Atrium Companies, Inc. Announces Record Financial Results for the Third Quarter Ended September 30, 2002.Business Editors DALLAS--(BUSINESS WIRE)--Nov. 4, 2002 Atrium Companies, Inc. ("Atrium" or the "Company"), one of the largest non-wood window manufacturers 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. , today announced financial results for the third quarter and year to date period ended September 30, 2002. Selected financial results are set forth in the table at the end of this press release and the Company's definitive results will be included in Atrium's Quarterly Report on Form 10-Q Form 10-Q See 10-Q. to be filed with the Securities and Exchange Commission (the "SEC") no later than Thursday, November 14, 2002. Financial highlights for the third quarters and year to date periods ended September 30, 2002 and 2001 included:
-- Net sales increased $6.3 million, or 4.5%, to $144.8 million during the third quarter of 2002 from $138.5 million during the third quarter of 2001, while year to date net sales increased $15.5 million, or 4.0%, to $406.2 million during 2002 from $390.7 million during 2001.
-- Gross profit totaled $48.8 million (33.7% of net sales) during the third quarter of 2002 compared to $44.9 million (32.4% of net sales) during the third quarter of 2001, while gross profit for the year to date period totaled $133.1 million (32.8% of net sales) during 2002 compared to $123.3 million (31.5%) during 2001.
-- EBITDA totaled $21.4 million (14.8% of net sales) during the third quarter of 2002 compared to $18.8 million (13.5% of net sales) during the third quarter of 2001, representing an increase of 13.9%, while EBITDA for the year to date period totaled $53.9 million (13.3% of net sales) during 2002 compared to $50.0 million (12.8% of net sales) during 2001, representing an increase of 7.8%.
-- Net income totaled $7.9 million during the third quarter of 2002 compared to $.7 million ($3.7 million adjusted for SFAS No. 142) during the third quarter of 2001, while net income for the year to date period totaled $10.5 million during 2002 compared to a net loss of $.7 million (net income of $8.1 million adjusted for SFAS No. 142) during 2001.
-- Cash net income totaled $12.6 million during the third quarter of 2002 compared to $8.4 million during the third quarter of 2001, while cash net income for the year to date period totaled $28.0 million during 2002 compared to $20.8 million during 2001.
-- Including amounts advanced under the accounts receivable securitization facility, we have reduced total debt to $328.9 million as of September 30, 2002 from $338.0 million as of December 31, 2001 and $353.7 million as of September 30, 2001. In addition, the Company is in compliance with all of the covenants within its credit agreement and its indenture.
-- As of September 30, 2002, the Company had total liquidity of $64.1 million, including cash of $5.5 million, availability under its $47.0 million revolving credit facility of $44.2 million (net of outstanding letters of credit totaling $2.8 million) and availability under its $42.0 million accounts receivable securitization facility of $14.4 million (net of advances of $23.0 million and $4.6 million currently unavailable due to borrowing base limitations).
-- The Company continues to focus on the reduction of working capital. These ongoing initiatives have helped to reduce the Company's consolidated days sales outstanding ratio (DSO) to 38.3 days as of September 30, 2002 from 40.6 days as of December 31, 2001 and 41.9 days as of September 30, 2001. In addition to managing accounts receivable, improving inventory management continues to be a primary focus of the Company. As a result, consolidated inventory turns increased to 9.0 times for the last twelve month ("LTM") period ended September 30, 2002 from 7.7 times for the year ended December 31, 2001 and 7.4 times for the LTM period ended September 30, 2001.
-- Working capital remained flat at $63.9 million as of September 30, 2002 compared to December 31, 2001 and decreased $10.2 million from $74.1 million as of September 30, 2001. Historically, working capital is at its lowest level at the end of the first and fourth quarters and at its highest level at the end of the second and third quarters.
