Aftermarket Technology Reports Fourth Quarter and 1997 Financial Results; Fourth Quarter Net Income up 48%.WESTMONT Westmont is the name of some places in the United States:
in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ATAC ATAC Arimidex, tamoxifen and combination therapy ), a leading remanufacturer and distributor of drive train products used in automotive aftermarket Aftermarket See: Secondary market. aftermarket See secondary market. repair, today announced its financial and operating results for the quarter and year ended Dec. 31, 1997. For the fourth quarter, the company reported record revenues of $89.6 million, up 22% over $73.6 million in the fourth quarter of 1996. Net income during the most recent quarter increased 48% to $5.9 million, or 29 cents 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, up from $4.0 million, or 23 cents per diluted share in the fourth quarter of 1996. The number of shares used in the calculation of net income per share was 20.6 million for the fourth quarter of 1997, as compared to 17.0 million for the comparable quarter of 1996. The increase in shares resulted primarily from the company's public offering of common stock in October October: see month. 1997. For the 12 months ended Dec. 31, 1997, the company's revenues increased 27% to $346.1 million, compared to $273.0 million during the prior 12-month period. Income before extraordinary charge for 1997 increased 41% to $23.0 million, or $1.19 per diluted share, compared to net income of $16.3 million, or $1.02 per diluted share, for 1996. The extraordinary charge was $3.7 million, or 20 cents per diluted share, net of tax, related to the early retirement of debt in February February: see month. 1997. "Last year was an exceptional year for our company," commented Stephen J. Perkins, chairman, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Aftermarket Technology. "During 1997, we had record results, driven in part by four successful acquisitions. In addition, we undertook a number of financial initiatives to increase our financial flexibility, including the successful fourth-quarter completion of our second common stock offering, and we completed the consolidation of our nine distribution group companies into a single unit. We also continued our commitment to quality, which was demonstrated by three of our companies achieving QS9000 or ISO (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. 9002 certification during the year." The company completed four strategic acquisitions during 1997. Three of these, REPCO Industries in January, Trans Mart in August, and Metran Automatic Transmission Parts in November, expanded the company's distribution capability into the Southeast and Northeast and significantly enhanced the company's telemarketing telemarketing, the practice of selling goods or services to customers by means of the telephone or of surveying consumer preferences in telephone conversations. capability. The acquisition of ATS Remanufacturing in July broadened the company's customer base to include General Motors. In October, the company completed a public offering in which it sold 2,200,000 shares of its common stock at $23.25 per share and used the net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). to repay a portion of the outstanding indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. under its revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility. At Dec. 31, 1997, the company's debt-to-total capital ratio was approximately 46%, compared to 62% at Sept. 30, 1997. In events subsequent to the year-end, the company announced on Feb. 10, 1998, that it has signed a definitive agreement to acquire the OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and Division of Autocraft Industries, Inc. The OEM Division, based in Oklahoma City Oklahoma City (1990 pop. 444,719), state capital, and seat of Oklahoma co., central Okla., on the North Canadian River; inc. 1890. The state's largest city, it is an important livestock market, a wholesale, distribution, industrial, and financial center, and a farm with additional operations in Houston, Dallas and Grantham, England, has annual sales of over $150 million and 1,500 employees, and its principal customers include General Motors and Ford. This acquisition will significantly expand the company's OEM relationships. The cash purchase price for the acquisition will be $112.5 million to be paid at closing, plus up to an additional $12.5 million to be paid in 1999 based on the performance of the OEM Division's European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. operations during 1998. The acquisition is expected to close during the first quarter of 1998 and is subject to the company obtaining necessary financing and the satisfaction of certain conditions customary in this type of transaction, including receipt of certain third party consents and requisite governmental approvals. Aftermarket Technology is a leading remanufacturer and distributor of drive train products used in the repair of vehicles in the automotive aftermarket. Aftermarket Technology's principal products include remanufactured transmissions, torque converters and engines, as well as remanufactured and new parts for the repair of automotive drive train assemblies. The company's customers include original equipment manufacturers, independent transmission rebuilders, general repair shops, distributors and retail automotive parts stores. Established in 1994, the Company maintains over 50 distribution centers throughout 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. and Canada. -0-
AFTERMARKET TECHNOLOGY CORP.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per-share data)
(unaudited)
Three Months Ended Twelve Months Ended
Dec 31, Dec 31,
1997 1996 1997 1996
Net sales $ 89,620 $ 73,572 $ 346,110 $ 272,879
Cost of sales 54,737 44,353 212,416 166,811
--------- --------- --------- ---------
Gross profit 34,883 29,219 133,694 106,068
Selling, general
and administrative
expense 19,291 16,859 73,768 55,510
Amortization of
intangible assets 1,326 957 4,501 3,738
--------- --------- --------- ---------
Income from
operations 14,266 11,403 55,425 46,820
Interest and other
income 455 466 1,912 1,181
Interest expense 4,854 5,142 18,822 20,287
--------- --------- --------- ---------
Income before income
taxes and
extraordinary item 9,867 6,727 38,515 27,714
Provision for
income taxes 3,995 2,769 15,512 11,415
--------- --------- --------- ---------
Income before
extraordinary item 5,872 3,958 23,003 16,299
Extraordinary item
- net of income tax
benefit of $2,520 -- -- 3,749 --
--------- --------- --------- ---------
Net income $ 5,872 $ 3,958 $ 19,254 $ 16,299
========= ========= ========= =========
Per share of common
stock:
Income before
extraordinary item $ 0.29 $ 0.23 $ 1.19 $ 1.02
Extraordinary item,
net of tax -- -- (0.20) --
========= ========= ========= =========
Net income per share $ 0.29 $ 0.23 $ 0.99 $ 1.02
========= ========= ========= =========
Shares used in
calculation of
net income per share 20,561 17,024 19,335 15,918
========= ========= ========= ========
CONTACT: Kaufer Miller Communications, John Snyder, 425/450-9965 johns@kmrc.com OR Aftermarket Technology, John Kent, 630/455-6000 JKent@ATC ATC Air Traffic Control ATC Average Total Cost ATC Certified Athletic Trainer ATC At the Center (Hartford, Maine retreat center) ATC Applied Technology Council ATC All Things Considered .atcaff.com |
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