DURA Automotive Reports Improved Fourth-Quarter and Full-Year Results.Business Editors ROCHESTER Rochester (rŏch`ĕstər, –ĭstər). 1 City (1990 pop. 70,745), seat of Olmsted co., SE Minn.; inc. 1858. HILLS, Mich.--(BUSINESS WIRE)--Feb. 12, 2004 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 ): -- Fourth quarter adjusted income 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 of $9.8 million, or $.52 per share exceeding the company's guidance of $.40 per share -- Full-year adjusted income from continuing operations of $33.6 million, or $1.81 per share -- Full-year adjusted net debt reduction of $39.8 million DURA Automotive Systems, Inc. (Nasdaq:DRRA), today reported revenues of $627.2 million for the fourth quarter ended December December: see month. 31, 2003, up 9 percent compared to $576.5 million recorded in the prior-year period. Including a loss of $2.9 million from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. and a pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern facility consolidation charge of $11.3 million, net loss for the quarter was $2.9 million, or $0.15 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 loss of $90.7 million, or $4.97 per diluted share, in the prior-year quarter. DURA's adjusted income from continuing operations for the quarter, which excludes facility consolidation charges and a loss on the early extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of debt, totaled $9.8 million, or $0.52 per diluted share, compared to the company's previously announced guidance of $0.40 per diluted share. "This was an extremely productive and rewarding first year," 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. , president and chief executive officer of DURA Automotive. "We have made significant progress in implementing our four point strategy. We have laid a solid foundation in 2003 to improve our organic growth and we have made strategic investments in new technologies and product offerings that will help us expand our business portfolio." Revenue for the quarter as compared to the prior year was positively impacted by approximately $48.0 million due to the strengthening of foreign currencies versus the U.S. dollar and an additional $34.2 million for the effect of the Creation Group acquisition, which supplies the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. recreation and specialty vehicle markets. As anticipated, based on the company's previously disclosed forecast, revenue and 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. for the quarter were negatively affected by the run-out of the company's conventional window regulator regulator, n the mechanical part of a gas delivery system that controls gas pressure that allows a manageable flow of drug vapor to escape. regulator see reducing valve. business. Operating income totaled $24.2 million, a 23 percent decrease from $31.5 million in the fourth quarter of 2002. The facility consolidation charge for the quarter relates to the continuation of the previously announced closure and consolidation of the Fulton Fulton, city (1990 pop. 10,033), seat of Callaway co., central Mo., in an agricultural and farm area; inc. 1859. It has printing plants and factories that make food products, textiles, and industrial equipment. Firebricks from nearby clay beds are also produced. , Ky., and Mt. Carroll Car·roll , James 1854-1907. British-born American physician noted for his research on yellow fever. In 1900 he deliberately infected himself with the disease for experimental purposes. , Ill., facilities. In addition, DURA is continuing to address its capacity utilization Capacity Utilization measures the rate at which a firm makes use of their capital productive capacities, such as factories and machinery. Capacity Utilization generally rises when the economy is healthy and falls when demand softens. challenges in 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). and
has recorded charges relating to relating to relate prep → concernantrelating to relate prep → bezüglich +gen, mit Bezug auf +acc actions taken at facilities in France and Spain Spain, Span. España (āspä`nyä), officially Kingdom of Spain, constitutional monarchy (2005 est. pop. 40,341,000), 194,884 sq mi (504,750 sq km), including the Balearic and Canary islands, SW Europe. . "We will continue to aggressively execute our strategy to improve our asset utilization rates," Denton said. "This includes taking the necessary consolidation actions in order to enhance DURA's competitive position, grow sales and earnings, and improve shareholder value." Full-Year Results Revenues of $2.38 billion for the year ended 2003 compared to $2.36 billion in 2002. Operating income for the year ended 2003 decreased 26 percent to $127.0 million versus $172.6 million in 2002. Including the full-year impact of the discontinued operations of $2.8 million, facility consolidation charges of $9.3 million and one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charges associated with the early extinguishment of debt of $2.9 million, net income was $22.3 million, or $1.20 per diluted share, compared to a prior year net loss of $288.7 million, or $14.48 per diluted share. DURA's adjusted income from continuing operations for the year, which excludes 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 and facility consolidation charges and the early extinguishment of debt, totaled $33.6 million, or $1.81 per diluted share, compared to the company's previously announced guidance of $1.70 per diluted share. Strong cash flow generation for the year enabled the company to reduce net debt by $39.8 million before adjusting for the investment in the Creation Group and the impact of foreign exchange. A conference call to review the fourth-quarter results is scheduled today at 10 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. , February February: see month. 19, 2004, by dialing (303) 590-3000, passcode 567490. About DURA Automotive Systems, Inc. DURA Automotive Systems, Inc., is the world's largest independent designer and manufacturer of driver control systems and a leading global supplier of seating control systems, engineered assemblies, structural door modules and integrated glass 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 North American recreation and specialty vehicle markets. DURA sells its automotive products to every North American, 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. Use of Non-GAAP Financial Information 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 GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ") included throughout this news release, the Company has provided information regarding "adjusted income from continuing operations" (a non-GAAP financial measure). Adjusted income from continuing operations represents income from continuing operations adjusted for severance charges, facility consolidation and other charges, net and loss on early extinguishment of debt, net. Management believes that adjusted income from continuing operations is 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 from continuing operations 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 from continuing operations, as determined and presented by the Company, may not be comparable to related or similarly titled measures reported by other companies. 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. 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 fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. than expected.
DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share amounts - unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------- -----------------------
2003 2002 2003 2002
--------- --------- ----------- -----------
Revenues $627,161 $576,542 $2,380,794 $2,360,323
Cost of sales 551,395 498,450 2,089,243 2,035,021
--------- --------- ----------- -----------
Gross profit 75,766 78,092 291,551 325,302
Selling, general and
administrative expenses 40,130 33,021 154,935 135,571
Facility consolidation and
other charges 11,268 13,341 9,252 16,121
Amortization expense 158 232 370 989
--------- --------- ----------- -----------
Operating income 24,210 31,498 126,994 172,621
Interest expense, net 20,294 19,493 81,921 83,908
Loss on early
extinguishment of debt 2,852 - 2,852 5,520
--------- --------- ----------- -----------
Income from continuing
operations before
provision for income
taxes and minority
interest 1,064 12,005 42,221 83,193
Provision for income taxes 361 14,592 14,355 37,605
Minority interest -
dividends on trust
preferred securities, net 684 621 2,735 2,486
--------- --------- ----------- -----------
Income (loss) from
continuing operations 19 (3,208) 25,131 43,102
Loss from discontinued
operations, net (2,874) (87,457) (2,793) (126,581)
--------- --------- ----------- -----------
Income (loss) before
accounting change (2,855) (90,665) 22,338 (83,479)
Cumulative effect of
change in accounting, net - - - (205,192)
--------- --------- ----------- -----------
Net income (loss) $(2,855) $(90,665) $22,338 $(288,671)
========= ========= =========== ===========
Basic earnings (loss) per
share:
Income (loss) from
continuing operations $- $(0.18) $1.37 $2.39
Discontinued operations (0.16) (4.79) (0.15) (7.01)
Cumulative effect of
change in accounting - - - (11.36)
--------- --------- ----------- -----------
Net income (loss) $(0.16) $(4.97) $1.22 $(15.98)
========= ========= =========== ===========
Basic shares outstanding 18,369 18,241 18,313 18,062
========= ========= =========== ===========
Diluted earnings (loss)
per share:
Income (loss) from
continuing operations $- $(0.18) $1.35 $2.31
Discontinued operations (0.15) (4.79) (0.15) (6.41)
Cumulative effect of
change in accounting - - - (10.38)
--------- --------- ----------- -----------
Net income (loss) $(0.15) $(4.97) $1.20 $(14.48)
========= ========= =========== ===========
Diluted shares outstanding 18,768 18,241 18,563 19,759
========= ========= =========== ===========
Capital expenditures $21,456 $15,435 $67,673 $54,312
Depreciation $21,242 $15,876 $77,197 $68,332
DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
ADJUSTED INCOME FROM CONTINUING OPERATIONS
(Amounts in thousands, except per share amounts - unaudited)
Three Months Twelve Months
Ended Ended
December 31, December 31,
---------------- -----------------
2003 2002 2003 2002
------- -------- -------- --------
Income (loss) from continuing
operations $19 $(3,208) $25,131 $43,102
Facility consolidation and other
charges, net 7,938 11,575 3,681 13,243
Cost of sales - severance cost, net - - 2,884 -
Loss on early extinguishment of
debt, net 1,882 - 1,882 3,422
------- -------- -------- --------
Adjusted income from continuing
operations $9,839 $8,367 $33,578 $59,767
======= ======== ======== ========
Basic earnings per share:
Adjusted income from continuing
operations $0.54 $0.46 $1.83 $3.31
======= ======== ======== ========
Basic shares outstanding 18,369 18,241 18,313 18,062
======= ======== ======== ========
Diluted earnings per share:
Adjusted income from continuing
operations $0.52 $0.46 $1.81 $3.15
======= ======== ======== ========
Diluted shares outstanding 18,768 19,674 18,563 19,759
======= ======== ======== ========
DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
December 31, December 31,
Assets 2003 2002
------ ----------- -----------
Current assets:
Cash and cash equivalents $181,268 $143,237
Accounts receivable, net 274,345 245,615
Inventories 127,957 114,573
Current portion of derivative instruments 6,629 (a) 15,825 (a)
Other current assets 95,045 103,875
Current assets of discontinued operations - 32,041
----------- -----------
Total current assets 685,244 655,166
----------- -----------
Property, plant and equipment, net 488,363 444,479
Goodwill, net 859,022 774,983
Noncurrent portion of derivative
instruments 12,844 (a) 14,698 (a)
Deferred income taxes and other assets,
net 69,959 47,607
----------- -----------
$2,115,432 $1,936,933
=========== ===========
Liabilities and Stockholders' Investment
----------------------------------------
Current liabilities:
Accounts payable $243,995 $216,045
Accrued liabilities 187,501 193,973
Current maturities of long-term debt 5,738 7,154
Current liabilities of discontinued
operations - 25,931
----------- -----------
Total current liabilities 437,234 443,103
----------- -----------
Long-term debt, net of current maturities 159,121 162,422
Senior notes 400,000 350,000
Subordinated notes 578,505 556,632
Mandatorily redeemable convertible trust
preferred securities 55,250 -
Senior notes - derivative instrument
adjustment 19,473 (a) 30,523 (a)
Other noncurrent liabilities 135,262 134,201
Mandatorily redeemable convertible trust
preferred securities - 55,250
Stockholders' investment:
Common stock - Class A 168 165
Common stock - Class B 16 17
Additional paid-in capital 349,220 347,065
Treasury stock (2,452) (1,974)
Retained deficit (105,065) (127,403)
Accumulated other comprehensive income
(loss) 88,700 (13,068)
----------- -----------
Total stockholders' investment 330,587 204,802
----------- -----------
$2,115,432 $1,936,933
=========== ===========
(a) As required by SFAS 133, reflects fair value of interest rate swap
contracts entered into in connection with the April 2002 and
November 2003 Senior Notes offerings.
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