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 DALLAS , MAY 12, 2004 - Vought Aircraft Industries, Inc. today reported financial results for its first quarter ending March 28.
Net sales for the first quarter 2004 were $294.9 million, an increase of 12 percent compared to $263.5 million in the same period a year ago. The increase in net sales is due to the acquisition of The Aerostructures Corp. in July 2003 partially offset by lower C-17 revenues. Net loss for the first quarter 2004 was $23.7 million, compared to a net loss of $9.8 million for the same period last year. Net loss in the first quarter 2004 was impacted by restructuring charges of $18.0 million related to the company's Feb. 26 announcement to consolidate its Nashville and Stuart, Fla., operations to its Dallas facility. Adjusted EBITDA, as defined by our senior secured credit agreement, for the first quarter 2004 was $27.2 million, compared to $43.2 million for the same period last year. The decrease in adjusted EBITDA is primarily the result of reduced revenue on the C-17 program. "We are taking the necessary steps to consolidate and modernize our facilities, which position us well for the long term," said Vought's President and Chief Executive Officer Tom Risley. "We must continue to focus on producing quality products on-time while implementing this ambitious restructuring of the company."
About Vought
Vought Aircraft Industries, Inc. ( www.voughtaircraft.com ) is one of the world's largest independent suppliers of aerostructures. Headquartered in Dallas, the company designs and manufactures major airframe structures such as wings, fuselage subassemblies, empennages, nacelles and other components for prime manufacturers of aircraft. Vought has annual sales of approximately $1.2 billion and more than 6,000 employees in seven U.S. locations.
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This release contains forward-looking statements within the meaning of section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements involve known and unknown risks and uncertainties. Vought's actual financial results could differ materially from those anticipated due to the company's dependence on conditions in the airline industry, the level of new commercial aircraft orders, production rates for commercial and military aircraft, the level of defense spending, competitive pricing pressures, manufacturing inefficiencies, start-up costs and possible overruns on new contracts, technology and product development risks and uncertainties, availability of materials and components from suppliers and other factors beyond the company's control.
Vought Aircraft Industries, Inc.
Condensed Consolidated Statements of Operations
(Dollars In Millions)
(Unaudited) |
|
3 Months Ended |
|
03/28/04 |
03/30/03 |
Net Sales |
$294.9 |
$263.5 |
|
|
|
Costs and expenses |
|
|
Cost of Sales |
246.7 |
212.2 |
Selling, general and administrative expenses |
62.7 |
55.6 |
Total costs and expenses |
309.4 |
267.8 |
|
|
|
Operating loss |
(14.5) |
(4.3) |
|
|
|
Other income (expense) |
|
|
Non-cash income (expense)-interest rate swaps |
|
2.2 |
Interest income |
0.5 |
0.5 |
Interest expense |
(9.7) |
(8.2) |
Loss before income taxes |
(23.7) |
(9.8) |
|
|
|
Income taxes |
- |
- |
|
|
|
Net loss |
($23.7) |
($9.8) |
Vought Aircraft Industries, Inc.
Condensed Consolidated Statements of Adjusted EBITDA
($ in Millions)
(Unaudited) |
|
3 Months Ended |
|
03/28/04 |
03/30/03 |
Net loss |
($23.7) |
($9.8) |
|
|
|
Plus: |
|
|
|
Interest, net |
9.2 |
5.5 |
|
Depreciation and Amortization |
17.6 |
15.9 |
EBITDA |
3.1 |
11.6 |
|
|
|
Adjusted EBITDA |
|
|
Plus: |
|
|
Unusual charges - Plant
consolidation and other
merger & integration
expenses |
18.6 |
0.3 |
Non-cash expense (forward
loss accruals) |
- |
19.2 |
Non-cash reduction of
deferred learning inventory |
0.7 |
0.9 |
Non-cash reduction
inventory (purchase
accounting) |
4.8 |
11.2 |
Total Adjusted EBITDA |
$27.2 |
$43.2 |
Vought Aircraft Industries, Inc.
