INTERMET CORPORATION
5445 Corporate Drive
Troy, MI 48098-2683
Tel: 248-952-2500
Fax: 248-952-2501
{INTERMET LOGO} Exhibit 99.1
NEWS RELEASE
For IMMEDIATE Release
Contact: Bytha Mills
INTERMET Corporation
248-952-2500
INTERMET REPORTS 2004 FIRST-QUARTER RESULTS
SALES INCREASE MORE THAN NINE PERCENT
UNPRECEDENTED SCRAP-STEEL COSTS AFFECT EARNINGS
TROY, Mich., April 15, 2004 -- INTERMET Corporation (Nasdaq: INMT), one of the
world's leading manufacturers of cast-metal automotive components, today
reported 2004 first-quarter sales of $210.6 million, a nine-percent increase
over the $193.0 million reported for the first quarter of 2003. Contributing to
increased sales were $4.6 million related to currency exchange, $9.8 million
related to the consolidation of the company's Porto Foundry acquired in July
2003, and $3.2 million in sales-volume growth.
The company also reported a 2004 first-quarter net loss of $7.9 million, or
$0.31 per diluted share, compared with 2003 first-quarter net income of $3.2
million, or $0.12 per diluted share. Gross profit was $13.5 million, compared
with $21.2 million reported in the 2003 first quarter.
INTERMET's first-quarter results included unprecedented scrap-steel cost
increases in both North America and Europe, which were approximately $9.3
million higher compared with the first quarter of 2003; $0.7 million due to
costs incurred at our Havana Foundry, which is in the process of being closed;
and a $1.4 million charge for the write-off of previously capitalized
debt-issuance costs related to the company's debt refinancing that was completed
in January of this year.
Commenting on the quarter, Gary F. Ruff, President and Chief Executive Officer,
said, "We are pleased by our increase in sales, especially when considering that
production at our major North American customers was down over six percent
compared with the first quarter of 2003. In addition, our efforts to implement
INTERMET's product and process offerings are beginning to produce increased
sales. These new sales are vital in that they demonstrate INTERMET's
capabilities as an international casting supplier and technical leader, and
contribute to future growth and profitability. Our manufacturing operations also
performed well during the first quarter, improving both throughput and quality.
Increased sales coupled with better capacity utilization have laid the
groundwork for even greater operational efficiency and effectiveness.
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INTERMET Corporation
April 15, 2004
Page 2
"However, the dramatic rise in the cost of scrap steel during this quarter and
the fourth quarter of 2003 significantly impacted our bottom line," Ruff said.
"From June 2003 to March of this year, scrap-steel prices have nearly doubled to
almost $300 per net ton. These increases have been attributed to increased
global demand and reduced availability of premium scrap material. INTERMET was
prepared to deal with more normal increases at typical rates, but not these
unusual circumstances. INTERMET expects to recover most of the increases through
surcharges in its customer contracts, but time lags built into most of the
contracts push the surcharge recovery into the second half of 2004 and early
2005."
INTERMET reported debt of $394 million at the end of the first quarter of 2004
compared with $294 million at the end of 2003. The increase in debt was mainly
due to INTERMET's cash balance at the end of the quarter, which had not been
applied to debt repayment. Capital spending for the quarter was $6.9 million,
debt-to-total capitalization was 72.3 percent and depreciation and amortization
expense was reported at $12.4 million.
INTERMET also announced today that it completed an amendment to its senior
secured credit facility providing additional financial flexibility. According to
INTERMET Vice President of Finance and CFO Bob Belts, high steel prices
warranted the change. "Our request to our senior lenders to relax certain
financial covenants was directly related to the recent unexpected rise in the
cost of scrap steel, which added over $9 million to our cost of sales in the
first quarter," said Belts. "This amendment is effective from the first quarter
of 2004 through the second quarter of 2005 and will relax the company's
financial-covenant ratios and provide adequate liquidity. We are pleased that
our lenders have provided continued support for INTERMET's business strategy."
SECOND-QUARTER OUTLOOK
Due to uncertainty in the scrap-steel market, INTERMET is not providing
second-quarter guidance at this time.
The INTERMET Board of Directors voted to approve a quarterly dividend of $0.04
per share, payable July 1, 2004, to shareholders of record as of June 1, 2004.
INTERMET will hold a Conference Call today at 3:00 p.m. ET to discuss
first-quarter results. Investors and interested parties can listen to a live
webcast by visiting www.intermet.com and clicking on the "Financial/Investor
Information" link on the home page. A slide presentation also will be available
on the web site. It is recommended that access to the live webcast be
established 10-15 minutes prior to the scheduled start time. A replay of the
webcast briefing also is expected to be available on the company's web site
beginning two hours after completion of the briefing through May 15, 2004.
