DURA Automotive Reports Third Quarter 2005 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 $535.9 million for the third quarter ended October October: see month. 2, 2005, compared to $616.4 million in the prior-year quarter. Net loss for the quarter was $6.6 million, or $0.35 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 net loss of $2.7 million, or $0.15 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 minority interest totaled $5.2 million, or $0.28 per diluted share, compared to income of $0.9 million, or $0.05 per diluted share, in the prior-year quarter. "As industry conditions continue to soften, we have taken significant actions to improve our liquidity and further accelerate cost reductions. However, we are not satisfied with our results," 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. "During these difficult times, we have not sacrificed our commitments to our customers and growing our business organically. The company's management team remains dedicated to returning DURA to profitability." The decrease in third-quarter revenue from the prior year was driven primarily by lower North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. automotive production by the domestic OEMs, lower European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. automotive volumes, lower RV production and five fewer business days. Partially offsetting these decreases was the benefit received from foreign currency exchange. The decrease in third-quarter income from continuing operations from the prior year reflects the impact of lower overall production levels and five fewer business days. The facility consolidation charge for the quarter relates to the previously announced headcount head count or head·count n. 1. The act of counting people in a particular group. 2. The number of people counted in this way. Noun 1. reductions associated with DURA's plan to migrate to one enterprise resource planning See ERP. (application, business) Enterprise Resource Planning - (ERP) Any software system designed to support and automate the business processes of medium and large businesses. system and the continuation continuation - continuation passing style of the previously announced actions in the U.S. and Germany Germany (jûr`mənē), Ger. Deutschland, officially Federal Republic of Germany, republic (2005 est. pop. 82,431,000), 137,699 sq mi (356,733 sq km). . The third quarter's facility consolidation charge before taxes of $1.9 million primarily represents 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 costs. Nine-Month Results For the nine-month period ended October 2, 2005, revenue totaled $1.8 billion compared to $1.9 billion for the same period in 2004. Net loss for the nine-month period was $8.5 million, or $0.45 per diluted share, compared to net income of $9.8 million, or $0.52 per diluted share, in the prior year. DURA's adjusted loss from continuing operations for the nine months ended October 2, 2005, which excludes facility consolidation and other charges, 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, the favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. resolution of an environmental matter and minority interest, totaled $7.3 million, or $0.39 per diluted share, as compared to adjusted income from continuing operations of $23.4 million, or $1.24 per diluted share, in the same period last year. 2005 Full-Year Outlook For the full-year, our 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. production planning Production planning The function of a manufacturing enterprise responsible for the efficient planning, scheduling, and coordination of all production activities. assumptions are 15.6 million units for 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 20.0 million units for 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). . For the full year, revenue is expected to be $2.3 to
$2.4 billion, versus $2.5 billion last year. 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 is expected
to be between $170 and $180 million. Full-year capital spending capital spendingSpending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. is expected to be approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $70 million, interest expense $100 million and depreciation $82 million. We expect net debt to increase by $20 to $40 million for the year. A reconciliation of 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. Conference Call A conference call to review the second-quarter results is scheduled for October 27, 2005, at 11 a.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT . 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. , November November: see month. 3, 2005, by dialing (303) 590-3000, passcode 11040683. About DURA Automotive Systems, Inc. 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 company is also a leading supplier of similar products to the recreation vehicle (RV) and specialty vehicle industries. 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 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") included throughout this news release, the Company has provided information regarding "adjusted income 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 resolution of an environmental matter and a loss on early extinguishment of debt, net. Adjusted EBITDA represents income from continuing operations adjusted for facility consolidation and other charges, a loss on early extinguishment of debt, the favorable resolution of an environmental matter, 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 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 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. 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 than expected.
DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share amounts - unaudited)
Three Months Ended Nine Months Ended
October 2, October 3, October 2, October 3,
2005 2004 2005 2004
---------- ---------- ----------- -----------
Revenues $535,922 $616,363 $1,779,735 $1,909,742
Cost of sales 484,717 552,459 1,589,594 1,692,490
---------- ---------- ----------- -----------
Gross profit 51,205 63,904 190,141 217,252
Selling, general and
administrative expenses 35,843 38,606 119,041 117,333
Facility consolidation,
asset impairments and
other charges 1,860 5,061 6,150 18,087
Amortization expense 101 103 317 334
---------- ---------- ----------- -----------
Operating income 13,401 20,134 64,633 81,498
Interest expense, net 24,513 23,907 74,390 66,695
Loss on early
extinguishment of debt - - 3,349 -
---------- ---------- ----------- -----------
Income (loss) from
continuing operations
before provision for
income taxes and
minority interest (11,112) (3,773) (13,106) 14,803
Provision (benefit) for
income taxes (4,638) (1,094) (4,864) 4,293
---------- ---------- ----------- -----------
Income (loss) from
continuing operations (6,474) (2,679) (8,242) 10,510
Minority interests in
income (110) - (110)
Loss from discontinued
operations, net - (18) (106) (699)
---------- ---------- ----------- -----------
Net income (loss) $(6,584) $(2,697) $(8,458) $9,811
========== ========== =========== ===========
Basic earnings (loss)
per share:
Income (loss) from
continuing operations $(0.35) $(0.15) $(0.45) $0.57
Discontinued
operations - - - (0.04)
---------- ---------- ----------- -----------
Net income (loss) $(0.35) $(0.15) $(0.45) $0.53
========== ========== =========== ===========
Basic shares outstanding 18,711 18,578 18,689 18,468
========== ========== =========== ===========
Diluted earnings (loss)
per share:
Income (loss) from
continuing operations $(0.35) $(0.15) $(0.45) $0.56
Discontinued
operations - - - (0.04)
---------- ---------- ----------- -----------
Net income (loss) $(0.35) $(0.15) $(0.45) $0.52
========== ========== =========== ===========
Diluted shares
outstanding 18,711 18,578 18,689 18,881
========== ========== =========== ===========
Capital expenditures $17,086 $14,660 $44,690 $43,963
Depreciation $19,971 $21,216 $61,463 $64,758
DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
ADJUSTED INCOME FROM CONTINUING OPERATIONS
(Amounts in thousands, except per share amounts - unaudited)
Three Months Ended Nine Months Ended
October 2, October 3, October 2, October 3,
2005 2004 2005 2004
---------- ---------- ----------- -----------
Net income (loss) $(6,584) $(2,679) $(8,458) $9,811
Facility consolidation
and other charges, net 1,228 3,590 4,007 12,918
Loss on early
extinguishment of debt,
net - - 2,143 -
Favorable settlement of
environmental matter,
net - - (5,243) -
Discontinued operations - - 106 699
Minority interest 110 - 110 -
---------- ---------- ----------- -----------
Adjusted income (loss)
from continuing
operations $(5,246) $911 $(7,335) $23,428
========== ========== =========== ===========
Basic earnings (loss)
per share:
Adjusted income (loss)
from continuing
operations $(0.28) $0.05 $(0.39) $1.27
========== ========== =========== ===========
Basic shares outstanding 18,711 18,578 18,689 18,468
========== ========== =========== ===========
Diluted earnings (loss)
per share:
Adjusted income (loss)
from continuing
operations $(0.28) $0.05 $(0.39) $1.24
========== ========== =========== ===========
Diluted shares
outstanding 18,711 18,717 18,689 18,881
========== ========== =========== ===========
DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
ADJUSTED EBITDA GUIDANCE
(Amounts in millions, except per share amounts - unaudited)
Twelve Months Ended
December 31, 2005
Range
--------------------
Low High
---------- ---------
Operating Income $87 $97
Depreciation expense 82 82
Facility consolidation and other charges 9 9
Favorable settlement of environmental matter (8) (8)
---------- ---------
Adjusted EBITDA $170 $180
DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
October 2, December 31,
Assets 2005 2004
--------------------------------------------- ----------- ------------
Current assets:
Cash and cash equivalents $93,670 $191,568
Accounts receivable, net 356,809 273,956
Inventories 136,836 149,834
Current portion of derivative instruments - 7,746
Other current assets 104,437 92,016
----------- ------------
Total current assets 691,752 715,120
----------- ------------
Property, plant and equipment, net 448,373 487,106
Goodwill, net 865,424 903,584
Noncurrent portion of derivative instruments - 10,601
Deferred income taxes and other assets, net 100,148 107,510
----------- ------------
$2,105,697 $2,223,921
=========== ============
Liabilities and Stockholders' Investment
---------------------------------------------
Current liabilities:
Accounts payable $256,739 $270,341
Accrued liabilities 182,942 187,254
Current maturities of long-term debt 1,294 2,968
----------- ------------
Total current liabilities 440,975 460,563
----------- ------------
Long-term debt, net of current maturities 154,482 150,898
Senior notes 400,000 400,000
Subordinated notes 575,068 589,469
Mandatorily redeemable convertible trust
preferred securities 55,250 55,250
Senior notes - hedging mark-to-market value
adjustment (6,190) 18,347
Other noncurrent liabilities 139,723 141,903
Stockholders' investment:
Common stock - Class A 187 186
Additional paid-in capital 352,148 351,571
Treasury stock (1,962) (2,513)
Retained deficit (101,800) (93,342)
Accumulated other comprehensive income 97,816 151,589
----------- ------------
Total stockholders' investment 346,389 407,491
----------- ------------
$2,105,697 $2,223,921
=========== ============
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