Hayes Lemmerz Third Fiscal Quarter Net Loss Significantly Reduced Despite Lower Revenue
04 Dicembre 2008 - 2:07PM
PR Newswire (US)
NORTHVILLE, Mich., Dec. 4 /PRNewswire-FirstCall/ -- Hayes Lemmerz
International, Inc. (NASDAQ:HAYZ) today announced that its sales
for the third fiscal quarter of 2008 were $497.0 million, down 10%
from $554.9 million a year earlier. The Company reported sales of
$1.634 billion for the nine months ended October 31, 2008, up
slightly from $1.598 billion a year earlier. Adjusted EBITDA for
the quarter was $50.3 million, down 10% from $55.8 million a year
earlier. Adjusted EBITDA for the nine months was $168.9 million, up
11% from $151.7 million in the prior nine months. Despite lower
volume, the Company's EBITDA margin as a percentage of sales was
above 10% for the third quarter, essentially unchanged from the
year earlier quarter. Core operating earnings were $21.6 million in
the third quarter, a decrease of 15% from $25.5 million in the year
earlier quarter. "We are pleased with our results in the face of
extremely difficult economic and industry conditions," said Curtis
J. Clawson, President, CEO and Chairman of the Board. "We are
better prepared for the current economic downturn due to the
significant restructuring actions that we completed over the last
several years. In addition, we are reducing our global workforce by
19%, adjusting work schedules at plants, and minimizing capital
expenditures and operating expenses. These initiatives have helped
us to maintain EBITDA margins in the third quarter despite lower
volumes, although further erosion of volumes will impact EBITDA
margins. Our goal is to ensure that the Company comes through these
difficult times well positioned to increase profitability when the
industry recovers," said Mr. Clawson. For the third quarter, Hayes
Lemmerz reported a net loss of $10.4 million, compared with a net
loss of $62.7 million in the year earlier quarter. The Company's
net loss for the nine months ended October 31, 2008 was $70.2
million, an improvement of $94.9 million from a net loss of $165.1
million reported for the year earlier period. Free cash flow for
the third quarter was negative $37.5 million, compared to positive
$25.6 million in the year earlier quarter. Most of the decrease in
free cash flow was the result of changes in working capital, with
the remainder primarily attributable to the timing of cash taxes
and lower Adjusted EBITDA. At October 31, Hayes Lemmerz had cash
and cash equivalents of $57.1 million and total liquidity of $163
million, which is in line with its historical levels of liquidity.
In light of the current economic downturn and industry uncertainty,
the Company announced that it is seeking to amend the financial
covenants in its senior secured credit facility to ensure continued
compliance and to provide additional flexibility. The Company also
announced that it is withdrawing its guidance for fiscal year 2008
results due to the difficult and unpredictable conditions in the
global economy and the global automotive markets. Conference Call
Hayes Lemmerz announced that it will host a telephone conference
call to discuss the Company's fiscal year 2008 third quarter
financial results today at 10:00 a.m. (ET). To participate by
phone, please dial 10 minutes prior to the call: (888) 295-5935
from the United States and Canada or (706) 758-0212 from outside
the United States Callers should ask to be connected to the Hayes
Lemmerz third quarter financial results conference call, Conference
ID# 70648367. 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 Relations section at
http://www.hayes-lemmerz.com/ir_overview.htm. A replay of the call
will be available from 1:00 p.m. (ET), December 4, 2008, until
11:59 p.m. (ET), December 16, 2008, by calling (800) 642-1687
(within the United States and Canada) or (706) 645-9291 (for
international calls). Please refer to Conference ID# 70648367. 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 world leading global
supplier of automotive and commercial highway wheels. The Company
has 23 facilities and approximately 7,000 employees worldwide. Use
of Non-GAAP Financial Information EBITDA, a measure used by
management to measure operating performance, is defined as earnings
from operations plus depreciation and amortization. Adjusted EBITDA
is defined as EBITDA further adjusted to exclude asset impairment
losses and other restructuring charges, reorganization items and
other items. Management references these non-GAAP financial
measures frequently in its decision making because they provide
supplemental information that facilitates internal comparisons to
historical operating performance of prior periods and external
comparisons to competitors' historical operating performance.
Institutional investors generally look to Adjusted EBITDA in
measuring performance, among other things. The Company uses
Adjusted EBITDA to facilitate quantification of planned business
activities and enhance subsequent follow-up with comparisons of
actual to planned Adjusted EBITDA. Free cash flow is defined as
cash from operating activities minus capital expenditures plus cash
from the sale of assets. Management uses free cash flow to identify
the amount of cash available to meet debt amortization
requirements, pay dividends to stockholders or make corporate
investments. Core operating earnings is defined as earnings from
operations less asset impairments and restructuring charges,
post-emergence chapter 11 related costs, gains and losses on sales
of assets, and other special items that are of an infrequent or
unusual nature. Core operating earnings is used by management as a
non-GAAP financial measure because it is more indicative of
operating performance due to exclusion of non-operating,
infrequent, or unusual items. For a reconciliation of these
non-GAAP financial measures to the most comparable GAAP measures,
please refer to pages 25 - 27 of the slide presentation
accompanying the conference call. Forward Looking Statements This
press release contains forward-looking statements with respect to
our financial condition and business. All statements other than
statements of historical fact made in this press release are
forward-looking. Such forward- looking statements include, among
others, those statements including the words "expect,"
"anticipate," "intend," "believe," and similar language. These
forward-looking statements involve certain risks and uncertainties.
