Amcast Reports Fiscal 2003 First Quarter Results.Business Editors DAYTON, Ohio--(BUSINESS WIRE)--Dec. 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 2003 first quarter ended December 1, 2002. Fiscal first quarter sales of $155.8 million increased by over 15% versus $135.2 million in the prior year. The net loss, before the cumulative effect of an accounting change, for the quarter was $7.2 million, or $0.83 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 $5.5 million, or $0.64 per diluted share. Including the cumulative effect of an accounting change of $46.5 million after tax, the net loss for the quarter was $53.7 million, or $6.16 per diluted share. The accounting change was due to adopting 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.142. This caused the Company to write off goodwill which was primarily at the Company's European operation. 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. North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. Automotive sales grew by 29% over the prior-year quarter. Sales at Speedline, the Company's European operation, were up by 13% versus the first quarter last year. Flow Control segment sales declined by 9% in the first quarter versus last year, primarily due to a weaker market and competitive pricing pressures. Amcast's quarterly net loss of $7.2 million, before the cumulative effect of an accounting change, was unfavorable to last year's first quarter loss by $1.7 million. Most of the increased loss was non-operational. Taxes were higher by $1.1 million because of a lower tax benefit mainly associated with the Company's European operation, and the pension benefit was lower by $0.4 million. As a result of adopting SFAS No.142 which ceased goodwill amortization, income improved by $0.3 million. Operationally, strong performance in North American Automotive plants, led by wheel plants and the 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 aluminum components plant, were able to offset continuing, but declining, new-product launch costs at the 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. This did not, however, offset lower performance at Flow Control and Speedline. Flow Control, while profitable, reported lower income due to competitive market pricing. Speedline continues to reflect operational difficulties. 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, "During the quarter, we continued to see operational improvements at the plant level. Eight of our eleven units earned an 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. in the quarter compared with only two profitable units in the prior-year quarter. This performance shows that management's emphasis on building manufacturing productivity and controlling costs is bearing fruit. Sixty percent of Amcast's North American workforce is now trained in Amcast Production System. The Amcast Production System, 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 program, is having its intended effect of improving performance. For example, productivity grew by almost 7% and labor cost as a percent of sales declined by 1.5 percentage points versus last year. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. in the quarter decreased by almost 2% compared to last year while sales increased by over 15%. As a percent of sales, operating expenses were 8.6% versus 10.1% in the fiscal first quarter last year." Byron O. Pond, Chairman and Chief Executive Officer, said, "We continued to control 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. and working capital in the quarter. Net operating assets Operating Assets Another term for working capital. excluding goodwill at the end of the quarter dropped by $13.4 million, or 6%, including an operating working capital decrease of $7.9 million, or 70%, versus the levels at the beginning of the quarter. Amcast held capital expenditures to 43% of depreciation during the quarter. We made $2.6 million of debt payments in the quarter, and these payments were three months ahead of the schedule established in our loan agreements. Amcast has a cash balance of $12.6 million; plus there is $7 million in cash reserved for debt principal and interest payments. Additionally, the Company is in the initial stages of marketing most of our U.S. automotive aluminum components business through Lincoln Partners LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control and Speedline through Robert W. Baird Robert Wilson Baird (born April 1, 1883) helped found the financial services firm that bears his name and led it for more than 40 years. Baird’s father was a professor of Greek literature at Northwestern University in Evanston, Illinois, where Baird grew up. . These actions are important 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 . Our debt agreements expire in September and November, 2003 which is why most of our debt is classified as a current liability." Mr. Grewe concluded, "The operational improvements achieved this quarter are encouraging. However, much remains to be done. Going forward, we will intensify in·ten·si·fy v. in·ten·si·fied, in·ten·si·fy·ing, in·ten·si·fies v.tr. 1. To make intense or more intense: our focus on under-performing units to improve operations at the Richmond, Indiana plant and at Speedline along with addressing market conditions at Flow Control. At the same time, we will further employ the Amcast Production System and other operating actions that have been successful at several plants to reduce scrap, improve quality, control costs, and minimize capital spending." A conference call to discuss the year's performance will be held Wednesday, December 18, 2002 at 2 p.m. CST CST abbr. 1. Central Standard Time 2. convulsive shock treatment CST Central Standard Time Noun 1. . 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
------------------------
December 01 December 02
2002 2001
--------- ---------
Net sales $ 155,756 $ 135,180
Cost of sales 146,006 124,628
--------- ---------
Gross Profit 9,750 10,552
Selling, general and
administrative expenses 13,439 13,655
--------- ---------
Operating Income (Loss) (3,689) (3,103)
Other (income) expense (56) (499)
Interest expense 4,301 4,794
--------- ---------
Income (Loss) before Income Taxes and
Cumulative Effect of Accounting Change (7,934) (7,398)
Income taxes (742) (1,875)
--------- ---------
Income (Loss) before Cumulative Effect
of Accounting Change (7,192) (5,523)
Cumulative effect of accounting change
net of tax of $464 (46,536) --
--------- ---------
Net Income (Loss) $ (53,728) $ (5,523)
========= =========
Basic earnings (loss) per share
before cumulative effect of
accounting change $ (0.83) $ (0.64)
========= =========
Basic earnings (loss) per share $ (6.16) $ (0.64)
========= =========
Diluted earnings (loss) per share
before cumulative effect of
accounting change $ (0.83) $ (0.64)
========= =========
Diluted earnings (loss) per share $ (6.16) $ (0.64)
========= =========
Average number of shares
outstanding- Basic 8,717 8,577
Average number of shares
outstanding- Diluted 8,717 8,577
CONDENSED BALANCE SHEETS
($ in thousands)
December 01 August 31
2002 2002
----------- ---------
Current Assets
Cash and cash equivalents $ 12,566 $ 19,158
Accounts receivable 66,225 70,941
Inventories 48,671 51,983
Other current assets 10,826 4,834
-------- --------
138,288 146,916
Property, Plant and Equipment 233,202 237,956
Goodwill -- 47,000
Other Assets 17,094 18,338
-------- --------
$388,584 $450,210
======== ========
Current Liabilities
Accounts payable $ 76,106 $ 74,281
Current debt 190,012 20,058
Other current liabilities 40,134 42,069
-------- --------
306,252 136,408
Long-Term Debt 1,395 178,647
Deferred Liabilities 43,246 43,810
Shareholders' Equity 37,691 91,345
-------- --------
$388,584 $450,210
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