EXHIBIT 99
[LOGO]
NEWS RELEASE For more information:
- ------------ Mary Ryan
For Immediate Release 630/734-2383
Aftermarket Technology Corp. Reports Fourth Quarter 1999 and Full Year Results
- REVENUES INCREASED 16% OVER LAST YEAR -
- EARNINGS INCREASED 35% OVER LAST YEAR -
- COMPANY POSITIONED FOR SUBSTANTIAL EARNINGS GROWTH -
- COMPANY RECONFIRMS 2000 EPS OF $1.25, A 79% INCREASE OVER 1999 -
WESTMONT, Ill., Tuesday, February 22, 2000- Aftermarket Technology Corp.
(NASDAQ: ATAC), a leading remanufacturer and distributor of drive train products
used in automotive repair, today reported strong financial results for the
quarter and full year ended December 31, 1999.
Revenues increased 18% to $146.4 million in the fourth quarter of 1999 versus
$124.3 million in the prior year's fourth quarter. The Company reported a net
loss for the fourth quarter of 1999 of $0.3 million or $0.01 per share, an
improvement of $19.8 million from a net loss of $20.1 million or $1.00 per share
in the fourth quarter of 1998. Net income for the fourth quarter of 1999 before
special charges was $5.4 million or $0.25 per diluted share versus a net loss,
before special charges, extraordinary item and nonrecurring expenses, of $4.5
million or a loss of $0.22
per share in the fourth quarter of 1998. Before special charges, the Company
realized earnings growth of 19% over third quarter 1999 EPS of $0.21.
Mike DuBose, Chairman, President and CEO said, "1999 was clearly an
unprecedented year for our Company, as we transitioned ATC into a
customer-focused and performance driven organization. We have accomplished our
goal of establishing a sound foundation for ATC to realize consistent earnings
growth and improving profitability."
For the year ended December 31, 1999, the Company reported a revenue increase of
16% to $565.0 million over full year 1998 revenue of $486.8 million. This
increase was primarily attributable to strong growth in the Company's OEM
segment combined with increased sales in its Independent Aftermarket segment and
Logistics Services business unit. The Company reported net income of $6.8
million or $0.32 per diluted share, an improvement of $14.6 million from a net
loss of $7.8 million or a loss of $0.39 per share in 1998. Operating income
before special charges and nonrecurring expenses increased 21% to $51.2 million
for 1999 from $42.4 million in 1998. Net income before special charges,
extraordinary items and nonrecurring expenses was $14.8 million or $0.70 per
diluted share in 1999 compared with $11.0 million or $0.52 per diluted share in
1998, representing a 35% year-over-year increase in earnings.
"During the year, we achieved numerous milestones that reflect significant
progress in restoring ATC to its full profitability potential. Although we
achieved our overall goal for 1999, we are disappointed with the rate of
progress in the Distribution Group. We have made and are continuing to make
significant upgrades throughout our management ranks and have tied each
manager's compensation to a specific set of customer service and profit
objectives; we
restructured our Distribution Group and are in the process of further
improving the capabilities and performance of this business; we implemented
fixes to our enterprise system and are now beginning to reap the inherent
benefits; and we established robust operational standards and processes that
management reinforces daily. Additionally, the 1999 strategic acquisition of
All Trans provides us with a platform to be a leader in the manual
transmission aftermarket. Our performance and momentum increased throughout
the year and we expect it to continue into 2000 and beyond.
"As we progress throughout 2000, we will continue to drive improvements in the
business with an increasing emphasis on growth initiatives and the pursuit of
opportunities that leverage our competitive advantage. We will strategically
grow the Company and its earnings through our targeted sales focus coupled with
new service and product offerings. We remain confident that we can achieve $1.25
EPS for the year, as previously announced," said DuBose.
In other news, the Company announced the appointment of Jerry Kanis as President
of its Autocraft Group. Jerry, with more than 30 years of sales and operational
management experience with Ford Motor Company, will have overall profit and loss
responsibility for the Company's Autocraft Electronics, Autocraft Industries,
Autocraft Material Recovery and Autocraft UK operations.
ATC also announced the appointment of Paul Komaromy as the new President of the
Company's Aaron's Automotive Products subsidiary. Paul has over 20 years of
operational and marketing management experience, most recently working for
AlliedSignal.
The Company also recently appointed R. John Parry as the new President of its
Component Remanufacturing Specialists subsidiary. John, who joined ATC from
AlliedSignal, brings over 30 years of operational and sales management
experience to ATC.
