- First Quarter 2015 results from
continuing operations included:
- Net sales of $183.7 million, up 10.1
percent year-over-year
- Adjusted EBITDA of $21.3 million, up
18.5 percent year-over-year
- Net loss of $0.01 per share
- Recent business wins at Wheels and
Gunite
Accuride Corporation (NYSE:ACW) – a leading supplier of
components to the North American commercial vehicle industry –
today reported strong financial results for the first quarter ended
March 31, 2015.
First Quarter 2015 Results
First quarter 2015 net sales from continuing operations were
$183.7 million, compared with $166.8 million in the same period in
2014, an increase of 10.1 percent, primarily reflecting the impact
of stronger industry conditions in the Company’s Wheels and
Brillion segments during the quarter. Accuride’s operating income
was $9.3 million for the quarter, as compared to operating income
of $6.6 million in the first quarter of 2014. The Company reported
a net loss of $0.6 million, or $0.01 per share, during the quarter,
compared to a net loss of $3.3 million, or $0.07 per share, in
2014. First quarter Adjusted EBITDA increased by 18.5 percent
year-over-year to $21.3 million, or 11.6 percent of net sales,
compared to $18.0 million, or 10.8 percent of net sales, in the
same quarter of 2014. As of March 31, 2015, Accuride had $17.6
million of cash plus $53.3 million in availability under its ABL
Credit Facility for total liquidity of $70.9 million.
Industry Conditions
In the first quarter, North American truck and trailer
production continued to increase at a healthy pace. Class 8, Class
5-7 and Trailer production grew by 19 percent, 13 percent and 28
percent, respectively, compared to 2014. Class 8 net orders,
although still strong, began to level out toward a more normalized
pace. Continued order strength is expected to translate into
increased OEM production levels over the next several quarters,
with full-year Class 8 production at levels 5 to 10 percent higher
than 2014. Trailer segment net orders in the first quarter also
began to level off and trailer builds are expected to grow by
approximately 5 to 10 percent over 2014 levels. Driven by the
expanding U.S. economy, first-quarter Medium-duty segment orders
increased by 6 percent year-over-year, and full-year production is
projected to be up 2 percent over 2014 levels. Fleets are generally
optimistic about current conditions within the trucking industry.
Freight tonnage is forecasted to steadily increase throughout the
next several years, which will continue to drive increased demand
for trucks and trailers going forward.
First Quarter Business Segment Results
Accuride Wheels
Accuride Wheels segment net sales were $108.3 million, up $16.1
million, or 17.5 percent, from the same period in 2014, primarily
due to stronger OEM demand and market share gains in the
aftermarket. Wheels’ Adjusted EBITDA was $22.2 million, an increase
of $3.0 million, or 15.8 percent, from the first quarter of 2014.
Additional shifts were added in Camden and Mexico to meet rising
customer demand for aluminum wheels.
Gunite
Gunite segment net sales of $37.7 million were down $6.2
million, or 14.2 percent, from the first quarter of 2014,
attributable primarily to lower aftermarket demand for brake drums
and OEM demand for hubs. Gunite’s Adjusted EBITDA decreased by $0.2
million to $4.1 million, from $4.3 million in the first quarter of
2014.
Brillion Iron Works
Brillion Iron Works’ first quarter net sales were $37.6 million,
up $7.0 million, or 22.8 percent, from the first quarter of 2014 on
higher customer volumes. Brillion’s Adjusted EBITDA was $3.4
million, an increase of $1.0 million, from the first quarter of
2014. The Company currently expects Brillion’s top-line growth in
2015 to be flat compared to its previous guidance of 5 percent to
10 percent, due primarily to reduced demand in Brillion's oil and
gas, agricultural and mining end markets.
Liquidity and Debt
As of March 31, 2015, total debt was $326.5 million, consisting
of $306.5 million of our outstanding 9.5% senior secured notes, net
of discount, and a $20.0 million draw on our ABL Credit Facility.
As of March 31, 2015, Accuride had $17.6 million of cash plus $53.3
million in availability under its ABL Credit Facility, for total
liquidity of $70.9 million.
Business and Market Outlook
"Accuride had a strong first quarter," said Rick Dauch,
Accuride's President and CEO. "Our industry-leading quality,
delivery and lead-time performance allowed us to renew and secure
new long-term customer agreements at our Wheels and Gunite
businesses. We are experiencing near-term headwinds at Brillion due
to macro industry conditions."
2015 Financial Guidance
Accuride management expects the Company’s 2015 net sales to be
in the range of $725 million to $775 million, and Adjusted EBITDA
to be in the range of $85 million to $95 million. The midpoints of
the Company’s revenue and Adjusted EBITDA ranges represent
increases of 6 percent and 15 percent, respectively, over
Accuride’s 2014 results. The Company has based its 2015 guidance on
the following projections for the North American commercial vehicle
industry: Class 8 production in the range of 310,000 to 330,000
units, Class 5-7 production in the range of 220,000 to 225,000
units and Trailer segment production in the range of 280,000 to
300,000 units. In addition, management expects net sales for the
Brillion business unit to be flat versus 2014.
