Collins & Aikman Announces First Quarter Financial Results And Record First Quarter Sales
06 Maggio 2004 - 3:00PM
PR Newswire (US)
Collins & Aikman Announces First Quarter Financial Results And
Record First Quarter Sales TROY, Mich., May 6
/PRNewswire-FirstCall/ -- Collins & Aikman Corporation
(C&A) today reported results for the first quarter ended March
31, 2004. The company reported record first quarter net sales in
2004 of $1.066 billion compared to $1.035 billion in the first
quarter of 2003, a 3% increase which mainly reflects improved
currency impact. The company reported a loss of $23.3 million or 28
cents per share in the first quarter of 2004, which included
after-tax charges for restructuring, long-lived asset impairments
and costs related to early extinguishment of debt of $10.6 million
(or 13 cents per share). In the comparable 2003 quarter, the
company had a loss of $26.2 million or 31 cents per share, which
included after-tax charges for restructuring and long-lived asset
impairments of $13.2 million (or 15 cents per share). Commenting on
the company's first quarter operating results, David A. Stockman,
C&A Chairman and CEO stated, "We are pleased with the
significant performance improvement in EBITDA before restructuring
and impairment charges. For the third consecutive quarter our
EBITDA results were up double digits from the prior year on a
comparable basis. We are also seeing our previous problem plants
turning around their financial results from the 2003 levels." The
first quarter 2004 pre-tax restructuring charge of $9.5 million
included costs associated with additional rightsizing efforts to
reduce corporate overhead and salaried headcount and to close
additional manufacturing facilities. This restructuring initiative
is expected to further reduce the company's fixed-cost structure by
approximately $13 million when fully implemented. C&A's net
debt, including outstandings under an off-balance sheet accounts
receivable facility, was $1.432 billion at March 31, 2004. EBITDA
Discussion EBITDA was $66.9 million for the first quarter of 2004,
which was reduced by charges of $9.5 million for restructuring and
$3.0 million for the impairment of long-lived assets. The first
quarter 2003 EBITDA was $52.6 million, which was reduced by $18.1
million for the impairment of long-lived assets. A reconciliation
of our EBITDA, a non-GAAP financial measure, to U.S. GAAP net loss,
is set out in the attached EBITDA reconciliation schedule. The
company believes that EBITDA is a meaningful measure of performance
as it is commonly utilized in its industry to analyze operating
performance. EBITDA should not be construed as income from
operations, net income (loss) or cash flow from operating
activities as determined by generally accepted accounting
principles. Other companies may calculate EBITDA differently.
Awards The Company received the prestigious Triple Crown Award from
NUMMI (New United Motor Manufacturing Inc., a joint venture between
Toyota and General Motors). This award was given for C&A's
achievements in quality, cost and delivery. C&A also received
an award from Honda for quality and delivery performance associated
with products from the Soft Trim Business Unit. Director
Resignations The company also announced today that Charles Becker
and Elkin McCallum have resigned as directors of the company
effective as of May 6, 2004. Mr. Becker was first elected to the
board in July 2001, following the company's acquisition of Becker
Group, LLC, an affiliate of Mr. Becker. He was re-elected to the
board last year and has two years remaining in his term. Mr. Becker
beneficially owns 9.0% of the company's stock. Mr. McCallum, whose
term as a director was scheduled to expire at the company's
upcoming 2004 annual stockholders meeting, was first elected to the
board in September 2001, following the company's acquisition of the
automotive fabric operations of Joan Fabrics, an affiliate of Mr.
McCallum. Mr. McCallum beneficially owns 6.1% of the company's
stock. "We have been fortunate to have had Chuck and Elkin on our
board during this intensive three-year period of growth and
transition. Their experience and insight have been instrumental in
creating the foundation for the company's future success,"
commented Stockman. "We understand their desire to resign at this
time due to other business interests and thank them for their
efforts on behalf of the company." Since neither Mr. Becker nor Mr.
McCallum would have qualified as an independent director with
respect to the company because of their stock ownership positions,
their resignations will facilitate the company's ongoing process of
working towards compliance with the New York Stock Exchange's
requirements for independent board composition prior to the
company's 2004 annual stockholders meeting. The company expects to
announce other changes in the composition of its board as it
completes the compliance process in the near future. The company
will hold a briefing with institutional investors and security
analysts, news media representatives and other interested parties
at 9:00 a.m. EDT today to discuss its first quarter results and
other matters. To participate by phone, please dial (973) 582-2729.
The briefing will also be audio webcast, on our website at:
http://www.collinsaikman.com/investor/confcalls.html . A slide
presentation will also be used in conjunction with this
teleconference and will be available on the company's website.
Collins & Aikman Corporation, a Fortune 500 company, is a
global leader in cockpit modules and automotive floor and acoustic
systems and a leading supplier of instrument panels, automotive
fabric, plastic-based trim and convertible top systems. The
company's operations span the globe through 16 countries, more than
100 facilities and nearly 24,000 employees who are committed to
achieving total excellence. Collins & Aikman's high-quality
products combine superior design, styling and manufacturing
capabilities with NVH "quiet" technologies that are among the most
effective in the industry. Information about Collins & Aikman
is available on the Internet at http://www.collinsaikman.com/ .