Our actual results may differ significantly from those projected in
the forward-looking statements. Factors that may cause actual
results to differ materially from those contemplated by such
forward-looking statements include, among others: (1) competitive
pressure in our industry; (2) fluctuations in the price of steel,
aluminum, and other raw materials and our ability to maintain
credit terms with our suppliers; (3) changes in general economic
conditions; (4) our dependence on the automotive industry (which
has historically been cyclical) and on a small number of major
customers for the majority of our sales; (5) pricing pressure from
automotive industry customers and the potential for re- sourcing of
business to lower-cost providers; (6) changes in the financial
markets or our debt ratings affecting our financial structure and
our cost of capital and borrowed money; (7) the uncertainties
inherent in international operations and foreign currency
fluctuations; (8) our ability to obtain an amendment to the
financial covenants in our senior secured credit facilities; and
(9) the risks described in our most recent Annual Report on Form
10-K and our periodic statements filed with the Securities and
Exchange Commission. You are cautioned not to place undue reliance
on the forward-looking statements, which speak only as of the date
of this press release. HAYES LEMMERZ INTERNATIONAL, INC. AND
SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Millions of dollars)
(Unaudited) Balance as of October 31, January 31, 2008 2008 ASSETS
Current assets: Cash and cash equivalents $57.1 $160.2 Receivables
225.0 305.6 Other Receivables 39.4 48.3 Inventories 194.6 179.1
Assets held for sale 31.2 21.4 Prepaid expenses and other 9.1 12.2
Total current assets 556.4 726.8 Property, and plant equipment, net
535.1 616.8 Goodwill, intangibles and other long term assets 398.4
462.3 Total assets $1,489.9 $1,805.9 LIABILITIES AND STOCKHOLDERS'
EQUITY Current liabilities: Bank borrowings and other notes $46.4
$32.9 Current portion of long-term debt 4.2 4.8 Accounts payable
and other accrued liabilities 326.3 433.6 Liabilities held for sale
8.3 8.2 Other Short Term Liabilities 64.3 76.4 Total current
liabilities 449.5 555.9 Long-term debt, net of current portion
519.1 572.2 Pension and other long-term liabilities 356.2 405.0
Minority interest 66.7 70.5 Stockholders' equity: Common stock, par
value $0.01 per share 1.0 1.0 Additional paid in capital 885.8
882.0 Retained earnings (1,000.5) (928.7) Accumulated other
comprehensive income 212.1 248.0 Total stockholders' equity 98.4
202.3 Total liabilities and stockholders' equity $1,489.9 $1,805.9
HAYES LEMMERZ INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED
STATEMENTS OF OPERATIONS (Millions of dollars) (Unaudited) Three
Months Ending Nine Months Ending October 31 October 31 2008 2007
2008 2007 Net sales $497.0 $554.9 $1,634.3 $1,597.6 Cost of goods
sold 440.4 496.8 1,442.1 1,430.2 Gross profit 56.6 58.1 192.2 167.4
Marketing, general and administration 34.1 35.8 112.8 116.6
Amortization of intangibles 2.6 2.5 8.3 7.5 Asset impairments and
other restructuring charges 2.7 50.0 11.8 54.0 Other (income)
expense, net (3.4) (2.6) 27.3 4.9 Earnings from operations 20.6
(27.6) 32.0 (15.6) Interest expense, net 12.2 13.9 39.8 47.8 Other
non-operating expense - - - 21.5 Loss on early extinguishment of
debt 0.1 (1.4) 2.8 (1.4) Earnings (loss) before income taxes and
minority interest 8.3 (40.1) (10.6) (83.5) Income tax expense 12.5
16.7 40.1 38.5 Loss before minority interest (4.2) (56.8) (50.7)
(122.0) Minority interest 3.9 5.9 17.2 15.4 Loss from continuing
operations (8.1) (62.7) (67.9) (137.4) Loss from discontinued
operations (2.3) - (2.3) (27.7) Net loss (10.4) (62.7) (70.2)
(165.1) Loss per common share data Basic and diluted: Loss from
continuing operations $(0.08) $(0.62) $(0.67) $(1.87) Loss from
discontinued operations (0.02) - (0.02) (0.38) Net loss $(0.10)
$(0.62) $(0.69) $(2.25) Weighted average shares outstanding (in
millions) 101.4 100.4 101.2 73.4 HAYES LEMMERZ INTERNATIONAL, INC.
AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Millions of
dollars) (Unaudited) Nine Months Ending October 31 2008 2007 Cash
provided by operating activities $(21.1) $37.4 Cash flows from
investing activities: Purchase of property, plant, equipment and
tooling (67.1) (64.1) Proceeds from sale of assets (23.4) 1.5 Cash
used for investing activities (90.5) (62.6) Cash flows from
financing activities: Changes in bank borrowings and credit
facility 20.8 0.9 Bank finance fees paid 0.0 (14.8) Proceeds from
revolving credit facility 16.0 0.0 Repayment of long term debt
(2.6) (136.3) Dividends paid to minority shareholders (12.9) (10.1)
Proceeds from issuance of common stock 0.0 193.1 Call premium on
redemption of Senior Notes 0.0 (9.0) Fees paid for Rights Offering
0.0 (7.7) Cash provided by (used for) financing activities 21.3
16.1 Net cash provided by discontinued operations (1.1) 45.1 Effect
of exchange rate changes on cash and cash equivalents (11.7) 4.1
Increase in cash and cash equivalents (103.1) 40.1 Cash and cash
equivalents at beginning of period 160.2 38.5 Cash and cash
equivalents at end of period $57.1 $78.6 DATASOURCE: Hayes Lemmerz
International, Inc. CONTACT: Marika P. Diamond, Hayes Lemmerz
International, Inc., +1-734-737-5162 Web site:
http://www.hayes-lemmerz.com/
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