Hayes Lemmerz Reports Second Quarter 2004 Results
September 08 2004 - 7:54AM
PR Newswire (US)
Hayes Lemmerz Reports Second Quarter 2004 Results NORTHVILLE,
Mich., Sept. 8 /PRNewswire-FirstCall/ -- Hayes Lemmerz
International, Inc. (NASDAQ:HAYZ) reported that sales for the
fiscal second quarter, ended July 31, 2004, rose 4% to $523.7
million compared with $502.8 million a year earlier. Sales for the
six months ended July 31, 2004 were $1,117.8 million compared to
$1,018.1 million a year earlier, an increase of 10%. The Company
reported a net loss of $10.0 million, or 26 cents a share, for the
second fiscal quarter ended July 31, 2004. For the fiscal first
half of 2004, the Company reported a net loss of $12.7 million, or
34 cents a share. For the second fiscal quarter of 2004, earnings
from operations excluding fresh start accounting adjustments and
reorganization items was $9.5 million, compared with $20.4 million
a year earlier. Increased volumes and favorable exchange rates
abroad were offset by lower OEM production requirements in North
America, lower unit pricing globally, and increased steel and iron
prices. For the six months ended July 31, 2004, earnings from
operations with those exclusions amounted to $35.7 million,
compared with $34.8 million a year earlier. The Company reported a
cash balance of $49.1 million as of July 31, 2004 and there were no
borrowings under its $100 million revolving credit facility. "I am
encouraged by our continuing progress in making Hayes Lemmerz more
cost-efficient and customer-focused in our operations," said Curtis
Clawson, Chairman, President, and CEO. "Given the challenges faced
by our industry, including sharply higher steel costs and soft new
vehicle sales, we did well in the second quarter. For the first
half of 2004, we slightly increased earnings from operations
excluding fresh start accounting adjustments and reorganization
items." Mr. Clawson cautioned that Hayes Lemmerz will continue to
face high materials costs, and also the impacts of new global
competitors, especially in China. "Our industry remains under
intense pricing pressure from competitors, and from our major
customers. Fortunately, our intense focus on reduction in
production costs, facility improvements, and increased productivity
is allowing us to respond effectively to those pressures," Mr.
Clawson said. The 2004 fiscal second quarter results included $0.9
million of restructuring charges, primarily arising from severance
and related closure costs of the Howell, Michigan, manufacturing
plant as part of management's ongoing rationalization efforts.
Results for the first half of 2004 also include a $12.2 million
loss on early extinguishment of debt. During the first quarter,
Hayes Lemmerz sold 7.7 million shares of its common stock in a
primary offering, and used a portion of the $117.0 million net
proceeds to extinguish $87.5 million of its New Senior Notes and to
prepay $16.0 million of its New Term Loan. Hayes Lemmerz will host
a telephone conference call to discuss the Company's fiscal year
2004 second quarter financial results today at 9:30 a.m. (ET). To
participate by phone, please dial 10 minutes prior to the call:
(800) 399-3882 from the United States and Canada (706) 634-4552
from outside the United States. Callers should ask to be connected
to the Hayes Lemmerz earnings conference call, Conference
ID#9644838. The conference call will be accompanied by a slide
presentation, which can be accessed that morning through the
Company's web site, in the Investor Kit presentations section at
http:///
http://www.hayes-lemmerz.com/investor_kit/html/presentations.html .
A replay of the call will be available from 12:00 Noon (ET),
September 8, 2004 until 11:59 p.m. (ET), September 15 , 2004, by
calling (800) 642-1687 (within the United States and Canada) or
(706) 645-9291 (for international calls). Please refer to
Conference ID#9644838. An audio replay of the call is expected to
be available on the Company's website beginning 48 hours after
completion of the call. Hayes Lemmerz International, Inc. is a
leading global supplier of automotive and commercial highway
wheels, brakes, powertrain, suspension, structural and other
lightweight components. The Company has 43 facilities and one joint
venture in 14 countries and approximately 11,000 employees
worldwide. More information about Hayes Lemmerz International, Inc.
is available at our website which is http://www.hayes-lemmerz.com/
. This press release includes forward looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934, as amended, which
represent the Company's expectations and beliefs concerning future
events that involve risks and uncertainties which could cause
actual results to differ materially from those currently
anticipated. All statements other than statements of historical
facts included in this release are forward looking statements.
