J.L. French Automotive Castings Announces Increased Q1 Results
12 May 2000
J.L. French Automotive Castings, Inc., Announces Increased First-Quarter Results
MINNEAPOLIS, May 11 J.L. French Automotive Castings, Inc.,
today announced increased revenues and operating income for the quarter ended
March 31, 2000. Results of operations for the first quarter of 1999 have been
restated to reflect the company's change in recording reimbursable customer
tooling costs. The restatement had no effect on previously reported gross
profit or net income.
J.L. French completed a recapitalization transaction on April 21, 1999,
whereby new investors acquired 87 percent of the company's outstanding common
stock. The recapitalization included the investment of $156 million in cash
by new stockholders. As a result of the recapitalization accounting
treatment, the statements of operations are not directly comparable between
years below the operating income line. In addition, the company has a deficit
in stockholders' investment as a result of the recapitalization and the
redemption of the previously outstanding shares.
For the first quarter of 2000, revenues were $152.1 million, an increase
of $76.8 million compared with $75.3 million in the 1999 period. Operating
income rose to $20.7 million from $12.9 million reported last year. Earnings
before interest, taxes, depreciation and amortization (EBITDA) increased to
$32.1 million from $21.2 million in the first quarter of 1999. Net income for
the first quarter of 2000 was $3.4 million versus $4.7 million in the
comparable 1999 period.
In commenting on first quarter results, Charles M. Waldon, president and
chief executive officer said, "We are beginning to realize the benefits of our
integration of the Nelson Metal facilities. At both the Grandville and
Glasgow plants, we have improved cycle times, reduced overtime and improved
quality. We expect to continue to realize additional benefits as the year
progresses."
J.L. FRENCH AUTOMOTIVE CASTINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands - unaudited)
Three Months Ended March 31,
2000 1999
Sales $152,078 $75,304
Cost of sales 122,580 54,665
Gross profit 29,498 20,639
Selling, general and administrative expenses 6,303 5,026
Amortization expense 2,473 2,688
Operating income 20,722 12,925
Interest expense and other, net 15,080 4,750
Income before provision for income taxes 5,642 8,175
Provision for income taxes 2,260 3,447
Net income $3,382 $4,728
J.L. FRENCH AUTOMOTIVE CASTINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
March 31, December 31,
Assets 2000 1999
(unaudited)
Current assets:
Cash and cash equivalents $9,012 $4,900
Accounts receivable, net 98,593 82,449
Inventories 34,542 36,979
Customer tooling-in-progress 7,076 10,299
Other current assets 8,994 9,034
Total current assets 158,217 143,661
Property, plant and equipment, net 231,178 221,167
Intangible and other assets, net 335,126 330,406
$724,521 $695,234
Liabilities and Stockholders' Deficit
Current liabilities:
Current maturities of long-term debt $23,504 $28,400
Accounts payable 63,145 56,461
Accrued liabilities 40,148 43,434
Total current liabilities 126,797 128,295
Long-term debt, net of current maturities 404,597 373,044
Subordinated notes 175,000 175,000
Convertible subordinated notes 30,000 30,000
Other noncurrent liabilities 26,049 30,487
Total liabilities 762,443 736,827
Stockholders' deficit:
Common stock -- --
Additional paid-in capital 42,949 42,589
Accumulated deficit (79,442) (82,824)
Accumulated other comprehensive loss -
foreign currency translation adjustment (1,429) (1,358)
Total stockholders' deficit (37,922) (41,593)
$724,521 $695,234