/FIRST AND FINAL ADD -- TO268 -- DECOMA EARNINGS Strong Content Per Vehicle Growth from Recent Acquisitions and New Facility Start-ups CONCORD, ON, Nov. 4 /PRNewswire-FirstCall/ -- Affiliation and Social Fees The Company is party to an affiliation agreement with Magna that provides for the payment by Decoma of an affiliation fee. The affiliation agreement provides the Company with, amongst other things, certain trademark rights, access to Magna's management and to its operating principles and policies, Tier 1 development assistance, global expansion assistance, vehicle system integration and modular product strategy assistance, technology development assistance and human resource management assistance. As previously disclosed, the Company entered into an amended agreement with Magna effective August 1, 2002. Affiliation fees payable under the amended agreement were reduced to 1% of Decoma's consolidated net sales (as defined in the agreement) from the 1.5% rate that previously applied. In addition, the amended agreement provides for a fee holiday on 100% of consolidated net sales derived from future business acquisitions in the calendar year of the acquisition and 50% of consolidated net sales derived from future business acquisitions in the first calendar year following the year of acquisition. The amended agreement also entitled Decoma to a credit equal to 0.25% of Decoma's consolidated net sales for the period from January 1, 2002 to July 31, 2002. In addition, Decoma was entitled to a credit equal to 1.5% of 2001 consolidated net sales derived from the acquisition of Autosystems and 50% of 1.25% of January 1, 2002 to July 31, 2002 consolidated net sales derived from Autosystems. Decoma's corporate constitution specifies that the Company will allocate a maximum of 2% of its profit before tax to support social and charitable activities. The Company pays 1.5% of its consolidated pretax profits to Magna which in turn allocates such amount to social and other charitable programs on behalf of Magna and its affiliated companies, including Decoma. Affiliation and social fee expense for the third quarter of 2003 increased to $5.7 million from $5.4 million for the third quarter of 2002. Affiliation fee expense in the third quarter of 2002 was 1.25%, 1.0% and 1.0% on consolidated net sales for July, August and September, respectively, less the Autosystems related fee holiday. Affiliation fees for the third quarter of 2003 were 1.0% of consolidated net sales. The increase in affiliation and social fee expenses is the result of the increase in consolidated net sales on which the affiliation fees are calculated, partially offset by a lower effective affiliation fee rate in the month of July and reduced social fee expenses due to a reduction in the pretax profits on which the social fees are calculated. Operating Income ------------------------------------------------------------------------- Three Month Periods Ended September 30, ------------------------- % (U.S. dollars in millions) 2003 2002 Change ------------------------------------------------------------------------- Operating Income North America $42.9 $42.1 2% Europe Excluding Merplas (6.9) (0.6) Merplas (2.1) (3.0) ------ ----- Total Europe (9.0) (3.6) Corporate (5.0) (2.4) ------------------------------------------------------------------------- Total Operating Income $28.9 $36.1 (20%) ------------------------------------------------------------------------- ------------------------------------------------------------------------- As a percentage of total sales, operating income was 5.2% for the third quarter of 2003 compared to 7.8% for the third quarter of 2002. The increase in the corporate segment operating loss is substantially attributable to foreign exchange losses of $1.3 million on U.S. dollar denominated monetary items held in Canada and to one time severance costs. North America North American operating income was substantially unchanged at $42.9 million for the third quarter of 2003. As a percentage of total North American sales, North American operating income was 11.5% in the third quarter of 2003 compared to 12.7% in the third quarter of 2002. North American operating income was negatively impacted by: - the changeover of a number of large production programs including end of production on the DaimlerChrysler LH (Concorde, Intrepid and 300M) program (the new DaimlerChrysler LX program does not launch until the first quarter of 2004) and the changeover of the Ford WIN126 (Windstar) program to the V229 (Freestar) program; - lower North American vehicle production volumes including lower production volumes on certain long running high content programs; - OEM price concessions; - Decostar period costs totaling $1.5 million; and - the effects of the August electricity blackout and the subsequent period of recovery. The above items were partially offset by: - contributions from sales on programs that launched during or subsequent to the third quarter of 2002; - contributions from the FM Lighting Acquisition and from new takeover business at the Company's Autosystems lighting facilities which helped to offset acquisition integration costs; - contributions from strong volumes on certain high content production programs; and - increased contributions as a result of the Company's ongoing continuous improvement programs. Europe European operating losses were $9.0 million for the third quarter of 2003 compared to operating losses of $3.6 million for the third quarter of 2002. European operating income continues to be negatively impacted by efficiency and other performance issues at the Company's Prometall and Decoform facilities. Operating income at these facilities declined by $4.3 million in the third quarter of 2003 compared to the third quarter of 2002. In addition to the impact of operating inefficiencies, this decline is also the result of: - costs associated with various Audi production programs recently launched at these facilities; - costs associated with various Porsche programs that will launch in 2004 at a new assembly and sequencing facility in Zuffenhausen, Germany with fascia and related trim production currently scheduled to come from the Company's existing Decoform facility and from third parties; and - costs associated with the transfer, to a new facility located in Germany, and start-up of the Prometall operations. In addition, the Company's Decotrim exterior trim facility in Belgium continues to be impacted by competitive pricing pressures and open capacity. Decotrim's operating losses grew $0.7 million in third quarter of 2003 compared to the third quarter of 2002. Operating results were also negatively impacted by costs incurred to support European sales growth including: - costs associated with establishing the Company's Formatex moulding, assembly and sequencing facility located in Poland to service the VW Group T5 (Transit Van) and the SLW (City Car) Polish production programs (operations commenced at a temporary facility in the second quarter of 2003); and - costs associated with the construction and launch of the Company's new Belplas paint line and the takeover of the Brussels Sequencing Centre both to service a portion of the production volume on the VW Group A5 (Golf) program commencing in the fourth quarter of 2003. The aggregate net change in operating income in the third quarter of 2003 compared to the third quarter of 2002 at Formatex, Belplas and the Brussels Sequencing Centre was a reduction of $3.9 million. The above costs were partially offset by: - income now being generated at the Company's Modultec mould in colour, assembly and sequencing facility which was launched in Germany in the fourth quarter of 2002 to supply the VW Group T5 (Transit Van) program and the Company's Graz, Austria assembly and sequencing facility which was launched in the first quarter of 2003 to