EXHIBIT 99.1
DATE: July 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 SECOND QUARTER 2005 RESULTS
ROCHESTER HILLS, Mich., July 28 -- DURA Automotive Systems, Inc. (Nasdaq:
DRRA), today reported revenues of $623.8 million for the second quarter ended
July 3, 2005 compared to $658.8 million in the prior year quarter. Net income
for the quarter was $3.0 million, or $0.16 per diluted share, compared to net
income of $3.3 million, or $0.18 per diluted share, in the prior year quarter.
DURA's adjusted income from continuing operations for the quarter, which
excludes facility consolidation charges, a loss on the early extinguishment of
debt, and the favorable settlement of an environmental matter totaled $1.6
million, or $0.09 per diluted share, compared to $11.6 million, or $0.61 per
diluted share, in the prior year quarter.
"Industry volumes continue to be volatile, however, our cost containment
and geographic diversity has helped us meet our guidance for the quarter," said
Larry Denton, president and chief executive officer of DURA Automotive. "We
expect the industry to become even more challenging over the next six months and
therefore we must keep our focus on our cost reduction initiatives."
The decrease in second quarter revenue from the prior year was driven
primarily by lower North American automotive and RV production, and unfavorable
vehicle platform mix. Partially offsetting these decreases was the benefit
received from foreign currency exchange. The decrease in second quarter income
from continuing operations from the prior year reflects the impact of lower
automotive production and higher raw material prices.
The facility consolidation charge for the quarter relates to the
previously announced 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. and Germany. The facility
consolidation charge before taxes of $2.6 million for the quarter includes $1.1
million of employee severance costs and $1.5 million of facility closure and
asset impairment charges.
The loss on the early extinguishment of debt before taxes of $3.3 million
for the quarter relates to the write-off of debt issuance costs in connection
with DURA's termination of its previous credit
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DURA Automotive Systems, Inc.
July 28, 2005
Page 2
agreement. The favorable resolution of an environmental matter before taxes of
$8.2 million was the result of a negotiated settlement of our exposure during
the quarter for less than originally estimated.
SIX-MONTH RESULTS
For the six month period ended July 3, 2005, revenue totaled $1.2 billion
compared to $1.3 billion for the same period in 2004. Net loss for the six month
period was $1.9 million, or $0.10 per diluted share, compared to net income of
$12.5 million, or $0.66 per diluted share, in the prior year. DURA's adjusted
loss from continuing operations for the six months ended July 3, 2005, which
excludes facility consolidation and other charges, net of $2.8 million, a loss
on the early extinguishment of debt, net of $2.1 million, and the favorable
resolution of an environmental matter, net of $5.2 million, totaled a loss of
$2.1 million, or $0.11 per diluted share, compared to adjusted income from
continuing operations of $22.5 million, or $1.18 per diluted share, in the same
period last year.
2005 FULL-YEAR OUTLOOK
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.
These volume assumptions are consistent with our prior guidance in total,
however, DURA's customer and program mix of the production volumes in North
America and foreign exchange is anticipated to be more unfavorable in the second
half of the year than previously expected. As a result, we are revising our
revenue and EBITDA guidance accordingly. Our revised revenue is expected to be
$2.3 to $2.4 billion, versus $2.5 billion last year. Adjusted EBITDA is now
anticipated to be between $170 and $180 million. Full-year capital spending is
expected to be approximately $70 million, interest expense $100 million and
depreciation $82 million. We expect net debt to increase by $20 to $40 million
for the year. A reconciliation of adjusted EBITDA to the most directly
comparable GAAP measures is set forth below.
CONFERENCE CALL
A conference call to review the second-quarter results is scheduled for
July 28, 2005, at 11 a.m. EDT. 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, August 4, 2005, by
dialing (303) 590-3000, passcode 11034944.
ABOUT DURA AUTOMOTIVE SYSTEMS, INC.
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
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DURA Automotive Systems, Inc.
July 28, 2005
Page 3
and exterior trim systems for the global automotive industry. The company is
also a leading supplier of similar products to the recreation vehicle (RV) and
specialty vehicle industries. 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 measures).
