ACW Accuride Corp.

Accuride Corporation (NYSE: ACW), a leading manufacturer and supplier of commercial vehicle components, today announced its financial results for the fourth quarter 2007 and fiscal year ended December 31, 2007. The Company reported results of $222.5 million in net sales for the fourth quarter of 2007 compared to $344.9 million for the fourth quarter of 2006. For the twelve months ended December 31, 2007, net sales were $1.0 billion compared to $1.4 billion for the same twelve month period in 2006. The decrease in net sales was primarily a result of the reduced demand for commercial vehicles with engines compliant with new emission standards that became effective in 2007. A net loss of $10.4 million, or ($0.29) per diluted share, was reported for the fourth quarter of 2007 compared to net income of $14.3 million, or $0.41 per diluted share, for the fourth quarter of 2006. For the twelve months ended December 31, 2007, a net loss of $8.6 million, or ($0.25) per diluted share, was reported compared to net income of $65.1 million, or $1.88 per diluted share, in 2006. The net loss included unfavorable special items totaling $13.7 million, or $0.39 per diluted share, which was $21.0 million on a pre-tax basis. The special items included a $10.6 million increase in revenue from a resolution of a commercial dispute with a customer and a $3.2 million net gain from insurance proceeds, which was offset by pre-tax costs of $14.2 million associated with a reduction in the employee workforce in our steel wheel operations, $14.1 million in accelerated depreciation and a write-down of supplies inventory related primarily to light steel wheel assets, and $6.5 million related to employment matters and other items. Adjusted EBITDA was $17.7 million for the fourth quarter of 2007, compared to Adjusted EBITDA of $58.4 million for the fourth quarter of 2006. For the twelve months ended December 31, 2007, Adjusted EBITDA was $108.9 million compared to $217.1 million of Adjusted EBITDA in 2006. The purpose and reconciliation of Adjusted EBITDA for the Company to the most directly comparable GAAP measure is set forth in the accompanying schedules. Liquidity and Cash Flow As of December 31, 2007, the Company had cash of $90.9 million and total debt of $572.7 million for net debt of $481.8 million, a decrease of $44.6 million during the quarter. For the fourth quarter of 2007, cash from operating activities was $56.0 million and capital expenditures totaled $11.3 million, resulting in free cash flow of $44.7 million compared to free cash flow of $36.7 million in the fourth quarter of 2006. For the twelve months ended December 31, 2007, cash from operating activities was $82.9 million and capital expenditures totaled $36.5 million, resulting in free cash flow of $46.4 million compared to free cash flow of $108.8 million in 2006. Furthermore, the Company repaid $70 million of term debt in 2007. Review and Outlook �Although we are disappointed that the significant decline in year over year demand reduced our overall earnings and cash flow for the year, we generated substantial free cash flow and paid down $70 million of debt,��said John Murphy, Accuride�s President & CEO. �In the fourth quarter, we saw margin improvement relative to the third quarter and generated significant cash flow to meet or exceed our Adjusted EBITDA and free cash flow guidance.� �Despite expectations for another challenging year in 2008, we are going to build on the improvements in the fourth quarter with a clear focus on organic growth and operational improvements,� continued Murphy. �Based on estimated North American Class 8 production of 190,000 to 225,000 units and Class 5-7 production of 190,000 to 205,000 units, we expect Adjusted EBITDA to be in the range of $100 million to $125 million and free cash flow to be $5 million to $15 million.