supply Magna Steyr's DaimlerChrysler Mercedes E Class 4 Matic program (the aggregate net change in operating income in the third quarter of 2003 compared to the third quarter of 2002 at Modultec and Graz, was an improvement of $1.5 million); - improvements at the Company's other European facilities, most notably within the paint operations at its Decorate trim facility in Germany; and - continued strong operating profits generated at the Company's Innoplas fascia facility in Germany despite lower production volumes on its highest content program, the DaimlerChrysler Mercedes C Class, and costs associated with the DaimlerChrysler Mercedes A Class program that will launch in the fourth quarter of 2004. Finally, Merplas' operating loss improved to $2.1 million for the third quarter of 2003 compared to a loss of $3.0 million for the third quarter of 2002. This improvement was realized despite the reduced fixed cost coverage effects of a significant drop in production sales as a result of lower Jaguar X400 production volumes. The improvement relates, in part, to the recovery of tooling and engineering costs that were expensed in prior periods. However, the balance of the improvement reflects the impact of significant operating improvements implemented at Merplas over the last two years. Readers are asked to refer to the "Outlook - United Kingdom" section of this MD&A for further discussion regarding Merplas. Equity Income Income from equity accounted investments, which includes the Company's 40% share of Bestop, Inc. ("Bestop") and Modular Automotive Systems, LLC, increased to $0.4 million for the third quarter of 2003 compared to a loss of $0.3 million for the third quarter of 2002 due to closure costs accrued in the third quarter of 2002 with respect to one of Bestop's facilities. Interest Expense Interest expense for the third quarter of 2003 declined to $2.6 million compared to $3.1 million for the third quarter of 2002 as a result of lower interest rates and a reduction in average interest bearing net debt (including bank indebtedness, long-term debt including current portion and debt due to Magna including current portion, less cash and cash equivalents) levels. The interest rate paid on the first tranche of Euro denominated debt due to Magna declined from 7.0% in the third quarter of 2002 to 3.14% in the third quarter of 2003. Amortization of Discount on Convertible Series Preferred Shares The Company's amortization of the discount on the portion of the Convertible Series Preferred Shares classified as debt increased to $2.3 million for the third quarter of 2003 compared to $2.0 million for the third quarter of 2002. The increase reflects the translation of Canadian dollar amortization into the Company's U.S. dollar reporting currency and increased amortization on the Series 4 and 5 Convertible Series Preferred Shares as the liability amount approaches face value, partially offset by lower amortization as a result of the discount on the Series 3 Convertible Series Preferred Shares being fully amortized as of July 31, 2002. Income Taxes The Company's effective income tax rate for the third quarter of 2003 increased to 39.6% from 39.4% for the third quarter of 2002. The effective income tax rate for the third quarter of 2003 increased as European losses that are not currently being tax benefited and non- deductible Convertible Series Preferred Share amortization both grew in proportion to the Company's consolidated pretax income. The Company's effective tax rate continues to be high due to Convertible Series Preferred Share amortization which is not deductible for tax purposes and losses which are not being tax benefited primarily in the United Kingdom, Belgium and Poland. Cumulative unbenefited tax loss carryforwards total approximately $104 million. Substantially all of these losses have no expiry date and will be available to shelter future taxable income in these jurisdictions. Net Income Net income for the third quarter of 2003 declined to $14.8 million from $18.6 million for the third quarter of 2002. This decline is primarily attributable to an increase in European operating losses; the impact on North American operating income of program changeovers, lower production volumes and lower volumes on certain high content programs, Decostar costs and OEM customer pricing pressures; and foreign exchange losses in the corporate segment. Financing Charges The deduction from net income of dividends declared and paid on the Convertible Series Preferred Shares (comprised of dividends declared on the Convertible Series Preferred Shares less the reduction of the Convertible Series Preferred Shares dividend equity component) increased to $1.5 million for the third quarter of 2003 compared to $1.1 million for the third quarter of 2002. The increase reflects translation of Canadian dollar dividends into the Company's U.S. dollar reporting currency and a reduction in the Convertible Series Preferred Shares dividend equity component offset as the portion of the dividend equity component related to the Series 1, 2 and 3 Convertible Series Preferred Shares was previously fully utilized. In March of 2003, the Company issued the Debentures. Financing charges, net of income tax recoveries, related to the Debentures were $1.0 million in the third quarter of 2003. The Company has the option to settle Debenture interest, and principal on redemption or maturity, with Class A Subordinate Voting Shares. In addition, the holders of the Debentures have the right to convert the Debentures into Class A Subordinate Voting Shares at a fixed price at any time. As a result, under Canadian generally accepted accounting principles ("GAAP"), the Debentures are presented as equity and the carrying costs associated with the Debentures are charged to retained earnings. Therefore, Debenture carrying charges do not impact net income. However, because interest on the Debentures is paid in preference to common shareholders, the Debenture carrying charges reduce net income attributable to Class A Subordinate Voting and Class B Shares. Readers are asked to refer to note 9 to the Company's unaudited interim consolidated financial statements for the three and nine month periods ended September 30, 2003 included elsewhere herein for further discussion regarding the Debentures. Diluted Earnings Per Share ------------------------------------------------------------------------- Three Month Periods Ended September 30, % 2003 2002 Change ------------------------------------------------------------------------- Earnings per Class A Subordinate Voting or Class B Share (U.S. dollars) Basic $0.17 $0.26 (35%) Diluted 0.16 0.21 (24%) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Average number of Class A Subordinate Voting and Class B Shares Outstanding (in millions) Basic 73.2 67.9 8% Diluted 106.4 98.4 8% ------------------------------------------------------------------------- ------------------------------------------------------------------------- Diluted earnings per share for the third quarter of 2003 declined to $0.16. The decrease is due to the decline in net income and an increase in the weighted average number of diluted Class A Subordinate Voting and Class B Shares outstanding, up 8% to $106.4 million for the third quarter of 2003. The increase is the result of the issuance of the Debentures and the issuance of 451,400 and 548,600 Class A Subordinate Voting Shares to the Decoma employee deferred profit sharing program during the third quarter of 2002 and second quarter of 2003, respectively. The increase in the weighted average number of basic Class A Subordinate Voting and Class B Shares outstanding is due to the issuance of 14,895,729 Class A Subordinate Voting Shares on conversion of the Series 1, 2 and 3 Convertible Series Preferred Shares during the quarter. This transaction negatively impacted basic