Simpson Industries Reports Third Quarter Sales and Earnings
12 October 2000
Simpson Industries Reports Third Quarter Sales and Earnings
PLYMOUTH, Mich., Oct. 12 Simpson Industries, Inc.
today announced third quarter sales of $116.5 million and net
earnings of $1.2 million for the quarter ended September 30, 2000.
Net sales for the third quarter were $116,468,000 compared to $124,220,000
in the third quarter of 1999. Weaker automotive and heavy-duty volumes
combined with a strong U.S. dollar affected the sales adversely.
Net earnings for the current quarter were $1,190,000 or $0.07 per share
diluted compared to $2,850,000 or $0.16 in 1999. Lower sales combined with
heavy new product launch activities had a negative impact on earnings.
However, a reduction in the effective tax rate for the year from 35% to
approximately 32% had a positive impact on net earnings for the quarter.
For the nine months ended September 30, 2000, net sales were $399,605,000
versus $396,721,000 in 1999. Net earnings were $13,684,000 compared to
$15,542,000 last year.
"Despite difficult market conditions and high product launch costs that
contributed to our financial results in the third quarter, we generated strong
positive cashflow and continue to see strong customer support for our
engineered products and modules," said Roy E. Parrott, Chairman and C.E.O. of
Simpson Industries. "Through September, we won new business awards of over
$80 million in annual sales at maturity," added Mr. Parrott.
As previously announced, the Company has entered into a definitive
agreement to merge with an affiliate of Heartland Industrial Partners, LP.
Under the terms of the agreement, each shareholder of Simpson is expected to
receive $13.00 in cash per share at the closing. The value of the
transaction, including the assumption of debt, is estimated to be
approximately $350 million.
Simpson Industries, Inc.
Consolidated Statements of Operations (Unaudited)
(Dollar and share amounts in thousands, except per share data)
Three Months Ended Nine Months Ended
September 30 September 30
2000 1999 2000 1999
Net Sales $116,468 $124,220 $399,605 $396,721
Cost of products sold 108,903 114,382 360,108 356,382
GROSS PROFIT 7,565 9,838 39,497 40,339
Administrative and
selling 3,543 3,201 10,333 8,725
Amortization of
intangible assets 485 508 1,538 1,533
OPERATING EARNINGS 3,537 6,129 27,626 30,081
Interest and other
income - net (276) 177 (617) 68
Interest expense (2,434) (2,178) (6,960) (6,494)
EARNINGS BEFORE
INCOME TAXES 827 4,128 20,049 23,655
Income taxes (363) 1,278 6,365 8,113
NET EARNINGS $1,190 $2,850 $13,684 $15,542
BASIC EARNINGS PER SHARE $0.07 $0.16 $0.77 $0.86
DILUTED EARNINGS PER SHARE $0.07 $0.16 $0.76 $0.86
Cash dividends per share $0.10 $0.10 $0.30 $0.30
Basic weighted average
shares outstanding 17,874 18,034 17,885 18,081
Diluted weighted average
shares outstanding 17,874 18,099 17,897 18,119
Depreciation expense $6,968 $6,502 $20,049 $19,267
Capital expenditure $10,501 $9,829 $28,466 $29,604
Simpson Industries, Inc.
Condensed Consolidated Balance Sheets
(Dollar amounts in thousands)
September 30, December 31,
2000 1999
(unaudited)
ASSETS
Cash & Cash Equivalents $0 $7,362
Other Current Assets 117,263 121,936
Total Current Assets 117,263 129,298
Property, Plant & Equipment - net 189,316 182,913
Other Assets & Intangible 43,955 49,245
Total Assets $350,534 $361,456
LIABILITIES & SHAREHOLDERS' EQUITY
Notes Payable 3,797 10,908
Current Liabilities 88,852 95,405
Total Current Liabilities $92,649 $106,313
Long-Term Debt 97,254 98,955
Other Liabilities 27,530 23,156
Shareholders' Equity 133,101 133,032
Total Liabilities & Equity $350,534 $361,456