Reconciliation of Adjusted EBITDA to Net Cash
($ in Millions)
(Unaudited)) |
|
Three
Months
Ended
March 28, 2004 |
Three
Months
Ended
March 30, 2003 |
|
|
|
Adjusted EBITDA (unaudited) |
$27.2 |
$43.2 |
Less: |
|
|
|
Unusual items |
18.6 |
0.3 |
|
Non-cash expense |
5.5 |
31.3 |
EBITDA (unaudited) |
3.1 |
11.6 |
Less : |
|
|
|
Interest expense and other, net (a) |
9.2 |
5.5 |
|
Depreciation and amortization (b) |
17.6 |
15.9 |
Net income (loss) |
(23.7) |
(9.8) |
Plus: |
|
|
|
Depreciation and amortization (b) |
17.6 |
15.9 |
|
Stock compensation expense |
- |
11.1 |
|
Amortization of debt issuance costs |
0.9 |
1.0 |
|
Loss on disposition of property, plant and equipment |
1.5 |
0.1 |
|
Gain on derivative financial instruments |
- |
(2.2) |
|
Change in operating assets and liabilities: |
|
|
|
Accounts receivable |
0.8 |
(18.8) |
|
Inventories |
(14.0) |
11.0 |
|
Other current assets |
(1.4) |
1.0 |
|
Accounts payable |
25.7 |
12.0 |
|
Accrued payroll and employee benefits |
(6.6) |
(26.1) |
|
Accrued & other liabilities |
(2.7) |
(6.0) |
|
Accrued contract liabilities |
98.7 |
161.7 |
|
Other assets and liabilities - long term |
12.8 |
4.8 |
Net cash provided by operating activities |
$109.6 |
$155.7 |
Net cash used in investing activities |
$ (8.6) |
$ (5.7) |
Net cash used in provided by financing activities |
$ (0.3) |
$(30.0) |
|
(a) Interest expense, net includes interest rate swap gain. |
(b) Depreciation and amortization excludes debt origination cost
amortization, which is included in interest expense, net. |
Vought Aircraft Industries, Inc.
Consolidated Balance Sheets
($ in millions) (unaudited) |
|
March 28, 2004 |
December 31, 2003 |
Assets |
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ 207.1 |
$ 106.4 |
|
Accounts receivable |
113.7 |
114.5 |
|
Inventories |
211.3 |
197.3 |
|
Other current assets |
7.8 |
6.4 |
Total current assets |
539.9 |
424.6 |
Property, plant and equipment, net |
407.8 |
414.1 |
Goodwill, net |
527.7 |
527.7 |
Identifiable intangible assets, net |
110.7 |
114.9 |
Debt origination costs, net and other assets |
17.6 |
18.4 |
Total assets |
$ 1,603.7 |
$ 1,499.7 |
|
|
|
Liabilities and stockholders' equity (deficit) |
|
|
Current liabilities: |
|
|
|
Accounts payable, trade |
$ 80.0 |
$ 54.3 |
|
Accrued and other liabilities |
93.8 |
96.5 |
|
Accrued payroll and employee benefits |
39.8 |
46.4 |
|
Accrued post-employment benefits- current |
54.1 |
54.1 |
|
Accrued pension-current |
30.5 |
30.5 |
|
Capital lease obligation |
1.2 |
1.2 |
|
Accrued contract liabilities |
291.3 |
192.6 |
Total current liabilities |
590.7 |
475.6 |
|
|
|
Long-term liabilities: |
|
|
|
Accrued post employment benefits |
500.3 |
477.7 |
|
Accrued pension |
272.5 |
282.0 |
|
Long-term bank debt |
295.9 |
295.9 |
|
Long-term bond debt |
270.0 |
270.0 |
|
Long-term capital lease obligation |
3.0 |
3.3 |
|
Other non-current liabilities |
17.9 |
18.1 |
Total liabilities |
1,950.3 |
1,822.6 |
|
|
|
Stockholders' equity (deficit): |
|
|
Common stock, par value $.01; 50,000,000 shares authorized, 25,012,052 issued and outstanding in 2004 and 2003, respectively |
0.3 |
0.3 |
Additional paid-in capital |
418.0 |
418.0 |
Shares held in rabbi trust and CMG escrow |
(3.9) |
(3.9) |
Stockholders' loans |
(2.3) |
(2.3) |
Accumulated deficit |
(243.1) |
(219.4) |
Accumulated other comprehensive loss |
(515.6) |
(515.6) |
Total stockholders' equity (deficit) |
$ (346.6) |
$ (322.9) |
|
|
|
Total liabilities and stockholders' equity (deficit) |
$ 1,603.7 |
$ 1,499.7 |
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