DRRA Dura Automotive Systems

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 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 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. -0- *T 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 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 ========= ======== 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 =========== =========== 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 =========== =========== *T