ATC is headquartered in Westmont, Illinois. The Company's principal products
include remanufactured transmissions, torque converters and engines, as well as
remanufactured and new parts for the repair of automotive drive train
assemblies. ATC also remanufactures electronic control modules, instrument and
display clusters and radios. In addition, the Company provides third party
distribution and material recovery services.
The Company's customers include original equipment manufacturers and independent
transmission rebuilders, as well as wholesale distributors and retail automotive
parts stores. Established in 1994, the Company maintains more than 60
distribution centers throughout the United States and Canada. ATC posted 1999
revenues of $565.0 million.
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THE PRECEDING PARAGRAPHS CONTAIN STATEMENTS THAT ARE NOT RELATED TO HISTORICAL
RESULTS AND ARE "FORWARD-LOOKING" STATEMENTS WITHIN THE MEANING OF THE PRIVATE
SECURITIES LITIGATION REFORM ACT OF 1995. FORWARD-LOOKING STATEMENTS INCLUDE
THOSE THAT ARE PREDICTIVE OR EXPRESS EXPECTATIONS, THAT DEPEND UPON OR REFER TO
FUTURE EVENTS OR CONDITIONS, OR THAT CONCERN FUTURE FINANCIAL PERFORMANCE
(INCLUDING FUTURE REVENUES, EARNINGS OR GROWTH RATES), ONGOING BUSINESS
STRATEGIES OR PROSPECTS, OR POSSIBLE FUTURE COMPANY ACTIONS. FORWARD-LOOKING
STATEMENTS INVOLVE RISKS AND UNCERTAINTIES BECAUSE SUCH STATEMENTS ARE BASED ON
CURRENT EXPECTATIONS, PROJECTIONS AND ASSUMPTIONS REGARDING FUTURE EVENTS THAT
MAY NOT PROVE TO BE ACCURATE. ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE
PROJECTED OR IMPLIED IN THE FORWARD-LOOKING STATEMENTS. THE FACTORS THAT COULD
CAUSE ACTUAL RESULTS TO DIFFER ARE DISCUSSED IN THE COMPANY'S ANNUAL REPORT ON
FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 1998 AND OTHER FILINGS MADE BY THE
COMPANY WITH THE SECURITIES AND EXCHANGE COMMISSION.
AFTERMARKET TECHNOLOGY CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
FOR THE THREE MONTHS ENDED FOR THE YEARS ENDED
DECEMBER 31, DECEMBER 31,
1999 1998 1999 1998
--------- --------- --------- ---------
(UNAUDITED)
Net sales $ 146,408 $ 124,301 $ 564,965 $ 486,773
Cost of sales 96,339 102,951 382,899 348,443
Special charges 4,895 - 4,895 1,347
--------- --------- --------- ---------
Gross profit 45,174 21,350 177,171 136,983
Selling, general and administrative expense 32,164 39,028 123,429 109,357
Amortization of intangible assets 2,050 1,678 7,420 6,806
Special charges 4,868 5,164 8,868 7,397
--------- --------- --------- ---------
Income (loss) from operations 6,092 (24,520) 37,454 13,423
Other income (expense), net 230 (1,541) 393 (41)
Interest expense 7,145 5,676 26,895 23,673
--------- --------- --------- ---------
Income (loss) before income taxes
and extraordinary items (823) (31,737) 10,952 (10,291)
Income tax expense (benefit) (566) (11,768) 4,145 (3,176)
--------- --------- --------- ---------
Income (loss) before extraordinary items (257) (19,969) 6,807 (7,115)
Extraordinary items - net of income taxes - (170) - (703)
--------- --------- --------- ---------
Net income (loss) $ (257) $ (20,139) $ 6,807 $ (7,818)
========= ========= ========= =========
Per common share - basic:
Income (loss) before extraordinary items $ (0.01) $ (0.99) $ 0.33 $ (0.36)
Extraordinary items - (0.01) - (0.03)
--------- --------- --------- ---------
Net income (loss) $ (0.01) $ (1.00) $ 0.34 $ (0.39)
========= ========= ========= =========
Weighted average number of common
shares outstanding 20,418 20,157 20,325 19,986
========= ========= ========= =========
Per common share - diluted:
Income (loss) before extraordinary items $ (0.01) $ (0.99) $ 0.32 $ (0.36)
Extraordinary items - (0.01) - (0.03)
--------- --------- --------- ---------
Net income (loss) $ (0.01) $ (1.00) $ 0.32 $ (0.39)
========= ========= ========= =========
Weighted average number of common and
Common equivalent shares outstanding 20,418 20,157 21,164 19,986
========= ========= ========= =========