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Harvard Industries Reports Second Fiscal Quarter Results

17 May 2000

Harvard Industries Reports Strong Second Fiscal Quarter Results; EBITDA Totals $10.4 Million For First Half

    LEBANON, N.J.--May 16, 2000--Harvard Industries, Inc. , a manufacturing company which emerged from Chapter 11 bankruptcy in November, 1998, announced sales and EBITDA for the six-month and three-month periods ended March 31, 2000, of $173.7 million and $10.4 million and $90.1 million and $6.0 million, respectively.
    As a result of its emergence from Chapter 11 and the prospective effects of "Fresh Start Reporting," the Company does not believe that its historical results from operations are necessarily indicative of its results as an on-going entity. However, for comparative purposes the two-month period ended November 29, 1998 (pre-emergence) has been combined with the four-month period ended March 31, 1999 (post-emergence) into a pro -forma six-month period.
    On a pro forma basis for the corresponding six-month and three-month periods a year earlier, the Company had sales and EBITDA of $166.3 million and $7.9 million and $85.6 million and $4.1 million respectively, after adjusting the prior period sales and EDITDA by $91.6 million and $9.7 million and $43.1 million and $3.4 million respectively for operations divested in the twelve-month period ended September 30, 1999. These divestitures were made to enable the Company to advance its diversification.
    Harvard believes that EBITDA, defined as earnings before interest, income taxes, depreciation, amortization, reorganization items, extraordinary items and one-time items such as the gain or loss on the sale of operations, is the best benchmark of its performance since it bears a closer relationship to real cash earnings than earnings per share.
    Roger Pollazzi, Chairman and Chief Executive Officer, noted, "The Company continues to make excellent progress. We are on plan in developing our higher value added businesses. Our operating margins are improving and our balance sheet is debt-free."