DURA Automotive Reports First Quarter 2006 Results.ROCHESTER Rochester (rŏch`ĕstər, –ĭstər). 1 City (1990 pop. 70,745), seat of Olmsted co., SE Minn.; inc. 1858. HILLS, Mich. -- DURA Automotive Systems Dura Automotive Systems (Pink Sheets: DRRAQ), headquartered in Rochester Hills, Michigan, USA was ranked in the 2006 Fortune 1000. It is engaged in the business of manufacturing and distribution of automotive components. , Inc. (Nasdaq:DRRA DRRA Dynamic Radio Resource Allocation ), today reported revenues of $584.4 million for the first quarter ended April 2, 2006 compared to $620.0 million in the prior year quarter. Net loss for the quarter was $7.0 million, or $0.38 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, compared to a net loss of $4.8 million, or $0.26 per diluted share, in the prior year quarter. DURA's adjusted loss from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the quarter, which excludes facility consolidation charges and cumulative effect of accounting changes totaled $6.3 million, or $0.34 per diluted share, compared to a loss of $3.7 million, or $0.20 per diluted share, in the prior year quarter. Adjusted 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 for the quarter was $37.3 million compared to $38.8 million in the prior year quarter. A reconciliation of adjusted income from continuing operations and adjusted EBITDA to the most directly comparable GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). measures is set forth below. E[acute accent acute accent n. A mark (´) indicating: a. that a vowel is close or tense, as é in French été. b. that a vowel or syllable has a high or rising pitch, as in Chinese or Ancient Greek. c. ]"This was a difficult quarter for DURA," said Larry Lar´ry n. 1. Same as Lorry, or Lorrie. Denton Denton, city (1990 pop. 66,270), seat of Denton co., N Tex.; inc. 1866. The city lies in an agricultural and industrial region, but the economy is based on education and research. The Univ. of North Texas, Texas Woman's Univ. , Chairman and Chief Executive Officer of DURA Automotive. "As we have said, we are working through a trough Trough The stage of the economy's business cycle that marks the end of a period of declining business activity and the transition to expansion. period in our revenue due to an unacceptable amount of awards won by the Company in the early 2000s. We have corrected this issue over the last three years by reorganizing our sales group and focusing on organic versus acquisitive growth. We must now focus on the execution of our restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). plan to better position DURA for improved profitability in anticipation The performance of an act or obligation before it is legally due. In patent law, the publication of the existence of an invention that has already been patented or has a patent pending, of our future organic growth." E[acute accent]The decrease in first quarter revenue from the prior year was driven primarily by the impact of foreign exchange and negative net new business including the loss of the GMT (Greenwich Mean Time) See UTC. GMT - Universal Time 1 800 seat adjuster. Partially offsetting these decreases was the strength of the recreation vehicle industry. First quarter income from continuing operations decreased from the prior year due primarily to the negative net new business. E[acute accent]Denton continued, "We can never be satisfied with a step backward in earnings, but our journey toward our 50 cubed operational restructuring plan goals is moving forward." E[acute accent]The $2.6 million pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern facility consolidation charge for the quarter relates to the previously announced restructuring actions in 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). . The charges relate primarily to non-cash asset
impairment Impairment1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charges and employee severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when . E[acute accent]Conference Call E[acute accent]A conference call to review the first quarter results is scheduled for April 27, 2006 at 11:30 a.m. ET. Interested participants may listen to the live conference call or replay over 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 by logging onto the investor relations Investor relations The process by which the corporation communicates with its investors. section of the Company's Web site, www.duraauto.com. A recording of this call also will be available until 6 p.m. ET on Thursday Thursday: see week. , May 4, 2006 by dialing (303) 590-3000, passcode 11058914. E[acute accent]About DURA Automotive Systems, Inc. E[acute accent]DURA Automotive Systems, Inc., is a leading independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive industry The automotive industry is the industry involved in the design, development, manufacture, marketing, and sale of motor vehicles. In 2006, more than 69 million motor vehicles, including cars and commercial vehicles were produced worldwide. . The Company is also a leading supplier of similar products to the recreation vehicle (RV) and specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. vehicle industries. DURA sells its automotive products to every North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. , Japanese Japanese (jăp'ənēz`), language of uncertain origin that is spoken by more than 125 million people, most of whom live in Japan. There are also many speakers of Japanese in the Ryukyu Islands, Korea, Taiwan, parts of the United States, and and European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. original equipment manufacturer (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 ) and many leading Tier 1 automotive suppliers. DURA is headquartered in Rochester Hills, Mich. Information about DURA and its products is available on the Internet at www.duraauto.com. E[acute accent]Use of Non-GAAP Financial Information E[acute accent]In addition to the results reported in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with accounting principles generally accepted 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. ("GAAP") included throughout this news release, the Company has provided information regarding "adjusted income (loss) from continuing operations" and "adjusted EBITDA" (non-GAAP financial measures). Adjusted income from continuing operations represents income from continuing operations adjusted for facility consolidation and other charges, net, the favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. settlement of certain environmental matters and gain on retirement of debt, net. Adjusted EBITDA represents income from continuing operations adjusted for facility consolidation and other charges, a gain on retirement of debt, the favorable resolution of certain environmental matters, interest, amortization, depreciation and taxes. Management believes that adjusted income from continuing operations and adjusted EBITDA are useful to both management and investors in their analysis of the Company's ability to analyze an·a·lyze v. 1. To examine methodically by separating into parts and studying their interrelations. 2. To separate a chemical substance into its constituent elements to determine their nature or proportions. 3. operational performance. Adjusted income (loss) from continuing operations and adjusted EBITDA should not be considered in isolation or as a substitute for net income or other income statement data prepared in accordance with GAAP, or as a measure of profitability or liquidity. Also, adjusted income (loss) from continuing operations and adjusted EBITDA, as determined and presented by the Company, may not be comparable to related or similarly titled measures reported by other companies. E[acute accent]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. E[acute accent]This press release contains forward-looking statements that are subject to risks and uncertainties. These statements often include words such as "believe", "expect", "anticipate", "intend", "plan", "estimate", or similar expressions. These statements are based on certain assumptions that the Company has made in light of its experience in the industry as well as its perspective of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or . Actual results may differ materially from the anticipated results because of certain risks and uncertainties, including but not limited to (i) expected synergies, economies of scale and cost savings from the Company's acquisitions not being fully realized or realized within the expected times frames; (ii) unanticipated difficulties servicing the 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. of the Company; (iii) costs or operational difficulties related to integrating the operations of the acquired entities with those of the Company being greater than expected; (iv) labor disputes involving the Company or its significant customers; (v) risks associated with conducting business in foreign countries, and (vi) general economic or business conditions affecting the automotive industry, either nationally or regionally, being less favorable than expected.
DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share amounts - unaudited)
Three Months Ended
April 2, April 3,
2006 2005
--------- ---------
Revenues $584,378 $619,979
Cost of sales 530,416 559,398
--------- ---------
Gross profit 53,962 60,581
Selling, general and administrative expenses 36,929 42,173
Facility consolidation, asset impairments and
other charges 2,572 1,666
Amortization expense 105 112
--------- ---------
Operating income 14,356 16,630
Interest expense, net 26,174 24,970
--------- ---------
Loss from continuing operations before provision
for income taxes and minority interest (11,818) (8,340)
Provision (benefit) for income taxes (3,833) (3,617)
--------- ---------
Loss from continuing operations before minority
interest (7,985) (4,723)
Minority interests in income (55) -
--------- ---------
Loss from continuing operations (8,040) (4,723)
Loss from discontinued operations - (109)
Cumulative effect of change in accounting
principle 1,020 -
--------- ---------
Net loss $(7,020) $(4,832)
========= =========
Basic earnings per share:
Loss from continuing operations $(0.43) $(0.25)
Discontinued operations $- $(0.01)
Cumulative effect of change in accounting
principle 0.05 -
--------- ---------
Net loss $(0.38) $(0.26)
========= =========
Basic shares outstanding 18,808 18,662
========= =========
Diluted earnings per share:
Loss from continuing operations $(0.43) $(0.25)
Discontinued operations $- $(0.01)
Cumulative effect of change in accounting
principle 0.05 -
--------- ---------
Net loss $(0.38) $(0.26)
========= =========
Diluted shares outstanding 18,808 18,662
========= =========
Capital expenditures $23,117 $14,278
Depreciation $20,298 $20,435
DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
ADJUSTED INCOME FROM CONTINUING OPERATIONS
ADJUSTED EBITDA
(Amounts in thousands, except per share amounts - unaudited)
Three Months Ended
April 2, April 3,
2006 2005
--------- --------
Adjusted income (loss) from continuing operations
-------------------------------------------------
Loss from continuing operations before minority
interest $(7,985) $(4,723)
Facility consolidation and other charges, net 1,638 1,010
--------- --------
Adjusted loss from continuing operations $(6,347) $(3,713)
========= ========
Basic earnings (loss) per share:
Adjusted loss from continuing operations $(0.34) $(0.20)
========= ========
Basic shares outstanding 18,808 18,662
========= ========
Diluted earnings (loss) per share:
Adjusted loss from continuing operations $(0.34) $(0.20)
========= ========
Diluted shares outstanding 18,808 18,662
========= ========
Adjusted EBITDA
---------------
Operating income $14,356 $16,630
Amortization expense 105 112
Depreciation expense 20,298 20,435
Facility consolidation and other charges 2,572 1,666
--------- --------
Adjusted EBITDA $37,331 $38,843
========= ========
DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
April 2, April 3,
2006 2005
----------- -----------
Assets
------
Current assets:
Cash and cash equivalents $127,922 $101,889
Accounts receivable, net 332,853 291,119
Inventories, net 138,712 132,148
Other current assets 120,061 107,650
----------- -----------
Total current assets 719,548 632,806
----------- -----------
Property, plant and equipment, net 460,190 458,258
Goodwill, net 864,420 854,296
Deferred income taxes and other assets, net 124,383 129,849
----------- -----------
$2,168,541 $2,075,209
=========== ===========
Liabilities and Stockholders' Investment
----------------------------------------
Current liabilities:
Accounts payable $255,111 $265,560
Accrued liabilities 213,123 180,622
Current maturities of long-term debt 3,877 3,473
----------- -----------
Total current liabilities 472,111 449,655
----------- -----------
Long-term debt, net of current maturities 228,923 171,577
Senior unsecured notes 400,000 400,000
Senior subordinated notes 527,328 523,906
Convertible trust preferred securities subject
to mandatory redemption 55,250 55,250
Senior notes - derivative instrument
adjustment (17,395) (10,781)
Minority interests 4,946 4,864
Other noncurrent liabilities 147,500 141,031
Stockholders' investment:
Common stock - Class A 188 188
Additional paid-in capital 351,941 351,994
Treasury stock (1,797) (1,948)
Retained deficit (98,548) (91,528)
Accumulated other comprehensive income 98,094 81,001
----------- -----------
Total stockholders' investment 349,878 339,707
----------- -----------
$2,168,541 $2,075,209
=========== ===========
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