� The Company will conduct a conference call to review its fourth quarter results on Thursday, February 28, 2008, at 10:00 a.m. Central Time. The phone number to access the conference call is (800) 700-0133 in the United States, or (617) 213-8831 internationally, access code 30370688. The conference call will be accompanied by a slide presentation, which can be accessed through the investor relations section of the Company's web site. A replay will be available beginning February 28, 2008, at 12:00 p.m. Central Time, continuing to 12 p.m. Central Time on March 6, 2008, by calling (888) 286-8010 in the United States, or (617) 801-6888 internationally, access code 70098960. The financial results for the three-month and twelve month period ended December 31, 2007, will also be archived at http://www.accuridecorp.com. Accuride Corporation is one of the largest and most diversified manufacturers and suppliers of commercial vehicle components in North America. Accuride�s products include commercial vehicle wheels, wheel-end components and assemblies, truck body and chassis parts, seating assemblies and other commercial vehicle components. Accuride�s products are marketed under its brand names, which include Accuride, Gunite, Imperial, Bostrom, Fabco and Brillion. For more information, visit Accuride�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 the Private Securities Litigation Reform Act of 1995, including statements regarding the Company's expectations, hopes, beliefs and intentions on strategies regarding Accuride�s future results. It is important to note that the Company's actual future results could differ materially from those projected in such forward-looking statements because of a number of factors, including but not limited to, 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 the Company�s Securities and Exchange Commission filings. ACCURIDE CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) � � � Three Months Ended December 31, Twelve Months Ended December 31, (in thousands except per share data) 2007 2006 2007 2006 � NET SALES $ 222,543 $ 344,887 $ 1,013,686 $ 1,408,155 COST OF GOODS SOLD 201,910 � 299,027 � 927,192 � 1,211,258 � GROSS PROFIT 20,633 45,860 86,494 196,897 OPERATING EXPENSES: Selling, general and administrative 13,934 � 14,046 � 56,898 � 53,458 � INCOME FROM OPERATIONS 6,699 31,814 29,596 143,439 OTHER INCOME (EXPENSE): Interest income 616 1,089 1,952 1,976 Interest expense (14,054 ) (13,766 ) (50,296 ) (52,886 ) Equity in earnings of affiliate � 93 � 621 Other income, net 1,158 � (267 ) 6,978 � 602 � INCOME (LOSS) BEFORE INCOME TAXES (5,581 ) 18,963 (11,770 ) 93,752 INCOME TAX PROVISION (BENEFIT) 4,847 � 4,643 � (3,131 ) 28,619 � NET INCOME (LOSS) $ (10,428 ) $ 14,320 � $ (8,639 ) $ 65,133 � Weighted average common shares outstanding�basic 35,369 34,682 35,179 34,280 Basic income (loss) per share $ (0.29 ) $ 0.41 $ (0.25 ) $ 1.90 Weighted average common shares outstanding�diluted 35,369 34,942 35,249 34,668 Diluted income (loss) per share $ (0.29 ) $ 0.41 $ (0.25 ) $ 1.88 ACCURIDE CORPORATION CONSOLIDATED ADJUSTED EBITDA (UNAUDITED) � � � Historical Results Three Months Ended December 31, Twelve Months Ended December 31, (in thousands) 2007 2006 2007 2006 NET INCOME (LOSS) $ (10,428 ) $ 14,320 $ (8,639 ) $ 65,133 Net interest expense 13,438 12,677 48,344 50,910 Income tax provision (benefit) 4,847 4,643 (3,131 ) 28,619 Depreciation and amortization 14,202 � 22,788 � 62,686 � 67,029 � EBITDA 22,059 54,428 99,260 211,691 Restructuring, severance and other charges1 (3,400 ) 3,603 16,140 5,503 Items related to our credit agreement2 (997 ) 390 � (6,493 ) (58 ) ADJUSTED EBITDA $ 17,662 � $ 58,421 � $ 108,907 � $ 217,136 � � 1) For the three months ended December 31, 2007, Adjusted EBITDA represents a net loss before net interest expense, income taxes, depreciation and amortization, plus (i) ($1.9) million in costs associated with a reduction in the employee workforce in our steel wheel operations, (ii) ($3.8) million from insurance proceeds at our facility in Erie, Pennsylvania (iii) $2.1 million associated with a labor dispute at our facility in Rockford, Illinois, and (iv) $0.2 million in fees related to the secondary stock offerings completed in May and June 2007. Items (i), (ii) and (iii) affected gross profit. Item (iv) affected SG&A. For the three months ended December 31, 2006, Adjusted EBITDA represents net income before net interest expense, income tax expense, depreciation and amortization, plus (i) $0.2 million in other non-operating costs at our facility in Erie, Pennsylvania and (ii) $3.4 million in restructuring and pension curtailment costs associated with a reduction in the employee workforce at our facility in London, Ontario. Item (i) and (ii) affected gross profit. For the twelve months ended December 31, 2007, Adjusted EBITDA represents a net loss before net interest expense, income tax expense, depreciation and amortization, plus (i) $14.2 million in