earnings per share but had no impact on diluted shares outstanding or diluted earnings per share. Readers are asked to refer to the "Consolidated Capitalization" section of this MD&A for further discussion regarding the conversion. Nine Month Periods Ended September 30, 2003 and 2002 Sales ------------------------------------------------------------------------- Nine Month Periods Ended September 30, --------------------------- % 2003 2002 Change ------------------------------------------------------------------------- Light Vehicle Production Volumes (in millions) North America 12.0 12.5 (4%) Western Europe 12.3 12.2 1% ------------------------------------------------------------------------- ------------------------------------------------------------------------- Average Content Per Vehicle (U.S. dollars) North America $ 92 $ 84 10% Europe 37 30 23% ------------------------------------------------------------------------- ------------------------------------------------------------------------- Production Sales (U.S. dollars in millions) North America $1,100.0 $1,041.5 6% Europe Excluding Merplas 431.8 339.9 27% Merplas 19.9 28.0 (29%) ------ ------ Total Europe 451.7 367.9 23% Global Tooling and Other Sales 158.0 119.1 33% ------------------------------------------------------------------------- Total Sales $1,709.7 $1,528.5 12% ------------------------------------------------------------------------- ------------------------------------------------------------------------- Operating Income (U.S. dollars in millions) North America $ 159.5 $ 148.7 7% Europe Excluding Merplas (3.1) 6.7 Merplas (8.8) (10.6) 17% Merplas deferred preproduction expenditure write-off - (8.3) ------ ------ Total Europe (11.9) (12.2) 2% Corporate (14.8) (5.5) ------------------------------------------------------------------------- Total Operating Income $ 132.8 $ 131.0 1% ------------------------------------------------------------------------- ------------------------------------------------------------------------- Earnings per Class A Subordinate Voting or Class B Share (U.S. dollars) Basic $ 1.00 $ 0.98 2% Diluted 0.80 0.78 3% ------------------------------------------------------------------------- ------------------------------------------------------------------------- Average number of Class A Subordinate Voting and Class B Shares Outstanding (in millions) Basic 69.8 67.7 3% Diluted 103.5 98.3 5% ------------------------------------------------------------------------- ------------------------------------------------------------------------- North America North American production sales grew by 6% to $1,100.0 million in the first nine months of 2003. A 4% decline in North American vehicle production volumes negatively impacted sales by $43.6 million. However, this decline was offset by significant growth in North American content per vehicle which grew $8 or 10% to approximately $92 for the first nine months of 2003. Translation of Canadian dollar sales into the Company's U.S. dollar reporting currency added approximately $62.9 million to production sales and $5 to North American content per vehicle. In addition, the FM Lighting Acquisition added approximately $29.8 million to production sales and $2 to North American content per vehicle. The remaining $9.4 million increase in North American production sales and $1 increase in North American content per vehicle is the result of new takeover business; sales on programs that launched during or subsequent to the third quarter of 2002; and strong volumes on certain high content programs; partially offset by the changeover of a number of large production programs; lower production volumes on certain long running high content programs; reduced content on certain programs; the closure of the Company's Montreal based specialty vehicle operation; and the sale of a non-core North American operating division in the first quarter of 2002. Europe European production sales increased 23% to $451.7 million in the first nine months of 2003 on substantially level European production volumes. European content per vehicle grew $7 or 23% to approximately $37. Content growth was driven by the translation of Euro and British Pound sales into the Company's U.S. dollar reporting currency which added approximately $62.8 million to production sales and $5 to European content per vehicle. Content growth was also driven by sales at recent new facility startups in the latter part of 2002 and the first nine months of 2003 (including Modultec, Formatex, Graz and the Brussels Sequencing Centre). These new facilities collectively added approximately $50.1 million to production sales and $4 to European content per vehicle. The remaining net $29.1 million reduction in production sales and $2 reduction in European content per vehicle is due to a number of factors including a decline in production volumes on the Jaguar X400 program produced at Merplas. Adjusting to eliminate the impact of translation of British Pound sales into U.S. dollars, Merplas' sales declined $10.6 million negatively impacting European content per vehicle by $1. In addition, lower volumes on certain long running high content programs, the cancellation of DaimlerChrysler PT Cruiser production in Europe and the completion of the Audi TT hard top program negatively impacted European content growth. These factors were partially offset by the launch of various new Audi production programs at the Company's facilities in Germany. Global Tooling and Other Tooling and other sales on a global basis increased 33% to $158.0 million for the first nine months of 2003. The increase came primarily in the current quarter and is related to the Ford U204 (Escape) refresh program in North America and the VW Group A5 (Golf) program in Europe. Sales by Customer The Company's sales by customer breakdown for the first nine months of 2003 and 2002 was as follows: ------------------------------------------------------------------------- Nine Month Period Ended Nine Month Period Ended September 30, 2003 September 30, 2002 ------------------------ ------------------------ North North America Europe Global America Europe Global Traditional "Big 3" Brands Ford 26.1% 2.2% 28.3% 26.6% 2.1% 28.7% GM/Opel/Vauxhaull 22.2% 1.9% 24.1% 24.1% 1.4% 25.5% Chrysler 13.3% 0.9% 14.2% 14.1% 0.7% 14.8% ------------------------------------------------------------------------- 61.6% 5.0% 66.6% 64.8% 4.2% 69.0% Mercedes - 8.8% 8.8% - 9.9% 9.9% VW Group 0.1% 8.0% 8.1% 0.1% 3.8% 3.9% BMW 0.7% 1.8% 2.5% 0.3% 1.5% 1.8% Ford Premier Automotive Group ("Ford PAG") - 2.0% 2.0% 0.1% 2.3% 2.4% Renault Nissan 1.4% 0.5% 1.9% 1.7% 0.6% 2.3% Other 5.1% 5.0% 10.1% 6.0% 4.7% 10.7% ------------------------------------------------------------------------- 68.9% 31.1% 100.0% 73.0% 27.0% 100.0% ------------------------------------------------------------------------- ------------------------------------------------------------------------- The Company continues to grow it sales with OEM customers outside the traditional "Big 3" automotive brands. The majority of production programs with the Asian automotive manufacturers operating in North America are within Decoma's exterior trim product range and the Company continues to win more business in this area. Although the Company moulds fascias for a number of North American Honda programs, the majority of Asian OEMs currently manufacture their bumper systems in-house. However, this may change as bumper systems and modules grow in size and complexity and as Asian OEM capital equipment reinvestment is required. The Company continues to closely monitor potential opportunities in this area, particularly in the Southern United States region. The growth in sales to the VW Group is the result of the launch of the VW Group T5 (Transit Van) front end module contract and the recent launch of a number of new Audi programs. The