Shiloh Industries Reports Second-Quarter and First Six Months Results
25 May 2000
Shiloh Industries Reports Second-Quarter and First Six Months Results
CLEVELAND, May 25 Shiloh Industries, Inc. ,
a leading supplier of blanks, stampings and processed steel for the
automotive, truck and other industries, today announced financial results for
the second quarter and the first six months of fiscal 2000.
For the second quarter ended April 30, 2000, net income increased 38.0% to
$5.5 million, or $0.40 per basic and diluted share, from $4.0 million, or
$0.31 per basic and diluted share, for the second quarter of fiscal 1999.
Operating income for the second quarter of fiscal 2000 increased by 45.6% to
$11.9 million, from $8.2 million in the second quarter of 1999. Revenues for
the second quarter of fiscal 2000 increased 85.0% to $165.7 million, from
$89.6 million in the comparable period of fiscal 1999.
For the first six months ended April 30, 2000, net income increased to
$9.7 million, or $.69 per share, compared with net income of $6.0 million, or
$.46 per share, for the first six months of fiscal 1999. Operating income for
the first six months of fiscal 2000 increased to $20.6 million from $12.9
million for the first six months of fiscal 1999. Revenues for the first half
of the year increased 79.1% to $306.5 million from $171.2 million for the
first half of fiscal 1999.
Net income for the second quarter and the first six months of fiscal 2000,
was impacted by start-up costs of $0.7 million related to the Company's new
Saltillo, Mexico facility.
The substantial revenue increase primarily reflects the inclusion of MTD
Automotive, Inc. and Ohio Welded Blank in the results for the second quarter
of fiscal 2000. MTD Automotive, Inc., a supplier of high quality engineered
metal parts and components to the automotive sector, was acquired on November
1, 1999. Ohio Welded Blank, an expansion of Medina Blanking, is a state-of-
the-art manufacturing facility for tailor-welded blanks for the automotive
sector. This facility became operational in November 1999.
"We are pleased with our results. We posted a substantial increase in
revenues. We continue to see the benefits of organizational and operational
changes implemented last year. Our new management team has made positive
changes to shape our new Company culture, increase business volume and
continue improvements in customer satisfaction. Our new sales and marketing
team and infrastructure have attracted additional automotive business across
most of our subsidiaries. The new Shiloh Operating System has made a material
difference in quality-process improvements," said Jack Falcon, President and
Chief Executive Officer.
Mr. Falcon said the Company's new tailor-welded blanking plant in
Saltillo, Mexico is nearing pre-production start-up. The new plant will
undergo its first test runs within 60 days and the plant is expected to become
operational in the second half of fiscal 2000. The Saltillo plant will
principally manufacture tailor-welded blanks for a variety of body and
underbody parts, for a nearby General Motors Corporation plant.
Headquartered in Cleveland, Shiloh Industries, Inc. is a leading supplier
of blanks, stampings and processed steel for the automotive, truck and other
industries. The Company currently operates 11 subsidiaries in Ohio, Michigan
and Georgia and employs more than 3,000 people.
The forward-looking statements in this press release involve a number of
risks and uncertainties. Among the factors that could cause actual results to
differ materially are the following: a downturn in the automotive industry and
the general economy; competitive factors such as increases in the price of, or
limitations on the availability of steel; the ability of the Company to
continue to successfully integrate the operations of MTD Automotive; the
ability to commence operations and minimize start-up costs at new facilities,
including the facility in Saltillo, Mexico; potential disruptions in
operations due to, or during facility expansions; delays in, or cancellations
of, customer programs; the risks and uncertainties related to commencing
foreign operations; a labor dispute involving Shiloh, its customers or
suppliers; and other risks and uncertainties that may be identified from time
to time in the company's reports to the Securities and Exchange Commission.
SHILOH INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Amounts in thousands)
Three months ended Six months ended
April 30, April 30,
2000 1999 2000 1999
Revenues $165,666 $89,565 $306,494 $171,166
Cost of sales 140,094 73,284 260,701 142,488
Gross profit 25,572 16,281 45,793 28,678
Selling, general and administrative
expenses 13,642 8,089 25,215 15,803
Operating income 11,930 8,192 20,578 12,875
Interest expense 3,220 1,791 6,698 3,487
Interest income 13 25 51 81
Minority interest --- 113 --- 335
Other income (expense), net 65 (13) 1,534 24
Income before
income taxes 8,788 6,526 15,465 9,828
Provision for income
taxes 3,247 2,512 5,784 3,784
Net Income $5,541 $4,014 $9,681 $6,044
Earnings per share:
Basic Earnings Per Share $.40 $.31 $.69 $.46
Basic Weighted Average Number
of Common Shares 13,973 13,081 13,973 13,081
Diluted Earnings
Per Share $.40 $.31 $.69 $.46
Diluted Weighted Average Number
of Common Shares 13,993 13,085 13,982 13,087
SHILOH INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in thousands)
April 30, October 31,
2000 1999
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $340 $1,576
Accounts receivable 110,868 79,670
Inventory 84,612 47,119
Deferred income taxes --- 1,581
Prepaid expenses 6,161 5,758
Total current assets 201,981 135,704
Property, plant and equipment, net 292,162 269,627
Goodwill and other intangible
assets, net 11,809 11,647
Other assets 8,311 8,742
Total assets $514,263 $425,720
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $84,733 $38,677
Accrued income taxes 5,731 1,294
Deferred income taxes 4,766 ---
Advanced billings 1,041 225
Other accrued expenses 17,388 10,196
Total current liabilities 113,659 50,392
Long-term debt 183,400 171,450
Deferred income taxes 15,962 22,309
Long-term benefit liabilities 3,371 2,991
Other liabilities 414 450
Total liabilities 316,806 247,592
Stockholders' equity:
Common stock 145 131
Paid-in capital 49,034 39,400
Retained earnings 148,278 138,597
Total stockholders' equity 197,457 178,128
Total liabilities and
stockholders' equity $514,263 $425,720