This news release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Actual results may differ materially from the anticipated results
because of certain risks and uncertainties, including but not
limited to general economic conditions in the markets in which
Collins & Aikman operates, fluctuations in the production of
vehicles for which the company is a supplier, changes in the
popularity of particular car models, labor disputes involving the
company or its significant customers, changes in consumer
preferences, dependence on significant automotive customers, the
level of competition in the automotive supply industry, pricing
pressure from automotive customers, the substantial leverage of the
company and its subsidiaries, limitations imposed by the company's
debt facilities, charges made in connection with the integration of
operations acquired by the company, the implementation of the
reorganization plan, risks associated with conducting business in
foreign countries and other risks detailed from time-to-time in the
company's Securities and Exchange Commission filings. COLLINS &
AIKMAN CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited) Three months ended March 31, 2004 2003 (In millions,
except per share data) Net sales $1,066.2 $1,035.1 Cost of goods
sold 963.9 931.8 Gross profit 102.3 103.3 Selling, general and
administrative expenses 59.9 66.0 Restructuring charges 9.5 -
Impairment of long-lived assets 3.0 18.1 Operating income 29.9 19.2
Net interest expense (40.2) (36.0) Interest from subsidiary
preferred stock dividends (9.9) (6.5) Interest from subsidiary
preferred stock accretion (0.5) (2.1) Loss on sale of receivables
(2.2) (1.4) Other income (expense), net (0.5) 1.5 Loss from
operations before income taxes (23.4) (25.3) Income tax (expense)
benefit 0.1 (0.9) Net loss $(23.3) $(26.2) Net loss per basic and
diluted common share data: Total $(0.28) $(0.31) Basic and diluted
shares outstanding 83.6 83.6 COLLINS & AIKMAN CONDENSED
CONSOLIDATED BALANCE SHEETS March 31, December 31, 2004 2003
(Unaudited) (In millions) ASSETS Current assets: Cash and
equivalents $4.4 $13.2 Accounts and other receivables, net 335.9
257.3 Inventories 167.9 169.4 Other 217.0 212.2 Total current
assets 725.2 652.1 Property, plant and equipment, net 833.4 834.1
Deferred tax assets 177.7 178.1 Goodwill and other intangible
assets, net 1,424.2 1,430.0 Other assets 91.5 96.9 Total assets
$3,252.0 $3,191.2 LIABILITIES AND STOCKHOLDERS' EQUITY Current
liabilities Short-term borrowings $19.8 $16.0 Current maturities of
long-term debt 6.3 31.5 Accounts payable 641.9 638.9 Accrued
expenses 276.0 238.9 Total current liabilities 944.0 925.3
Long-term debt and lease obligations 1,310.4 1,237.7 Mandatorily
redeemable preferred stock of subsidiary 171.5 161.2 Other,
including pensions and post- retirement obligations 413.5 423.4
Minority interest 2.5 3.3 Stockholders' equity 410.1 440.3 Total
liabilities and stockholders' equity $3,252.0 $3,191.2 COLLINS
& AIKMAN CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited) Three months ended March 31, 2004 2003 (In millions)
Operating activities Net loss $(23.3) $(26.2) Depreciation and
amortization 37.0 33.4 Impairment of long-lived assets 3.0 18.1
Changes in working capital (44.4) (2.0) Other 6.2 6.0 Net cash flow
(used in) provided by operating activities (21.5) 29.3 Investing
activities Capital expenditures (39.9) (35.4) Sales of property,
plant and equipment 1.3 3.1 Acquisitions, net of cash acquired -
(33.0) Financing activities Net increase (decrease) in long-term
debt and short-term borrowings 51.5 (13.0) Effect of exchange rate
changes on cash (0.2) - Decrease in cash and equivalents (8.8)
(49.0) Cash and equivalents at beginning of period 13.2 81.3 Cash
and equivalents at end of period $4.4 $32.3 COLLINS & AIKMAN
SUPPLEMENTAL DATA - EBITDA RECONCILIATION SCHEDULE (unaudited)
Three months ended March 31, 2004 2003 (In millions) Net loss
$(23.3) $(26.2) Income tax (benefit) expense (0.1) 0.9 Net interest
expense 40.2 36.0 Loss on sale of receivables 2.2 1.4 Interest from
subsidiary preferred stock dividends and accretion 10.4 8.6 Other
expense (income), net 0.5 (1.5) Operating income 29.9 19.2
Depreciation and amortization 37.0 33.4 EBITDA $66.9 $52.6 Memo:
Restructuring charges $9.5 $- Impairment of long-lived assets 3.0
18.1 Total restructuring and impairment charges $12.5 $18.1 This
supplemental data presented above is a reconciliation of a certain
financial measure which is intended to facilitate analysis of
Collins & Aikman Corporation's business and operating
performance. EBITDA is defined as operating income plus
depreciation and amortization. The company believes that EBITDA is
a meaningful measure of performance as it is commonly utilized in
the industry to analyze operating performance. EBITDA should not be
construed as income from operations, net income (loss) or cash flow
from operating activities as determined by generally accepted
accounting principles. Other companies may calculate EBITDA
differently. DATASOURCE: Collins & Aikman Corporation CONTACT:
J. Michael Stepp, Vice Chairman & CFO, +1-248-824-1520, , or
Robert A. Krause, Vice President & Treasurer, Head of Investor
Relations, +1-248-733-4355, , both of Collins & Aikman
Corporation Web site: http://www.collinsaikman.com/
Copyright
Grafico Azioni Collins & Aikman (NYSE:CKC)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni Collins & Aikman (NYSE:CKC)
Storico
Da Lug 2023 a Lug 2024