Accuride Corporation Announces Third Quarter Results
23 October 2000
Accuride Corporation Announces Third Quarter Results
EVANSVILLE, Ind.--Oct. 20, 2000--Accuride Corporation today announced sales of $104.4 million for the third quarter ended September 30, 2000. This compares to sales of $129.4 million for the third quarter of 1999, representing a decline of $25.0 million, or 19.3%.For the nine months ended September 30, 2000, net sales increased by $7.7 million to $384.7 million compared to net sales of $377.0 million for the same nine-month period in 1999, an increase of 2.0%.
On a pro-forma basis reflecting the AKW acquisition effective April 1, 1999, sales for the nine months ended September 30, 2000, decreased by $16.2 million or 4.0% to $384.7 million from $400.9 million as compared to the same nine-month period in 1999.
Adjusted EBITDA of $18.2 million for the third quarter ended September 30, 2000, is down from $28.3 million for the third quarter of 1999. The resulting adjusted EBITDA margin percentage decreased to 17.4%, from 21.8% during the same quarter in 1999.
For the first nine months of 2000, adjusted EBITDA decreased by $6.0 million, or 6.9%, to reach $80.9 million. This compares to $86.9 million for the first nine months of 1999. The resulting pro-forma adjusted EBITDA margin percentage decreased to 21.0%, from 22.4% during the same nine-month period in 1999. EBITDA for the second 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 $25.5 million in cash as well as 100% availability on the $140.0 million Revolver. Total debt for the quarter ended September 30, 2000, has been reduced by $11.3 million.
"Accuride clearly felt the impact of the heavy duty truck industry decline over the past quarter, which industry analysts have linked to high levels of new trucks in inventory, continued high fuel prices, tightening of credit, and a glut of used trucks. Due to this downturn, several of our key customers have announced production cutbacks, and/or have downsized their workforce," explained Bill Greubel, Accuride's President and CEO. "As part of our operating strategy to manage the business cycle, we have implemented new production plans at our heavy vehicle production facilities, adjusted staffing levels, as well as continuing our programs to manage cash, working capital and continuous improvement."
ACCURIDE CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(DOLLARS IN THOUSANDS)
(UNAUDITED)
Three Months Ended
September 30,
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2000 1999
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NET SALES $ 104,403 $ 129,422
COST OF GOODS SOLD 87,214 100,720
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GROSS PROFIT $ 17,189 $ 28,702
OPERATING:
Selling, General & Administrative 6,435 7,608
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INCOME FROM OPERATIONS 10,754 21,094
OTHER INCOME (EXPENSE):
Interest Income 596 174
Interest Expense (10,842) (10,152)
Equity in Earnings of Affiliates 118 32
Other Income (Expense), Net (2,674) (681)
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INCOME BEFORE INCOME TAXES AND MINORITY INTEREST (2,048) 10,467
INCOME TAX PROVISION (859) 4,396
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NET INCOME $ (1,189) $ 6,071
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Nine Months Ended
September 30,
-----------------
2000 1999
---- ----
NET SALES $ 384,727 $ 377,007
COST OF GOODS SOLD 308,216 290,987
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GROSS PROFIT $ 76,511 $ 86,020
OPERATING:
Selling, General & Administrative 22,050 21,782
Merger & Acquisition Fees 2,700 -
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INCOME FROM OPERATIONS 51,761 64,238
OTHER INCOME (EXPENSE):
Interest Income 1,448 404
Interest Expense (31,497) (29,113)
Equity in Earnings of Affiliates 357 2,358
Other Income (Expense), Net (6,417) (1,605)
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INCOME BEFORE INCOME TAXES AND MINORITY INTEREST 15,652 36,282
INCOME TAX PROVISION 6,574 15,239
MINORITY INTEREST - 91
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NET INCOME $ 9,078 $ 20,952
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ACCURIDE CORPORATION
CONSOLIDATED ADJUSTED EBITDA
(DOLLARS IN THOUSANDS)
(UNAUDITED)
Three Months Ended
September 30,
------------------
2000 1999
---- ----
INCOME FROM OPERATIONS $ 10,754 $ 21,094
Depreciation and Amortization 7,319 7,150
Equity in Earnings of Affiliates 118 32
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EBITDA $ 18,191 $ 28,276
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ADJUSTMENTS - -
ADJUSTED EBITDA $ 18,191 $ 28,276
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Nine Months Ended
September 30,
-----------------
2000 1999
---- ----
INCOME FROM OPERATIONS $ 51,761 $ 64,238
Depreciation and Amortization 22,780 20,328
Equity in Earnings of Affiliates 357 2,358
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EBITDA $ 74,898 $ 86,924
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ADJUSTMENTS
AdM Restructuring 3,300 -
M&A Advisory Costs 2,700 -
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ADJUSTED EBITDA $ 80,898 $ 86,924
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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.