Exhibit 99.1
| Contact: Deepak Chaudhry |
| | Phone: (812) 962-5095 |
FOR IMMEDIATE RELEASE
Accuride Corporation Reports Results for 2003
EVANSVILLE, Ind. – Feb. 12, 2004 – Accuride Corporation today announced net sales of $94.4 million for the fourth quarter ended Dec. 31, 2003. This compares to net sales of $80.2 million for the fourth quarter of 2002, an increase of 17.7%. For the twelve months ended Dec. 31, 2003, net sales were $364.3 million compared to net sales of $345.5 million for the same twelve-month period in 2002, an increase of 5.4%.
Adjusted EBITDA of $19.0 million for the fourth quarter ended Dec. 31, 2003, is up from $16.4 million for the fourth quarter of 2002. For the twelve months of 2003, Adjusted EBITDA increased by $3.5 million, or 5.2%, to reach $72.1 million resulting in an Adjusted EBITDA margin of 19.8%. The purpose and reconciliation of Adjusted EBITDA for the Company to the most directly comparable GAAP measure are set forth on Pages 4 and 5 of this press release.
“The fourth quarter results reflect the early stages of recovery underway in the commercial vehicle market,” said Terry Keating, Accuride’s President and CEO. “Recent strength in net orders provides a strong indication for continued momentum into 2004.”
The Company’s liquidity position remained strong at Dec. 31, 2003, with $42.7 million in cash and revolver availability of $41.0 million.
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Accuride had net income of $0.6 million for the fourth quarter ended Dec. 31, 2003, compared to a net loss of $9.0 million for the fourth quarter of 2002. For the twelve months ended Dec. 31, 2003, Accuride had a net loss of $8.7 million, or a negative 2.4% of net sales, compared to a net loss of $10.9 million, or a negative 3.2% of net sales, for the same twelve-month period in 2002. The 2003 results included $11.3 million of refinancing costs in connection with the amendment of the Company’s credit agreement in June 2003.
The Company will conduct a conference call to review and discuss its fourth quarter results on Thursday, Feb. 12, 2004, at 1:30 p.m. (Central Time). The phone number to access the conference call is 888-273-9886 in the United States, or 612-332-0923 internationally. A replay will be available beginning Feb. 12, 2004, at 5:00 p.m. (Central Time), through Feb. 19, 2004, by calling 800-475-6701 in the United States, or 320-365-3844 internationally, access code 719905. The financial results for the three-month and twelve-month period ended Dec. 31, 2003, will also be archived at http://www.accuridecorp.com.
Accuride Corporation is North America’s largest manufacturer and supplier of wheels for heavy/medium trucks and trailers. The Company offers the broadest product line in the North American heavy/medium wheel industry and is the only North American manufacturer and supplier of both steel and forged aluminum heavy/medium wheels. Accuride Corporation also produces wheels for buses, commercial light trucks, pick-up trucks, sport utility vehicles, and vans. Accuride Corporation has steel wheel operations in Henderson, Kentucky; London, Ontario, Canada; and Monterrey, Mexico. Accuride has aluminum wheel operations in Erie, Pennsylvania, and Cuyahoga Falls, Ohio. Additionally, the Company produces tire molds at its Erie, Pennsylvania, facility. Accuride is also involved in a commercial tire and wheel assembly joint venture in Springfield, Ohio. For more information, visit Accuride’s website at http://www.accuridecorp.com.
Statements contained in this news release that are not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company’s expectations, hopes, beliefs and intentions on strategies regarding the future. It is important to note that the Company’s actual future results could differ materially from those projected in such forward-looking statements because of a number of factors, including but not limited to market demand in the commercial vehicle industry, general economic, business and financing conditions, labor relations, governmental action, competitor pricing activity, expense volatility and other risks detailed from time to time in the Company’s Securities and Exchange Commission filings. Accuride assumes no obligation to update the information included in this release.
