- Fourth Quarter 2015 Results:
- Net loss of $0.31 per share, including
a loss of $0.09 per share related to an impairment charge at
Brillion
- Net sales of $153.1 million, down 11.4
percent year-over-year
- Adjusted EBITDA of $15.6 million, flat
year-over-year
- Full Year 2015 Results:
- Net loss of $0.16 per share, including
a loss of $0.09 per share related to an impairment charge at
Brillion
- Net sales of $685.6 million, down 2.8
percent year-over-year
- Adjusted EBITDA of $81.9 million, up
5.1 percent year-over-year
Accuride Corporation (NYSE:ACW) – a leading supplier of
components to the North American and European commercial vehicle
industries – today reported financial results for the fourth
quarter and fiscal year ended December 31, 2015.
"In diverse market conditions, we improved on several key
financial measures in 2015, including Adjusted EBITDA, free cash
flow and liquidity," said Rick Dauch, Accuride President and CEO.
“While Brillion’s results continued to be impacted by lower
end-market demand, the Wheels and Gunite businesses performed
exceptionally well in 2015. With their facilities operating at
near-peak efficiencies, they converted this world-class operating
performance and capable, available capacity into improved market
share positions for wheels and wheel end components. This enabled
us to generate $20 million in free cash flow in 2015 and improve
our liquidity level to $77 million.
“Our investments in industry-leading technologies – such as our
Steel Armor™ and newly-introduced EverSteel™ coatings – are further
positioning us for success in the marketplace. In 2015, we
converted 50 fleets to Accuride wheels and Gunite components. We
also secured or renewed five long-term agreements with key truck
OEMs and three with trailer OEs, giving us a solid three- to
five-year foundation from which to expand.
“Although Class 8 volumes are projected to be approximately 20
percent lower in 2016, the Trailer and Aftermarket segments – where
Accuride’s share has increased – are expected to be stable. In
addition, 2016 will see the top-line benefit of our new majority
stake in Gianetti Ruote, which serves Europe’s steadily-growing
commercial vehicle industry. Now, more than ever, Accuride is a
more competitive and strategically vital supplier to our customers
in North America and Europe. We are confident our improved product
and geographic platforms will lead to growth and increased
stakeholder value.”
Fourth Quarter 2015 Results
Fourth quarter 2015 net sales were $153.1 million, a decrease of
11.4 percent from the year ago period. This was driven primarily by
the lower demand in our Brillion segment and lower raw material
prices, which was partially offset by $6.5 million in net sales
related to our majority investment in Gianetti. Accuride’s
operating loss was $1.6 million, which was impacted by a $4.4
million non-cash goodwill impairment charge related to Brillion and
a $1.3 million loss related to the results at Gianetti. The Company
reported a net loss from continuing operations attributable to
stockholders of $14.9 million, or a negative $0.31 per share,
during the quarter. This included a loss of $0.09 per share related
to the impairment charge at Brillion. Fourth quarter Adjusted
EBITDA was $15.6 million, or 10.2 percent of net sales, compared to
$15.6 million, or 9.1 percent of net sales, in the fourth quarter
of 2014. As of December 31, 2015, Accuride had $29.8 million of
cash plus $46.8 million in availability under its ABL Credit
Facility for total liquidity of $76.6 million.
Fiscal Year 2015 Results
Net sales for the fiscal year ended December 31, 2015 were
$685.6 million. This compares with $705.2 million in the prior
year, or a decrease of 2.8 percent. The net sales decrease was
primarily due to lower demand at our Brillion business unit, which
was partially offset by the impact of higher vehicle production in
the North American commercial vehicle market and by $6.5 million in
net sales related to our majority investment in Gianetti. Accuride
reported a loss from continuing operations attributable to
stockholders of $7.5 million, or a negative $0.16 per share, for
the year ended December 31, 2015 compared to a loss of $0.04 per
share in 2014. This included a loss of $0.09 per share related to
the impairment charge at Brillion. Adjusted EBITDA from continuing
operations for fiscal-year 2015 was $81.9 million, or 12.0 percent
of net sales, compared to $78.0 million, or 11.1 percent of net
sales, in the prior year.
