Shiloh Industries, Inc. (NASDAQ: SHLO) today reported financial
results for the first quarter of its fiscal year ending October 31,
2012.
First Quarter Highlights:
- Sales revenue for the quarter increased to $132.4 million, an
increase of 21.7% from the prior year quarter.
- Operating income for the quarter increased to $3.1 million, an
increase of 142.8% from the prior year quarter.
- Net income of $0.09 per share diluted for the quarter compared
to a net income of $0.03 per share diluted in the prior year
quarter.
- Total debt at January 31, 2012 was $28.2 million resulting in a
net debt to total capitalization ratio of 20.5%.
- On January 31, 2012, the Company entered into a First Amendment
Agreement of its Credit and Security Agreement with a modification
to the calculation of the fixed charge coverage ratio to allow for
payment of a special dividend of $0.50 per share declared on
February 1, 2012 and other modifications to allow the Company to
participate in certain customer-sponsored financing arrangements
allowing for early, discounted payments of Company invoices.
Sales for the first quarter ended January 31, 2012 were $132.4
million, an increase of 21.7% from $108.8 million in the first
quarter of fiscal year 2011. The North American car and light truck
industry production volumes increased by 16.9% compared to the
first quarter of the prior year, while the production of the
traditional domestic manufacturers' production volumes increased by
19.4%. The Company's sales revenue increased above the industry
statistics due to a favorable mix of vehicle platforms, the impact
of new programs launched since the first quarter of the prior year
and an increase in the heavy truck market that the Company also
supplies.
The Company reported operating income of $3.1 million or 2.3% of
sales in the first quarter of fiscal year 2012 compared to $1.3
million or 1.2% of sales in the first quarter of fiscal year 2011.
Continued focus and improvements in our Manufacturing and Selling,
General and Administrative costs, along with the increased sales
volume, helped the Company achieve these improved results.
Interest expense for the first quarter of the fiscal year was
$0.3 million compared to $0.5 million in the prior year first
quarter as a result of a reduction in average borrowing rates from
the Company's amended and restated Credit Agreement entered into in
April 2011.
Net income for the first quarter of fiscal year 2012 was $1.6
million or $0.09 per share diluted compared to the first quarter of
2011 net income of $0.5 million or $0.03 per share diluted.
In commenting on the results of first quarter 2012, Theodore K.
Zampetis, President and CEO, said, "The first quarter of our fiscal
year 2012 evolved as expected, with improved vehicle production
schedules in both the automotive and heavy truck industries. As the
vehicle build levels improve, so does our operating leverage and
our focused and consistent execution on accelerating the
improvement of our operating efficiencies, cash generation and
profitable growth opportunities."
Mr. Zampetis concluded, "As we move forward we like what we see
so far in terms of industry trends and vehicle demand in North
America for 2012 and beyond. We are optimistic in the prospects of
our new product and process innovations, strategic footprint,
customer relationships and remain sharply focused on disciplined
execution."
Headquartered in Valley City, Ohio, Shiloh Industries is a
leading manufacturer of first operation blanks, engineered welded
blanks, complex stampings and modular assemblies for the automotive
and heavy truck industries. The Company has 14 wholly owned
subsidiaries at locations in Ohio, Georgia, Michigan, Tennessee,
Kentucky, and Mexico, and employs approximately 1,350.
A conference call to discuss first quarter of fiscal 2012
results will be held on Wednesday, February 22, 2012, at 11:00 a.m.
(ET). To listen to the conference call, dial (888) 587-0613
approximately five minutes prior to the start time and request the
Shiloh Industries first quarter conference call.
Certain statements made by Shiloh Industries, Inc. in this
release and other periodic oral and written statements, including
filings with the Securities and Exchange Commission, regarding the
Company's operating performance, events or developments that the
Company believes or expects to occur in the future, including those
that discuss strategies, goals, outlook or other non-historical
matters, or which relate to future sales, earnings expectations,
cost savings, awarded sales, volume growth, earnings or general
belief in the Company's expectations of future operating results
are "forward-looking" statements within the meaning of the Private
Securities Litigation Reform Act of 1995. The forward-looking
statements are made on the basis of management's assumptions and
expectations. As a result, there can be no guarantee or assurance
that these assumptions and expectations will in fact occur. The
forward-looking statements are subject to risks and uncertainties
that may cause actual results to materially differ from those
contained in the statements. Some, but not all of the risks,
include the ability of the Company to accomplish its strategic
objectives with respect to implementing its sustainable business
model; the ability to obtain future sales; changes in worldwide
economic and political conditions, including adverse effects from
terrorism or related hostilities; costs related to legal and
administrative matters; the Company's ability to realize cost
savings expected to offset price concessions; inefficiencies
related to production and product launches that are greater than
anticipated; changes in technology and technological risks;
increased fuel and utility costs; work stoppages and strikes at the
Company's facilities and that of the Company's customers or
suppliers; the Company's dependence on the automotive and heavy
truck industries, which are highly cyclical; the dependence of the
automotive industry on consumer spending, which is subject to the
impact of domestic and international economic conditions, including
increased energy costs affecting car and light truck production,
and regulations and policies regarding international trade;
financial and business downturns of the Company's customers or
vendors, including any production cutbacks or bankruptcies;
increases in the price of, or limitations on the availability of,
steel, the Company's primary raw material, or decreases in the
price of scrap steel; the successful launch and consumer acceptance
of new vehicles for which the Company supplies parts; the
occurrence of any event or condition that may be deemed a material
adverse effect under the Credit Agreement or a decrease in customer
demand which could cause a covenant default under the Credit
Agreement; pension plan funding requirements; and other factors,
uncertainties, challenges and risks detailed in the Company's other
public filings with the Securities and Exchange Commission. Any or
all of these risks and uncertainties could cause actual results to
differ materially from those reflected in the forward-looking
statements. These forward-looking statements reflect management's
analysis only as of the date of this release.
