Viasystems Group, Inc. Reports Record Quarterly Revenues
26 April 2000
Viasystems Group, Inc. Reports Record Quarterly Revenues; First Quarter Revenues Up 37% From Same Quarter Last Year
ST. LOUIS--April 25, 2000--Viasystems Group, Inc. ("Viasystems" or the "Company") today announced financial results for the first quarter ended March 31, 2000.Net sales for the three months ended March 31, 2000 were $288.9 million, which met or exceeded all analysts' expectations and represents a 37% increase over the same period in 1999. This increase was primarily the result of volume growth of approximately 24%, which was offset by price reductions of approximately 8%. The remaining year over year increase was due to the acquisitions of PAGG and Kalex in April and August 1999, respectively. EBITDA in the first quarter 2000 was $49.0 million compared to $41.8 million in the first quarter of 1999, or a 17.2% increase. This growth in EBITDA was the result of the revenue growth discussed above, partially offset by anticipated costs associated with the ramp-up of higher technology printed circuit boards and backpanels in North America and Europe as well as the costs associated with the start-up of the Chinese capacity expansion. Adjusted earnings (EBG) for the quarter ended March 31, 2000 was a $4.8 million loss, or a loss per share on a basic and diluted -- EBG basis of $(0.06). This included all of the interest costs associated with the Company prior to the transfer of certain operations and prior to the debt repayment. Interest charges for the quarter totaled $34.2 million. EBG compares favorably to the average loss of $8.2 million expected by the analysts for the first quarter of 2000.
Consistent with the analysts' models for the first quarter, the preceding discussion on financial results reflects the pro forma results of operations of Viasystems Group, Inc. as though the March 29, 2000 transfer of nine European manufacturing facilities had occurred on January 1, 1999, which more appropriately reflects the results of Viasystems as a public company. The pro forma results of operations also exclude the impact of one-time non-cash charges totaling $104.4 million recorded in the first fiscal quarter of 2000 as well as the elimination of the extraordinary loss on early extinguishment of debt totaling $31.2 million. For more detail on the transactions described above please refer to our Form S-1 filed with the Securities and Exchange Commission on March 23, 2000 in connection with the Company's initial public offering. Attached herein is an unaudited pro forma condensed consolidated statements of operations for the three months ended March 31, 1999 and 2000 giving effect to the transactions described above. Additionally, attached is the Company's historical condensed consolidated statements of operations for the three months ended March 31, 1999 and 2000 and the historical condensed consolidated balance sheets at December 31, 1999 and March 31, 2000.
James N. Mills, Chairman, said, "The first quarter has been very active and we are pleased with our first quarter. We are extremely confident that our business model, which includes the high growth EMS product line, will continue to yield positive results. We remain focused on pursuing new business opportunities for growth organically as well as through strategic acquisitions primarily in the EMS product offering." P. Based in St. Louis, Mo., Viasystems Group, Inc. is a leading global EMS provider with 20,000 employees and 27 manufacturing facilities in eight countries, supplying customers in the telecommunications, networking, automotive and consumer electronics industries. Viasystems is listed on the New York Stock Exchange, trading under the symbol "VG."
This press release contains forward-looking statements as defined by the federal securities laws, and these statements are based upon Viasystems Group, Inc.'s current expectations and assumptions, which are inherently subject to various risks and uncertainties that could cause actual results to differ from those anticipated, projected, or implied. Certain factors that could cause actual results to differ are indicated in Viasystems Group, Inc.'s filings with the Securities and Exchange Commission.
