Accuride Corporation Reports First Quarter Results for 2006; Revenue Increased by 10.1% on a Pro Forma Basis to $359.9 Million; EBITDA Increased by 15.7% on a Pro Forma Basis to $54.5 Million; Net Income Rises to $20.0 Million.EVANSVILLE Evansville, city (1990 pop. 126,272), seat of Vanderburgh co., extreme SW Ind., a port on the Ohio River; inc. 1819. It is a rail and river shipping and commercial center for a coal, oil, and farm region. , Ind IND Investigational new drug Therapeutics A status assigned by the FDA to a drug before allowing its use in humans, exempting it from premarketing approval requirements so that experimental clinical trials may be conducted. See Phase 1.2, 3 studies, Sponsorship. . -- Accuride Accuride Corporation is a diversified manufacturer and supplier of commercial vehicle components in North America. Based in Evansville, Indiana, the company engages in the design, manufacture, and marketing of commercial vehicle components. Corporation (NYSE NYSE See: New York Stock Exchange :ACW ACW Arts Council of Wales (UK) ACW Arts Council of Wales ACW American Civil War ACW Alliance for Computers and Writing ACW Air Control Wing ACW After Call Work (call centers) ) today announced net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight of $359.9 million for the first quarter ended March 31, 2006. This compares to net sales of $272.6 million for the first quarter of 2005. Net income was $20.0 million, or $0.58 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, for the quarter compared to $0.2 million, or $0.01 per diluted share, for the first quarter of 2005. The results reflect continuing strength in the commercial vehicle industry, with Class 5-8 truck and trailer In communications, a code or set of codes that make up the last part of a transmitted message. See trailer label. builds up 7.0% over the prior year, and the acquisition of Transportation Technologies Industries, Inc. ("TTI TTI Texas Transportation Institute TTI Thoracic Trauma Index TTI Transmission Time Interval TTI Travel Time Index TTI Travel Technology Initiative TTI Technology Transfer Initiative TTI Traffic and Traveller Information TTI Technology Transfer Institute ") on January January: see month. 31, 2005. Pro Forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma Results for the Acquisition of TTI The Company's net sales were $359.9 million for the first quarter of 2006 compared to pro forma net sales of $326.9 million for the first quarter of the prior year, an increase of 10.1%. Pro forma results for the first quarter of 2005 give effect to the Company's acquisition of TTI and related financings as if these events occurred on January 1, 2005. Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become was $54.5 million for the first quarter of 2006 compared to pro forma Adjusted EBITDA of $47.1 million for the prior year, an increase of 15.7%. The purpose and reconciliation of Adjusted EBITDA for the Company to the most directly comparable GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). measure is set forth in the accompanying ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. schedules. Net income was $20.0 million, or $0.58 per diluted share, for the first quarter of 2006 compared to the pro forma net income of $1.5 million, or $0.06 per diluted share, for the first quarter of 2005. Net income for the first quarter of 2006 includes pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta cost of $0.1 million related to SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System No. 123(R), Share-Based Payment. Pro forma net income for first quarter of 2005 includes pre-tax costs of $19.4 million in refinancing Refinancing An extension and/or increase in amount of existing debt. costs and loss on extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of debt and $1.8 million in other non-operating/non-recurring items. Liquidity and Cash Flow At March 31, 2006, the Company had $25.4 million of cash and $697.7 million of total debt for net debt of $672.3 million, which increased as anticipated by $23.0 million in the first quarter. For the first quarter of 2006, cash used from operating activities was $17.3 million and capital expenditures totaled $6.5 million, resulting in negative free cash flow of $23.8 million. Review and Outlook "We are pleased with the results for the quarter as revenue and EBITDA remained strong due to record production levels by our customers and continued operational improvements from our components business," said Terry Keating Keating may refer refer to the following: People For people with the surname Keating, see Keating (surname) Places Several places in the US:
The Company will conduct a conference call to review its first quarter results and preview To see ahead of time. Page layout and word processing programs often have a preview function that lets you see how all the pages will appear before they are printed. In the days of character-based interfaces, a preview was absolutely necessary to see how different fonts would look or how the remainder of 2006 on Thursday Thursday: see week. , May 4, 2006, at 2:30 p.m. CST CST abbr. 1. Central Standard Time 2. convulsive shock treatment CST Central Standard Time Noun 1. . The phone number to access the conference call is (800) 659-1966 in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , or (617) 614-2711 internationally, access code 38785153. A replay will be available beginning May 4, 2006, at 4:30 p.m. CST, through May 11, 2006, by calling (888) 286-8010 in the United States, or (617) 801-6888 internationally, access code 14487230. The financial results for the three-month period ended March 31, 2006, will be also archived at http://www.accuridecorp.com. Accuride Corporation is one of the largest and most diversified diversified (di·verˑ·s manufacturers and suppliers of commercial vehicle components in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . Accuride's products include commercial vehicle wheels, wheel-end components and assemblies, truck body and chassis Pronounced "chah-see," it is a physical structure that holds everything or that everything is attached to. A computer's cabinet is often called the chassis. parts, seating assemblies and other commercial vehicle components. Accuride's products are marketed under its brand names, which include Accuride, Gunite gun·ite n. A concrete mixture that is sprayed from a special gun over steel reinforcements in light construction. [Originally a trademark.] Noun 1. , Imperial, Bostrom, Fabco and Brillion Brillion may refer to two locations in Wisconsin, United States:
Forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. Statements contained in this news release that are not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995, including statements regarding the Company's expectations, hopes, beliefs and intentions on strategies regarding the future and statements related to the effect of the TTI acquisition on Accuride's future results. It is important to note that the Company's actual future results could differ materially from those projected in such forward-looking statements because of a number of factors, including but not limited to, the ability to successfully integrate the above described acquisition, market demand in the commercial vehicle industry, general economic, business and financing conditions, labor relations, governmental action, competitor pricing activity, expense volatility and other risks detailed from time to time in the Company's Securities and Exchange Commission filings. Accuride assumes no obligation to update the information included in this release. The unaudited pro forma consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: statement of operations See Income statement. has been adjusted to give effect to acquisition of TTI and related financings as if these events occurred on January 1, 2005. The unaudited pro forma financial data is for informational purposes only and do not purport To convey, imply, or profess; to have an appearance or effect. The purport of an instrument generally refers to its facial appearance or import, as distinguished from the tenor of an instrument, which means an exact copy or duplicate. PURPORT, pleading. to present what our results of operations and financial condition would have been had the acquisition and related financing actually occurred on these earlier dates, nor do they project our results of operations for any future period or our financial condition in the future. In addition, the pro forma adjustments, as described herein, may differ from preliminary estimates when the respective transactions occur or the purchase accounting analysis is complete.
ACCURIDE CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
Historical Results Pro Forma Results(1)
------------------------ ------------------------
Three Months Ended March Three Months Ended March
31, 31,
------------------------ ------------------------
2006 2005(2) 2006 2005(3)
------------ ----------- ------------ -----------
NET SALES $359,925 $272,616 $359,925 $326,946
COST OF GOODS SOLD 303,911 229,733 303,911 278,543
------------ ----------- ------------ -----------
GROSS PROFIT 56,014 42,883 56,014 48,403
OPERATING EXPENSES:
Selling, General &
Administrative 13,689 11,976 13,689 14,786
------------ ----------- ------------ -----------
INCOME FROM
OPERATIONS 42,325 30,907 42,325 33,617
OTHER INCOME
(EXPENSE):
Interest Income 49 81 49 81
Interest (Expense) (11,679) (12,548) (11,679) (13,331)
Refinancing Costs
and Loss on
extinguishment of
debt - (19,438) - (19,438)
Equity in Earnings
of Affiliates 215 179 215 179
Other Income, Net 602 (134) 602 (138)
------------ ----------- ------------ -----------
INCOME (LOSS) BEFORE
INCOME TAXES 31,512 (953) 31,512 970
INCOME TAX PROVISION
(BENEFIT) 11,477 (1,141) 11,477 (520)
------------ ----------- ------------ -----------
NET INCOME $20,035 $188 $20,035 $1,490
============ =========== ============ ===========
Weighted average
common shares
outstanding - Basic 33,982 19,968 33,982 22,623
Basic income per
share $0.59 $0.01 $0.59 $0.07
Weighted average
common shares
outstanding -
Diluted 34,526 20,676 34,526 23,331
Diluted income per
share $0.58 $0.01 $0.58 $0.06
Note:
1) Pro forma results have been adjusted to give effect to the
acquisition of TTI and related financings as if these events
occurred on January 1, 2005.
2) Certain amounts in the first quarter of 2005 consolidated financial
statements have been reclassified to conform to the 2006
presentation. Included in these reclassifications are certain costs
totaling $3.4 million for the three months ended March 31, 2005
that have been reclassified from selling, general, and
administrative expenses to cost of goods sold. These
reclassifications do not have any impact on net income and are
immaterial to the consolidated statements of income.
