Dura Automotive Systems Reports Record First-Quarter Results
19 April 2000
Dura Automotive Systems Reports Record First-Quarter Results
MINNEAPOLIS, April 19 Dura Automotive Systems, Inc. (Nasdaq: DRRA), today reported their financial
results for the first quarter of 2000. Highlights for the quarter include:
-- Revenues up 158% over the same period of the prior year.
-- Operating income up 121% over first quarter of 1999.
-- Record first quarter earnings of $0.90 per share.
-- Continued execution of our project combo consolidation and cost
reduction plans.
-- Began implementation of two new cost reduction programs.
For the first quarter of 2000, revenues were $682.8 million, a significant
increase compared with $264.7 million in the 1999 period. First-quarter
operating income rose to $58.2 million in 2000 from $26.3 million reported
last year. Net income grew 76 percent to $16.5 million, or $0.90 per diluted
share outstanding, versus $9.3 million, or $0.70 per diluted share, in the
comparable 1999 period. Shares outstanding on a fully diluted basis increased
by 4.7 million or 33 percent in the first quarter of 2000 as compared to the
same period of 1999. Earnings in 1999 exclude an extraordinary loss on the
early extinguishment of debt of $2.7 million and the cumulative effect of an
accounting change of $3.1 million. The results for the first quarter of 2000
include a full quarter's impact of the operations of Excel, Adwest and the
Meritor seat track businesses acquired during 1999.
Karl Storrie, president and chief executive officer of Dura Automotive,
stated, "We've had a great start in 2000. Our revenues and earnings reached
record levels and we are continuing to see strong payback of our integration
and cost reduction programs. We are also benefiting from increasing North
American vehicle production. Finally, the management teams for our four
product focused divisions are in place and, together with our new Chief
Technical Officer, have begun to enhance our technical capabilities and
continue to globally provide value to our customers and shareholders.
"In addition to our project combo and our normal cost reduction project
work, we have instituted a B2B approach to manage our supply chain cost
reduction programs and have adopted Black Belt -- Six Sigma to drive down
product manufacturing and administrative costs. Both programs are expected to
further streamline the way we do business and result in continued cost base
improvements."
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
manufacturer, 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)
Quarter Ended March 31,
2000 1999
Revenues $ 682,769 $ 264,701
Cost of sales 573,654 218,219
Gross profit 109,115 46,482
Selling, general and administrative expenses 43,918 16,897
Amortization expense 7,041 3,243
Operating income 58,156 26,342
Interest expense, net 27,921 7,337
Income before provision for income taxes, equity
in losses of affiliate and minority interest 30,235 19,005
Provision for income taxes 12,366 7,711
Minority interest and equity in losses
of affiliate, net 798 1,342
Minority interest -- dividends on trust
preferred securities, net 611 611
Income before extraordinary item and
Accounting change 16,460 9,341
Extraordinary item -- loss on early
Extinguishment of debt, net -- (2,702)
Cumulative effect of change in
Accounting, net -- (3,147)
Net income $16,460 $3,492
Basic earnings per common share:
Income before extraordinary item and
Accounting change $0.98 $0.73
Extraordinary item -- (0.21)
Cumulative effect of change in accounting -- (0.25)
Net income $0.98 $0.27
Basic shares outstanding 17,430 12,877
Diluted earnings per common share:
Income before extraordinary item and
accounting change $0.90 $0.70
Extraordinary item -- (0.19)
Cumulative effect of change in accounting -- (0.22)
Net income $0.90 $0.29
Diluted shares outstanding 18,956 14,253
DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
March 31, December 31,
Assets 2000 1999
(unaudited)
Current assets:
Cash and cash equivalents $31,442 $23,697
Accounts receivable, net 512,563 478,542
Inventories 136,788 136,562
Other current assets 171,006 154,704
Total current assets 851,799 793,505
Property, plant and equipment, net 509,304 500,894
Goodwill, net 1,068,383 1,067,937
Deferred income taxes and other assets, net 77,869 82,531
$2,507,355 $2,444,867
Liabilities and Stockholders' Investment
Current liabilities:
Short-term notes payable $15,282 $20,207
Current maturities of long-term debt 41,611 32,505
Accounts payable 297,284 281,413
Accrued liabilities 308,942 296,431
Total current liabilities 663,119 630,556
Long-term debt, net of current maturities 801,949 776,750
Subordinated notes 397,730 401,560
Other noncurrent liabilities 149,885 149,755
Mandatorily redeemable convertible trust
preferred securities 55,250 55,250
Stockholders' investment:
Common stock -- Class A 141 141
Common stock -- Class B 33 33
Additional paid-in capital 337,436 339,041
Retained earnings 124,732 108,272
Accumulated other comprehensive
loss -- cumulative translation adjustment (22,920) (16,491)
Total stockholders' investment 439,422 430,996
$2,507,355 $2,444,867