PLYMOUTH, Mich., May 4, 2015 /PRNewswire/ -- Metaldyne
Performance Group Inc. "MPG" (NYSE: MPG), a leading provider of
highly-engineered components for use in powertrain and
safety-critical platforms for the global light, commercial and
industrial vehicle markets, today announced preliminary results for
the first quarter of 2015 in conjunction with its intent to reprice
the term loans outstanding under its existing senior secured credit
facility and to raise up to €250 million in aggregate principal
amount of new Euro-denominated term loans.
The following sets forth certain estimated financial and
operating results of MPG for the first quarter of 2015.
- Net sales are estimated to be between $764 million and $766 million.
- Net income is estimated to be between $32 million and $33 million.
- Adjusted EBITDA is estimated to be between $132 million and $133 million.
The Company also reiterates its previously announced guidance
for 2015.
The Company has not yet finalized its financial statement close
process for the first quarter of 2015. As a result, these
preliminary results remain subject to change. The Company expects
to release financial and operating results for the first quarter of
2015 on May 7, 2015. Please refer to
the Company's Form 8-K filed this morning with the SEC for further
details.
There can be no assurances that the Company will be successful
in its loan marketing efforts or that it will be able to enter into
any of the proposed transactions described above. Closing of
such transactions is subject to market conditions, as well as the
negotiation and execution of definitive documents and the
satisfaction of customary closing conditions.
About MPG
Metaldyne Performance Group Inc. is a leading provider of
highly-engineered components for use in powertrain and
safety-critical platforms for the global light, commercial and
industrial vehicle markets. MPG produces these components using
complex metal-forming manufacturing technologies and processes for
a global customer base of vehicle OEMs and Tier I suppliers. MPG's
metal-forming manufacturing technologies and processes include
aluminum die casting, forging, iron casting and powder metal
forming as well as advanced machining and assembly. Headquartered
in Plymouth, Michigan, MPG
has a global footprint spanning 61 locations in 13 countries
across North America, South
America, Europe and Asia with approximately
12,000 employees. For more information, visit
www.mpgdriven.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains certain "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements may be identified by words such
as "expects," "intends," "anticipates," "plans," "believes,"
"seeks," "estimates," "will" or words of similar meaning and
include, but are not limited to, statements regarding the outlook
for the Company's future business and financial performance.
Forward-looking statements are based on management's current
expectations and assumptions, which are subject to inherent
uncertainties, risks and changes in circumstances that are
difficult to predict. Actual outcomes and results may differ
materially due to global political, economic, business,
competitive, market, regulatory and other factors and risks,
including those described under the heading "Risk Factors" in our
filings with the Securities and Exchange Commission. The Company
undertakes no obligation to update or revise any forward-looking
statement to reflect events or circumstances after the date on
which the statement is made or to reflect the occurrence of
unanticipated events, except as otherwise may be required by
law.
Non-GAAP Financial Measures
Adjusted EBITDA
We define Adjusted EBITDA as net income (loss) before interest
expense, provision for (benefit from) income taxes and depreciation
and amortization, with further adjustments to reflect the additions
and eliminations of certain income statement items, including (i)
gains and losses on foreign currency and fixed assets and debt
transaction expenses, (ii) stock-based compensation and other
non-cash charges, (iii) sponsor management fees and other
income and expense items that we consider to be not indicative of
our ongoing operations, (iv) specified non-recurring items and
(v) other adjustments.
We believe Adjusted EBITDA is used by investors as a
supplemental measure to evaluate the overall operating performance
of companies in our industry. Management uses Adjusted EBITDA (i)
as a measurement to compare our operating performance on a
consistent basis, (ii) to calculate incentive compensation for our
employees, (iii) for planning purposes, including the preparation
of our internal annual operating budget, (iv) to evaluate the
performance and effectiveness of our operational strategies and (v)
to assess compliance with various metrics associated with our
agreements governing our indebtedness. Accordingly, we believe that
Adjusted EBITDA provides useful information to investors and others
in understanding and evaluating our operating performance in the
same manner as our management. For a reconciliation of Adjusted
EBITDA to net income, the most directly comparable measure
determined under U.S. generally accepted accounting principles
("GAAP"), see "RECONCILIATION OF Q1 2015 NET INCOME GUIDANCE TO
ADJUSTED EBITDA GUIDANCE".
METALDYNE
PERFORMANCE GROUP INC.
|
RECONCILIATION OF
Q1 2015 NET INCOME GUIDANCE TO ADJUSTED EBITDA
GUIDANCE
|
(In
millions)
|
|
|
|
|
Q1 2015
Guidance
|
|
|
Low End of
Range
|
|
High End of
Range
|
|
Net income
attributable to stockholders
|
$
32.0
|
|
33.0
|
|
Income attributable
to noncontrolling interest
|
0.2
|
|
0.2
|
|
Net
income
|
32.2
|
|
33.2
|
|
|
|
|
|
|
Addbacks to Arrive
at Unadjusted EBITDA
|
|
|
|
|
Interest expense,
net
|
27.6
|
|
27.6
|
|
Income tax
expense
|
17.0
|
|
17.2
|
|
Depreciation and
amortization
|
56.4
|
|
56.4
|
|
Unadjusted
EBITDA
|
133.2
|
|
134.4
|
|
|
|
|
|
|
Adjustments to
Arrive at Adjusted EBITDA
|
|
|
|
|
Foreign currency
gains
|
(5.0)
|
|
(5.0)
|
|
Stock-based
compensation expense
|
3.3
|
|
3.3
|
|
Non-recurring
operational items and other (1)
|
0.5
|
|
0.3
|
|
Adjusted
EBITDA
|
$ 132.0
|
|
133.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Non-recurring
operational items and other includes charges for disposed
operations, restructuring costs, loss on fixed asset sales, debt
transaction expenses, acquisition expenses and other.
|
Contacts
Investor Relations
Paul Suber
Vice President, Business Development & Investor Relations
investors@mpgdriven.com
248-440-9503
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SOURCE Metaldyne Performance Group Inc.