Arvin Reports Record First Quarter; Seventeenth Consecutive Quarter-Over-Quarter Increase in E.p.S.; Revenues Increase over 15%.Business Editors COLUMBUS Columbus. 1 City (1990 pop. 178,681), seat of Muscogee co., W Ga., at the head of navigation on the Chattahoochee River; settled and inc. 1828 on the site of a Creek village. , 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. .--(BUSINESS WIRE)--April 17, 2000 Arvin ARVIN abbr. Army of the Republic of Vietnam Industries, Inc. (NYSE NYSE See: New York Stock Exchange :ARV ARV abbr. Bible American Revised Version ARV n abbr (= American Revised Version) → traducción americana de la Biblia ARV n abbr (= ), today reported record financial results for the first quarter ended April 2, 2000. Net earnings for the 2000 first quarter, before the Cumulative Effect of Accounting Change, increased to $19.6 million, or $0.80 per share, from $17.3 million or $0.71 per share, before one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. items, in the year-ago period. This represents an increase of over 13 percent. Revenues for the first quarter of 2000 increased 16 percent to $858.2 million, from $738.4 million a year ago. V. William Hunt This could refer to
(character) underscore - _, ASCII 95. the strength of our products and evidence the steady growth in our underlying earnings power. Arvin's Original Equipment (OE) segment generated revenue gains in excess of industry volumes. OE results continue to benefit from participation in important new product program additions in all major markets and both exhaust Exhaust may refer to: In mathematics:
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. advanced by over 40 percent with margins expanding from 5.2 percent to 6.3 percent. We are gratified grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. that the Arvin Total Quality Production System (ATQPS ATQPS Arvin Total Quality Production System ) and Value Chain Management (VCM VCM Vinyl Chloride Monomer VCM Variable Cylinder Management (Honda) VCM Virtual Channel Memory VCM Value Chain Management VCM Voice-Coil Motor VCM Vehicle Control Module VCM Vignette Content Management ) programs are contributing to margin expansion. "Replacement segment sales rose over 17 percent from $202.8 million to $238.0 million. Excluding Purolator Purolator may refer to:
Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. declined by 33 percent overall and 56 percent excluding Purolator on the same basis as above. The weakness in the replacement market that began in the second half of 1999 continued in the first quarter of 2000. Though industry conditions remain weak, Purolator has contributed significantly to performance in an otherwise down market. While markets appear to be improving, it is still too early to declare TO DECLARE. To make known or publish. By tho constitution of the United States, congress have power to declare war. In this sense the word, declare, signifies, not merely to make it known that war exists, but also to make war and to carry it on. 4 Dall. 37; 1 Story, Const. Sec. an end to the market softness. We believe we are well-positioned to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. any improvement in the market through our geographic balance and industry-leading, consumer and private label brand strategy," Hunt explained. "Arvin's operating income in the OE business more than offset the weakness in the replacement markets. Our balanced product portfolio served us well by allowing strong OE profits to offset the decline in replacement profit leading to another record quarter. Looking forward," Hunt stated, "Our first quarter results fully support our belief that 2000 will be another record year for Arvin and we look forward with great enthusiasm to our fourth consecutive record year for sales and earnings." "Combined with our outlook for a record financial performance in 2000, our planned merger with Meritor creates a formidable transportation equipment company with over $7.5 billion in revenues and leadership positions in each of its businesses. The combination greatly accelerates us in our business plan and opens up substantial new growth opportunities. Arvin and Meritor will have substantial systems, modules and components capabilities with leadership positions in its businesses. The two companies have similar management philosophies and complementary product lines which will enable us to work together to enhance growth through the creation of new systems, modules and components. At the same time, the merger creates significant cost synergies Cost Synergy In the context of mergers, cost synergy is the savings in operating costs expected after two companies, who compliment each other's strengths, join. Notes: The savings in operating costs usually come in the form of laying off employees. , Hunt concluded." All per share amounts are reported on a 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. common share basis. Earnings before Interest, Taxes, Depreciation and Amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting . EBITDA is included because management believes that certain investors may find