Dura Automotive Reports Third-Quarter Results
18 October 2000
Dura Automotive Reports Third-Quarter Results
ROCHESTER HILLS, Mich., Oct. 18 Dura Automotive Systems, Inc. , today reported financial
results for the third quarter and nine-month period ended September 30, 2000.
Results for the quarter were in line with our September 7th press release.
However, third-quarter results have been hurt by continued weakness in the
recreational vehicle market, declines in the European currencies versus the
U.S. dollar and production cuts related to the Firestone tire recall.
Third-quarter revenues were $587.1 million, an increase of $6.2 million
compared to the third quarter of 1999. Third-quarter operating income was
flat compared to the comparable quarter of 1999. Net income was
$10.3 million, or $0.58 per diluted share outstanding, versus $11.3 million,
or $0.63 per diluted share, in the comparable 1999 period.
For the nine-month period, revenues were $1,977.5 million, an increase of
$446.8 million compared to the first nine months of 1999. 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. Excluding the one-time recall charge, nine-month operating income rose
$38.5 million to $167.3 million and net income increased to $47.8 million, or
$2.63 per diluted share, compared with $39.0 million, or $2.35 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 had some difficult challenges in the quarter and, while we are
pleased with our performance, there is still significant structure cost
reduction work in process. The recreational vehicle market downturn and the
significant decline of the European currencies were difficult obstacles to
overcome. These issues, coupled with North American customer plant shut-downs
related to the Firestone tire recall provided challenges that our management
team worked to contain through cost reduction actions and a continued focus on
improved performance."
DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share amounts - unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2000 1999 2000 1999
Revenues $587,081 $580,886 $1,977,540 $1,530,754
Cost of sales 493,450 491,479 1,660,367 1,292,366
Gross profit 93,631 89,407 317,173 238,388
Selling, general and
Administrative expenses 41,406 37,344 128,971 92,320
Product recall charge -- -- 16,000 --
Amortization expense 6,814 6,632 20,885 17,221
Operating income 45,411 45,431 151,317 128,847
Interest expense, net 27,284 24,449 82,553 55,509
Income before provision for
income taxes, equity in
losses of Affiliate and
minority interest 18,127 20,982 68,764 73,338
Provision for income taxes 7,260 8,664 27,781 29,595
Minority interest and equity
in losses of affiliate, net -- 415 914 2,908
Minority interest -
dividends on trust
Preferred securities, net 612 612 1,834 1,834
Income before extraordinary
item and Accounting change 10,255 11,291 38,235 39,001
Extraordinary item - loss
on early Extinguishment of
debt, net -- -- -- (5,402)
Cumulative effect of change in
Accounting, net -- -- -- (3,147)
Net income $10,255 $11,291 $38,235 $30,452
Basic earnings per common
share:
Income before extraordinary
item and Accounting change $0.59 $0.65 $2.19 $2.46
Extraordinary item -- -- -- (0.34)
Cumulative effect of change
in accounting -- -- -- (0.20)
Net income $0.59 $0.65 $2.19 $1.92
Basic shares outstanding 17,470 17,407 17,450 15,877
Diluted earnings per common
share:
Income before extraordinary
item and Accounting change $0.58 $0.63 $2.13 $2.35
Extraordinary item -- -- -- (0.31)
Cumulative effect of change
in accounting -- -- -- (0.18)
Net income $0.58 $0.63 $2.13 $1.86
Diluted shares outstanding 18,772 18,971 18,854 17,382
DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
September 30, December 31,
Assets 2000 1999
(Unaudited)
Current assets:
Cash and cash equivalents $11,625 $23,697
Accounts receivable, net 453,998 478,542
Inventories 133,842 136,562
Other current assets 167,673 154,704
Total current assets 767,138 793,505
Property, plant and equipment, net 500,344 500,894
Goodwill, net 1,024,812 1,067,937
Deferred income taxes and other assets, net 72,791 82,531
$2,365,085 $2,444,867
Liabilities and Stockholders' Investment
Current liabilities:
Accounts payable $278,057 $281,413
Accrued liabilities 254,621 296,431
Current maturities of long-term debt 55,124 52,712
Total current liabilities 587,802 630,556
Long-term debt, net of current maturities 758,571 776,750
Subordinated notes 387,840 401,560
Other noncurrent liabilities 141,940 149,755
Mandatorily redeemable convertible trust
preferred securities 55,250 55,250
Stockholders' investment:
Common stock - Class A 142 141
Common stock - Class B 33 33
Treasury stock (1,604) --
Additional paid-in capital 339,591 339,041
Retained earnings 146,507 108,272
Accumulated other comprehensive loss -
cumulative translation adjustment (50,987) (16,491)
Total stockholders' investment 433,682 430,996
$2,365,085 $2,444,867