Transportation Components Reports Financial Results for Q3
12 November 2000
Transportation Components, Inc. Reports Financial Results for Third Quarter Ended September 30, 2000
HOUSTON, Nov. 14 Transportation Components, Inc.
(TransCom USA) today announced financial results for the third
quarter and nine months ended September 30, 2000.
For the quarter ended September 30, 2000, TransCom USA reported a net loss
of $883,000 ($.05 per diluted share) on revenues of $72.7 million. For the
comparable period a year ago, TransCom reported net income of $865,000 ($.05
per diluted share) on revenues of $78.2 million.
For the nine months ended September 30, 2000, the Company reported a net
loss of $2,330,000 ($.13 per diluted share) on revenues of $225.7 million.
For the comparable period a year ago, TransCom reported net income of
$4,448,000 ($.25 per diluted share) on revenues of $237.5 million.
Results for the nine months ended September 30, 2000 were impacted by
$1.2 million of nonrecurring special charges in the second quarter relating to
personnel reductions and reserves for reductions in value of certain assets.
Revenues for the three months ended September 30, 2000 declined
$5.4 million, or 6.9%, compared to the same period in 1999, due primarily to
the overall softness in the domestic heavy-duty aftermarket in the third
quarter of 2000 compared with the third quarter of 1999. These declines were
partially offset by increased revenues in Mexico and from oilfield service
customers.
Selling, general and administrative expenses for the three months ended
September 30, 2000 decreased $0.1 million, or 0.4%, compared to the same
period in 1999, as a result of workforce reductions.
T. Michael Young, Chairman and Chief Executive Officer, commented, "The
softness in the heavy-duty aftermarket has continued to negatively impact our
operating results. We are continuing to adjust our cost structure to adapt to
the changing market conditions. In the last six months, we have downsized our
workforce by more than 7% through consolidation of back office functions and
other workforce reductions. We continue to be optimistic about the
opportunities to service national and regional customers. As recently
announced, we are beginning to service a major national customer with over
720 domestic locations. In addition, we have recently begun servicing other
national customers, one of which has over 200 locations."
TransCom also announced it has reached agreement with its bank group for a
restructuring of its credit facility, previously scheduled to expire on
June 30, 2001. The restructured facility matures October 31, 2001, so the
company will continue its efforts to obtain alternative, longer term
financing. Under the new arrangement with its banks, the company has
suspended principal payments on its $13.6 million of subordinated notes.
Holders of those notes have agreed to extend until March 31, 2001 all
principal payments due on the notes before then.
"We are pleased to finalize this interim agreement with our bank group,
while we seek additional long-term capital. Despite difficult market
conditions, we are managing our business and our balance sheet to reduce long-
term debt," said David Phelps, TransCom's chief financial officer.
TRANSPORTATION COMPONENTS, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
Three Months Ended Nine Months Ended
September 30 September 30
2000 1999 2000 1999
Revenues $72,790 $78,189 $225,692 $237,539
Cost of sales 51,063 54,438 158,456 164,683
Gross profit 21,727 23,751 67,236 72,856
Selling, general and
administrative expenses 20,249 20,322 62,209 59,551
Amortization of goodwill 565 577 1,695 1,687
Income from operations 913 2,852 3,332 11,618
Other income (expense):
Interest expense (2,197) (1,299) (5,943) (3,921)
Other income, net 345 274 114 804
Income (loss) before
income taxes (939) 1,827 (2,497) 8,501
Provision (benefit) for
income taxes (56) 962 (167) 4,053
Net (loss) income $(883) $865 $(2,330) $4,448
(Loss) income per share -
Basic $(.05) $.05 $(.13) $ .25
(Loss) income per share -
Diluted $(.05) $.05 $(.13) $ .25
Number of shares used in
the per share calculations:
Basic 17,829,595 17,732,726 17,749,770 17,729,452
Diluted 17,829,595 17,737,078 17,749,770 19,334,959
TRANSPORTATION COMPONENTS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
September 30, December 31,
ASSETS 2000 1999
Current assets: (Unaudited)
Cash and cash equivalents $4,994 $2,859
Accounts receivable, net of allowance for
bad debts of $1,683 and $1,586 39,755 40,029
Receivables from related parties 560 508
Notes receivable, current 567 732
Inventories 67,414 67,203
Prepaid expenses and other 3,465 2,941
Deferred tax asset 5,113 5,447
Total current assets 121,868 119,719
Property and equipment, net 13,094 14,532
Notes receivable, net 709 752
Notes receivable from related parties 427 858
Goodwill, net 85,796 87,358
Other assets 1,324 1,351
Total assets $223,218 $224,570
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $35,582 $42,459
Subordinated debt and other payables to
related parties 4,316 1,762
Current portion of long-term debt 500 743
Other current liabilities 838 1,004
Total current liabilities 41,236 45,968
Long-term debt, less current portion 69,825 61,173
Deferred tax liability 2,318 2,962
Subordinated debt and other payables to
related parties, less current 9,790 12,488
Total liabilities 123,169 122,591
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.01 par, 5,000,000 shares
authorized, none issued --- ---
Common stock, $0.01 par, 102,000,000 shares
authorized, 17,886,015 shares issued 178 178
Additional paid-in capital 102,660 102,522
Treasury stock, at cost -- none and
121,411 shares, respectively --- (304)
Cumulative translation adjustments 100 134
Retained deficit (2,889) (551)
Total stockholders' equity 100,049 101,979
Total liabilities and stockholders' equity $223,218 $224,570