EXHIBIT 99.1
DATE: February 9, 2006
FROM:
DURA Automotive Systems, Inc.
2791 Research Drive
Rochester Hills, Michigan 48309
Keith R. Marchiando (248) 299-7500
FOR IMMEDIATE RELEASE
DURA AUTOMOTIVE REPORTS FOURTH QUARTER AND FULL-YEAR 2005
RESULTS AND ANNOUNCES RESTRUCTURING PLAN
ROCHESTER HILLS, Mich., February 9-- DURA Automotive Systems, Inc. (Nasdaq:
DRRA), today reported revenues of $564.4 million for the fourth quarter ended
December 31, 2005 compared to $582.8 million in the prior year quarter. Net
income for the quarter was $10.3 million, or $0.54 per diluted share, compared
to net income of $1.9 million, or $0.10 per diluted share, in the prior year
quarter. DURA's adjusted income from continuing operations for the quarter,
which excludes facility consolidation charges, a gain on retirement of debt and
the favorable settlement of certain environmental matters totaled $0.9 million,
or $0.05 per diluted share, compared to income of $4.8 million, or $0.26 per
diluted share, in the prior year quarter. Adjusted EBITDA for the quarter was
$46.6 million compared to $46.5 million in the prior year quarter. A
reconciliation of adjusted income from continuing operations and adjusted EBITDA
to the most directly comparable GAAP measures is set forth below.
"Although our fourth quarter and full year results came in within our
expectations, these results are not acceptable and we need to continue to focus
our efforts on changing DURA going forward," said Larry Denton, chairman and
chief executive officer of DURA Automotive.
The decrease in fourth quarter revenue from the prior year was driven
primarily by lower North American automotive production by the domestic OEM's
and the negative impact of foreign currency exchange. Partially offsetting these
decreases was the strength of the recreation vehicle industry. Fourth quarter
income from continuing operations increased from the prior year as net raw
material cost improvements and the favorable resolution of certain environmental
matters offset the impact of the lower domestic OEM automotive volumes.
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DURA Automotive Systems, Inc.
February 9, 2006
Page 2
The $5.2 million pre tax facility consolidation charge for the quarter
relates primarily to the previously announced headcount reductions associated
with DURA's plan to migrate to one enterprise resource planning system and the
continuation of the restructuring actions in North America and Germany.
During the fourth quarter of 2005, DURA took the opportunity to reduce its
Subordinated Notes by $49 million. This decision is consistent with its
long-term debt reduction strategy. Dura spent $31 million of cash, resulting in
a gain on retirement of debt of $18 million in the quarter.
FULL-YEAR RESULTS
For the year ended December 31, 2005, revenue totaled $2.3 billion compared
to $2.5 billion in 2004. Net income for the year ended December 31, 2005 was
$1.8 million, or $0.10 per diluted share, compared to net income of $11.7
million, or $0.62 per diluted share, in the prior year. DURA's adjusted loss
from continuing operations for the year ended December 31, 2005, which excludes
facility consolidation charges, a net gain on retirement of debt and the
favorable resolution of certain environmental matters, totaled $6.4 million, or
$0.34 per diluted share; as compared to adjusted income from continuing
operations of $29.4 million, or $1.56 per diluted share, in the same period last
year. Adjusted EBITDA for the year ended December 31, 2005 was $170.9 million
compared to $210.9 million in the prior year. This was within the range of
DURA's previously released guidance.
RESTRUCTURING PLAN
Denton continued, "We have made progress toward achieving our organic
growth and worldwide cost leadership goals over the past three years, however,
we are not moving fast enough. We must accelerate our growth and profitability
enhancement plans to meet our strategic goals by 2008. Over the next two years,
DURA will complete a significant restructuring of our worldwide operations
designed to enhance performance optimization, worldwide efficiency and financial
results."
The restructuring plan will impact over 50 percent of DURA's worldwide
operations either through product movement or facility closures. DURA will
complete this action by year end 2007. In addition, DURA's purchasing
organization will aggressively cut costs throughout its supply chain resulting
in a significant reduction of annual purchasing costs.
Cash costs for the restructuring plan are expected to be approximately $100
million. These costs will relate primarily to employee severance, capital
investment, facility closure and product move costs. The majority of these
expenditures will occur by year end 2007. DURA expects a three year payback on
the investment. The savings are expected primarily through a lower average
global wage rate, lower cost of purchased materials and operating efficiencies
gained as a result of the facility consolidations and reorganizations.
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DURA Automotive Systems, Inc.
February 9, 2006
Page 3
"We will finance the restructuring plan with cash on hand and availability
under our existing revolving credit facility," said Keith Marchiando, chief
financial officer of DURA Automotive. "The liquidity package that we put in
place in May 2005 gives us ample liquidity to fund this necessary restructuring
plan along with our on going operating cash requirements."
CONFERENCE CALL
A conference call to review the fourth-quarter and full-year results is
scheduled for February 9, 2006 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,
February 16, 2006 by dialing (303) 590-3000, passcode 11050774.
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 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 (loss)
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 settlement of certain environmental matters and gain on retirement of
debt, net. Adjusted EBITDA represents income from continuing operations adjusted
for facility consolidation and other charges, a gain on retirement of debt, the
favorable resolution of certain environmental matters, 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 (loss) 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 (loss) 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.
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DURA Automotive Systems, Inc.
