The press release issued by Ampco-Pittsburgh Corporation (NYSE:
AP) on November 1, 2016 contained an error in the calculation of
the valuation allowance established against certain of its deferred
income tax assets for the three months ended September 30, 2016.
The valuation allowance was $26,903,000 and $28,322,000 for the
three and nine months ended September 30, 2016, respectively,
versus $22,620,000 and $24,039,000, as initially reported. This
change affects the Corporation’s net loss for the three and nine
months ended September 30, 2016, which was $27,382,000 and
$36,758,000, respectively, instead of $23,099,000 and $32,475,000,
as initially reported; net loss per common share for the three and
nine months ended September 30, 2016, which was $2.23 and $3.10,
respectively, instead of $1.88 and $2.74 as initially reported; and
the per common share impact of the valuation allowance for the
three and nine months ended September 30, 2016, which was $2.19 and
$2.39, respectively, instead of $1.84 and $2.03, as initially
reported. Corresponding corrections have also been made to the
Corporation’s Financial Summary attached to the November 1, 2016
press release.
The corrected release reads:
AMPCO-PITTSBURGH
CORPORATION ANNOUNCES THIRD QUARTER 2016 RESULTS
Ampco-Pittsburgh Corporation (NYSE: AP) reported consolidated
sales for the three and nine months ended September 30, 2016 of
$82,861,000 and $239,740,000, respectively, compared to $58,094,000
and $183,154,000, respectively, for the three and nine months ended
September 30, 2015. The current year periods include sales of
$33,679,000 and $86,703,000 attributable to the March 3, 2016
acquisition of Åkers AB and certain of its affiliated companies
(“Åkers”). The Corporation reported a loss from operations of
$4,941,000 and $14,760,000 for the three and nine months ended
September 30, 2016, respectively, compared to a loss from
operations of $2,357,000 and $2,661,000 for the same periods of the
prior year. The year-to-date operating loss includes certain
purchase accounting adjustments and acquisition-related costs of
approximately $6,500,000.
During the three and nine month periods ended September 30,
2016, the Corporation established valuation allowances of
$26,903,000 and $28,322,000, respectively, against certain of its
deferred income tax assets which impacted net loss per common share
by $2.19 and $2.39, respectively. The valuation allowances resulted
from the Corporation having incurred three years of cumulative
losses, inclusive of the acquired Åkers businesses, limiting our
ability to consider other subjective evidence to recognize the
existing deferred tax assets. If and when the Corporation returns
to a sustained level of profitability sufficient to conclude that
it is more likely than not that deferred tax assets are realizable,
we will reduce the valuation allowance accordingly.
Net loss for the three and nine months ended September 30, 2016
was $27,382,000 and $36,758,000, respectively, compared to a net
loss for the three and nine months ended September 30, 2015 of
$1,511,000 and $1,959,000. Loss per common share for the three
months ended September 30, 2016 was $2.23, which includes the $2.19
non-cash tax valuation allowance impact.
Sales for the Forged and Cast Engineered Products segment for
the three and nine months ended September 30, 2016 increased 74%
and 51%, respectively, from the same periods of the prior year
principally from the inclusion of the acquired Åkers businesses,
offset in part by a decline in legacy roll and other forged
engineered product sales volumes. The operating loss for the three
and nine months ended September 30, 2016 increased when compared to
the three and nine months ended September 30, 2015 primarily due to
the impact of the addition of Åkers, including restructuring costs,
and lower legacy cast roll business volumes. The operating loss for
the nine months ended September 30, 2016 also includes the effect
of purchase accounting for Åkers.
Third quarter sales for the Air and Liquid Processing segment
declined approximately 9% from prior year driven principally by
lower heat exchanger coil shipments to the coal-fired power
generation market. Operating income declined slightly on lower
volumes. For the nine months ended September 30, 2016, sales
declined approximately 4% compared to prior year levels but
operating income was approximately flat as the current year sales
volume decline was offset by higher margins from productivity and
sales mix improvements.
Other expense for the third quarter of 2016 included higher
interest expense and a foreign exchange loss when compared to the
third quarter of 2015. Other expense for year-to-date 2016 exceeded
the prior year driven by higher interest expense offset in part by
foreign exchange gains versus foreign exchange losses in the prior
year.