"While the sales growth of 4.5% was less than we expected, we are very pleased with the financial results for the third quarter, as we improved in virtually every financial aspect. In addition to growing total 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 dollars 13.9%, we significantly increased EBITDA as a percentage of 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 to 14.8%, which is just shy of our long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. goal of 15%. We also increased gross profit, net income and cash net income in total dollars and as a percentage of net sales, largely due to the leveraging of our purchasing power Purchasing Power 1. The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy. Purchasing power is important because, all else being equal, inflation decreases the amount of goods or services you'd be able to purchase. 2. in the raw materials area," stated President and Chief Executive Officer Jeff L. Hull. Mr. Hull added, "I continue to be amazed a·maze v. a·mazed, a·maz·ing, a·maz·es v.tr. 1. To affect with great wonder; astonish. See Synonyms at surprise. 2. Obsolete To bewilder; perplex. v.intr. at the phenomenal job our management team has done in the area of working capital management. We have made continuous improvement in both DSO See CSO. and inventory turns for seven straight quarters. This has been the key driver to our substantial improvement in liquidity, which stood at over $64 million as of the end of September. Our ability to produce free cash flow dollars from both our operations and our balance sheet will enable us to continue to deleverage Deleverage The reduction of financial instruments or borrowed capital previously used to increase the potential return of an investment. It is the opposite of leverage. Notes: Increasing leverage increases a firm's risk, therefore, deleveraging attempts to lower risk. the Company going forward. I am confident that this management team will find a way to get it done." The results for the third quarter and year to date period ended September 30, 2002 discussed herein are preliminary and subject to completion of the annual audit by Atrium's independent public accountants. We can provide no assurance that these results will not be subject to adjustment or reclassification Reclassification The process of changing the class of mutual funds once certain requirements have been met. These requirements are generally placed on load mutual funds. Reclassification is not considered to be a taxable event. upon completion of the audit. Atrium will hold a conference call at 10:00 a.m. (CST CST abbr. 1. Central Standard Time 2. convulsive shock treatment CST Central Standard Time Noun 1. ) on Wednesday, November 6, 2002 to discuss its third quarter results. The call-in number is 800/553-0329 (reference "Atrium Quarterly Earnings"). A replay will be available at 3:15 p.m. (CST) on November 6, 2002 and will run until 11:59 p.m. (CST) on November 20, 2002. The replay call-in number is 800/475-6701, access code 658467. Atrium, based in Dallas, Texas “Dallas” redirects here. For other uses, see Dallas (disambiguation). The City of Dallas (pronounced [ˈdæl.əs] or [ˈdæl. , is one of the largest non-wood window manufacturers in the United States, with over $500 million in annual net sales, over 4,500 employees and 44 manufacturing and distribution facilities in 22 states.
Atrium Companies, Inc.
Unaudited selected historical financial results
(dollars in thousands)
Third Quarter Ended September 30,
2002 2001
--------- ---------
Net sales $144,763 $138,514
Gross profit 48,786 44,871
EBITDA 21,366 18,755
Net income 7,947 738
Year to Date Period Ended September 30,
2002 2001
--------- ---------
Net sales $406,233 $390,707
Gross profit 133,076 123,264
EBITDA 53,943 50,022
Net income (loss) 10,482 (726)
EBITDA, for purposes of this press release, is defined as earnings before interest, securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. expense, income taxes, depreciation and amortization, stock compensation expense, special charges and extraordinary charge. Cash net income, for purposes of this press release, is defined as EBITDA less cash interest expense (interest expense, excluding amortization of deferred financing costs, accretion The act of adding portions of soil to the soil already in possession of the owner by gradual deposition through the operation of natural causes. The growth of the value of a particular item given to a person as a specific bequest under the provisions of a will between the of discount on notes payable and accretion of gain from interest rate collars), securitization expense and income taxes. Working capital, for purposes of this press release, is defined as the sum of accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying , retained interest Retained interest (also colloquially known as a payout penalty) is future, currently unpaid, interest that some lenders add to the remaining principal of a loan to determine a payout figure in the event that the loan is terminated before the completion of the original term. in sold accounts receivable, receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed sold under the accounts receivable securitization facility and inventory, less accounts payable. Statements in this press release, other than statements of historical information, are 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. that are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions 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. Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results may differ materially from those projected or suggested herein due to certain risks and uncertainties including, without limitation, operating risks Operating risk The inherent or fundamental risk of a firm, without regard to financial risk. The risk that is created by operating leverage. Also called business risk. . Those and other risks are described in Atrium's filings with the SEC made over the last 12 months, copies of which are available from the SEC or may be obtained upon request from the Company's Chief Financial Officer. |
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