costs associated with a reduction in the employee workforce in our steel wheel operations, (ii) $1.3 million in other non-operating costs at our facility in London, Ontario, (iii) $1.2 million in costs associated with a change in post-retirement benefits in Erie, Pennsylvania, (iv) ($3.2) million from insurance proceeds at our facility in Erie, Pennsylvania (v) $2.1 million associated with a labor dispute at our facility in Rockford, Illinois, and (vii) $0.5 million in fees related to the secondary stock offerings completed in May and June 2007. Items (i), (ii), (iii), (iv) and (v) affected gross profit. Item (vii) affected SG&A. For the twelve months ended December 31, 2006, Adjusted EBITDA represents net income before net interest expense, income tax expense, depreciation and amortization, plus (i) $1.4 million in losses from the sale of the facility in Columbia, Tennessee, (ii) $0.7 million in costs related to the business interruption sustained at our facility in Erie, Pennsylvania, and (iii) $3.4 million in restructuring and pension curtailment costs associated with a reduction in the employee workforce at our facility in London, Ontario. Items (i), (ii), and (iii) affected gross profit. � 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 December 31, 2007, items related to our credit agreement consist of foreign currency income and other net income of $1.0 million. For the three months ended December 31, 2006, items related to our credit agreement consist of foreign currency losses and other net income of $0.4 million. For the twelve months ended December 31, 2007, items related to our credit agreement consist of foreign currency income and other net income of $6.5 million. For the twelve months ended December 31, 2006, items related to our credit agreement consist of foreign currency income and other net income of $0.1 million. Adjusted EBITDA is not intended to represent cash flow as defined by generally accepted accounting principles (�GAAP�) and should not be considered as an indicator of cash flow from operations. Adjusted EBITDA represents net income before net interest expense, income tax (expense) benefit, depreciation and amortization plus non-recurring items. However, other companies may calculate Adjusted EBITDA differently. Accuride has included information concerning Adjusted EBITDA in this press release because Accuride�s management and our board of directors use it as a measure of our performance to internal business plans to which a significant portion of management incentive programs are based. In addition, future investment and capital allocation decisions are based on Adjusted EBITDA. Investors and industry analysts use Adjusted EBITDA to measure the Company�s performance to historic results and to the Company�s peer group. The Company has historically provided the measure in previous press releases and believes it provides transparency and continuity to investors for comparable purposes. Certain financial covenants in our borrowing arrangements are tied to similar measures. Free cash flow is not intended to represent cash flow as defined by generally accepted accounting principles (�GAAP�) and should not be considered as an indicator of cash flow. Free cash flow represents net cash provided by operating activities less capital expenditures. Accuride has included information concerning free cash flow in this press release because Accuride�s management and our board of directors use it as a measure of our ability to repay debt and make investments to which a portion of management incentive programs are based. ACCURIDE CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) � � December 31,2007 � December 31,2006 (In thousands) � ASSETS CURRENT ASSETS: Cash and cash equivalents $ 90,935 $ 110,204 Customer and other receivables 87,195 142,665 Inventories, net 92,570 103,653 Supplies, net 20,540 22,124 Other current assets 22,125 19,594 Total current assets 313,365 398,240 PROPERTY, PLANT AND EQUIPMENT, net 279,240 300,806 OTHER ASSETS: Goodwill and other assets 521,029 534,141 TOTAL $ 1,113,634 $ 1,233,187 LIABILITIES AND STOCKHOLDERS� EQUITY CURRENT LIABILITIES: Accounts payable $ 80,070 $ 107,217 Other current liabilities 71,464 79,682 Total current liabilities 151,534 186,899 LONG-TERM DEBT 572,725 642,725 OTHER LIABILITIES 115,575 139,981 STOCKHOLDERS� EQUITY: Total stockholders� equity 273,800 263,582 TOTAL $ 1,113,634 $ 1,233,187