Fourth Quarter Business Segment Results
Accuride Wheels
Accuride Wheels segment net sales were $98.4 million, down $3.7
million, or 3.6 percent, from the same period in 2014. This was
primarily due to lower OEM demand in the quarter, which was
partially offset by $6.5 million in net sales related to Gianetti.
Excluding the net sales from Gianetti, the Wheels’ net sales were
down $10.2 million, or 10.0 percent, from the same period in 2014.
Despite this decrease, the Wheels’ Adjusted EBITDA was $20.2
million, an increase of $2.6 million, or 14.7 percent, from the
fourth quarter of 2014. Wheels continued to gain share in 2015 due
to its available aluminum wheel capacity and the introduction of
industry-leading products in both steel and aluminum wheels.
Gunite
Gunite segment net sales of $39.2 million were up $2.6 million,
or 7.1 percent, from the fourth quarter of 2014. This was primarily
attributable to market share gains in aftermarket brake drums.
Gunite’s Adjusted EBITDA improved to $6.2 million, from $3.5
million in the fourth quarter of 2014. Gunite gained share in 2015
as it continued to reestablish itself as a prominent wheel-end
component supplier through industry-leading lead times and
quality.
Brillion Iron Works
Brillion Iron Works’ fourth quarter net sales were $15.5
million, down $18.6 million, or 54.5 percent, from the fourth
quarter of 2014 on lower industry demand. Brillion’s Adjusted
EBITDA was a negative $2.6 million, a decrease of $4.8 million,
from the fourth quarter of 2014. The net sales in the fourth
quarter represented its lowest level in any quarter since 2009, as
this business continues to be impacted by reduced end-market demand
from customers in the oil and gas, mining and agriculture
industries.
Liquidity and Debt
As of December 31, 2015, total debt was $317.6 million,
consisting of $307.3 million of our outstanding 9.5% senior secured
notes, net of discount, and $10.3 million in short term obligations
related to our majority interest in Gianetti. As of December 31,
2015, Accuride had $29.8 million of cash plus $46.8 million in
availability under its ABL Credit Facility, for total liquidity of
$76.6 million.
2016 Financial Guidance
Accuride expects 2016 revenue to be in the range of $650 million
to $700 million, with Adjusted EBITDA in the range $65 million to
$80 million. Accuride also expects free cash flow for 2016 to be
roughly breakeven. The Company is basing these expectations for its
2016 guidance on the following projections for North American
commercial vehicle production and other key assumptions for the
year:
- Class 8 production levels in the range
of 240,000 to 260,000 units
- Class 5-7 production levels in the
range of 220,000 to 240,000 units
- Trailer production in the range of
270,000 to 290,000 units
- European heavy and medium duty truck
builds in the range of 510,000 to 530,000 units
- Commercial vehicle aftermarket growth
in the range of 1 percent to 3.5 percent
- Brillion business unit net sales down
15 percent to 20 percent versus prior year
- Full year consolidation of Gianetti
Ruote
Earnings Conference Call Information
Accuride will host a conference call to discuss the financial
and operational results of its Fourth Quarter and Full-Year Fiscal
2015 on Friday, February 26, 2016, beginning at 9:00 a.m. CST.
Analysts and investors may participate in the conference call by
dialing (855) 542-4217 in the United States, or (412) 455-6081
internationally, and using participant code 54646527. A live
webcast of the conference call can be accessed via the Investors
section of the company’s website – www.AccurideCorp.com/investors.
A replay will be available from February 26, 2016, at 12:00 p.m.
CST until 11:59 p.m. CST, March 4, 2016, by calling (855) 859-2056
in the United States, or (404) 537-3406 internationally, using
access code 54646527.