Earnings Conference Call Information
Accuride will host a conference call to discuss the financial
and operational results of its First Quarter Fiscal Year 2015 on
Monday, April 27, 2015, beginning at 9:00 a.m. CDT. Analysts and
investors may participate on the conference call by dialing (800)
708-4539 in the United States, or (847) 619-6396 internationally,
and using participant code 39490750. A live webcast of the
conference call can be accessed via the Investors section of the
company’s website – www.AccurideCorp.com/investors. A replay will
be available from April 27, 2015, at 11:30 a.m. CDT until 11:59
p.m. CDT, May 4, 2015, by calling (888) 843-7419 in the United
States, or (630) 652-3042 internationally, using access code
39490750.
About Accuride Corporation
With headquarters in Evansville, Ind., USA, Accuride Corporation
is a leading supplier of components to the North American
commercial vehicle industry. The company’s products include
commercial vehicle wheels; wheel-end components and assemblies; and
specialty cast-iron components for a range of agricultural,
construction and mining, and oil and gas equipment applications.
The company’s products are marketed under its brand names, which
include Accuride®, Accuride Wheel End SolutionsTM, Gunite®,
and BrillionTM. Accuride’s common stock trades on the New
York Stock Exchange under the ticker symbol ACW. For more
information, visit the Company’s website at
http://www.accuridecorp.com.
Forward-Looking Statements
Statements contained in this news release that are not purely
historical are forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended, including
statements regarding Accuride’s expectations, hopes, beliefs, and
intentions with respect to future results. Such statements are
subject to the impact on Accuride’s business and prospects
generally of, among other factors, market demand in the commercial
vehicle industry, general economic, business and financing
conditions, labor relations, governmental action, competitor
pricing activity, expense volatility and other risks detailed from
time to time in Accuride’s Securities and Exchange Commission
filings, including those described in Item 1A of Accuride’s Annual
Report on Form 10-K for the fiscal year ended December 31, 2014.
Any forward-looking statement reflects only Accuride’s belief at
the time the statement is made. Although Accuride believes that the
expectations reflected in these forward-looking statements are
reasonable, it cannot guarantee its future results, levels of
activity, performance or achievements. Except as required by law,
Accuride undertakes no obligation to update any forward-looking
statements to reflect events or developments after the date of this
news release.
Three Months Operating Results
(UNAUDITED)
Three Months Ended March 31,
(Dollars in thousands) 2015 2014
Net sales: Wheels $ 108,336 59.0 % $ 92,218
55.3 % Gunite 37,740 20.5 % 43,973 26.4 % Brillion 37,583
20.5 % 30,593 18.3 % Total net sales $ 183,659 100.0 % $
166,784 100.0 % Gross Profit $ 20,931 11.4 % $ 17,023 10.2 %
Income (loss) from Operations: Wheels $ 13,252 12.2 % $
9,742 10.6 % Gunite 2,741 7.3 % 3,278 7.5 % Brillion Iron Works
2,196 5.8 % 1,275 4.2 % Corporate / Other (8,861) —
(7,726) — Consolidated Total $ 9,328 5.1 % $ 6,569 3.9 % Net
Loss $ (588) (0.3) % $ (3,573) (2.1) % Adjusted EBITDA:
Wheels $ 22,229 20.5 % $ 19,196 20.8 % Gunite 4,076 10.8 % 4,317
9.8 % Brillion Iron Works 3,381 9.0 % 2,414 7.9 % Corporate / Other
(8,401) — (7,971) — Continuing Operations $ 21,285
11.6 % $ 17,956 10.8 %
ACCURIDE CORPORATION AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME (LOSS)
(UNAUDITED)
Three Months Ended March 31,
(In thousands except per share data) 2015
2014 NET SALES $ 183,659 $ 166,784 COST OF GOODS SOLD
162,728 149,761 GROSS PROFIT 20,931 17,023 OPERATING
EXPENSES: Selling, general and administrative 11,603
10,454 INCOME FROM OPERATIONS 9,328 6,569 OTHER INCOME (EXPENSE):
Interest expense, net (8,350) (8,420) Other income (loss), net
(1,172) (530) LOSS BEFORE INCOME TAXES FROM
CONTINUING OPERATIONS (194) (2,381) INCOME TAX PROVISION 386
904 LOSS FROM CONTINUING OPERATIONS (580) (3,285)
DISCONTINUED OPERATIONS, NET OF TAX (8) (288) NET
LOSS $ (588) $ (3,573) OTHER COMPREHENSIVE INCOME, NET OF TAX:
Defined benefit plans 1,274 333 COMPREHENSIVE INCOME
(LOSS) $ 686 $ (3,240) Weighted average common shares
outstanding—basic 47,822 47,596 Basic loss per share-continuing
operations (0.01) (0.07) Basic loss per share-discontinued
operations — (0.01) Basic loss per share $ (0.01) $
(0.08) Weighted average common shares outstanding—diluted 47,822
47,596 Diluted loss per share-continuing operations (0.01) (0.07)
Diluted loss per share-discontinued operations —
(0.01) Diluted loss per share $ (0.01) $ (0.08)
ACCURIDE CORPORATION
CONSOLIDATED ADJUSTED EBITDA
(UNAUDITED)
Three Months Ended March 31,
(In thousands) 2015 2014 Net
loss $ (588) $ (3,573) Income tax provision 386 904 Interest
expense, net 8,350 8,420 Depreciation and amortization 10,596
10,272 Restructuring, severance and other charges1 708 627 Other
items related to our credit agreement2 1,833 1,306
Adjusted EBITDA $ 21,285 $ 17,956
Note:
1) For the three months ended March 31, 2015, Adjusted
EBITDA represents net income before net interest expense, income
tax expense, depreciation and amortization, plus $0.7 million in
costs associated with restructuring items. For the three months
ended March 31, 2014, Adjusted EBITDA represents net income before
net interest expense, income tax benefit, depreciation and
amortization, plus $0.6 million in costs associated with
restructuring items. 2) Items related to our credit agreement refer
to amounts utilized in the calculation of financial covenants in
Accuride’s senior credit facility. For the three months ended March
31, 2015, items related to our credit agreement consisted of
foreign currency losses and other income or expenses of $1.8
million. For the three months ended March 31, 2014, items related
to our credit agreement consisted of foreign currency losses and
other income or expenses of $1.3 million.