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ACCURIDE CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(DOLLARS IN THOUSANDS)
(UNAUDITED)
| | Three Months Ended December 31, | |
| | 2003 | | 2002 | |
NET SALES | | $ | 94,364 | | $ | 80,188 | |
COST OF GOODS SOLD | | 78,820 | | 70,105 | |
GROSS PROFIT | | $ | 15,544 | | $ | 10,083 | |
OPERATING EXPENSES: | | | | | |
Selling, General & Administrative | | 6,225 | | 4,377 | |
INCOME FROM OPERATIONS | | 9,319 | | 5,706 | |
OTHER INCOME (EXPENSE): | | | | | |
Interest Income | | 72 | | 93 | |
Interest (Expense) | | (10,224 | ) | (12,014 | ) |
Refinancing Costs | | — | | — | |
Equity in Earnings of Affiliates | | 24 | | (34 | ) |
Other Income (Expense), Net | | 1,405 | | 2,893 | |
INCOME (LOSS) BEFORE INCOME TAXES | | 596 | | (3,356 | ) |
INCOME TAX PROVISION (BENEFIT) | | (3 | ) | 5,594 | |
NET INCOME (LOSS) | | $ | 599 | | $ | (8,950 | ) |
| | | | | |
| | Twelve Months Ended December 31, | |
| | 2003 | | 2002 | |
NET SALES | | $ | 364,258 | | $ | 345,549 | |
COST OF GOODS SOLD | | 301,428 | | 286,232 | |
GROSS PROFIT | | $ | 62,830 | | $ | 59,317 | |
OPERATING: | | | | | |
Selling, General & Administrative | | 23,918 | | 24,014 | |
INCOME FROM OPERATIONS | | 38,912 | | 35,303 | |
OTHER INCOME (EXPENSE): | | | | | |
Interest Income | | 252 | | 315 | |
Interest (Expense) | | (38,865 | ) | (42,332 | ) |
Refinancing Costs | | (11,264 | ) | — | |
Equity in Earnings of Affiliates | | 485 | | 182 | |
Other Income (Expense), Net | | 825 | | 1,430 | |
INCOME (LOSS) BEFORE INCOME TAXES | | (9,655 | ) | (5,102 | ) |
INCOME TAX PROVISION (BENEFIT) | | (930 | ) | 5,839 | |
NET INCOME (LOSS) | | $ | (8,725 | ) | $ | (10,941 | ) |
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ACCURIDE CORPORATION
CONSOLIDATED ADJUSTED EBITDA
(DOLLARS IN THOUSANDS)
(UNAUDITED)
| | Three Months Ended December 31, | |
| | 2003 | | 2002 | |
NET INCOME (LOSS) | | 599 | | (8,950 | ) |
Net Interest Expense | | 10,152 | | 11,921 | |
Income Taxes | | (3 | ) | 5,594 | |
Refinancing Costs | | — | | — | |
Equity in Earnings of Affiliates | | (24 | ) | 34 | |
Other Expense (Income) | | (1,405 | ) | (2,893 | ) |
INCOME (LOSS) FROM OPERATIONS | | 9,319 | | 5,706 | |
Depreciation and Amortization | | 8,739 | | 8,478 | |
Equity in Earnings of Affiliates | | 24 | | (34 | ) |
Restructuring, severance and other charges | | 917 | | 2,287 | |
ADJUSTED EBITDA | | $ | 18,999 | | $ | 16,437 | |
| | | | | |
| | Twelve Months Ended December 31, | |
| | 2003 | | 2002 | |
NET INCOME (LOSS) | | (8,725 | ) | (10,941 | ) |
Net Interest Expense | | 38,613 | | 42,017 | |
Income Taxes | | (930 | ) | 5,839 | |
Refinancing Costs | | 11,264 | | — | |
Equity in Earnings of Affiliates | | (485 | ) | (182 | ) |
Other Expense (Income) | | (825 | ) | (1,430 | ) |
INCOME (LOSS) FROM OPERATIONS | | 38,912 | | 35,303 | |
Depreciation and Amortization | | 29,804 | | 28,213 | |
Equity in Earnings of Affiliates | | 485 | | 182 | |
Restructuring, severance and other charges | | 2,886 | | 4,851 | |
ADJUSTED EBITDA | | $ | 72,087 | | $ | 68,549 | |
a) For the three months ending Dec. 31, 2003, Adjusted EBITDA represents income from operations plus depreciation plus equity in earnings of affiliates, plus (i) $0.9 million for costs associated with the fire damage and resulting business interruption sustained at our facility in Cuyahoga Falls, Ohio in August 2003. Item (i), effected gross profit. For the three months ending Dec. 31, 2002, Adjusted EBITDA represents income from operations plus depreciation plus equity in earnings of affiliates, plus (i) $0.2 million of costs related to a reduction in the employee workforce, (ii) $0.3 million costs related to the consolidation of light wheel production, (iii) $1.7 million of other costs. Items (i) and (ii) effected gross profit while item (iii) related to selling, general, and administrative expenses.
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For the twelve months ending Dec. 31, 2003, Adjusted EBITDA represents income from operations plus depreciation plus equity in earnings of affiliates, plus (i) $0.4 million for strike contingency costs associated with recent renewal of our labor contract at our facility in Erie, Pennsylvania, (ii) $0.3 million for pension related costs at our facility in London, Ontario, (iii) $2.2 million for costs associated with the fire damage and resulting business interruption sustained at our facility in Cuyahoga Falls, Ohio, in August 2003. Items (i), (ii) and (iii) effected gross profit. For the twelve months ending Dec. 31, 2002, Adjusted EBITDA represents income from operations plus depreciation plus equity in earnings of affiliates, plus (i) $1.2 million of costs related to a reduction in the employee workforce, (ii) $1.1 million of costs related to the consolidation of light wheel production, (iii) $0.4 million of costs related to non-cash expenses associated with the resolved labor dispute at the Henderson, Kentucky, facility (iv) $2.1 million of other costs. All but $0.4 million of items (i), (ii) and (iii) effected gross profit while item (iv) related to selling, general, and administrative expenses.
b) Adjusted EBITDA is not intended to represent cash flow as defined by generally accepted accounting principles (“GAAP”) and should not be considered as an indicator of cash flow from operations. Adjusted EBITDA represents income from operations plus depreciation plus equity in earnings of affiliates plus non-recurring items. However, other companies may calculate Adjusted EBITDA differently. Accuride has included information concerning Adjusted EBITDA in this press release because Accuride’s management and our board of directors use it as measure of our performance to internal business plans to which a significant portion of management incentive programs are based. In addition, future investment and capital allocation decisions are based on Adjusted EBITDA. Investors and industry analysts use Adjusted EBITDA to measure the Company’s performance to historic results and to the Company’s peer group. The Company has historically provided the measure in previous press releases and believes it provides transparency and continuity to investors for comparable purposes. Certain financial covenants in our borrowing arrangements are tied to similar measures. Adjusted EBITDA margin represents Adjusted EBITDA as a percentage of net sales.
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