MSX International Third Quarter 2000 Sales Increase 31%
13 November 2000
MSX International Third Quarter 2000 Sales Increase 31%; Operating Income Increases 37%AUBURN HILLS, Mich., Nov. 10 MSX International's sales for the third quarter of 2000 increased 31% compared to the third quarter of 1999. For the quarter ended October 1, 2000, sales increased $61 million to $257 million compared to $195 million in 1999, including $49 million from acquired companies. Sales for the first nine months of fiscal 2000 increased 36% to $774 million from $570 million in the comparable prior year period, including $149 million of sales from acquired businesses. Sales to non-automotive customers increased to over 20% of total sales for the first nine months of fiscal 2000 compared to 11% for the first nine months of fiscal 1999. Operating income for the third quarter of 2000 was $14.7 million compared with operating income of $10.7 million in 1999, a 37% increase. The third quarter improvement included $2.1 million from acquired companies. Net income was $3.7 million for the third quarter, compared to $3.1 million in the comparable prior period, an increase of 20%. Improvements in operating income were partially offset by higher borrowing costs to fund acquisitions, by increases in interest rates on a portion of the company's debt, and by recognition of the minority interest of outside shareholders in the earnings of our consolidated subsidiaries. Thomas Stallkamp, vice chairman and chief executive officer, commented, "MSX International's continued growth reflects our efforts to leverage our global resources. We are focusing on expanding our reputation beyond our traditional customers. Strategically, we are emphasizing opportunities to cross-sell our product life cycle services, to form alliances with prominent technology and human capital management companies, and to build brand awareness of our company." MSX INTERNATIONAL, INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited) for the fiscal quarters and fiscal nine months ended October 1, 2000 and October 3, 1999 Fiscal Quarter Ended Fiscal Nine Months Ended October 1, October 3, October 1, October 3, 2000 1999 2000 1999 (in thousands) Net sales $256,732 $195,474 $774,209 $569,942 Cost of sales 220,294 168,783 664,012 492,660 Gross profit 36,438 26,691 110,197 77,282 Selling, general and administrative expenses 20,208 15,203 61,937 45,510 Amortization of goodwill and other intangibles 1,563 805 4,063 2,151 Operating income 14,667 10,683 44,197 29,621 Interest expense, net 7,706 5,643 22,276 15,349 Income before income taxes, minority interests, and equity in net losses of affiliates 6,961 5,040 21,921 14,272 Income tax provision 3,063 1,961 9,213 5,678 Less minority interests and equity in net losses of affiliates, net of taxes 206 - 672 - Net income $ 3,692 $ 3,079 $ 12,036 $ 8,594