Transportation Components Reports Q1 Financial Results
15 May 2000
Transportation Components, Inc. Reports Financial Results for First Quarter Ended March 31, 2000
HOUSTON, May 15 Transportation Components, Inc.
(TransCom USA) today announced financial results for the first
quarter ended March 31, 2000.
For the quarter ended March 31, 2000, TransCom USA reported a net loss of
$63,000 ($.00 per diluted share) on revenues of $77.8 million. Profit before
income taxes was $271,000 for the quarter. For the comparable period a year
ago, TransCom reported net income of $2.0 million ($.11 per diluted share) on
revenues of $78.2 million.
Revenues for the three months declined $0.4 million, or 0.5%, due
primarily to the overall softness in the heavy-duty aftermarket and the lower
level of sales to oilfield service customers in the first quarter of 2000
compared with the first quarter of 1999. These declines were partially offset
by increased revenues in Mexico.
Selling, general and administrative expenses increased $1.4 million, or
7.1%, as a result of costs to centralize administrative functions, including
staffing and training of the general office. As previously disclosed, The
company is behind schedule in consolidating these functions, but still expects
to reduce overall administrative costs during the second half of 2000.
"In the six weeks since our last earnings release, we have continued to
make progress with the integration and transition of our company from
consolidator to operating company," said T. Michael Young, TransCom USA's
chairman and chief executive officer. "The overall softness in the heavy-duty
aftermarket in the first quarter of 2000 slowed our sales growth and
negatively impacted profit margins. Obviously, we are not pleased with our
current operating results; however, we are confident that we are taking the
steps to improve profitability and build a strong distribution company."
(COMPARATIVE TABLES FOLLOW)
TRANSPORTATION COMPONENTS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
March 31
2000 1999
(Unaudited)
(In thousands, except share
and per share information)
Revenues $77,850 $78,242
Cost of sales 54,731 53,763
Gross profit 23,119 24,479
Selling, general & administrative expenses 20,655 19,288
Amortization of goodwill 565 543
Income from operations 1,899 4,648
Other income (expense):
Interest expense (1,850) (1,248)
Other income, net 222 228
Income before income taxes 271 3,628
Provision for income taxes 334 1,668
Net income (loss) $(63) $1,960
Income (loss) per share
Basic $.00 $.11
Diluted $.00 $.11
Number of shares used in
per share calculations:
Basic 17,676,897 17,727,815
Diluted 17,676,897 19,328,648
TRANSPORTATION COMPONENTS, INC.
CONSOLIDATED BALANCE SHEETS
March 31 December 31
2000 1999
(Unaudited)
(In thousands, except
share information)
ASSETS
Current assets:
Cash and cash equivalents $3,667 $2,859
Accounts receivable, net 42,861 40,029
Receivables from related parties 395 508
Notes receivable, current 652 732
Inventories 67,965 67,203
Prepaid expenses and other 2,694 2,941
Deferred tax asset 5,221 5,447
Total current assets 123,455 119,719
Property and equipment, net 14,203 14,532
Notes receivable, net 703 752
Notes receivable from related parties 859 858
Goodwill, net 86,794 87,358
Other assets 1,328 1,351
Total assets $227,342 $224,570
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $42,639 $42,459
Payables to related parties 1,762 1,762
Current portion of long-term debt 714 743
Other current liabilities 930 1,004
Total current liabilities 46,045 45,968
Long-term debt, less current portion 63,888 61,173
Deferred tax liability 2,859 2,962
Payables to related parties 12,483 12,488
Total liabilities 125,275 122,591
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.01 par,
5,000,000 shares authorized, none issued --- ---
Common stock, $0.01 par, 102,000,000 shares
authorized, 17,782,054 shares issued 178 178
Additional paid-in capital 102,522 102,522
Treasury stock, at cost, 63,546 and
121,411 shares, respectively (145) (304)
Cumulative translation adjustments 126 134
Retained deficit (614) (551)
Total stockholders' equity 102,067 101,979
Total liabilities and
stockholders' equity $227,342 $224,570