EXHIBIT 99.1
DATE: April 27, 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 FIRST QUARTER 2006 RESULTS
ROCHESTER HILLS, Mich., April 27-- DURA Automotive Systems, Inc. (Nasdaq:
DRRA), today reported revenues of $584.4 million for the first quarter ended
April 2, 2006 compared to $620.0 million in the prior year quarter. Net loss for
the quarter was $7.0 million, or $0.38 per diluted share, compared to a net loss
of $4.8 million, or $0.26 per diluted share, in the prior year quarter. DURA's
adjusted loss from continuing operations for the quarter, which excludes
facility consolidation charges and cumulative effect of accounting changes
totaled $6.3 million, or $0.34 per diluted share, compared to a loss of $3.7
million, or $0.20 per diluted share, in the prior year quarter. Adjusted EBITDA
for the quarter was $37.3 million compared to $38.8 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.
"This was a difficult quarter for DURA," said Larry Denton, Chairman and
Chief Executive Officer of DURA Automotive. "As we have said, we are working
through a trough period in our revenue due to an unacceptable amount of awards
won by the Company in the early 2000s. We have corrected this issue over the
last three years by reorganizing our sales group and focusing on organic versus
acquisitive growth. We must now focus on the execution of our restructuring plan
to better position DURA for improved profitability in anticipation of our future
organic growth."
The decrease in first quarter revenue from the prior year was driven
primarily by the impact of foreign exchange and negative net new business
including the loss of the GMT 800 seat adjuster. Partially offsetting these
decreases was the strength of the recreation vehicle
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industry. First quarter income from continuing operations decreased from the
prior year due primarily to the negative net new business.
Denton continued, "We can never be satisfied with a step backward in
earnings, but our journey toward our 50 cubed operational restructuring plan
goals is moving forward."
The $2.6 million pretax facility consolidation charge for the quarter
relates to the previously announced restructuring actions in North America and
Europe. The charges relate primarily to non-cash asset impairment charges and
employee severance.
CONFERENCE CALL
A conference call to review the first quarter results is scheduled for
April 27, 2006 at 11:30 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 4, 2006 by
dialing (303) 590-3000, passcode 11058914.
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
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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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DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS - UNAUDITED)
Three Months Ended
-------------------
April 2, April 3,
2006 2005
-------- --------
Revenues $584,378 $619,979
Cost of sales 530,416 559,398
-------- --------
Gross profit 53,962 60,581
Selling, general and administrative expenses 36,929 42,173
Facility consolidation, asset impairments and other charges 2,572 1,666
Amortization expense 105 112
-------- --------
Operating income 14,356 16,630
Interest expense, net 26,174 24,970
-------- --------
Loss from continuing operations before
provision for income taxes and minority interest (11,818) (8,340)
Provision (benefit) for income taxes (3,833) (3,617)
-------- --------
Loss from continuing operations
before minority interest (7,985) (4,723)
Minority interests in income (55) --
-------- --------
Loss from continuing operations (8,040) (4,723)
Loss from discontinued operations -- (109)
Cumulative effect of change in accounting principle 1,020 --
-------- --------
Net loss $ (7,020) $ (4,832)
======== ========
Basic earnings per share:
Loss from continuing operations $ (0.43) $ (0.25)
Discontinued operations $ -- $ (0.01)
Cumulative effect of change in accounting principle 0.05 --
-------- --------
Net loss $ (0.38) $ (0.26)
======== ========
Basic shares outstanding 18,808 18,662
======== ========
Diluted earnings per share:
Loss from continuing operations $ (0.43) $ (0.25)
Discontinued operations $ -- $ (0.01)
Cumulative effect of change in accounting principle 0.05 --
-------- --------
Net loss $ (0.38) $ (0.26)
======== ========
Diluted shares outstanding 18,808 18,662
======== ========
Capital expenditures $ 23,117 $ 14,278
Depreciation $ 20,298 $ 20,435
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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
-------------------
April 2, April 3,
2006 2005
-------- --------
ADJUSTED INCOME (LOSS) FROM CONTINUING OPERATIONS
Loss from continuing operations
before minority interest $(7,985) $(4,723)
Facility consolidation and other charges, net 1,638 1,010
------- -------
Adjusted loss from continuing operations $(6,347) $(3,713)
======= =======
Basic earnings (loss) per share:
Adjusted loss from continuing operations $ (0.34) $ (0.20)
======= =======
Basic shares outstanding 18,808 18,662
======= =======
Diluted earnings (loss) per share:
Adjusted loss from continuing operations $ (0.34) $ (0.20)
======= =======
Diluted shares outstanding 18,808 18,662
======= =======
ADJUSTED EBITDA
Operating income $14,356 $16,630
Amortization expense 105 112
Depreciation expense 20,298 20,435
Facility consolidation and other charges 2,572 1,666
------- -------
Adjusted EBITDA $37,331 $38,843
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DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(AMOUNTS IN THOUSANDS)
April 2, April 3,
2006 2005
---------- ----------
Assets
Current assets:
Cash and cash equivalents $ 127,922 $ 101,889
Accounts receivable, net 332,853 291,119
Inventories, net 138,712 132,148
Other current assets 120,061 107,650
---------- ----------
Total current assets 719,548 632,806
---------- ----------
Property, plant and equipment, net 460,190 458,258
Goodwill, net 864,420 854,296
Deferred income taxes and other assets, net 124,383 129,849
---------- ----------
$2,168,541 $2,075,209
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Liabilities and Stockholders' Investment
Current liabilities:
Accounts payable $ 255,111 $ 265,560
Accrued liabilities 213,123 180,622
Current maturities of long-term debt 3,877 3,473
---------- ----------
Total current liabilities 472,111 449,655
---------- ----------
Long-term debt, net of current maturities 228,923 171,577
Senior unsecured notes 400,000 400,000
Senior subordinated notes 527,328 523,906
Convertible trust preferred securities subject to
mandatory redemption 55,250 55,250
Senior notes - derivative instrument adjustment (17,395) (10,781)
Minority interests 4,946 4,864
Other noncurrent liabilities 147,500 141,031
Stockholders' investment:
Common stock - Class A 188 188
Additional paid-in capital 351,941 351,994
Treasury stock (1,797) (1,948)
Retained deficit (98,548) (91,528)
Accumulated other comprehensive income 98,094 81,001
---------- ----------
Total stockholders' investment 349,878 339,707
---------- ----------
$2,168,541 $2,075,209
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