EXHIBIT 99.1
DATE: April 28, 2005
FROM:
DURA Automotive Systems, Inc.
2791 Research Drive
Rochester Hills, Michigan 48309
Keith R. Marchiando (248) 299-7500
FOR IMMEDIATE RELEASE
DURA AUTOMOTIVE REPORTS FIRST QUARTER 2005 RESULTS
ROCHESTER HILLS, Mich., April 28 -- DURA Automotive Systems, Inc.
(Nasdaq: DRRA), today reported revenues of $620.0 million for the first quarter
ended April 3, 2005 compared to $634.6 million in the prior year quarter.
Including a pretax facility consolidation charge of $1.7 million, the net loss
for the quarter was $4.8 million, or $0.26 per diluted share, compared to net
income of $9.2 million, or $0.48 per diluted share, in the prior year quarter.
DURA's adjusted loss from continuing operations for the quarter, which excludes
facility consolidation charges, totaled $3.7 million, or $0.20 per diluted
share, compared to income of $10.9 million, or $0.57 per diluted share, in the
prior-year quarter.
"The automotive industry has been extremely challenging in recent
months," said Larry Denton, president and chief executive officer of DURA
Automotive. "Reduced production volumes, elevated raw material pricing and
unfavorable platform mix have negatively impacted DURA's first quarter results.
We have taken swift actions to accelerate our cost reduction efforts and we are
committed to meeting our financial targets for the year while at the same time
delivering on our future organic growth."
The decrease in first quarter sales from the prior year was driven
primarily by lower North American and European automotive production and
unfavorable vehicle platform mix. Partially offsetting these decreases was the
benefit received from foreign currency exchange. The decrease in first quarter
income from continuing operations from the prior year reflects the impact of
lower automotive production, higher raw material prices and start-up issues at
facilities which have recently taken on additional manufacturing
responsibilities as a result of facility consolidation actions.
The facility consolidation charge for the quarter relates to headcount
reductions associated with DURA's plan to migrate to one enterprise resource
planning system and the continuation of the previously announced closure of
plants in the U.S., France and Germany. The facility consolidation
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April 28, 2005
Page 2
charge of $1.7 million for the quarter includes $1.0 million of employee
severance costs and $0.7 million of facility closure and other charges.
2005 SECOND-QUARTER AND FULL-YEAR OUTLOOK
For the second quarter of 2005, the company expects revenue to be in
the range of $600 to $650 million compared to $659 million in the same period
last year. Adjusted EBITDA, which excludes facility consolidation charges, is
estimated to be in the range of $50 to $55 million. A reconciliation of adjusted
EBITDA to the most directly comparable GAAP measures is set forth below.
For the full year, our automotive industry production planning
assumptions are 15.6 million units for North America and 20.0 million units for
Europe. Revenue is expected to be $2.4 to $2.5 billion, versus $2.5 billion last
year. Adjusted EBITDA is anticipated to be between $185 and $195 million.
Full-year capital spending is expected to be approximately $70 million, interest
expense $100 million and depreciation $85 million. We expect net debt to
increase by $10 to $20 million for the year.
CONFERENCE CALL
A conference call to review the first-quarter results is scheduled for
April 28, 2005, at 11 a.m. ET. Interested participants may listen to the live
conference call or replay over the Internet by logging onto the investor
relations 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, May 6, 2005, by
dialing (303) 590-3000, passcode 11022950.
ABOUT DURA AUTOMOTIVE SYSTEMS, INC.
DURA Automotive Systems, Inc., is the world's largest independent
designer and manufacturer of driver control systems and a leading global
supplier of seating control systems, engineered assemblies, structural door
modules and integrated glass systems for the global automotive industry. The
company is also a leading supplier of similar products to the North American
recreation and specialty vehicle markets. DURA sells its automotive products to
every North American, Japanese and European 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
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DURA Automotive Systems, Inc.
April 28, 2005
Page 3
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.
