EXHIBIT 99
NEWS RELEASE For more information:
For Immediate Release Mary Ryan
630/734-2383
AFTERMARKET TECHNOLOGY CORP.
REPORTS SECOND QUARTER RESULTS
REVENUES INCREASE QUARTER - OVER - QUARTER
EARNINGS EXCEED CONSENSUS ESTIMATES
TURNAROUND ON TRACK
WESTMONT, IL, Thursday, July 29, 1999 - Aftermarket Technology Corp. (NASDAQ:
ATAC), a leading remanufacturer and distributor of drive train products used in
automotive aftermarket repair, today reported financial results for the quarter
ended June 30, 1999. Revenues were $141.2 million in the second quarter of 1999
versus $130.5 million in the prior year's second quarter. Before special charges
of $2.1 million, net income for the second quarter of 1999 was $3.0 million or
$0.14 per diluted share versus $6.1 million or $0.29 per diluted share in the
prior year's second quarter. After special charges, net income for the second
quarter was $1.8 million or $0.08 per diluted share, down from $4.0 million or
$0.19 per diluted share in the second quarter of 1998.
The Company reported a revenue increase of 8.2% over the second quarter
of 1998. Increased sales volumes in the Company's OEM segment and its Logistics
Services and Material Recovery business units accounted for the
quarter-over-quarter improvement.
For the six months ended June 30, 1999, revenues were $276.4 million,
up 16.4% versus $237.5 million in 1998. Before special charges and extraordinary
item, the Company earned $5.0 million or $0.24 per diluted share compared with
$12.4 million or $0.59 per diluted share in the first half of 1998. After
special charges and
extraordinary item, net income for the first half of 1999 was $2.6 million or
$0.12 per diluted share, down from $9.9 million or $0.47 per diluted share in
the second half of 1998.
"I am pleased to report results before special charges of $0.14 per
share for the quarter, which is at the top of our previously announced range of
$0.11-$0.14 per share," said Michael T. DuBose, Chairman, President and CEO of
Aftermarket Technology Corp. (ATC). Mr. DuBose continued, "The turnaround we
initiated six months ago is on track and we are pleased with the improving
performance of our OEM segment. We are beginning to see operational improvements
in the Distribution Group that are the direct result of investments and
initiatives put in place over the past six months. The continuation of this
progress should translate into improved financial results in the coming
quarters. We expect third quarter results consistent with analysts" estimates in
the $0.19-$0.21 per share range and with full -year results of $0.70 per share."
ATC is headquartered in Westmont, Illinois. The Company's principal
products include remanufactured transmissions, torque converters and engines, as
well as remanufactured and new parts for the repair of automotive drive train
assemblies. ATC also remanufactures electronic control modules, instrument and
display clusters and radios. In addition, the Company provides third party
distribution and material recovery services.
The Company's customers include original equipment manufacturers and
independent transmission rebuilders, as well as wholesale distributors and
retail automotive parts stores. Established in 1994, the Company maintains more
than 65 distribution centers throughout the United States and Canada. ATC posted
1998 revenues of $486.8 million.
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THE PRECEDING PARAGRAPHS CONTAIN STATEMENTS THAT ARE NOT RELATED TO HISTORICAL
RESULTS AND ARE "FORWARD-LOOKING" STATEMENTS WITHIN THE MEANING OF THE PRIVATE
SECURITIES LITIGATION REFORM ACT OF 1995. FORWARD-LOOKING STATEMENTS INCLUDE
THOSE THAT ARE PREDICTIVE OR EXPRESS EXPECTATIONS, THAT DEPEND UPON OR REFER TO
FUTURE EVENTS OR CONDITIONS, OR THAT CONCERN FUTURE FINANCIAL PERFORMANCE
(INCLUDING FUTURE REVENUES, EARNINGS OR GROWTH RATES), ONGOING BUSINESS
STRATEGIES OR PROSPECTS, OR POSSIBLE FUTURE COMPANY ACTIONS. FORWARD-LOOKING
STATEMENTS INVOLVE RISKS AND UNCERTAINTIES BECAUSE SUCH STATEMENTS ARE BASED ON
CURRENT EXPECTATIONS, PROJECTIONS AND ASSUMPTIONS REGARDING FUTURE EVENTS THAT
MAY NOT PROVE TO BE ACCURATE. ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE
PROJECTED OR IMPLIED IN THE FORWARD-LOOKING STATEMENTS. THE FACTORS THAT COULD
CAUSE ACTUAL RESULTS TO DIFFER ARE DISCUSSED IN THE COMPANY'S ANNUAL REPORT ON
FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 1998 AND OTHER FILINGS MADE BY THE
COMPANY WITH THE SECURITIES AND EXCHANGE COMMISSION.
AFTERMARKET TECHNOLOGY CORP.
CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE DATA)
FOR THE THREE MONTHS ENDED JUNE 30, FOR THE SIX MONTHS ENDED JUNES 30,
1999 1998 1999 1998
-------------------- ------------------- ------------------ ----------------
(Unaudited) (Unaudited)
Net Sales $141,203 $130,468 $276,401 $237,469
Cost of sales 97,445 89,038 191,361 158,561
-------------------- ------------------- ------------------ ----------------
Gross profit 43,758 41,430 85,040 78,908
Selling, general & administrative expense 30,416 23,157 60,549 44,263
Amortization of intangible assets 1,823 1,751 3,583 3,239
Special charges 2,100 3,580 4,000 3,580
-------------------- ------------------- ------------------ ----------------
Income from operations 9,419 12,942 16,908 27,826
Other income, net 84 299 359 950
Interest expense 6,507 6,451 12,799 11,636
-------------------- ------------------- ------------------ ----------------
Income before income taxes &
Extraordinary item 2,996 6,790 4,468 17,140
Income tax expense 1,243 2,792 1,832 6,839
-------------------- ------------------- ------------------ ----------------
Income before extraordinary item 1,753 3,998 2,636 10,301
Extraordinary item-net of income taxes - - - 363
-------------------- ------------------- ------------------ ----------------
Net income $1,753 $3,998 $2,636 $9,938
==================== =================== ================== ================
Per common share - basic:
Income before extraordinary item $0.09 $0.20 $0.13 $0.52
Extraordinary item - - - (0.02)
-------------------- ------------------- ------------------ ----------------
Net Income $0.09 $0.20 $0.13 $0.50
==================== =================== ================== ================
Weighted average number of common
shares outstanding 20,268 20,015 20,257 19,898
==================== =================== ================== ================
Per common share - diluted:
Income before extraordinary item $0.08 $0.19 $0.12 $0.49
Extraordinary item - - - (0.02)
-------------------- ------------------- ------------------ ----------------
Net Income $0.08 $0.19 $0.12 $0.47
==================== =================== ================== ================
Weighted average number of common
and common equivalent shares
outstanding 21,204 21,251 21,101 21,259
==================== =================== ================== ================