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INTERMET Corporation
April 15, 2004
Page 3
With headquarters in Troy, Michigan, INTERMET Corporation is a manufacturer of
powertrain, chassis/suspension and structural components for the automotive
industry. INTERMET's strategy is to be the world's leading supplier of
cast-metal automotive components. The company has approximately 6,000 employees
at facilities in North America and Europe. More information is available on the
Internet at www.intermet.com.
This news release includes forward-looking statements about INTERMET, including
statements about the outlook for INTERMET for the second quarter and year.
Projections and other forward-looking statements are subject to risks and
uncertainties that can cause actual results to differ materially from
anticipated results. These risks and uncertainties include continued uncertainty
with respect to the cost of raw materials, particularly scrap steel. Continued
high material costs could have a significant negative impact on INTERMET's
earnings and liquidity. Other risks and uncertainties that could have negative
impacts on the results anticipated by our forward-looking statements, including
the outlook for 2004, are detailed in the preface to the Management's Discussion
and Analysis of Financial Condition and Results of Operations section of our
Annual Report for the year ended December 31, 2003.
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INTERMET Corporation
April 15, 2004
Page 4
INTERMET CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
Three Months Ended
----------------------------------
MARCH 31, March 31,
2004 2003
--------------- --------------
(Unaudited)
Net sales $210,646 $193,040
Cost of sales 197,156 171,799
--------------- --------------
Gross profit 13,490 21,241
Selling, general and administrative expenses 10,723 8,557
--------------- --------------
Operating profit 2,767 12,684
Interest expense, net 9,202 7,301
Other (income) expense, net (591) 272
--------------- --------------
(Loss) income from continuing operations before income
taxes and equity interest in a joint venture (5,844) 5,111
Income tax expense (1,567) (2,031)
Equity interest in a joint venture - 260
--------------- --------------
(Loss) income from continuing operation (7,411) 3,340
Loss from discontinued operations, net of tax: (442) (188)
--------------- --------------
Net (loss) income ($7,853) $3,152
=============== ==============
(Loss) earnings per common share:
Basic
(Loss) earnings from continuing operations ($0.29) $0.13
Loss from discontinued operations, net of tax (0.02) (0.01)
--------------- --------------
(Loss) earnings per common share - basic ($0.31) $0.12
=============== ==============
Diluted
(Loss) earnings from continuing operations ($0.29) $0.13
Loss from discontinued operations, net of tax (0.02) (0.01)
--------------- --------------
(Loss) earnings per common share - diluted ($0.31) $0.12
=============== ==============
Weighted average shares outstanding:
Basic 25,595 25,547
Diluted 25,595 25,676
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INTERMET Corporation
April 15, 2004
Page 5
INTERMET CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
MARCH 31, December 31,
2004 2003
--------------- ----------------
(Unaudited)
Assets:
Current assets:
Cash and cash equivalents $ 58,806 $ 1,035
Accounts receivable 108,748 86,773
Inventory 73,357 77,411
Other current assets 10,414 10,748
--------------- ----------------
Total current assets 251,325 175,967
Property, plant and equipment, net 316,460 324,080
Goodwill 165,933 165,933
Restricted cash 35,690 -
Other non-current assets 23,755 20,704
--------------- ----------------
Total assets $793,163 $686,684
=============== ================
Liabilities and shareholders' equity:
Current liabilities:
Accounts payable $ 93,026 $ 80,737
Accrued liabilities 65,027 59,542
Short-term lines of credit 8,493 9,992
Long-term debt due within one year 5,042 4,303
--------------- ----------------
Total current liabilities 171,588 154,574
Non-current liabilities:
Long-term debt due after one year 380,180 279,248
Other non-current liabilities 90,509 90,725
--------------- ----------------
Total non-current liabilities 470,689 369,973
Shareholders' equity 150,886 162,137
--------------- ----------------
Total liabilities and shareholders' equity $793,163 $686,684
=============== ================
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INTERMET Corporation
April 15, 2004
Page 6
INTERMET CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
Three months ended
------------------------------
MARCH 31, March 31,
2004 2003
------------------------------
(Unaudited)
Cash provided by (used in) continuing operating activities $2,959 ($409)
Cash provided by discontinued operations 900 49
------------- -------------
Cash provided by (used in) operating activities 3,859 (360)
Additions to property, plant and equipment (6,926) (2,601)
Additions to property, plant and equipment by discontinued - (102)
operations ------------- -------------
Cash used in investing activities (6,926) (2,703)
Net (decrease) increase in revolving credit facility (17,000) 8,000
Net increase (decrease) of other debts 82,068 (722)
Payments of debt issuance costs (2,422) (405)
Issuance of common stock 13 -
Dividends paid (1,024) (1,020)
------------- -------------
Cash provided by financing activities 61,635 5,853
Effect of exchange rate changes on cash and cash equivalents (797) (744)
------------- -------------
Net increase in cash and cash equivalents 57,771 2,046
Cash and cash equivalents, beginning of period 1,035 3,298
------------- -------------
Cash and cash equivalents, end of period $58,806 $5,344
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