Tower Automotive Announces Record Operating Results for the 2nd Quarter/6 Months
20 July 2000
Tower Automotive Announces Record Operating Results for the Second Quarter and Six Months Ended June 30, 2000
GRAND RAPIDS, Mich. - Tower Automotive, Inc. today announced record
operating results for the second quarter and six months ended June 30, 2000.
For the second quarter of 2000, revenues were $681 million, a 28 percent
increase, compared with $531 million in the 1999 period. Operating income
rose 29 percent to $76 million from $59 million reported last year. Net
income for the second quarter of 2000 was $39 million, or 68 cents per diluted
share outstanding, versus $33 million, or 58 cents per diluted share, in the
comparable 1999 period.
For the six months ended June 30, 2000, revenues were $1,366 million, a
33 percent increase, compared with $1,029 million in the same period for 1999.
Operating income rose 32 percent to $148 million from $112 million reported
last year. Net income for the six months ended June 30, 2000 was $76 million,
or $1.32 per diluted share outstanding, versus $61 million, or $1.08 per
diluted share, in the comparable 1999 period.
In commenting on second-quarter and six-month results, Dugald K. Campbell,
president and chief executive officer of Tower Automotive, said, "We are
pleased with our second-quarter and six-month results. The performance of our
recent acquisitions, including Active, Dr. Meleghy and Algoods, along with our
enterprise-wide focus on improving shareholder value, continue to positively
affect our operating results."
On May 3, 2000, the company acquired all of the outstanding common stock
of Algoods, Inc. ("Algoods") for total consideration of approximately
$33 million. Algoods manufactures aluminum heat shields and impact discs for
the North American automotive industry from aluminum mini-mill and
manufacturing operations located in Toronto, Ontario, Canada. Its primary
customer is DaimlerChrysler.
On July 7, 2000, the company announced that it completed the acquisition
of the remaining 60 percent equity interest in Metalurgica Caterina S.A.
("Caterina"), a supplier of structural stampings and assemblies to the
Brazilian automotive market. This remaining interest was acquired for
consideration of approximately $42 million. Tower Automotive acquired the
initial 40 percent equity interest in Caterina in March 1998.
Tower Automotive, Inc., produces a broad range of assemblies and modules
for vehicle structures and suspension systems for the automotive
manufacturers, including Ford, DaimlerChrysler, GM, Honda, Toyota, Nissan,
Auto Alliance, Fiat, BMW and Volkswagen. Products include body structural
assemblies such as pillars and package trays, control arms, suspension links,
engine cradles and full frame assemblies. The company is based in Grand
Rapids, Mich., and has its corporate office in Minneapolis, Minn.
TOWER AUTOMOTIVE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share amounts - unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2000 1999 2000 1999
Revenues $681,020 $530,680 $1,366,384 $1,029,252
Cost of sales 566,649 443,651 1,140,291 862,776
Gross profit 114,371 87,029 226,093 166,476
Selling, general and
administrative expenses 33,431 24,584 68,087 47,004
Amortization expense 5,118 3,741 10,217 7,191
Operating income 75,822 58,704 147,789 112,281
Interest expense, net 13,534 7,262 26,731 14,529
Income before provision
for income taxes 62,288 51,442 121,058 97,752
Provision for income
taxes 24,916 20,577 48,424 39,101
Income before equity in
earnings of joint
ventures and minority
interest 37,372 30,865 72,634 58,651
Equity in earnings of
joint ventures 4,540 4,382 9,020 7,295
Minority interest -
dividends on trust
preferred securities,
net (2,619) (2,619) (5,238) (5,242)
Net income $39,293 $32,628 $76,416 $60,704
Basic earnings per
common share $0.83 $0.69 $1.62 $1.30
Basic shares
outstanding 47,250 46,965 47,107 46,766
Diluted earnings per
common share $0.68 $0.58 $1.32 $1.08
Diluted shares
outstanding 64,359 64,143 64,143 63,967
TOWER AUTOMOTIVE, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
June 30, December 31,
Assets 2000 1999
(unaudited)
Current assets:
Cash and cash equivalents $9,386 $3,617
Accounts receivable 413,947 353,351
Inventories 115,404 110,897
Prepaid tooling and other 81,584 90,191
Total current assets 620,321 558,056
Property, plant and equipment, net 1,170,166 1,075,861
Investments in joint ventures 316,620 290,705
Goodwill and other assets, net 708,404 627,928
$2,815,511 $2,552,550
Liabilities and Stockholders' Investment
Current liabilities:
Current maturities of long-term debt and
capital lease obligations $21,367 $13,876
Accounts payable 290,244 276,673
Accrued liabilities 131,835 140,567
Total current liabilities 443,446 431,116
Long-term debt, net of current maturities 847,091 699,678
Obligations under capital leases,
net of current maturities 18,830 21,543
Convertible subordinated notes 200,000 200,000
Deferred income taxes 74,016 50,736
Other noncurrent liabilities 162,719 163,592
Total noncurrent liabilities 1,302,656 1,135,549
Mandatorily redeemable trust convertible
preferred securities 258,750 258,750
Stockholders' investment:
Preferred stock -- --
Common stock 474 469
Additional paid-in capital 451,521 437,210
Retained earnings 370,938 294,522
Warrants to acquire common stock -- 2,000
Deferred income stock plan (8,942) (4,484)
Accumulated other comprehensive loss (3,332) (2,582)
Total stockholders' investment 810,659 727,135
$2,815,511 $2,552,550