Adjusted income from continuing operations represents income from continuing
operations adjusted for facility consolidation and other charges, net, the
favorable resolution of an environmental matter and a loss on early
extinguishment of debt, net. Adjusted EBITDA represents income from continuing
operations adjusted for facility consolidation and other charges, a loss on
early extinguishment of debt, the favorable resolution of an environmental
matter, interest, amortization, depreciation 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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July 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)
Three Months Ended Six Months Ended
July 3, June 27, July 3, June 27,
2005 2004 2005 2004
--------- --------- ----------- -----------
Revenues $ 623,834 $ 658,815 $ 1,243,813 $ 1,293,378
Cost of sales 545,478 582,132 1,104,876 1,140,030
--------- --------- ----------- -----------
Gross profit 78,356 76,683 138,937 153,348
Selling, general and administrative expenses 41,025 39,816 83,198 78,727
Facility consolidation and other charges 2,624 11,578 4,290 13,026
Amortization expense 104 115 216 231
--------- --------- ----------- -----------
Operating income 34,603 25,174 51,233 61,364
Interest expense, net 24,907 21,539 49,877 42,788
Loss on early extinguishment of debt 3,349 - 3,349 -
--------- --------- ----------- -----------
Income (loss) from continuing operations before
provision for income taxes and minority interest 6,347 3,635 (1,993) 18,576
Provision (benefit) for income taxes 3,391 307 (226) 5,387
--------- --------- ----------- -----------
Income (loss) from continuing operations 2,956 3,328 (1,767) 13,189
Gain (loss) from discontinued operations, net 3 12 (106) (681)
--------- --------- ----------- -----------
Net income (loss) $ 2,959 $ 3,340 $ (1,873) $ 12,508
========= ========= =========== ===========
Basic earnings (loss) per share:
Income (loss) from continuing operations $ 0.16 $ 0.18 $ (0.09) $ 0.72
Discontinued operations - - (0.01) (0.04)
--------- --------- ----------- -----------
Net income (loss) $ 0.16 $ 0.18 $ (0.10) $ 0.68
========= ========= =========== ===========
Basic shares outstanding 18,704 18,442 18,683 18,413
========= ========= =========== ===========
Diluted earnings (loss) per share:
Income (loss) from continuing operations $ 0.16 $ 0.18 $ (0.09) $ 0.70
Discontinued operations - - (0.01) (0.04)
--------- --------- ----------- -----------
Net income (loss) $ 0.16 $ 0.18 $ (0.10) $ 0.66
========= ========= =========== ===========
Diluted shares outstanding 18,818 18,966 18,683 18,963
========= ========= =========== ===========
Capital expenditures $ 13,326 $ 13,696 $ 27,604 $ 29,303
Depreciation $ 21,057 $ 21,177 $ 41,492 $ 43,208
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July 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)
Three Months Ended Six Months Ended
July 3, June 27, July 3, June 27,
2005 2004 2005 2004
--------- --------- ----------- -----------
Income (loss) from continuing operations $ 2,955 $ 3,328 $ (1,768) $ 13,189
Facility consolidation and other charges, net 1,768 8,248 2,778 9,328
Loss on early extinguishment of debt, net 2,143 - 2,143 -
Favorable settlement of environmental matter, net (5,243) - (5,243) -
--------- --------- ----------- -----------
Adjusted income (loss) from continuing operations $ 1,623 $ 11,576 $ (2,090) $ 22,517
========= ========= =========== ===========
Basic earnings (loss) per share:
Adjusted income (loss) from continuing operations $ 0.09 $ 0.63 $ (0.11) $ 1.22
========= ========= =========== ===========
Basic shares outstanding 18,704 18,442 18,683 18,413
========= ========= =========== ===========
Diluted earnings (loss) per share:
Adjusted income (loss) from continuing operations $ 0.09 $ 0.61 $ (0.11) $ 1.18
========= ========= =========== ===========
Diluted shares outstanding 18,818 20,254 18,683 20,252
========= ========= =========== ===========
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July 28, 2005
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DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
ADJUSTED EBITDA GUIDANCE
(AMOUNTS IN MILLIONS, EXCEPT PER SHARE AMOUNTS - UNAUDITED)
Twelve Months Ended
December 31, 2005
Range
---------------------
Low High
--------- ---------
Operating Income $ 87 $ 97
Depreciation expense 82 82
Facility consolidation and other charges 9 9
Favorable settlement of environmental matter (8) (8)
--------- ---------
Adjusted EBITDA $ 170 $ 180
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July 28, 2005
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DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(AMOUNTS IN THOUSANDS)
July 3, December 31,
Assets 2005 2004
------ ------------ --------------
Current assets:
Cash and cash equivalents $ 101,701 $ 191,568
Accounts receivable, net 345,152 273,956
Inventories 132,805 149,834
Current portion of derivative instruments - 7,746
Other current assets 103,762 92,016
------------ --------------
Total current assets 683,420 715,120
------------ --------------
Property, plant and equipment, net 447,848 487,106
Goodwill, net 866,486 903,584
Noncurrent portion of derivative instruments 1,422 10,601
Deferred income taxes and other assets, net 98,977 107,510
------------ --------------
$ 2,098,153 $ 2,223,921
============ ==============
Liabilities and Stockholders' Investment
Current liabilities:
Accounts payable $ 259,868 $ 270,341
Accrued liabilities 170,403 187,254
Current maturities of long-term debt 1,292 2,968
------------ --------------
Total current liabilities 431,563 460,563
------------ --------------
Long-term debt, net of current maturities 154,832 150,898
Senior notes 400,000 400,000
Subordinated notes 575,366 589,469
Mandatorily redeemable convertible trust
preferred securities 55,250 55,250
Senior notes - derivative instrument adjustment 1,422 18,347
Other noncurrent liabilities 129,952 141,903
Stockholders' investment:
Common stock - Class A 187 186
Additional paid-in capital 352,102 351,571
Treasury stock (2,006) (2,513)
Retained deficit (95,215) (93,342)
Accumulated other comprehensive income 94,700 151,589
------------ --------------
Total stockholders' investment 349,768 407,491
------------ --------------
$ 2,098,153 $ 2,223,921
============ ==============
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