ACCURIDE CORPORATION
SEGMENT ADJUSTED EBITDA
RECONCILIATION
(UNAUDITED)
Three Months Ended March 31, 2015
(In thousands)
Income
(loss)fromOperations
Depreciation
andAmortization
Other
AdjustedEBITDA
Wheels $ 13,252 $ 7,777 $ 1,200 $ 22,229 Gunite 2,741 1,085 250
4,076 Brillion Iron Works 2,196 1,155 30 3,381 Corporate / Other
(8,861) 569 (109) (8,401) Continuing
Operations $ 9,328 $ 10,586 $ 1,371 $ 21,285 Imperial Group
(10) 10 — — Consolidated Total $ 9,318
$ 10,596 $ 1,371 $ 21,285
Three Months Ended March 31, 2014
(In thousands)
Income
(loss)fromOperations
Depreciation
andAmortization
Other
AdjustedEBITDA
Wheels $ 9,742 $ 7,907 $ 1,547 $ 19,196 Gunite 3,278 789 250 4,317
Brillion Iron Works 1,275 1,109 30 2,414 Corporate / Other
(7,726) 456 (701) (7,971) Continuing
Operations $ 6,569 $ 10,261 $ 1,126 $ 17,956 Imperial Group
(11) 11 — — Consolidated Total $ 6,558
$ 10,272 $ 1,126 $ 17,956 We define Adjusted EBITDA as our
net income or loss before income tax expense or benefit, interest
expense, net, depreciation and amortization, restructuring,
severance, and other charges, impairment, and currency losses, net.
Adjusted EBITDA has been included because we believe that it is
useful for us and our investors to measure our ability to provide
cash flows to meet debt service. Adjusted EBITDA should not be
considered an alternative to net income (loss) or other traditional
indicators of operating performance and cash flows determined in
accordance with accounting principles generally accepted in the
United States (“GAAP”). We present the table of Adjusted EBITDA
because covenants in the agreements governing our material
indebtedness contain ratios based on this measure on a quarterly
basis. While Adjusted EBITDA is used as a measure of liquidity and
the ability to meet debt service requirements, it is not
necessarily comparable to other similarly titled captions of other
companies due to differences in methods of calculations.
ACCURIDE CORPORATION
CONDENSED CONSOLIDATED BALANCE
SHEETS
(UNAUDITED)
March 31,
December 31, (In thousands) 2015 2014
ASSETS CURRENT ASSETS: Cash and cash equivalents $
17,570 $ 29,773 Customer and other receivables 82,665 63,570
Inventories 41,963 43,065 Other current assets 13,132
13,472 Total current assets 155,330 149,880 PROPERTY, PLANT AND
EQUIPMENT, net 207,948 212,183 OTHER ASSETS: Goodwill and other
assets 235,613 236,359 TOTAL $ 598,891 $ 598,422
LIABILITIES AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES:
Accounts payable $ 65,051 $ 56,452 Other current liabilities
29,379 40,619 Total current liabilities 94,430 97,071
LONG-TERM DEBT 326,497 323,234 OTHER LIABILITIES 146,175 147,314
STOCKHOLDERS’ EQUITY: Total stockholders’ equity 31,789
30,803 TOTAL $ 598,891 $ 598,422
Accuride CorporationInvestor Relations:Todd Taylor,
812-962-5105ttaylor@accuridecorp.comorMedia Relations:Timothy G.
Weir, APR, 812-962-5128tweir@accuridecorp.com
Accuride (NYSE:ACW)
Historical Stock Chart
From Apr 2024 to May 2024
Accuride (NYSE:ACW)
Historical Stock Chart
From May 2023 to May 2024