February 9, 2006
Page 4
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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February 9, 2006
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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 Twelve Months Ended
December 31, December 31,
------------------- -----------------------
2005 2004 2005 2004
-------- -------- ---------- ----------
Revenues $564,404 $582,802 $2,344,139 $2,492,543
Cost of sales 496,827 521,624 2,086,421 2,214,113
-------- -------- ---------- ----------
Gross profit 67,577 61,178 257,718 278,430
Selling, general and administrative expenses 36,860 33,156 155,901 150,489
Facility consolidation, asset impairments and other
charges 5,247 3,730 11,397 21,817
Amortization expense 117 111 434 445
-------- -------- ---------- ----------
Operating income 25,353 24,181 89,986 105,679
Interest expense, net 25,631 22,840 100,021 89,535
Gain on retirement of debt (18,154) -- (14,805) --
-------- -------- ---------- ----------
Income from continuing operations before
provision for income taxes and minority interest 17,876 1,341 4,770 16,144
Provision (benefit) for income taxes 7,551 (621) 2,687 3,672
-------- -------- ---------- ----------
Income from continuing operations
before minority interest 10,325 1,962 2,083 12,472
Minority interests in income (67) -- (177) --
-------- -------- ---------- ----------
Income from continuing operations 10,258 1,962 1,906 12,472
Income (loss) from discontinued operations 14 (50) (92) (749)
-------- -------- ---------- ----------
Net income $ 10,272 $ 1,912 $ 1,814 $ 11,723
======== ======== ========== ==========
Basic earnings per share:
Income from continuing operations $ 0.55 $ 0.10 $ 0.10 $ 0.67
Discontinued operations -- -- -- (0.04)
-------- -------- ---------- ----------
Net income $ 0.55 $ 0.10 $ 0.10 $ 0.63
======== ======== ========== ==========
Basic shares outstanding 18,769 18,626 18,709 18,508
======== ======== ========== ==========
Diluted earnings per share:
Income from continuing operations $ 0.54 $ 0.10 $ 0.10 $ 0.66
Discontinued operations -- -- -- (0.04)
-------- -------- ---------- ----------
Net income $ 0.54 $ 0.10 $ 0.10 $ 0.62
======== ======== ========== ==========
Diluted shares outstanding 20,068 18,828 18,849 18,868
======== ======== ========== ==========
Capital expenditures $ 33,891 $ 23,245 $ 78,581 $ 67,208
Depreciation $ 17,615 $ 18,519 $ 79,078 $ 82,943
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February 9, 2006
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DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
ADJUSTED INCOME FROM CONTINUING OPERATIONS
ADJUSTED EBITDA
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS - UNAUDITED)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------ -------------------
2005 2004 2005 2004
-------- ------- -------- --------
ADJUSTED INCOME (LOSS) FROM CONTINUING OPERATIONS
Income from continuing operations
before minority interest $ 10,325 $ 1,962 $ 2,083 $ 12,472
Facility consolidation and other charges, net 3,320 2,876 7,326 16,951
Favorable settlement of environmental matters,
net (1,132) -- (6,375) --
Gain on retirement of debt, net (11,619) -- (9,476) --
-------- ------- -------- --------
Adjusted income (loss)
From continuing operations $ 894 $ 4,838 $ (6,442) $ 29,423
======== ======= ======== ========
Basic earnings (loss) per share:
Adjusted income (loss) from continuing operations $ 0.05 $ 0.26 $ (0.34) $ 1.59
======== ======= ======== ========
Basic shares outstanding 18,769 18,626 18,709 18,508
======== ======= ======== ========
Diluted earnings (loss) per share:
Adjusted income (loss) from continuing operations $ 0.05 $ 0.26 $ (0.34) $ 1.56
======== ======= ======== ========
Diluted shares outstanding 18,779 18,828 18,709 18,868
======== ======= ======== ========
ADJUSTED EBITDA
Operating Income $ 25,353 $24,181 $ 89,986 $105,679
Amortization expense 117 111 434 445
Depreciation expense 17,615 18,519 79,078 82,943
Facility consolidation and other charges 5,247 3,730 11,397 21,817
Favorable settlement of environmental matters (1,768) -- (9,960) --
-------- ------- -------- --------
Adjusted EBITDA $ 46,564 $46,541 $170,935 $210,884
======== ======= ======== ========
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DURA Automotive Systems, Inc.
February 9, 2006
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DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(AMOUNTS IN THOUSANDS)
December 31, December 31,
2005 2004
------------ ------------
Assets
Current assets:
Cash and cash equivalents $ 101,889 $ 191,568
Accounts receivable, net 291,119 273,956
Inventories, net 132,148 149,834
Current portion of derivative instruments -- 7,746
Other current assets 107,650 92,016
---------- ----------
Total current assets 632,806 715,120
Property, plant and equipment, net 458,258 487,106
Goodwill, net 854,296 903,584
Noncurrent portion of derivative instruments -- 10,601
Deferred income taxes and other assets, net 129,212 107,510
---------- ----------
$2,074,572 $2,223,921
========== ==========
Liabilities and Stockholders' Investment
Current liabilities:
Accounts payable $ 265,560 $ 270,341
Accrued liabilities 178,150 187,254
Current maturities of long-term debt 3,473 2.968
---------- ----------
Total current liabilities 447,183 460,563
---------- ----------
Long-term debt, net of current maturities 171,577 150,898
Senior notes 400,000 400,000
Subordinated notes 523,906 589,469
Mandatorily redeemable convertible trust
preferred securities 55,250 55,250
Senior notes - hedging mark-to-market value adjustment (10,781) 18,347
Minority Interests 4,864 --
Other noncurrent liabilities 142,859 141,903
Stockholders' investment:
Common stock - Class A 188 186
Additional paid-in capital 351,994 351,571
Treasury stock (1,948) (2,513)
Retained deficit (91,528) (93,342)
Accumulated other comprehensive income 81,008 151,589
---------- ----------
Total stockholders' investment 339,714 407,491
---------- ----------
$2,074,572 $2,223,921
========== ==========
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