Accuride Corporation Announces Strong Q2 Results
7 August 2000
EVANSVILLE, Ind. - Accuride Corporation announced sales of $137.0 million for the second quarter ended June 30, 2000.
This compares to sales of $136.1 million for the second quarter of 1999. For the six months ended June 30, 2000, net sales increased by $32.7 million to $280.3 million compared to net sales of $247.6 million for the same six-month period in 1999, an increase of 13.2%.
The increase in net sales is primarily due to including total sales from AKW with the consolidated sales of the Company effective April 1, 1999, the date of the acquisition. On a pro-forma basis reflecting the AKW acquisition, sales for the six months ended June 30, 2000, have increased by $8.8 million or 3.2% to $280.3 million from $271.5 million as compared to the same six-month period in 1999.
Adjusted EBITDA of $31.4 million for the second quarter ended June 30, 2000, is up by 1.9% from $30.8 million for the second quarter of 1999. For the first six months of 2000, adjusted EBITDA increased by $4.1 million, or 7.0%, to reach $62.7 million. This compares to $58.6 million for the first six months of 1999. EBITDA for the quarter ended June 30, 2000, was adjusted by $2.7 million for merger and acquisition advisory costs and by $3.3 million for a restructuring charge at Accuride de Mexico.
The Company's liquidity position remains very strong with $47.3 million in cash as well as 100% availability on the $140.0 million Revolver. This represents an increase in cash of $14.8 million from the beginning of the year.
"Overall, we are pleased with the results for the second quarter of 2000, although tempered by a disappointing start-up at AdM," said Bill Greubel, Accuride's President and CEO. "Since our focus has been to manage the business cycle, we are well positioned for the downturn in the commercial vehicle market. Programs surrounding cash, capital, continuous improvement and flexible operations are already in place."
Accuride Corporation is North America's largest manufacturer and supplier of wheels for heavy/medium trucks and trailers. The Company offers the broadest product line in the North American heavy/medium wheel industry and is the only North American manufacturer and supplier of both steel and aluminum heavy/medium wheels. Accuride Corporation produces wheels for buses, commercial light trucks, sport utility vehicles, and passenger cars. Accuride has steel wheel operations in Henderson, Kentucky; Columbia, Tennessee; London, Ontario, Canada; and Monterrey, Mexico. Accuride has aluminum wheel operations in Erie, Pennsylvania, and Cuyahoga Falls, Ohio. Additionally, the Company produces tire molds at its Erie, Pennsylvania, facility. Accuride is also involved in a commercial tire and wheel assembly joint venture in Springfield, Ohio, and Talbotville, Ontario, Canada.
ACCURIDE CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(DOLLARS IN THOUSANDS)
(UNAUDITED)
Three Months Ended June 30,
--------------------------
2000 1999
---- ----
NET SALES $136,956 $136,052
COST OF GOODS SOLD 109,376 104,826
--------------- ---------------
GROSS PROFIT $27,580 $31,226
OPERATING:
Selling, General & Administrative 7,215 7,695
Merger & Acquisition Fees 2,700 -
--------------- --------------
INCOME FROM OPERATIONS 17,665 23,531
OTHER INCOME (EXPENSE):
Interest Income 469 165
Interest Expense (10,097) (10,005)
Equity in Earnings of Affiliates 113 11
Other Income (Expense), Net (3,142) (556)
--------------- ---------------
INCOME BEFORE INCOME TAXES AND
MINORITY INTEREST 5,008 13,146
INCOME TAX PROVISION 2,102 5,522
MINORITY INTEREST - 67
--------------- ---------------
NET INCOME $2,906 $7,557
--------------- ---------------
--------------- ---------------
Six Months Ended June 30
------------------------
2000 1999
---- ----
NET SALES $280,324 $247,585
COST OF GOODS SOLD 221,002 190,267
--------------- ---------------
GROSS PROFIT $59,322 $57,318
OPERATING:
Selling, General & Administrative 15,615 14,174
Merger & Acquisition Fees 2,700 -
--------------- ---------------
INCOME FROM OPERATIONS 41,007 43,144
OTHER INCOME (EXPENSE):
Interest Income 852 230
Interest Expense (20,655) (18,961)
Equity in Earnings of Affiliates 239 2,326
Other Income (Expense), Net (3,743) (924)
--------------- ---------------
INCOME BEFORE INCOME TAXES AND
MINORITY INTEREST 17,700 25,815
INCOME TAX PROVISION 7,433 10,843
MINORITY INTEREST - 91
--------------- ---------------
NET INCOME $10,267 $14,881
--------------- ---------------
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ACCURIDE CORPORATION
CONSOLIDATED ADJUSTED EBITDA
(DOLLARS IN THOUSANDS)
(UNAUDITED)
Three Months Ended June 30,
--------------------------
2000 1999
---- ----
INCOME FROM OPERATIONS $17,665 $23,531
Depreciation and Amortization 7,592 7,250
Equity in Earnings of Affiliates 113 11
---------------- -----------------
EBITDA $25,370 $30,792
---------------- -----------------
---------------- -----------------
ADJUSTMENTS
AdM Restructuring 3,300 -
M&A Advisory Costs 2,700 -
---------------- -----------------
ADJUSTED EBITDA $31,370 $30,792
---------------- -----------------
---------------- -----------------
Six Months Ended June 30,
-------------------------
2000 1999
---- ----
INCOME FROM OPERATIONS $41,007 $43,144
Depreciation and Amortization 15,461 13,178
Equity in Earnings of Affiliates 239 2,326
---------------- -----------------
EBITDA $56,707 $58,648
---------------- -----------------
---------------- -----------------
ADJUSTMENTS
AdM Restructuring 3,300 -
M&A Advisory Costs 2,700 -
---------------- -----------------
ADJUSTED EBITDA $62,707 $58,648
---------------- -----------------
---------------- -----------------
Adjusted EBITDA is not intended to represent cash flows as defined by
GAAP. It is included in our report as it is a basis upon which the
Company assesses its financial performance and certain covenants in
the Company's borrowing arrangements are tied to similar measures.
Depreciation and amortization excludes amortization of deferred
financing costs which are classified as interest expense and therefore
are not components of income from operations.