Company's sales to the VW Group are expected to continue to grow significantly as program launches ramp up and the VW SLW (City Car) program launches at Formatex. In addition, on completion of its new Belplas paint line in the fourth quarter of 2003, the Company will supply fascias and front end modules for a portion of the volume on the VW Group A5 (Golf) program. The Company's largest production sales programs for 2003 in each of North America and Europe are expected to include: North America - Ford U152 (Explorer) - Ford EN114 (Crown Victoria and Grand Marquis) - Ford U204 (Escape and Tribute) - Daimler Chrysler JR (Stratus, Sebring and Sebring Convertible) - Daimler Chrysler LH (Concorde, Intrepid and 300M) Europe - DaimlerChrysler Mercedes C Class - DaimlerChrysler Mercedes E Class - VW Group T5 (Transit Van) - Opel Vectra - Ford Mondeo The DaimlerChrysler LH (Concorde, Intrepid and 300M) program remains one of the Company's largest North American production sales programs despite the fact that this program ended in the current quarter and the new LX program does not start up until the first quarter of 2004. Earnings Growth The following table isolates the period over period impact of certain unusual income and expense items on the Company's key earnings measures. ------------------------------------------------------------------------- (U.S. dollars, in millions Operating Net Diluted except per share figures) Income Income EPS ------------------------------------------------------------------------- Nine month period ended September 30, 2002 as reported $131.0 $69.9 $0.78 Addback other charge in the second quarter of 2002 8.3 8.3 0.08 Deduct other income in the first quarter of 2002 - (2.9) (0.03) ------------------------------------------------------------------------- Adjusted nine month period ended September 30, 2002 base 139.3 75.3 0.83 Add other income in the first quarter of 2003 - 1.4 0.01 Decrease over adjusted nine month period ended September 30, 2002 base (6.5)(5%) (0.8)(1%) (0.04)(5%) ------------------------------------------------------------------------- Nine month period ended September 30, 2003 as reported $132.8 $75.9 $0.80 ------------------------------------------------------------------------- ------------------------------------------------------------------------- The other charge of $8.3 million in the second quarter of 2002 represents the write-off of Merplas deferred preproduction expenditures. Readers are asked to refer to the "Goodwill and Deferred Preproduction Expenditures" section of this MD&A for further discussion. Other income in the first quarter of 2002 represents a $2.9 million after tax gain on the sale of a non-core North American operating division. Other income in the first quarter of 2003 of $1.4 million represents the recognition in income of a pro rata amount of the Company's cumulative translation adjustment account on the permanent repatriation of $75 million of the Company's net investment in its United States operations. Excluding other income and the Merplas deferred preproduction expenditures write-off, operating income declined 5% to $132.8 million and net income declined 1% to $75.9 million for the first nine months of 2003. The decline in operating income came primarily in Europe as a result of continued operating inefficiencies and costs related to new European facilities. In addition, foreign exchange losses in the corporate segment negatively impacted operating income. These declines were partially offset by the strong performance of the Company's North American operating segment primarily in the first two quarters of 2003. North American operating income in the third quarter of 2003 was flat due primarily to program changeovers, customer pricing pressures and Decostar costs. The percentage decline in net income was lower than the percentage decline in operating income due to lower interest expense, increased equity income and a reduction in the Company's effective tax rate. Diluted earnings per share, excluding other income and the Merplas write- off, declined 5% to $0.80. The percentage decline in diluted earnings per share exceeded the percentage decline in net income due to the increase in the average number of diluted Class A Subordinate Voting and Class B Shares outstanding primarily as a result of the issuance of the Debentures and the recent issuances of Class A Subordinate Voting Shares to the Decoma employee deferred profit sharing program. FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES Cash Flows for the Three Month Periods Ended September 30, 2003 and 2002 ------------------------------------------------------------------------- Three Month Periods Ended September 30, ------------------------------------------------------------------------- (U.S. dollars in millions) 2003 2002 ------------------------------------------------------------------------- EBITDA North America $ 58.7 $ 56.1 Europe Excluding Merplas (1.0) 4.6 Merplas (1.5) (2.4) --------- -------- Total Europe (2.5) 2.2 Corporate (5.0) (2.4) ------------------------------------------------------------------------- 51.2 55.9 Interest, cash taxes and other operating cash flows (13.7) (14.4) ------------------------------------------------------------------------- Cash flow from operations before changes in non-cash working capital 37.5 41.5 Cash invested in non-cash working capital (33.1) (7.2) Fixed and other asset spending, net North America (29.7) (11.2) Europe (19.4) (9.2) Acquisition spending - North America (5.0) - Proceeds from disposition of operating division - 0.3 Dividends Convertible Series Preferred Shares (3.4) (3.0) Class A Subordinate Voting and Class B Shares (4.8) (3.4) ------------------------------------------------------------------------- Cash generated and available for debt reduction (shortfall to be financed) (57.9) 7.8 Net increase in debt 64.0 14.9 Issuances of Class A Subordinate Voting Shares - 4.6 Foreign exchange on cash and cash equivalents 0.4 (0.8) ------------------------------------------------------------------------- Net increase in cash and cash equivalents $ 6.5 $ 26.5 ------------------------------------------------------------------------- ------------------------------------------------------------------------- The Company has presented EBITDA as supplementary information concerning the cash operating earnings of the Company and because it is a measure that is widely used by analysts in evaluating the operating performance of companies in the automotive industry. The Company defines EBITDA as operating income plus depreciation and amortization plus the Merplas deferred preproduction expenditures write-off based on the respective amounts presented in the Company's unaudited interim consolidated statements of income included elsewhere herein. However, EBITDA does not have any standardized meaning under Canadian GAAP and is, therefore, unlikely to be comparable to similar measures presented by other issuers. Cash Flows Before Financing Activities Capital and acquisition spending and dividends exceeded cash generated from operations by $57.9 million for the third quarter of 2003. This was due primarily to $33.1 million being invested in non-cash working capital. The increase in working capital is a result of the Company's new European facilities, increases in tooling related amounts, an increase in taxes receivable and the receipt of a substantial amount of customer payments after the quarter end cut-off. Increased capital and acquisition spending and dividends and lower EBITDA also contributed to the usage of cash. Investing Activities Capital spending, excluding acquisition spending, on a global basis totalled $49.1 million in the third quarter of 2003. North American capital spending was $29.7 million which is up significantly from the comparative prior year period due to spending