it to be a useful tool for analyzing operating performance, leverage and liquidity. Our EBITDA amounts may not be comparable to EBITDA as reported by or for other companies because we may not calculate EBITDA on the same basis as other companies. Certain information and statements included or implied are forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. and involve certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these statements. These 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. are identified by their use of terms and phrases such as "appear," "expected," "expect," "should," "plans," "estimated earnings," "confident," "anticipate," "temporarily," "will," "belief," and "believe." Information about potential factors identified by the Company, which would affect the actual financial results, are included in the Company's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , filed March 4, 1999, with the SEC. Arvin and Meritor plan to file a joint proxy See proxy server. (networking) proxy - A process that accepts requests for some service and passes them on to the real server. A proxy may run on dedicated hardware or may be purely software. statement/prospectus and other relevant documents concerning the Merger with the Securities and Exchange Commission (the "Commission"). We urge investors and security holders to read the joint proxy statement/prospectus and any other relevant documents to be filed with the Commission because they will contain important information. Investors and security holders will be able to obtain free copies of these documents at the Commission's website at www.sec.gov See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. . In addition, documents filed with the Commission by Arvin will be available free of charge from Arvin at Arvin's website at www.arvin.com or by contacting Ronald R. Snyder Snyder, city (1990 pop. 12,195), seat of Scurry co., NW Tex., in a prairie and mesquite region; inc. 1907. Oil production is the city's main industry; natural gas is also refined and processed. , Arvin Industries, Inc., One Noblitt Plaza For the hotel in New York City, see . Plaza (IPA /'plaθa/ or /'plasa/ , Columbus, Indiana Columbus (IPA: [kəˈlʌm.bəs]) is the county seat of Bartholomew County, Indiana. The population was 39,059 at the 2000 census. The current mayor is Fred Armstrong. , 47202; telephone (812) 379-3982. Documents filed with the Commission by Meritor will be available free of charge from Meritor at Meritor's website at www.meritorauto.com or by contacting Bonnie bon·ny also bon·nie adj. bon·ni·er, bon·ni·est Scots 1. Physically attractive or appealing; pretty. 2. Excellent. Wilkinson Noun 1. Wilkinson - English chemist honored for his research on pollutants in car exhausts (born in 1921) Sir Geoffrey Wilkinson , Meritor Automotive, Inc., 2135 W. Maple Road, Troy, Michigan Troy is a city in Oakland County of the U.S. state of Michigan. It is a suburb of Detroit. As of the 2000 census, the city had a total population of 80,959, the 12th largest city in Michigan by population. , 48084; telephone (248) 435-0762. Arvin, Meritor and their respective officers and directors may be deemed to be participants in the solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual of proxies from their shareholders with respect to the transactions contemplated by the Merger Agreement. Information concerning the participants in the solicitation will be set forth in the joint proxy statement/prospectus when it is filed with the Commission. Arvin Industries, Inc., is a global manufacturer of automotive components with over 60 manufacturing facilities and 6 technical centers located in 22 countries. Arvin is a leading manufacturer of automotive exhaust systems Noun 1. exhaust system - system consisting of the parts of an engine through which burned gases or steam are discharged exhaust automobile engine - the engine that propels an automobile ; ride control products; air, oil and fuel filters; and gas charged lift supports. Our products are sold under various trademarks including Arvin, Maremont, Timax, ANSA ANSA - Advanced Network Systems Architecture and ROSI ROSI Return on Security Investment ROSI Repository of Student Information ROSI Rollergirls of Southern Indiana (Evansville, IN) ROSI Raytheon Optical Systems Incorporated ROSI Romanian Open Source and Free Software Initiative exhaust systems; Gabriel and RydeFX shock absorbers Shock absorbers See: Circuit breakers ; Purolator filters; and StrongArm A family of high-performance RISC-based microprocessors from Intel. StrongARM chips have been used in handheld devices from PDAs to palmtops. Jointly developed by Digital Equipment Corporation and Advanced RISC Machines (ARM), Intel acquired Digital's chip manufacturing facilities in 1997 gas charged lift supports. For more information on Arvin Industries via the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the , visit our Corporate Home Page at http://www.arvin.com or our Corporate News on the Net site at http://www.businesswire.com/cnn/arv.shtml. For information via fax, please call our News On Demand service at 888-622-1161.
