Amcast Reports Fiscal 2002 Fourth Quarter and Total Year Results.Business Editors DAYTON Dayton, city (1990 pop. 182,044), seat of Montgomery co., SW Ohio, on the Great Miami River where it is joined by the Stillwater River; inc. 1805. It is the trade center for a fertile farm area, but is best known for its involvement with industry, invention, and , Ohio--(BUSINESS WIRE)--Oct. 16, 2002 Amcast Industrial Corporation, (NYSE NYSE See: New York Stock Exchange :AIZ AIZ Lake of the Ozarks, Missouri (Lee C. Fine Memorial Airport) AIZ Air Intercept Zone AIZ Anti Imperialistische Zelle(n) (German: Anti-Imperialistic Cell; now defunct terrorist group) ) today reported financial results for its fiscal 2002 fourth quarter and full year ended August 31, 2002. Fiscal fourth quarter sales of $152.6 million were up by over 15% versus $132.3 million in the prior year. The net loss for the quarter was $9.1 million, or $1.05 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, versus a prior-year quarterly net loss of $11.2 million, or $1.31 per diluted share. Excluding unusual items of $5.3 million, the net loss for the prior-year quarter would have been $5.9 million or $0.69 per diluted share. The quarterly sales increase was due to strong automotive demand in both 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. and Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). . North American North Americannamed after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. Automotive sales grew by 30% over the prior-year quarter. Sales at Speedline, the Company's European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. operation, were up almost 18% versus the prior-year quarter. Flow Control segment sales declined by almost 11% in the fourth quarter versus last year, primarily due to a weak market and competitive pricing pressures. Amcast's quarterly net loss of $9.1 million compared favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. to last year's fourth quarter loss by $2.1 million. Excluding unusual items of $5.9 million in last year's quarter, the current-quarter loss increased by $3.2 million. The main causes of the increased loss were non-operational. Taxes increased by $2.1 million because of a lower tax benefit. In addition, non-operating expenses in our Italian operation were unfavorable to last year by $0.9 million, and interest expense was higher than last year by $0.3 million. For fiscal year 2002, sales were $576.2 million, up almost 9% from the prior year's $529.4 million. After adjusting the prior year to include a full year of sales for the Company's CTC CTC - Cornell Theory Center operation, total sales grew by about 4%. Last year, CTC was a joint-venture accounted for as an equity investment until Amcast purchased 100% of the venture in the fourth fiscal quarter of last year. The net loss for the year was $21.1 million, or $2.45 per diluted share, compared with a loss of $37.1 million, or $4.38 per diluted share, last year. The prior year included unusual items of $20.9 million, or $2.46 per diluted share. Excluding unusual items, the current-year net loss was $4.9 million unfavorable to last year. The two main reasons for the increased loss were higher interest expenses of $2.4 million and a lower tax benefit of $2.4 million. Joseph R. Grewe, President and Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. , said, "Signs of operational improvement continued during the year, although the full-year financial results were far below expectations mostly due to $7 million in unplanned new product launch costs at our Richmond, Indiana Richmond (IPA: [ˈrɪtʃ.mənd]) is a city in east central Indiana, which borders Ohio. It is sometimes called the "cradle of recorded jazz" because some early jazz records originated there at the studio of plant and continuing poor performance at Speedline. In addition, Flow Control operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. declined by 51% from the prior year. This segment's declining performance was due to lower overall market demand, the cost of a new computer system, and weak raw material costs that resulted in depressed pricing. Automotive sales were strong and product quality improved due to more management focus. More importantly, our Wapakoneta, Ohio Wapakoneta is a city in and the county seat of Auglaize CountyGR6, Ohio, United States with a population of 9,474 as of the 2000 U.S. census. It is the principal city of and is included in the Wapakoneta, Ohio Micropolitan Statistical Area, which is plant became consistently profitable in the third fiscal quarter and posted a positive annual operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. for the first time since the plant opened in 1995." Mr. Grewe continued, "One of the most important internal initiatives that is improving operating and financial performance is the Amcast Production System. Plants with the most experience implementing this system show much better results. The Amcast Production System is a lean manufacturing Lean manufacturing is the production of goods using less of everything compared to mass production: less human effort, less manufacturing space, less investment in tools, and less engineering time to develop a new product. training and certification process for manufacturing cells. The Amcast Production System was instrumental in achieving a significant productivity improvement during the year as output per person increased by over 12%, and total labor cost as a percent of sales declined by more than 5%. More specifically in our North American wheel business, where we have been most aggressive in implementing the Amcast Production System, the results have been encouraging. On a 25% increase in revenue, the North American wheel plants more than doubled their operating income. A 21% reduction in scrap, a 26% increase in output per person, and a 37% improvement in safety further enhanced wheel performance. In addition, inventory turnover tripled, and net assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. employed in the wheel business actually declined by 20%." Byron O. Pond, Chairman and Chief Executive Officer, said, "In the fiscal fourth quarter, we successfully extended our current loan agreements to September, 2003 for the bank group and to November, 2003 for the senior lenders. This provides the Company with operating capital Noun 1. operating capital - capital available for the operations of a firm (e.g. manufacturing or transportation) as distinct from financial transactions and long-term improvements capital, working capital - assets available for use in the production of further assets while we prepare for longer-term debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay . During fiscal 2002, we successfully reduced net operating assets Operating Assets Another term for working capital. by $28.6 million even while sales increased. In addition, we repaid $19.5 million in debt in compliance with our loan agreements. We accomplished this through cost reduction programs, effective working capital management, and controls on capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. . During the year, Amcast held capital spending to less than 66% of depreciation." Mr. Grewe added, "Even with the operational improvements achieved during the fiscal year, much remains to be done. The current focus is to improve profitability through the Amcast Production System, reduce scrap, improve quality, and continue a company-wide SG&A cost reduction program. In addition, we will concentrate on improving operations at the Richmond, Indiana plant and at Speedline." Mr. Pond concluded, "I want to thank the Amcast associates for their continuing effort to raise Amcast's performance level and increase our commitment to improvement. Also, everyone at Amcast is very appreciative of the support given to us by our lenders, investors, customers, and suppliers. We are looking forward to a much-improved fiscal 2003." A conference call to discuss the year's performance will be held Thursday, October 17, 2002 at 3 p.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT . The webcast can be accessed through www.amcast.com. Amcast Industrial Corporation is a leading manufacturer of technology-intensive metal products. Its two business segments are brand name Flow Control Products marketed through national distribution channels and Engineered Components for original equipment manufacturers. The company serves the automotive, construction, and industrial sectors of the economy. This release includes "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. " which are subject to change based on various factors and uncertainties that may cause actual results to differ significantly from expectations. These factors include, among others: general economic conditions less favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. than expected, fluctuating fluc·tu·ate v. fluc·tu·at·ed, fluc·tu·at·ing, fluc·tu·ates v.intr. 1. To vary irregularly. See Synonyms at swing. 2. To rise and fall in or as if in waves; undulate. v. demand in the automotive and housing industries, price pressures in the company's automotive and flow control businesses, effectiveness of production improvement plans, inherent uncertainties in connection with international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. and foreign currency fluctuations, and labor availability and relations at the company and its customers.
STATEMENTS OF OPERATIONS
($ in thousands except per share amounts)
Three Months Ended Year Ended
---------------------- ---------------------
August 31 August 31 August 31 August 31
2002 2001 2002 2001
----------- ----------- ----------- ----------
Net sales $ 152,568 $ 132,305 $ 576,160 $ 529,373
Cost of sales 141,054 123,852 526,778 488,580
----------- ----------- ----------- ----------
Gross Profit 11,514 8,453 49,382 40,793
Selling, general and
administrative expenses 14,711 18,764 55,516 71,183
----------- ----------- ----------- ----------
Operating Income (Loss) (3,197) (10,311) (6,134) (30,390)
Other (income) expense 57 (938) (768) 1,644
Interest expense 5,294 6,411 18,506 17,532
----------- ----------- ----------- ----------
Income (Loss) before
Income Taxes (8,548) (15,784) (23,872) (49,566)
Income tax expense
(benefit) 562 (4,551) (2,787) (12,435)
----------- ----------- ----------- ----------
Net Income (Loss) $ (9,110) $ (11,233) $ (21,085) $ (37,131)
----------- ----------- ----------- ----------
----------- ----------- ----------- ----------
Basic income (loss)
per share $ (1.05) $ (1.31) $ (2.45) $ (4.38)
----------- ----------- ----------- ----------
----------- ----------- ----------- ----------
Diluted income (loss)
per share $ (1.05) $ (1.31) $ (2.45) $ (4.38)
----------- ----------- ----------- ----------
----------- ----------- ----------- ----------
Average number of shares
outstanding- Basic 8,653 8,577 8,604 8,482
Average number of shares
outstanding- Diluted 8,653 8,577 8,604 8,482
CONDENSED BALANCE SHEETS
($ in thousands)
August 31 August 31
2002 2001
--------- ---------
ASSETS
Current Assets
Cash and cash equivalents $ 19,158 $ 14,981
Accounts receivable 70,941 64,408
Inventories 51,983 58,193
Other current assets 4,834 12,098
--------- ---------
Total Current Assets 146,916 149,680
Property, Plant and Equipment 237,956 244,040
Goodwill 47,000 48,353
Other Assets 18,338 16,617
--------- ---------
Total Assets $450,210 $458,690
--------- ---------
--------- ---------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Current debt $ 22,914 $ 28,694
Accounts payable 74,281 66,032
Other current liabilities 42,069 38,014
--------- ---------
Total Current Liabilities 139,264 132,740
Long-Term Debt 175,791 170,296
Deferred Liabilities 43,810 40,142
Shareholders' Equity 91,345 115,512
--------- ---------
Total Liabilities and Shareholders' Equity $450,210 $458,690
--------- ---------
--------- ---------
|
|
|||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion