EXHIBIT 99.1
DATE: March 16, 2005
FROM:
Dura Automotive Systems, Inc.
2791 Research Drive
Rochester Hills, Michigan 48309
Keith Marchiando (248) 299-7500
FOR IMMEDIATE RELEASE
DURA AUTOMOTIVE ANNOUNCES REVISED FIRST QUARTER AND FULL-YEAR GUIDANCE
ROCHESTER HILLS, Mich., March 16 -- DURA Automotive Systems, Inc.
(Nasdaq: DRRA), today revised its first quarter and full-year 2005 guidance.
DURA is lowering its first quarter adjusted EBITDA guidance from a range of $45
to $48 million to a range of approximately $38 to $43 million, or a reduction in
adjusted income from continuing operations guidance from a range of $0.05 to
$0.15 per diluted share to a loss in the range of $0.10 to $0.35 per diluted
share. DURA is also lowering its full-year guidance for adjusted EBITDA to a
range of $185 to $195 million from approximately $210 million. A reconciliation
of adjusted EBITDA and adjusted income from continuing operations to the most
directly comparable GAAP measures is set forth on the following page.
DURA's revised adjusted EBITDA guidance reflects a more significant
than previously expected decline in North American light truck production;
slower than expected OEM launches in key European programs; delays in the
conclusion of certain key customer negotiations concerning steel and other raw
material pricing; additional Sarbanes-Oxley compliance expenses; and start-up
issues at facilities which have recently taken on additional manufacturing
responsibilities as a result of facility consolidation actions. Sales guidance
remains unchanged, reductions in light truck volumes were offset by changes in
foreign exchange.
"We are not satisfied with our results thus far this year and the
outlook for the remainder of 2005," said Larry Denton, president and chief
executive officer of DURA Automotive. "We will continue to work diligently to
offset further escalating material costs, and will institute the following
actions. We must conclude open steel and other raw material cost recovery
negotiations with our customers within the next 45 days. Additional cost
containment actions have been implemented to trim DURA's overhead and SG&A
costs. Specifically, we will eliminate the 2005 management bonus plan, freeze
salaried wages through the remainder of the year, and eliminate a
performance-based 401k discretionary contribution. While these actions are
difficult, we are committed to delivering our shareholders value under these
more challenging conditions than previously expected."
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 and recreation & specialty vehicle industries.
DURA sells its products to every major North American, Asian and European
automotive original equipment manufacturer (OEM) 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 with accounting principles
generally accepted in the United States ("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 severance charges, facility consolidation and other
charges, net and loss on early extinguishment of debt, net. Adjusted EBITDA
represents income from continuing operations adjusted for severance charges,
facility consolidation and other charges, loss on early extinguishment of debt,
interest, amortization 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 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
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. 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 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
ADJUSTED EBITDA GUIDANCE
ADJUSTED INCOME FROM CONTINUING OPERATIONS GUIDANCE
(AMOUNTS IN MILLIONS, EXCEPT PER SHARE AMOUNTS - UNAUDITED)
Three Months Ended Twelve Months Ended
March 31, 2005 December 31, 2005
Range Range
Low High Low High
--- ---- --- ----
Operating Income 16.9 21.9 96.8 106.8
Depreciation expense 20.2 20.2 82.1 82.1
Amortization expense 0.1 0.1 0.4 0.4
Facility consolidation and other charges 0.8 0.8 5.7 5.7
-------- -------- --------- -------
Adjusted EBITDA $ 38.0 $ 43.0 $ 185.0 $ 195.0
======== ======== ========= =======
Income from continuing operations $ (7.6) $ (2.6)
Facility consolidation and other charges, net 0.8 0.8
-------- --------
Adjusted income from continuing operations $ (6.8) $ (1.8)
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Diluted earnings per share:
Adjusted income from continuing operations $ (0.35) $ (0.10)
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Diluted shares outstanding 18.8 18.8
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