Dura Automotive Reports Second-Quarter Results
20 July 2000
Quarterly Sales Exceed $700 Million
ROCHESTER HILLS, Mich. - Dura Automotive Systems, Inc. , today reported
their financial results for the second quarter of 2000. Highlights for the
quarter include quarterly revenues exceeding $700 million and diluted earnings
per share reaching $1.15, before a charge to operations related to product
recall settlement issues.
During the second quarter of 2000, the company announced that it settled
two product recall issues through a cost sharing agreement with a significant
customer. As a result of this agreement, Dura recorded a one-time pretax
charge to operations of $16.0 million, or $0.51 per share net of tax, during
the second quarter of 2000 to cover amounts not previously accrued for.
For the second quarter of 2000, revenues were $707.7 million, an increase
of $22.5 million compared to the second quarter of 1999. Excluding the
one-time recall charge, second quarter operating income rose by $6.7 million
to $63.8 million in 2000 and net income increased to $21.1 million, or $1.15
per diluted share outstanding, versus $18.4 million, or $1.00 per diluted
share, in the comparable 1999 period, before an extraordinary item related to
the early extinguishment of debt recorded in 1999.
For the six months ended June 30, 2000, revenues increased by 46 percent
to $1.4 billion from $949.9 million in 1999. Excluding the one-time recall
charge, 2000 operating income rose $38.5 million to $121.9 million and net
income increased to $37.6 million, or $2.05 per diluted share, compared with
$27.7 million, or $1.74 per diluted share, before the extraordinary items and
accounting change recorded in 1999.
Karl Storrie, president and chief executive officer of Dura Automotive,
stated, "We are very pleased with our second quarter results. Since our
initial public offering in 1996, this is the sixteenth consecutive quarter of
year-over-year revenue growth. Our management team continues to drive strong
performance by implementing our project combo restructuring program, focusing
on cost reductions and cash flow generation, and creating value for our
customers and stakeholders."
Dura Automotive Systems, Inc., is the world's largest independent designer
and manufacturer of driver control systems and a leading global supplier of
door systems, window systems and engineered mechanical components for the
global automotive industry. The company is also a leading supplier of similar
products to the North American recreational vehicle, mass transit and heavy
truck market. The company's products include door modules, parking brake
systems, automotive cables, transmission shifter systems, encapsulated and
sliding windows, window regulators, hinges, latches, seating systems, engine
control products, underbody tire carriers, jacks, brake, clutch and
accelerator pedals and other mechanical assemblies. The company's products
are sold to every North American, European and Japanese original equipment
manufacturers, including Ford, General Motors, DaimlerChrysler, Volkswagen,
BMW, Toyota, Honda, Nissan, PSA (Peugeot and Citroen) and Renault. Dura's
operating headquarters is in Rochester Hills, Mich., and its corporate office
is in Minneapolis, Minn.
DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share amounts - unaudited)
Three Months Ended June 30, Six Months Ended June 30,
2000 1999 2000 1999
Revenues $707,690 $685,167 $1,390,459 $949,868
Cost of sales 593,263 582,668 1,166,917 800,887
Gross profit 114,427 102,499 223,542 148,981
Selling, general and
administrative
expenses 43,647 38,079 87,565 54,976
Product recall charge 16,000 -- 16,000 --
Amortization expense 7,030 7,346 14,071 10,589
Operating income 47,750 57,074 105,906 83,416
Interest expense, net 27,348 23,723 55,269 31,060
Income before provision
for income taxes,
equity in losses of
affiliate and minority
interest 20,402 33,351 50,637 52,356
Provision for income
taxes 8,155 13,220 20,521 20,931
Minority interest and
equity in losses of
affiliate, net 116 1,151 914 2,493
Minority interest --
dividends on trust
preferred securities, net 611 611 1,222 1,222
Income before
extraordinary item
and accounting
change 11,520 18,369 27,980 27,710
Extraordinary item --
loss on early
extinguishment of
debt, net -- (2,700) -- (5,402)
Cumulative effect of
change in accounting, net -- -- -- (3,147)
Net income $11,520 $15,669 $27,980 $19,161
Basic earnings per
common share:
Income before
extraordinary item
and accounting
change $0.66 $1.06 $1.60 $1.83
Extraordinary item -- (0.16) -- (0.35)
Cumulative effect of
change in accounting -- -- -- (0.21)
Net income $0.66 $0.90 $1.60 $1.27
Basic shares
outstanding 17,448 17,348 17,439 15,112
Diluted earnings per
common share:
Income before
extraordinary item
and accounting
change $0.64 $1.00 $1.54 $1.74
Extraordinary item -- (0.14) -- (0.32)
Cumulative effect of
change in accounting -- -- -- (0.19)
Net income $0.64 $0.86 $1.54 $1.23
Diluted shares
outstanding 18,903 18,922 18,929 16,588
DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
June 30, December 31,
Assets 2000 1999
(Unaudited)
Current assets:
Cash and cash equivalents $21,407 $23,697
Accounts receivable, net 500,101 478,542
Inventories 130,770 136,562
Other current assets 163,799 154,704
Total current assets 816,077 793,505
Property, plant and equipment, net 505,097 500,894
Goodwill, net 1,045,824 1,067,937
Deferred income taxes and other assets, net 74,978 82,531
$2,441,976 $2,444,867
Liabilities and Stockholders' Investment
Current liabilities:
Short-term notes payable $2,913 $20,207
Current maturities of long-term debt 47,618 32,505
Accounts payable 310,032 281,413
Accrued liabilities 294,175 296,431
Total current liabilities 654,738 630,556
Long-term debt, net of current maturities 748,436 776,750
Subordinated notes 393,650 401,560
Other noncurrent liabilities 155,034 149,755
Mandatorily redeemable convertible trust
preferred securities 55,250 55,250
Stockholders' investment:
Common stock -- Class A 141 141
Common stock -- Class B 33 33
Treasury stock (1,723) --
Additional paid-in capital 339,389 339,041
Retained earnings 136,252 108,272
Accumulated other comprehensive loss --
cumulative translation adjustment (39,224) (16,491)
Total stockholders' investment 434,868 430,996
$2,441,976 $2,444,867