Arvin Industries, Inc.
Consolidated Results of Operations
(Dollars in millions, except per share amounts)
Unaudited
Three Months Ended
---------------------------------------
April 2,
2000 April 4, 1999
-------- ----------------------------
As As One-time Pro-
Reported Reported (1) Items (2) forma
-------- ------------ --------- -----
Net Sales:
Automotive Original Equipment $ 574.9 $ 495.7 $ - $ 495.7
Automotive Replacement 238.0 202.8 - 202.8
Other 45.3 39.9 - 39.9
---- ---- --- ----
Net Sales $ 858.2 $ 738.4 $ - $ 738.4
-------- -------- --------- -------
-------- -------- --------- -------
Operating Income:
Automotive Original Equipment $ 36.4 $ 30.0 $ (4.1) $ 25.9
Automotive Replacement 11.5 14.0 3.2 17.2
Other 1.9 1.9 .4 2.3
--- --- -- ---
Operating Income $ 49.8 $ 45.9 $ (.5) $ 45.4
-------- -------- --------- -------
-------- -------- --------- -------
Net Sales $ 858.2 $ 738.4 $ - $ 738.4
Costs and Expenses:
Cost of goods sold 758.3 648.3 - 648.3
Selling, operating general and
administrative 49.6 46.7 - 46.7
Corporate general and
administrative 6.9 8.3 - 8.3
Interest expense 14.1 10.5 - 10.5
Other expense, net 3.8 2.7 .2 2.9
----- ----- ----- -----
832.7 716.5 .2 716.7
-------- -------- --------- -------
-------- -------- --------- -------
Earnings Before Income Taxes 25.5 21.9 (.2) 21.7
Income taxes (9.0) (6.8) (.9) (7.7)
Minority share of loss 1.0 .4 - .4
Equity income of affiliates 2.1 2.9 - 2.9
--- --- --- ---
Earnings before Cumulative Effect
of Accounting Change 19.6 18.4 $ (1.1) $ 17.3
Cumulative effect of accounting
change, net of income tax
benefits (2.0) (.5) .5 -
---- ---- ---- ---
Net Earnings $ 17.6 $ 17.9 $ (.6) $ 17.3
-------- -------- --------- -------
-------- -------- --------- -------
Earnings Per Common Share
Basic:
Before cumulative effect
of accounting change $ .80 $ .76 $ (.04) $ .72
Cumulative effect of
accounting change (.08) (.02) .02 -
---- ---- --- ---
Total Basic $ .72 $ .74 $ (.02) $ .72
-------- -------- --------- -------
-------- -------- --------- -------
Diluted:
Before cumulative effect
of accounting change $ .80 $ .75 $ (.04) $ .71
Cumulative effect of
accounting change (.08) (.02) .02 -
---- ---- --- ---
Total Diluted $ .72 $ .73 $ (.02) $ .71
-------- -------- --------- -------
-------- -------- --------- -------
Average Common Shares Outstanding (000's)
Basic 24,304 24,151 24,151
Diluted 24,383 24,464 24,464
Dividends Declared per
Common Share $ .22 $ .21 $ .21
EBITDA $ 73.3 $ 63.2 (.2) $ 63.0
(1) Certain amounts have been reclassed to conform with current year
presentation.
(2) One-time items for Q1-99: early retirement expense, gain on sale
of Gabriel Mexico, and accounting change for start-up costs.