Commenting on the quarter, John Stanik, Ampco-Pittsburgh’s Chief
Executive Officer said, “Our third quarter operating results were
dominated by weak volumes in the cast roll market. As we continue
with our integration and restructuring efforts, we are announcing
the idling of our Avonmore, PA cast roll plant.”
A replay of the third quarter conference call is available on
our website under the Investors menu at www.ampcopgh.com.
The Private Securities Litigation Reform Act of 1995 (the “Act”)
provides a safe harbor for forward-looking statements made by or on
our behalf. This news release may contain forward-looking
statements that reflect our current views with respect to future
events and financial performance. All statements in this document
other than statements of historical fact are statements that are,
or could be, deemed forward-looking statements within the meaning
of the Act. In this document, statements regarding future financial
position, sales, costs, earnings, cash flows, other measures of
results of operations, capital expenditures or debt levels and
plans, objectives, outlook, targets, guidance or goals are
forward-looking statements. Words such as “may,” “intend,”
“believe,” “expect,” “anticipate,” “estimate,” “project,”
“forecast” and other terms of similar meaning that indicate future
events and trends are also generally intended to identify
forward-looking statements. Forward-looking statements speak only
as of the date on which such statements are made, are not
guarantees of future performance or expectations, and involve risks
and uncertainties. For Ampco-Pittsburgh, these risks and
uncertainties include, but are not limited to, those described
under Item 1A, Risk Factors, of Ampco-Pittsburgh’s Annual Report on
Form 10-K. In addition, there may be events in the future that we
are not able to predict accurately or control which may cause
actual results to differ materially from expectations expressed or
implied by forward-looking statements. Except as required by
applicable law, we assume no obligation, and disclaim any
obligation, to update forward-looking statements whether as a
result of new information, events or otherwise.
AMPCO-PITTSBURGH
CORPORATION
FINANCIAL
SUMMARY
Three Months Ended Nine Months Ended September 30,
September 30,
2016 2015 2016
2015 Sales
$
82,861,000 $
58,094,000 $
239,740,000 $
183,154,000
Cost of products sold (excl depreciation
and amortization)
67,267,000 48,655,000 195,824,000 148,896,000 Selling and
administrative 15,045,000 8,743,000 43,740,000 27,314,000
Depreciation and amortization 5,490,000 3,044,000 14,945,000
9,275,000 Loss (gain) on disposal of assets
-
9,000 (9,000
) 330,000 Total operating
expense
87,802,000
60,451,000 254,500,000
185,815,000 Loss
from operations (4,941,000 ) (2,357,000 ) (14,760,000 ) (2,661,000
) Other expense – net
(1,001,000 )
(2,000 )
(635,000 ) (211,000
) Loss before income taxes (5,942,000 )
(2,359,000 ) (15,395,000 ) (2,872,000 ) Income tax (provision)
benefit (21,602,000 ) 959,000 (21,627,000 ) 1,152,000
Equity earnings (loss) from Chinese joint
venture
4,000 (111,000
) 115,000
(239,000 ) Net loss before
non-controlling interest (27,540,000 ) (1,511,000 ) (36,907,000 )
(1,959,000 )
Net loss attributable to non-controlling
interest
(158,000 ) -
(149,000 )
- Net loss
$
(27,382,000 ) $
(1,511,000 ) $
(36,758,000 ) $
(1,959,000 ) Loss per common
share: Basic
$ (2.23 )
$ (0.14 ) $
(3.10 ) $ (0.19
) Diluted
$ (2.23
) $ (0.14 )
$ (3.10 ) $
(0.19 )
Weighted-average number of common shares
outstanding:
Basic
12,270,621
10,439,974 11,843,924
10,433,317 Diluted
12,270,621 10,439,974
11,843,924
10,433,317
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version on businesswire.com: http://www.businesswire.com/news/home/20161101006045/en/
Ampco-Pittsburgh CorporationMichael G. McAuley, 412-429-2472Vice
President, Chief Financial Officer, and Treasurermmcauley@ampcopgh.com
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