on the Company's new Decostar facility and paint line refurbishment spending at the Company's Nascote facility in the United States. European capital spending totalled $19.4 million which is also up significantly from the comparative prior year period due to spending on the Company's Belgium paint line project and related assembly and sequencing facility and new program spending at Innoplas including spending for the DaimlerChrysler A Class program. Acquisition spending in the third quarter of 2003 of $5.0 million represents additional payments for the FM Lighting Acquisition which was substantially completed during the current quarter. Dividends Dividends paid on the Company's Convertible Series Preferred Shares were $3.4 million for the third quarter of 2003 up from $3.0 million in the comparative quarter due to translation of Canadian dollar dividends into the Company's U.S. dollar reporting currency. Dividends paid in the third quarter of 2003 on Class A Subordinate Voting and Class B Shares totalled $4.8 million. This represents dividends declared of US$0.07 per share in respect of the three month period ended June 30, 2003. Dividends paid during the third quarter of 2002 on Class A Subordinate Voting and Class B Shares totalled $3.4 million representing dividends declared of US$0.05 per share in respect of the three month period ended June 30, 2002. Subsequent to September 30, 2003, the board of directors of the Company declared a dividend of US$0.07 per Class A Subordinate Voting and Class B Share in respect of the three month period ended September 30, 2003. Financing Activities Increases in debt during the quarter reflect additional draws on the Company's $300 million operating credit facility. Bank indebtedness grew to $80.2 million at September 30, 2003 compared to $11.4 million at June 30, 2003. Cash and cash equivalents at September 30, 2003 were $61.6 million compared to $55.2 million at June 30, 2003. Cash Flows for the Nine Month Periods Ended September 30, 2003 and 2002 ------------------------------------------------------------------------- Nine Month Periods Ended September 30, ------------------------------------------------------------------------- (U.S. dollars in millions) 2003 2002 ------------------------------------------------------------------------- EBITDA North America $ 204.7 $ 189.7 Europe Excluding Merplas 14.2 21.8 Merplas (7.0) (8.3) --------- -------- Total Europe 7.2 13.5 Corporate (14.8) (5.5) ------------------------------------------------------------------------- 197.1 197.7 Interest, cash taxes and other operating cash flows (57.3) (53.8) ------------------------------------------------------------------------- Cash flow from operations before changes in non-cash working capital 139.8 143.9 Cash generated from (invested in) non-cash working capital (95.2) 3.5 Fixed and other asset spending, net North America (77.5) (33.6) Europe (42.8) (20.7) Acquisition spending - North America (13.3) (2.6) Proceeds from disposition of operating division - 5.7 Debenture interest payments (1.2) - Dividends Convertible Series Preferred Shares (10.0) (9.1) Class A Subordinate Voting and Class B Shares (13.0) (10.2) ------------------------------------------------------------------------- Cash generated and available for debt reduction (shortfall to be financed) (113.2) 76.9 Net increase (decrease) in debt 15.1 (93.6) Issuance of Debentures 66.1 - Issuances of Class A Subordinate Voting Shares 4.7 4.7 Foreign exchange on cash and cash equivalents 6.9 1.7 ------------------------------------------------------------------------- Net decrease in cash and cash equivalents $ (20.4) $ (10.3) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Cash Flows Before Financing Activities Capital and acquisition spending, Debenture interest and dividends exceeded cash generated from operations by $113.2 million for the first nine months of 2003. This was due primarily to $95.2 million being invested in non- cash working capital. The FM Lighting Acquisition, the Company's new European facilities, increases in tooling related amounts, a reduction in taxes payable and a substantial amount of customer payments being received after the quarter end cut-off, all contributed to the increase in non-cash working capital. Substantially increased capital and acquisition spending and higher dividends also contributed to the usage of cash. Acquisition spending of $13.3 million includes $10.4 million related to the FM Lighting Acquisition and $2.9 million related to the repayment of promissory notes that arose on the May 2001 acquisition of the remaining minority interest in the Company's Mexican operations. Investing Activities Capital spending, excluding acquisition spending and proceeds from disposition, on a global basis totalled $120.3 million in the first nine months of 2003. The Company strives to keep its annual capital spending budget under 50% of EBITDA and will allocate capital within this limit in priority to those programs generating the greatest return on investment. In certain circumstances, the Company will spend greater than 50% of EBITDA in a particular year if a specific capital program is of longer term strategic importance and the expected returns over the life of the program justify the investment. Given economic uncertainties throughout 2001 and 2002, the Company eliminated or delayed planned capital spending wherever possible. As a result, full year 2001 and 2002 capital spending, excluding acquisition spending and proceeds from disposition, was well under the Company's 50% of EBITDA guideline. However, capital spending for 2003 is expected to increase and exceed 50% of EBITDA. Approved spending for 2003 is currently $195 million. The increase reflects continued spending on the Belgium paint line and Decostar projects, European spending related to new program launches and spending due to prior deferrals of previously planned facility upgrade and other process related and improvement projects. Readers are asked to refer to the "Financial Condition, Liquidity and Capital Resources - Unused and Available Financing Resources" section of this MD&A for further discussion. Dividends Dividends paid on the Company's Convertible Series Preferred Shares were $10.0 million for the first nine months of 2003 up from $9.1 million in the comparative prior year period due to translation of Canadian dollar dividends into the Company's U.S. dollar reporting currency. Dividends paid in the first nine months of 2003 on Class A Subordinate Voting and Class B Shares totalled $13.0 million. This represents dividends declared of US $0.07 per share in respect of the three month period ended June 30, 2003 and US$0.06 per share in respect of the three month periods ended March 31, 2003 and December 31, 2002. Dividends paid during the first nine months of 2002 totalled $10.2 million representing dividends declared of US$0.05 per share in respect of the three month periods ended June 30, 2002, March 31, 2002 and December 31, 2001. Financing Activities During the first quarter of 2003, the Company raised net proceeds of $66.1 million from the issuance of the Debentures. In addition, over the first nine months of 2003, the Company made net borrowings of $15.1 million primarily under its $300 million operating credit facility and issued 548,600 Class A Subordinate Voting Shares, totalling $4.7 million, to the Decoma employee deferred profit sharing program. Consolidated Capitalization ------------------------------------------------------------------------- September 30, December 31, (U.S. dollars in millions) 2003 2002 ------------------------------------------------------------------------- Cash and cash equivalents $ (61.6) $ (82.1) Bank indebtedness 80.2 55.0 ------------------------------------------------------------------------- 18.6 (27.1) Debt due within twelve months