Factors that could cause actual results to differ materially from
those expressed or implied in such forward looking statements
include the factors set forth in our periodic reports filed with
the SEC. Consequently, all of the forward looking statements made
in this press release are qualified by these and other factors,
risks, and uncertainties. HAYES LEMMERZ INTERNATIONAL, INC. AND
SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in
millions, except per share amounts) (Unaudited) Successor
Predecessor Three Months Two Months One Month Ended Ended Ended
July 31, July 31, May 31, 2004 2003 2003 Net sales $523.7 $328.3
$174.5 Cost of goods sold 474.4 298.9 147.8 Gross profit 49.3 29.4
26.7 Marketing, general and administration 39.9 24.9 7.7 Asset
impairments and other restructuring charges 0.9 - 2.3 Other
(income) expense, net (1.0) 2.1 (1.3) Reorganization items - - 31.9
Fresh start accounting adjustments - - (63.1) Earnings from
operations 9.5 2.4 49.2 Interest expense, net 12.4 8.1 5.8 Other
non-operating expense - 0.1 - Earnings (loss) before taxes on
income, minority interest and extraordinary gain on debt discharge
(2.9) (5.8) 43.4 Income tax provision 5.6 2.6 54.4 Minority
interest 1.5 0.8 0.2 Extraordinary gain on debt discharge, net of
tax $0 - - 1,076.7 Net income (loss) $(10.0) $(9.2) $1,065.5 Basic
and diluted net loss per share $(0.26) $(0.31) HAYES LEMMERZ
INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF
OPERATIONS (Dollars in millions, except per share amounts)
(Unaudited) Successor Predecessor Six Months Two Months Four Months
Ended Ended Ended July 31, July 31, May 31, 2004 2003 2003 Net
sales $1,117.8 $328.3 $689.8 Cost of goods sold 994.4 298.9 611.3
Gross profit 123.4 29.4 78.5 Marketing, general and administration
83.8 24.9 41.6 Asset impairments and other restructuring charges
3.3 - 6.4 Other (income) expense, net 0.6 2.1 (1.9) Reorganization
items - - 45.0 Fresh start accounting adjustments - - (63.1)
Earnings from operations 35.7 2.4 50.5 Interest expense, net 21.6
8.1 22.7 Other non-operating (income) expense (0.1) 0.1 - Loss on
early extinguishments of debt 12.2 - - Earnings (loss) before taxes
on income, minority interest, extraordinary gain on debt discharge
2.0 (5.8) 27.8 Income tax provision 10.6 2.6 60.3 Minority interest
4.1 0.8 1.2 Extraordinary gain on debt discharge, net of tax $0 - -
1,076.7 Net income (loss) $(12.7) $(9.2) $1,043.0 Basic and diluted
net loss per share $(0.34) $(0.31) HAYES LEMMERZ INTERNATIONAL,
INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Dollars in
millions) July 31, January 31, 2004 2004 (Unaudited) ASSETS Current
assets: Cash and cash equivalents $49.1 $48.5 Receivables 325.0
325.5 Inventories 204.1 189.3 Prepaid expenses and other 21.3 29.0
Total current assets 599.5 592.3 Property, plant and equipment, net
966.4 966.5 Goodwill 407.2 416.2 Intangible assets, net 225.2 237.2
Other assets 51.6 85.5 Total assets $2,249.9 $2,297.7 LIABILITIES
AND STOCKHOLDERS' EQUITY Current liabilities: Bank borrowings and
other notes $4.0 $14.2 Current portion of long-term debt 10.1 11.3
Accounts payable and accrued liabilities 362.1 355.5 Total current
liabilities 376.2 381.0 Long-term debt, net of current portion
641.2 752.4 Pension and other long-term liabilities 517.7 526.5
Series A Warrants and Series B Warrants 3.0 8.2 Redeemable
preferred stock of subsidiary 10.9 10.5 Minority interest 25.9 23.2
Commitments and contingencies Total stockholders' equity 675.0
595.9 Total liabilities and stockholders' equity $2,249.9 $2,297.7
HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED
STATEMENTS OF CASH FLOWS (Dollars in millions) (Unaudited)
Successor Predecessor Six Months Two Months Four Months Ended Ended
Ended July 31, July 31, May 31, 2004 2003 2003 Cash provided by
operating activities $79.6 $44.4 $31.1 Cash flows from investing
activities: Purchase of property, plant, equipment and tooling
(68.0) (19.5) (26.3) Purchase of equipment previously leased - -
(23.6) Proceeds from sale of assets 1.7 - 0.8 Cash used for
investing activities (66.3) (19.5) (49.1) Cash flows from financing
activities: Change in borrowings under DIP Facility - - (49.9)
Changes in bank borrowings and credit facility 2.9 (65.0) (9.8)
Repayment of notes payable issued in connection with purchases of
businesses (13.1) - (2.0) Repayment of long term debt (5.5) - - Net
proceeds from issuance of common stock 117.0 - - Proceeds from
(redemption of) New Senior Notes, net of discount and related fees
(96.7) - 242.8 Proceeds from (redemption of) New Term Loan, net of
related fees (16.0) - 436.1 Prepetition Lenders' Payment amount - -
(477.3) Payment to holders of Old Senior Notes - - (13.0) Cash
provided by (used for) financing activities (11.4) (65.0) 126.9
Effect of exchange rate changes on cash and cash equivalents (1.3)
1.6 4.1 Increase(decrease) in cash and cash equivalents 0.6 (38.5)
113.0 Cash and cash equivalents at beginning of period 48.5 179.1
66.1 Cash and cash equivalents at end of period $49.1 $140.6 $179.1
DATASOURCE: Hayes Lemmerz International, Inc. CONTACT: Press,
Marika P. Diamond, +1-734-737-5162, Investors, Gary Findling,
+1-734-737-5102, both of Hayes Lemmerz International, Inc. Web
site: http://www.hayes-lemmerz.com/
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