Arvin Industries, Inc.
Consolidated Statement of Financial Condition
(Dollars in millions, except per share amounts)
Unaudited
As of As of
Assets 4/2/00 1/2/00
------ ------ ------
Current Assets:
Cash and cash equivalents $ 26.3 $ 19.8
Receivables, net of allowances 533.5 441.1
Inventories 219.9 224.2
Other current assets 126.0 125.2
----- -----
Total current assets 905.7 810.3
----- -----
Non-Current Assets:
Property, plant and equipment 1,444.0 1,443.7
Less: Accumulated depreciation 763.2 748.2
----- -----
680.8 695.5
Goodwill, net 273.3 270.4
Investment in affiliates 154.5 156.0
Other assets 70.2 67.8
---- ----
Total non-current assets 1,178.8 1,189.7
------- -------
$ 2,084.5 $ 2,000.0
------------ ------------
------------ ------------
Liabilities and Shareholders' Equity
------------------------------------
Current Liabilities:
Short-term debt $ 301.2 $ 126.1
Accounts payable 439.8 414.2
Employee related costs 63.6 65.5
Accrued expenses 80.6 106.8
---- -----
Total current liabilities 885.2 712.6
----- -----
Long-term debt 324.0 411.6
Long-term employee benefits 82.9 81.6
Other long-term liabilities 62.4 60.2
Minority interest 49.4 50.6
Capital securities 89.1 89.1
Shareholders' Equity:
Common shares ($2.50 par value) 72.1 68.8
Capital in excess of par value 305.5 307.4
Retained earnings 417.0 404.7
Cumulative translation adjustment (103.9) (89.6)
Employee stock benefit trust (57.2) (58.5)
Common shares held in
treasury (at cost) (42.0) (38.5)
----- -----
Total shareholders' equity 591.5 594.3
----- -----
$ 2,084.5 $ 2,000.0
------------ ------------
------------ ------------
Arvin Industries, Inc.
Consolidated Statement of Cash Flows
(Dollars in millions)
Unaudited
Three Months Ended
------------------
April 2, April 4,
2000 1999 (1)
---- --------
Operating Activities:
Net earnings $ 17.6 $ 17.9
Adjustments to reconcile net earnings to
net cash used for operating activities:
Depreciation 28.3 25.8
Amortization 2.3 1.7
Minority interest (1.0) (.4)
Gain on sale of investment - (7.3)
Change in deferred income tax benefit, net (1.2) (.6)
Other 6.7 1.3
Changes in operating assets and liabilities:
Receivables (99.4) (89.2)
Inventories and other current assets 2.8 (17.0)
Accounts payable and other accrued expenses 2.4 (14.4)
Income taxes payable .2 .9
-- --
Net Cash Used for Operating Activities (41.3) (81.3)
----- -----
Investing Activities:
Purchase of property, plant and equipment, net (21.9) (23.4)
Proceeds from sale of investment - 12.4
Investments in affiliates (1.6) (2.1)
Business acquisitions, net of cash acquired (7.4) (267.0)
Other .1 4.8
---- ---
Net Cash Used for Investing Activities (30.8) (275.3)
----- ------
Financing Activities:
Change in short-term debt, net 91.4 134.7
Proceeds from long-term financings .4 152.5
Principal payments on long-term financings (3.3) (2.0)
Dividends paid (5.3) (5.1)
Stock repurchase (3.5) -
Other (.8) (.6)
--- ---
Net Cash Provided by Financing Activities 78.9 279.5
---- -----
Cash and Cash Equivalents:
Effect of exchange rate changes on cash (.3) (1.1)
--- ----
Net increase/(decrease) 6.5 (78.2)
Beginning of the year 19.8 107.0
---- -----
End of the period $ 26.3 $ 28.8
-------- ---------
-------- ---------
(1) Certain amounts have been reclassified to conform with
current year presentation.
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