Due to Magna December 31, 2003 (previously due September 30, 2003) 44.3 38.3 Due to Magna January 1, 2004 (previously due October 1, 2003) 70.6 64.2 Other 5.5 8.0 ------------------------------------------------------------------------- 120.4 110.5 Long-term debt Due to Magna December 31, 2004 82.6 75.1 Other 6.5 9.7 ------------------------------------------------------------------------- Net Conventional Debt $ 228.1 23.3% $ 168.2 22.6% ------------------------------------------------------------------------- ------------------------------------------------------------------------- Liability portion of Convertible Series Preferred Shares, held by Magna Current $ 73.0 $ 95.6 Long-term 68.4 116.2 ------------------------------------------------------------------------- $ 141.4 14.5% $ 211.8 28.5% ------------------------------------------------------------------------- ------------------------------------------------------------------------- Shareholders' equity Debentures $ 67.8 7.0% $ - Other 539.8 55.2% 362.7 48.9% ------------------------------------------------------------------------- $ 607.6 62.2% $ 362.7 48.9% ------------------------------------------------------------------------- ------------------------------------------------------------------------- Total Capitalization $ 977.1 100.0% $ 742.7 100.0% ------------------------------------------------------------------------- ------------------------------------------------------------------------- During the current quarter, Magna converted the Series 1, 2 and 3 Convertible Series Preferred Shares into Decoma Class A Subordinate Voting Shares at a fixed conversion price of Cdn.$10.07 per Class A Subordinate Voting Share. Decoma issued 14,895,729 Class A Subordinate Voting Shares on conversion. The Debentures and the remaining Series 4 and 5 Convertible Series Preferred Shares are also convertible into Class A Subordinate Voting Shares at the holders' option at fixed prices (Cdn$13.25 per share in the case of the Debentures and Cdn $13.20 per share in the case of the Series 4 and 5 Convertible Series Preferred Shares). The Company's Class A Subordinate Voting Shares closed at Cdn $14.25 on October 28, 2003, and have traded between Cdn $8.81 and Cdn $14.95 over the 52 week period ended October 28, 2003. As a result, it is possible that all, or a portion, of the Debentures and the Series 4 and 5 Convertible Series Preferred Shares will be settled with Class A Subordinate Voting Shares if the holders' exercise their fixed price conversion options. The possible conversion of the Company's Debentures and the Series 4 and 5 Convertible Series Preferred Shares into Class A Subordinate Voting Shares is reflected in the Company's reported diluted earnings per share. In addition to the fixed price conversion options noted above, Magna may retract the Convertible Series Preferred Shares for cash at their face value after December 31, 2003 in the case of the Series 4 Convertible Series Preferred Shares and commencing December 31, 2004 in the case of the Series 5 Convertible Series Preferred Shares. Accordingly, the liability portion of the Series 4 Convertible Series Preferred Shares is shown as current and the liability portion of the Series 5 Convertible Series Preferred Shares is shown as long-term in the Company's consolidated balance sheet. Should the holders' of the Debentures not exercise their fixed price conversion option, they are entitled to receive cash on redemption or maturity (subject to the Company's option of retiring the Debentures with Class A Subordinate Voting Shares in which case the number of Class A Subordinate Voting Shares issuable is based on 95% of the trading price of the Company's Class A Subordinate Voting Shares for the 20 consecutive trading days ending five trading days prior to the date fixed for redemption or maturity). The Debentures mature on March 10, 2010 but are redeemable at the Company's option between March 31, 2007 and March 31, 2008 if the weighted average trading price of the Company's Class A Subordinate Voting Shares is not less than Cdn$16.5625 for the 20 consecutive trading days ending five trading days preceding the date on which notice of redemption is given. Subsequent to March 31, 2008, all or part of the Debentures are redeemable at the Company's option at any time. The Company can call the Series 4 and 5 Convertible Series Preferred Shares for redemption commencing December 31, 2005. The Company's Net Conventional Debt to Total Capitalization at September 30, 2003 was 23.3% compared to 22.6% at December 31, 2002. This measure treats the Company's hybrid Debenture and Convertible Series Preferred Share instruments like equity rather than debt given their possible conversion into Class A Subordinate Voting Shares. The Company's Net Conventional Debt plus the liability portions of the Convertible Series Preferred Shares to Total Capitalization, has improved to 37.8% at September 30, 2003 compared to 51.1% at December 31, 2002. This measure treats the liability portions of the Convertible Series Preferred Shares like debt rather than equity given their possible retraction for cash. The Company's Net Conventional Debt plus the liability portions of the Convertible Series Preferred Shares plus the Debentures to Total Capitalization was 44.8% at September 30, 2003 compared to 51.1% at December 31, 2002. In addition to the liability portions of the Convertible Series Preferred Shares, this measure treats the Debentures like debt rather than equity given the possibility of settling them for cash on maturity or redemption rather than for Class A Subordinate Voting Shares. Unused and Available Financing Resources At September 30, 2003 the Company had cash on hand of $61.6 million and $234.8 million of unused and available credit facilities. Of the unused and available credit facilities, $219.8 million represents the unused and available portion of the Company's $300 million extendible, revolving credit facility that expires on May 27, 2004 at which time Decoma may request, subject to lender approval, further revolving 364 day extensions. Debt, excluding bank indebtedness, that comes due in the next twelve months totals $120.4 million including debt due to Magna of $44.3 million due December 31, 2003 and $70.6 million due January 1, 2004. Since the original maturity of the amounts due December 31, 2003 and January 1, 2004, the Company, with Magna's consent, has been extending the repayment of this debt at 90 day intervals at market interest rates. Although the Company expects Magna to continue to extend the repayment dates for this debt, there can be no assurance that Magna will do so. The Company anticipates that capital expenditures and currently scheduled repayments of debt will exceed cash generated from operations in 2003. As a result, the Company is dependent on its lenders to continue to revolve its existing $300 million credit facility. In addition, the Company may seek additional debt or equity financing and/or pursue further extensions of the maturity dates of debt due to Magna or work with Magna to establish a new fixed long term amortization schedule related to this debt. In addition to the above unused and available financing resources, the Company sponsors a finance program for tooling suppliers to finance tooling under construction for the Company. Under this program, the facility provider orders tooling from suppliers and subsequently sells such tooling to the Company. The facility provider makes advances to tooling suppliers based on tool build milestones approved by the Company. On completion of the tooling the facility provider sells the tooling to the Company for an amount equal to cumulative advances. In the event of tooling supplier default, the Company will purchase in progress tooling for an amount approximating cumulative advances. A number of Magna