and other 97,657 90,191
Total current assets 670,318 558,056
Property, plant and equipment, net 1,154,868 1,075,861
Investments in joint ventures 300,886 290,705
Goodwill and other assets, net 692,627 627,928
$2,818,699 $2,552,550
Liabilities and Stockholders' Investment
Current liabilities:
Current maturities of long-term debt and
capital lease obligations $21,807 $13,876
Accounts payable 323,144 276,673
Accrued liabilities 124,917 140,567
Total current liabilities 469,868 431,116
Long-term debt, net of current maturities 868,470 699,678
Obligations under capital leases, net of
current maturities 20,211 21,543
Convertible subordinated notes 200,000 200,000
Deferred income taxes 61,212 50,736
Other noncurrent liabilities 173,219 163,592
Total noncurrent liabilities 1,323,112 1,135,549
Mandatorily redeemable trust convertible
preferred securities 258,750 258,750
Stockholders' investment:
Preferred stock -- --
Common stock 472 469
Additional paid-in capital 445,330 437,210
Retained earnings 331,645 294,522
Warrants to acquire common stock 2,000 2,000
Deferred income stock plan (8,942) (4,484)
Accumulated other comprehensive loss (3,536) (2,582)
Total stockholders' investment 766,969 727,135
$2,818,699 $2,552,550