MCII Announces Additional Shareholder Investment of $50 Million
16 May 2000
MCII Announces Additional Shareholder Investment of $50 Million, Reports First Quarter Earnings
DES PLAINES, Ill., May 16 Motor Coach Industries
International, Inc. announced today a $50 million equity investment in the
Company by an investment group led by Joseph Littlejohn & Levy Inc.
Contemporaneously, the Company concluded certain amendments to its senior
credit agreement, including provisions which allow the Company to complete an
asset securitization agreement on its long-term receivables and finance leases
and provides the Company with the ability to increase its revolving credit
line by up to $60 million. Roberto Cordaro, the Company's CEO, stated, "The
additional availability of funds will significantly deleverage the Company and
provide sufficient cash for taking full advantage of growth opportunities
offered by the recently announced NJ Transit contract award for cruiser buses,
new coach products (G- and F-35 series) currently in their final development
phase and increasing opportunities in the Mexican market." Order backlog for
new coaches on April 30 was 1,291 units for the USA, Canada and Mexico. This
includes 650 NJ Transit purchases scheduled within the first 15 months of that
contract.
Mr. Cordaro explained that, "The backlog, in part, reflects a situation
during the first quarter ended March 31, 2000, where three large customers
purchased 141 fewer new coaches than during the first quarter, 1999, due to
timing of their delivery requirements. However, for the year, these operators
are expected to take delivery of at least the same number of coaches as they
did in 1999. This, coupled with production engineering expenses and losses at
our Mexican plant in preparation for the new G- and F-35 series coaches, and
temporary service issues at the new parts distribution center, adversely
impacted our first quarter, 2000 operating performance." The Company
announced revenues of $159.5 million, a decrease of $83.7 from $243.2 million
in 1999. New coach revenue declined $54.1 million, used coach sales were
reduced by $19.5 million and parts and service (customer support business)
revenue dropped by $10.8 million. The majority of the parts sales decrease is
due to a temporary backlog issue caused by relocation of a major warehouse to
the new central distribution center late in the fourth quarter, 1999.
Results for the first quarter ended March 31, 2000 are as follows:
Three Months Ended
(In millions of dollars)
March 31
2000 1999
Total Revenue $159.5 $243.2
Operating Income $5.1 $23.9
Net Income (Loss) $(8.2) $0.4
Operating Income $5.1 $23.9
Depreciation and Amortization $6.4 $6.4
EBITDA $11.5 $30.3
Interest Expense, Net $14.6 $12.8
Foreign Currency Translation Gain $(0.2) $(1.0)
(Loss) $(0.8) $(1.2)
Other Income (expense) $(2.3) $8.5
Income Taxes (benefit)
As of As of
3/31/2000 12/31/99
Long Term Debt $555.8 $536.