VIASYSTEMS GROUP, INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(unaudited)
Three Months Ended
March 31,
-----------------------
1999 2000
-------- --------
Net Sales $210,955 $288,921
Operating expenses:
Cost of goods sold 152,131 218,038
Selling, general
and administrative 17,036 21,834
Depreciation 14,958 20,902
Amortization 3,415 11,058
-------- --------
Operating Income 23,415 17,089
Other expense:
Interest Expense 24,284 34,153
Amortization of
deferred financing fees 2,330 1,769
Other 470 277
-------- --------
Loss before income tax
provision and cumulative
effect of a change in
accounting (3,669) (19,110)
Benefit for income taxes (2,553) (2,862)
-------- --------
Loss before cumulative effect
of a change in accounting (1,116) (16,248)
Cumulative effect of a change
of accounting - write-off
of start-up costs (net of
tax benefit of $693) 3,580 -
-------- --------
Net Loss $ (4,696) $(16,248)
======== ========
Net loss per share:
Basic $ (0.10) $ (0.21)
Diluted $ (0.11) $ (0.21)
Weighted average shares outstanding:
Basic 50,416 82,769
Diluted 50,778 82,769
Supplemental Pro Forma Information:
Earnings before interest,
taxes, depreciation and
amortization ("EBITDA") $ 41,788 $ 49,049
Depreciation 14,958 20,902
Amortization 3,415 11,058
Interest expense 24,284 34,153
Amortization of deferred
financing fees 2,330 1,769
Other expense 470 277
Benefit for income taxes (2,553) (2,862)
Cumulative effect of a change
in accounting 3,580 -
-------- --------
Net loss $ (4,696) $(16,248)
======== --------
Amortization, net of income tax
effect (10,858)
Amortization of deferred financing
fees (1,769)
Paid-in-kind dividend and accretion
on preferred stock 1,148
--------
Adjusted earnings ("EBG") $ (4,769)
========
Loss per share:
Basic-EBG $ (0.06)
Diluted-EBG $ (0.06)
VIASYSTEMS GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(unaudited)
Three Months Ended
March 31,
------------------
1999 2000
------ ------
Net Sales $ 309,643 $ 384,584
Operating expenses:
Cost of goods sold 233,882 303,274
Selling, general and administrative
(including $104,400 of one-time
non-cash charges in 2000) 29,582 138,616
Depreciation and amortization 36,420 40,667
-------- --------
Operating income (loss) 9,759 (97,973)
Other expense:
Interest expense 25,975 37,769
Amortization of deferred financing fees 2,405 1,793
Other 1,199 674
-------- --------
Loss before income tax provision, cumulative
effect of a change in accounting and
extraordinary item (19,820) (138,209)
Benefit for income taxes (5,232) (7,500)
-------- --------
Net loss before cumulative effect of a
change in accounting and extraordinary item (14,588) (130,709)
Cumulative effect of a change in accounting -
write-off of start-up costs, net of income
tax benefit of $5,647 18,443 -
Extraordinary item - loss on early
extinguishment of debt, net of income tax
benefit of $0 - 31,196
-------- --------
Net loss $ (33,031) $(161,905)
======== ========
Net loss per share:
Basic $ (0.58) $ (1.97)
Diluted $ (0.67) $ (1.97)
Weighted average shares outstanding:
Basic 50,416 82,769
Diluted 50,778 82,769
VIASYSTEMS GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
December 31, March 31,
1999 2000
------ ------
(unaudited)
Current assets:
Cash and cash equivalents $ 22,839 $ 84,395
Accounts receivable, net 236,455 228,253
Inventories 176,125 157,170
Prepaid and other 51,010 49,876
-------- --------
Total current assets 486,429 519,694
Property, plant and equipment 482,144 394,379
Intangibles and other assets 340,653 351,240
-------- --------
Total assets $1,309,226 $1,265,313
Current liabilities:
Current maturities of long-term obligations $ 27,851 $ 8,732
Accounts payable and accrued liabilities 316,024 254,521
Income taxes payable 25,163 17,776
-------- --------
Total current liabilities 369,038 281,029
Long-term obligations 1,334,672 939,675
Other long-term liabilities 97,121 43,792
Preferred stock 41,273 42,421
Stockholder's deficit (532,878) (41,604)
-------- --------
Total liabilities and stockholder's
deficit $1,309,226 $1,265,313
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