The Company undertakes no obligation to publicly revise these
forward-looking statements to reflect events or circumstances that
arise after the date hereof. In addition to the disclosures
contained herein, readers should carefully review risks and
uncertainties contained in other documents the Company files from
time to time with the Securities and Exchange Commission.
SHILOH INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollar amounts in thousands)
January 31,
2012 October 31,
(Unaudited) 2011
----------- -----------
ASSETS
Cash and cash equivalents $ 222 $ 20
Accounts receivable, net of allowance for doubtful
accounts of $504 and $568 at January 31, 2012 and
October 31, 2011, respectively 78,134 76,632
Related-party accounts receivable 1,989 434
Income tax receivable 589 1,688
Inventories, net 36,781 33,976
Deferred income taxes 2,228 2,228
Prepaid expenses 1,552 1,725
----------- -----------
Total current assets 121,495 116,703
Property, plant and equipment, net 118,652 121,467
Deferred income taxes 932 918
Other assets 1,407 1,586
----------- -----------
Total assets $ 242,486 $ 240,674
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current debt $ 215 $ 428
Accounts payable 57,700 57,214
Other accrued expenses 21,546 23,733
----------- -----------
Total current liabilities 79,461 81,375
Long-term debt 28,000 25,700
Long-term benefit liabilities 23,553 24,019
Other liabilities 2,016 1,928
----------- -----------
Total liabilities 133,030 133,022
----------- -----------
Commitments and contingencies
Stockholders' equity:
Preferred stock, $.01 per share; 5,000,000
shares authorized; no shares issued and
outstanding at January 31, 2012 and October 31,
2011, respectively -- --
Common stock, par value $.01 per share; 25,000,000
shares authorized; 16,769,392 and 16,762,428
shares issued and outstanding at January 31, 2012
and October 31, 2011, respectively 168 168
Paid-in capital 64,175 63,950
Retained earnings 69,900 68,321
Accumulated other comprehensive loss: Pension
related liability, net (24,787) (24,787)
----------- -----------
Total stockholders' equity 109,456 107,652
----------- -----------
Total liabilities and stockholders' equity $ 242,486 $ 240,674
=========== ===========
SHILOH INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Amounts in thousands, except per share data)
(Unaudited)
Three Months Ended
January 31,
------------------------
2012 2011
----------- -----------
Revenues $ 132,371 $ 108,790
Cost of sales 122,709 102,445
----------- -----------
Gross profit 9,662 6,345
Selling, general and administrative expenses 6,648 5,086
Asset recovery (65) (9)
----------- -----------
Operating income 3,079 1,268
Interest expense 285 506
Other income (expense), net 47 (2)
----------- -----------
Income before income taxes 2,841 760
Provision for income taxes 1,262 253
----------- -----------
Net income $ 1,579 $ 507
=========== ===========
Earnings per share:
Basic earnings per share $ 0.09 $ 0.03
=========== ===========
Basic weighted average number of common shares 16,765 16,634
=========== ===========
Diluted earnings per share $ 0.09 $ 0.03
=========== ===========
Diluted weighted average number of common shares 16,856 16,847
=========== ===========
SHILOH INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollar amounts in thousands)
(Unaudited)
Three Months Ended
January 31,
--------------------
2012 2011
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 1,579 $ 507
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 5,054 5,914
Recovery of impairment (65) (9)
Amortization of deferred financing costs 87 197
Deferred income taxes (14) 33
Stock-based compensation expense 209 158
Loss (gain) on sale of assets 18 (10)
Changes in operating assets and liabilities:
Accounts receivable (3,057) 10,468
Inventories (2,805) (1,531)
Prepaids and other assets 305 472
Payables and other liabilities (962) (6,297)
Accrued income taxes 1,100 (220)
--------- ---------
Net cash provided by operating activities 1,449 9,682
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (1,983) (4,883)
Proceeds from sale of assets 137 9
--------- ---------
Net cash used in investing activities (1,846) (4,874)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments of short-term borrowings -- (89)
Payment of dividends -- (2,004)
Increase in overdraft balances (1,678) (1,047)
Proceeds from long-term borrowings 4,900 1,700
Repayments of long-term borrowings (2,600) (3,700)
Payment of deferred financing costs (40) --
Proceeds from exercise of stock options 17 377
--------- ---------
Net cash provided by (used) in financing
activities 599 (4,763)
--------- ---------
Net increase in cash and cash equivalents 202 45
Cash and cash equivalents at beginning of period 20 34
--------- ---------
Cash and cash equivalents at end of period $ 222 $ 79
========= =========
Supplemental Cash Flow Information:
Cash paid for interest $ 289 $ 292
Cash paid for income taxes $ 89 $ 463
CONTACT: Thomas M. Dugan Vice President of Finance and
Treasurer Shiloh Industries, Inc. (330) 558-2600
Shiloh Industries (NASDAQ:SHLO)
Historical Stock Chart
From Apr 2024 to May 2024
Shiloh Industries (NASDAQ:SHLO)
Historical Stock Chart
From May 2023 to May 2024