3) Certain amounts in the first quarter of 2005 pro forma
consolidated financial statements have been reclassified to conform
to the 2006 presentation. Included in these reclassifications are
certain costs totaling $5.0 million for the three months ended
March 31, 2005 that have been reclassified from selling, general,
and administrative expenses to cost of goods sold. These
reclassifications do not have any impact on pro forma net income
and are immaterial to the pro forma consolidated statements of
income.
ACCURIDE CORPORATION
CONSOLIDATED ADJUSTED EBITDA
(DOLLARS IN THOUSANDS)
(UNAUDITED)
Historical Results Pro Forma Results(1)
------------------------ ------------------------
Three Months Ended March Three Months Ended March
31, 31,
------------------------ ------------------------
2006 2005 2006 2005
------------ ----------- ------------ -----------
NET INCOME $20,035 $188 $20,035 $1,490
Net Interest Expense 11,630 31,905 11,630 32,688
Income Tax Expense
(Benefit) 11,477 (1,141) 11,477 (520)
Depreciation and
Amortization 11,810 9,917 11,810 11,521
------------ ----------- ------------ -----------
EBITDA 54,952 40,869 54,952 45,179
Restructuring,
severance and other
charges(2) - 1,753 - 1,753
Items related to our
credit agreement(3) (425) 134 (425) 138
------------ ----------- ------------ -----------
ADJUSTED EBITDA $54,527 $42,756 $54,527 $47,070
============ =========== ============ ===========
Note:
1) Pro forma results have been adjusted to give effect to the
acquisition of TTI and related financings as if these events
occurred on January 1, 2005.
2) For the three months ended March 31, 2005, Adjusted EBITDA and pro
forma Adjusted EBITDA represent net income before net interest
expense, income tax expense, depreciation and amortization, plus
(i) $1.8 million for costs related to the sale of inventory that
has been adjusted to fair value. Item (i) affected gross profit.
3) Items related to our credit agreement refer to amounts utilized in
the calculation of financial covenants in Accuride's senior credit
facility. For the three months ended March 31, 2006, items related
to our credit agreement consist of foreign currency income and
other income or expenses of $0.4 million. For the three months
ended March 31, 2005, items related to our credit agreement consist
of foreign currency loss and other income or expenses of $0.1
million.
Adjusted EBITDA is not intended to represent cash flow as defined
by generally accepted accounting principles ("GAAP") and should not be
considered as an indicator of cash flow from operations. Adjusted
EBITDA represents net income before net interest expense, income tax
(expense) benefit, depreciation and amortization plus non-recurring
items. However, other companies may calculate Adjusted EBITDA
differently. Accuride has included information concerning Adjusted
EBITDA in this press release because Accuride's management and our
board of directors use it as a measure of our performance to internal
business plans to which a significant portion of management incentive
programs are based. In addition, future investment and capital
allocation decisions are based on Adjusted EBITDA. Investors and
industry analysts use Adjusted EBITDA to measure the Company's
performance to historic results and to the Company's peer group. The
Company has historically provided the measure in previous press
releases and believes it provides transparency and continuity to
investors for comparable purposes. Certain financial covenants in our
borrowing arrangements are tied to similar measures.
ACCURIDE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(THOUSANDS EXCEPT PER SHARE DATA)
(UNAUDITED)
March 31, December 31,
ASSETS 2006 2005
----------- ------------
CURRENT ASSETS
Cash and cash equivalents $25,378 $48,415
Customer and other receivables, net 194,912 141,921
Inventories, net 117,644 118,896
Supplies 18,278 17,426
Other current assets 27,980 25,599
----------- ------------
TOTAL CURRENT ASSETS 384,192 352,257
PROPERTY, PLANT AND EQUIPMENT, NET 314,024 317,972
Goodwill and other assets 548,763 550,125
----------- ------------
TOTAL $1,246,979 $1,220,354
=========== ============
LIABILITIES
CURRENT LIABILITIES
Accounts payable $118,592 $114,990
Current portion of long-term debt - -
Other current liabilities 81,143 82,596
----------- ------------
TOTAL CURRENT LIABILITIES 199,735 197,586
LONG-TERM DEBT, less current portion 697,725 697,725
OTHER LIABILITIES 152,908 149,300
TOTAL STOCKHOLDERS' EQUITY 196,611 175,743
----------- ------------
TOTAL $1,246,979 $1,220,354
=========== ============
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