Motor Coach Industries Int'l Q2 Financial Results
11 August 2000
SCHAUMBURG, Ill. - Motor Coach Industries International, Inc. announced
Thursday second quarter 2000 revenues of $201.0 million and EBITDA of $24.0
million. This is a significant improvement from the first quarter's $159.5
million sales and $11.5 million EBITDA.
Deliveries of new inter-city coaches totaled 467 units compared to 354 units
during the first quarter of 2000. Profitability of the Customer Support
Business improved significantly because of resolution of backlog issues caused
by the relocation to a new distribution center. In comparison to the second
quarter of 1999, EBITDA is lower by $12.1 million due to $43.0 million or 18%
lower revenue. Second quarter 1999 deliveries of new coaches totaled 590
units. During the second quarter of 2000, sales to independent tour and
charter operators were off significantly, reflecting a substantial softening
in market conditions due to higher fuel costs, increased costs of financing,
and tighter equipment financing. Roberto Cordaro, the Company's CEO,
cautioned that "the weaker tour and charter market in the USA, combined with
MCI's efforts to re-direct the sales force to sell future production slots
rather than coaches in stock, will negatively impact the third quarter." Mr.
Cordaro explained that "We had to make this important adjustment to change the
way we do business in the independent market in order to reduce working
capital and pay down debt." However, the Company's order level from the
public sector in the USA, and major coach operators in Mexico, is requiring
ramp-up of production at its three plants in Canada, the USA, and Mexico to
nearly maximum capacity by the fourth quarter of 2000, therefore making up for
some of the weaker third quarter.
The Company's long-term debt at June 30 was $480.0 million and cash and
cash equivalents amounted to $44.9 million, resulting in a net debt balance of
$435.1 million. At March 31, 2000, the company's net debt balance was
$539.2 million. The improvement by $104.1 million reflects the previously
announced equity investment of $50.0 million and proceeds of $56.0 million
from the initial securitization of long-term receivables and finance leases.
Net working capital (excluding cash) remained unchanged during the second
quarter; however, inventory of new stock coaches was reduced significantly
which was offset by higher receivables at the end of June and a pay-down of
payables. Mr. Cordaro indicated that "the second quarter operating
initiatives to improve the balance sheet will continue throughout the second
half of the year and will position our company to further reduce debt by year
end."
Motor Coach Industries International, Inc., is the leading designer,
manufacturer and marketer of inter-city coaches and related replacement parts
for the North American Market.
See table for quarterly and cumulative results.
Motor Coach Industries International, Inc.
Selected Financial Data
For the Three and Six Month Periods Ended
June 30, 2000 and 1999
(in millions of dollars) Three Months Ended Six Months Ended
2000 1999 2000 1999
Total Revenue $201.0 $244.1 $360.6 $487.3
Operating Income $12.3 $8.3 $17.4 $32.2
Net Income (Loss) $(0.8) $(8.8) $(9.1) $(8.4)
Operating Income $12.3 $8.3 $17.4 $32.2
Non-Cash Inventory
Charge $ - $21.0 $ - $21.0
Loss on Securitization $3.3 $ - $3.3 $-
Depreciation and
Amortization $8.4 $6.8 $14.8 $13.1
EBITDA $24.0 $36.1 $35.5 $66.3
Interest Expense, Net $13.1 $15.2 $27.8 $27.9
As of As of As of
6/30/00 3/31/00 12/31/99
Long Term Debt $480.0 $555.8 $536.5
Cash & Cash
Equivalents $44.9 $16.6 $15.6
Net Debt Position $435.1 $539.2 $520.9