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April 28, 2005
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DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS - UNAUDITED)
<Table>
<Caption>
Three Months Ended
April 3, March 28,
2005 2004
---- ----
Revenues $ 619,979 $ 634,563
Cost of sales 559,398 557,898
--------- ---------
Gross profit 60,581 76,665
Selling, general and administrative expenses 42,173 38,911
Facility consolidation and other charges 1,666 1,448
Amortization expense 112 116
--------- ---------
Operating income 16,630 36,190
Interest expense, net 24,970 21,249
--------- ---------
Income (loss) from continuing operations before
provision for income taxes and minority interest (8,340) 14,941
Provision (benefit) for income taxes (3,617) 5,080
--------- ---------
Income (loss) from continuing operations (4,723) 9,861
Gain (loss) from discontinued operations, net (109) (693)
--------- ---------
Net income (loss) $ (4,832) $ 9,168
========= =========
Basic earnings (loss) per share:
Income from continuing operations $ (0.25) $ 0.54
Discontinued operations (0.01) (0.04)
--------- --------
Net income (loss) $ (0.26) $ 0.50
========= ========
Basic shares outstanding 18,662 18,385
========= ========
Diluted earnings (loss) per share:
Income from continuing operations $ (0.25) $ 0.52
Discontinued operations (0.01) (0.04)
--------- --------
Net income (loss) $ (0.26) $ 0.48
========= ========
Diluted shares outstanding 18,662 18,960
========= ========
Capital expenditures $ 14,278 $ 15,607
Depreciation $ 20,435 $ 22,031
</Table>
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April 28, 2005
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DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
ADJUSTED INCOME FROM CONTINUING OPERATIONS
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS - UNAUDITED)
<Table>
<Caption>
Three Months Ended
April 3, March 28,
2005 2004
---- ----
Income (loss) from continuing operations $ (4,723) $ 9,861
Facility consolidation and other charges, net 1,010 1,080
---------- ---------
Adjusted income (loss) from continuing operations $ (3,713) $ 10,941
========== =========
Basic earnings (loss) per share:
Adjusted income (loss) from continuing operations $ (0.20) $ 0.60
========== =========
Basic shares outstanding 18,662 18,385
========== =========
Diluted earnings (loss) per share:
Adjusted income (loss) from continuing operations $ (0.20) $ 0.57
========== =========
Diluted shares outstanding 18,662 20,249
========== =========
</Table>
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April 28, 2005
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DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
ADJUSTED EBITDA GUIDANCE
(AMOUNTS IN MILLIONS, EXCEPT PER SHARE AMOUNTS - UNAUDITED)
<Table>
<Caption>
Three Months Ended Twelve Months Ended
July 3, 2005 December 31, 2005
Range Range
----- -----
Low High Low High
--- ---- --- ----
Operating Income 27.3 32.3 94.2 104.2
Depreciation expense 21.3 21.3 84.7 84.7
Amortization expense 0.1 0.1 0.4 0.4
Facility consolidation and other charges 1.3 1.3 5.7 5.7
------- ------- -------- --------
Adjusted EBITDA $ 50.0 $ 55.0 $ 185.0 $ 195.0
======= ======= ======== ========
</Table>
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April 28, 2005
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DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(AMOUNTS IN THOUSANDS)
<Table>
<Caption>
April 3, December 31,
Assets 2005 2004
------ ---- ----
Current assets:
Cash and cash equivalents $ 111,592 $ 191,568
Accounts receivable, net 320,426 273,956
Inventories 144,291 149,834
Current portion of derivative instruments 5,541 7,746
Other current assets 111,948 92,016
----------- -----------
Total current assets 693,798 715,120
----------- -----------
Property, plant and equipment, net 470,812 487,106
Goodwill, net 891,263 903,584
Noncurrent portion of derivative instruments 6,569 10,601
Deferred income taxes and other assets, net 97,433 107,510
----------- -----------
$ 2,159,875 $ 2,223,921
=========== ===========
Liabilities and Stockholders' Investment
----------------------------------------
Current liabilities:
Accounts payable $ 271,059 $ 270,341
Accrued liabilities 204,165 187,254
Current maturities of long-term debt 2,516 2,968
----------- -----------
Total current liabilities 477,740 460,563
----------- -----------
Long-term debt, net of current maturities 115,763 150,898
Senior notes 400,000 400,000
Subordinated notes 583,691 589,469
Mandatorily redeemable convertible trust
preferred securities 55,250 55,250
Senior notes - derivative instrument adjustment 12,110 18,347
Other noncurrent liabilities 133,125 141,903
Stockholders' investment:
Common stock - Class A 187 186
Additional paid-in capital 351,701 351,571
Treasury stock (2,127) (2,513)
Retained deficit (98,174) (93,342)
Accumulated other comprehensive income 130,609 151,589
----------- -----------
Total stockholders' investment 382,196 407,491
----------- -----------
$ 2,159,875 $ 2,223,921
=========== ===========
</Table>
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