affiliated companies are sponsors under this facility. The maximum facility amount is $100 million and is available to individual sponsors on an uncommitted demand basis subject to individual sponsor sub limits. The Company's sub limit is $35 million. As at September 30, 2003, $1.6 million had been advanced to tooling suppliers under the Company's portion of this facility. This amount is included in accounts payable. Off Balance Sheet Financing The Company's off balance sheet financing arrangements are limited to operating lease contracts. A number of the Company's facilities are subject to operating leases with Magna and with third parties. As of December 31, 2002, operating lease commitments for facilities totalled $19.3 million for 2003 including $10.1 million under lease arrangements with Magna. For 2007, total operating lease commitments for facilities totalled $14.5 million including $9.8 million under lease arrangements with Magna. In certain situations, the Company has posted letters of credit to collateralize lease obligations. The Company also has third party operating lease commitments for equipment. These leases are generally of shorter duration. As of December 31, 2002, operating lease commitments for equipment totalled $6.5 million for 2003. For 2007, operating lease commitments for equipment totalled $3.1 million. Although the Company's consolidated contractual annual lease commitments decline year by year, existing leases will either be renewed or replaced resulting in lease commitments being sustained at current levels or the Company will incur capital expenditures to acquire equivalent capacity. Return on Investment Decoma defines after tax return on common equity as net income attributable to Class A Subordinate Voting and Class B Shares over shareholders' equity excluding Subordinated Debentures and the equity portion of Convertible Series Preferred Shares. After tax return on common equity was 29% for the year ended December 31, 2002. After tax return on common equity for the nine month period ended September 30, 2003 was 23%. Each operating segment's return on investment is measured using return on funds employed. Return on funds employed is defined as operating income plus equity income divided by long term assets, excluding future tax assets, plus non-cash working capital. Return on funds employed represents a return on investment measure before the impacts of capital structure. The Company views capital structure as a corporate, rather than operating segment, decision. ------------------------------------------------------------------------- Return on Funds Employed Funds Employed -------------- -------------- Nine month period ended Year ended As at As at September December September December 30, 31, 30, 31, (U.S. dollars in millions) 2003 2002 2003 2002 ------------------------------------------------------------------------- North America 35% 35% $ 679.1 $ 569.3 Europe Excluding Merplas (2%) 1% 288.7 193.6 Merplas (44%) (66%) 30.3 26.9 Corporate n/a n/a 25.7 (0.1) ------------------------------------------------------------------------- Global 20% 22% $1,023.8 $ 789.7 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Return on funds employed was 19.9% in the first nine months of 2003. Return on funds employed for the first nine months of 2003 compared to the full year 2002 was negatively impacted by the normal seasonal effects of lower sales and earnings in the third quarter; lower European operating income; and increased investments in Europe, particularly with the new Belplas paint line, and in North America at Decostar. In addition, the significant increase in the Company's working capital investment negatively impacted return on funds employed. Translation, particularly of European funds employed into the Company's U.S. dollar reporting currency, also negatively impacted return on funds employed. These negative impacts were partially offset by strong North American segment operating income in the first two quarters of 2003 and the 2002 write-down of Merplas deferred preproduction expenditures. North America return on funds employed is likely to be negatively impacted in the fourth quarter of 2003 and in 2004 as the Company continues to make significant construction and start-up investments in its new Decostar facility. Operating inefficiencies and increased investments in Europe are expected to continue to negatively impact European (excluding Merplas) return on funds employed. Further improvements to Merplas' return on funds employed are dependent on additional business to utilize open capacity. Readers are asked to refer to the "United Kingdom" section of this MD&A for further discussion regarding Merplas. GOODWILL AND DEFERRED PREPRODUCTION EXPENDITURES In 2002, the Company adopted the new accounting recommendations of The Canadian Institute of Chartered Accountants for goodwill and other intangible assets. Upon initial adoption of these recommendations, the Company recorded a goodwill write-down of $12.3 million related to its United Kingdom reporting unit. This write-down was charged against January 1, 2002 opening retained earnings. As part of its assessment of goodwill impairment, the Company also reviewed the recoverability of deferred preproduction expenditures at its Merplas United Kingdom facility. As a result of this review, $8.3 million of deferred preproduction expenditures were written off as a charge against income in the second quarter of 2002. OUTLOOK United Kingdom Given the magnitude of Merplas' historic losses, the Merplas results have been separately disclosed in this MD&A in order to better explain the performance of the European operating segment. The Merplas facility was initially built to service the X400 program assembled at Jaguar's Halewood plant, and other Jaguar programs, including the X100 program, with additional capacity to service other future business opportunities. Production volumes on the Jaguar X400 and X100 programs continue at levels that are well below original planning volume estimates of 115,000 and 11,000, respectively. In 2002, production volumes were approximately 72,800 and 6,800 for the X400 and X100. Our current 2003 forecast for X400 production is between 55,000 to 61,000 vehicles and the X100 program is currently forecast at approximately 6,000 vehicles. Merplas was recently awarded the Freelander fascia program by Ford PAG in the United Kingdom. The Company expects that the Freelander program will launch in the latter part of 2006 with an annual estimated volume of approximately 70,000 vehicles after ramp up. The Company is continuing with its United Kingdom market review. As part of this review, the Company is assessing probable long term production volumes within the existing portfolio of business at its two United Kingdom facilities, Merplas and Sybex. In addition to the Jaguar and Freelander programs, these facilities produce for the BMW Mini and various Rover programs, amongst others. While BMW Mini program volumes are strong, long term volumes on the Jaguar and Rover programs remain subject to uncertainty. In addition, the probability of obtaining further new business for these facilities is being assessed. The Company expects to complete this review during the fourth quarter of 2003. At that time, future United Kingdom capacity utilization and the resulting impact, if any, on the recoverability of the Company's United Kingdom investment will be determined. Continental Europe Improving operating performance in Europe remains a chief priority. Robert Brownlee has recently assumed responsibility for our European operations. In conjunction with this management change, we are evaluating existing operating structures with a view toward improving overall operating performance in continental Europe. Full Year 2003 Outlook Our outlook for full year 2003 vehicle production volumes remains unchanged from prior guidance. North American light vehicle production is estimated at 15.9 million vehicles for 2003, a reduction of approximately 2% over 2002 vehicle production volumes of 16.3 million units. Western European light vehicle production is estimated at 16.0 million vehicles for 2003, also down approximately 2% from 2002 vehicle production volumes of 16.3 million units. Decoma expects that North American sales and earnings will be negatively impacted in the fourth quarter of 2003 by increased spending at Decostar as the Company continues to prepare for the launch of this facility and by the continued impact of the changeover of the DaimlerChrysler LH changeover to the LX program (the LH program ended in the current quarter and the new LX program does not start up until the first quarter of 2004), the ramp up of Ford V229 (Freestar) program which recently replaced the WIN 126 (Windstar) program and continued intensive customer pricing pressures. These negative impacts are expected to be partially offset by a stronger Canadian dollar relative to the U.S. dollar in the fourth quarter of 2003 compared to 2002, the FM Lighting Acquisition and the extension of Decoma fascia production on programs originally scheduled to end in the first half of 2003. European sales are expected to continue to be favourably impacted by a stronger Euro and British Pound relative to the U.S. dollar in the fourth quarter of 2003 compared to 2002. However, European earnings will continue to be negatively impacted by operating inefficiencies, costs associated with European sales growth, start up costs with the launch of the Company's new Belplas paint line and related assembly and sequencing facility and lower production volumes on certain high content programs. In addition, subsequent to the current quarter end, one of the Company's European facilities completed the acquisition of a chroming line. The line is currently being converted to allow for grille chroming. The Company expects to launch the chroming line in early 2004 and commence the insourcing of grille chroming business currently outsourced by Decoma's European operations at that time. As a result, the fourth quarter of 2003 and the first half of 2004 are expected to be negatively impacted by chroming line start-up and launch costs. The Company's outlook assumes that average exchange rates for the fourth quarter of 2003 for the Canadian dollar, Euro and British Pound relative to the U.S. dollar will approximate the average exchange rates experienced in the third quarter of 2003. Diluted earnings per share in the fourth quarter of 2003 compared to 2002 will also be impacted by the dilutive effect of the Debentures that were issued by the Company at the end of the first quarter of 2003. As a result of the above factors, the Company's full year 2003 sales and content expectations remain unchanged from prior guidance. North American content per vehicle is expected to be between $90 and $92, European content per vehicle is expected to be between $39 and $41 and total sales is expected to range between $2,275 million and $2,360 million. Diluted earnings per share for the full year 2003, before possible charges, if any, related to the Company's United Kingdom review and its continental Europe review, is also expected to be within our previous guidance of $0.92 to $1.04. FORWARD LOOKING STATEMENTS The contents of this MD&A contain statements which, to the extent that they are not recitations of historical fact, constitute "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The words "estimate", "anticipate", "believe", "expect" and similar expressions are intended to identify forward looking statements. Persons reading this MD&A are cautioned that such statements are only predictions and that the Company's actual future results or performance may be materially different. In evaluating such forward looking statements readers should specifically consider the various risk factors which could cause actual events or results to differ materially from those indicated by such forward looking statements. These risks and uncertainties include, but are not limited to, specific risks relating to the Company's relationship with its customers, the automotive industry in general and the economy as a whole. Such risks include, without limitation; the Company's reliance on its major OEM customers, increased pricing concession and cost absorption pressures from the Company's customers; the impact of production volumes and product mix on the Company's financial performance, including changes in the actual customer production volumes compared to original planning volumes; program delays and/or cancellations; the extent, nature and duration of purchasing or leasing incentive programs offered by automotive manufacturers and the impact of such programs on future consumer demand; warranty, recall and product liability costs and risks; the continuation and extent of automotive outsourcing by automotive manufacturers; changes in vehicle pricing and the resulting impact on consumer demand; the Company's operating and/or financial performance, including the effect of new accounting standards that are promulgated from time to time (such as the ongoing requirement for impairment testing of long lived assets) on the Company's financial results; the Company's ability to finance its business requirements and access capital markets; trade and labour issues or disruptions impacting the Company's operations and those of its customers; the Company's ability to identify, complete and integrate acquisitions and to realize projected synergies relating thereto; the impact of environment related matters including emission regulations; risks associated with the launch of new facilities, including cost overruns and construction delays; technological developments by the Company's competitors; fluctuations in fuel prices and availability; electricity and natural gas cost volatility; government and regulatory policies and the Company's ability to anticipate or respond to changes therein; the Company's relationship with Magna International Inc.; currency exposure risk; fluctuations in interest rates; changes in consumer and business confidence levels; consumer personal debt levels; disruptions to the economy relating to acts of terrorism or war; and other changes in the competitive environment in which the Company operates. In addition, and without limiting the above, readers are cautioned that the specific forward looking statements contained herein relating to the Company's vehicle production volume outlook; the anticipated impact on 2003 North America sales and earnings of lower production volumes, Decostar spending, the scheduled changeover of certain high content programs and the Federal Mogul lighting acquisition; sales, operating income and return on funds employed improvement opportunities in Europe; the possible conversion of the Company's Debentures and Convertible Series Preferred Shares to Class A Subordinate Voting Shares; the Company's ability to raise necessary future financing; capital spending estimates; the future performance of Merplas; and the recoverability of the Company's remaining goodwill and other long lived assets, are all subject to significant risk and uncertainty. Readers are also referred to the discussion of "Other Factors" set out in the Company's Annual Information Form dated May 20th, 2003, wherein certain of the above risk factors are discussed in further detail. The Company expressly disclaims any intention and undertakes no obligation to update or revise any forward looking statements contained in this MD&A to reflect subsequent information, events or circumstances or otherwise. END FIRST AND FINAL ADD DATASOURCE: Decoma International Inc. CONTACT: PRNewswire -- Nov. 4

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