About Accuride Corporation
With headquarters in Evansville, Ind., USA, Accuride Corporation
is a leading supplier of components to the North American and
European commercial vehicle industries. The company’s products
include commercial vehicle wheels; wheel-end components and
assemblies; and specialty cast-iron components for a range of
agricultural, construction and mining, and oil and gas equipment
applications. The company’s products are marketed under its brand
names, which include Accuride®, Accuride Wheel End Solutions™,
Gunite®, Gianetti Ruote™ and Brillion™. Accuride’s common stock
trades on the New York Stock Exchange under the ticker symbol ACW.
For more information, visit the Company’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
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended, including
statements regarding Accuride’s expectations, hopes, beliefs, and
intentions with respect to future results. Such statements are
subject to the impact on Accuride’s business and prospects
generally of, among other factors, 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 Accuride’s Securities and Exchange Commission
filings, including those described in Item 1A of Accuride’s Annual
Report on Form 10-K for the fiscal year ended December 31, 2014.
Any forward-looking statement reflects only Accuride’s belief at
the time the statement is made. Although Accuride believes that the
expectations reflected in these forward-looking statements are
reasonable, it cannot guarantee its future results, levels of
activity, performance or achievements. Except as required by law,
Accuride undertakes no obligation to update any forward-looking
statements to reflect events or developments after the date of this
news release.
Three Months Operating Results
(UNAUDITED)
Three Months Ended December 31,
(Dollars in thousands) 2015 2014
Net sales:
Wheels $ 98,380 64.3
%
$ 102,088 59.1 % Gunite 39,214 25.6
%
36,629 21.2 % Brillion Iron Works 15,513 10.1
%
34,095 19.7 % Total net sales $ 153,107 100.0
%
$ 172,812 100.0 % Gross Profit $ 14,605 9.5
%
$ 14,121 8.2 % Income (Loss) from Operations: Wheels $
10,461 10.6
%
$ 8,377 8.2 % Gunite 4,755 12.1
%
2,040 5.6 % Brillion Iron Works (8,719) (56.2)
%
1,079 3.2 % Corporate / Other (8,087) —
(7,775) — Consolidated Total $ (1,590) (1.0)
%
$ 3,721 2.2 % Net Income (Loss) $ (15,205) (9.9)
%
$ (5,128) (3.0) % Adjusted EBITDA: Wheels $ 20,248 20.6
%
$ 17,564 17.2 % Gunite 6,224 15.9
%
3,518 9.6 % Brillion Iron Works (2,558) (16.5)
%
2,257 6.6 % Corporate / Other (8,308) —
(7,693)
—
Continuing Operations $ 15,606 10.2
%
$ 15,646 9.1 % Discontinued Operations
(13) — — — Consolidated Total $
15,593 10.2
%
$ 15,646 9.1 %
Fiscal Year Operating Results
(UNAUDITED)
Year Ended December 31,
(Dollars in thousands) 2015 2014
Net sales:
Wheels $ 422,905 61.7
%
$ 402,146 57.0 % Gunite 167,783 24.5
%
171,263 24.3 % Brillion Iron Works 94,886 13.8
%
131,769 18.7 % Total net sales $ 685,574 100.0
%
$ 705,178 100.0 % Gross Profit $ 79,705 11.6
%
$ 73,478 10.4 % Income (Loss) from Operations: Wheels $
54,833 13.0
%
$ 41,823 10.4 % Gunite 19,895 11.9
%
16,710 9.8 % Brillion Iron Works (11,643) (12.3)
%
4,523 3.4 % Corporate / Other (33,665) —
(30,418) — Consolidated Total $ 29,420 4.3
%
$ 32,638 4.6 % Net Income (Loss) attributable to
stockholders $ (7,634) (1.1)
%
$ (2,307) (0.3) % Adjusted EBITDA: Wheels $ 90,951 21.5
%
$ 78,665 19.6 % Gunite 25,462 15.2
%
21,536 12.6 % Brillion Iron Works (1,876) (2.0)
%
9,072 6.9 % Corporate / Other (32,590) —
(31,279) — Continuing Operations $ 81,947 12.0
%
$ 77,994 11.1 % Discontinued Operations
(13) — — — Consolidated Total $
81,934 12.0
%
$ 77,994 11.1 %
ACCURIDE CORPORATION AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME (LOSS)
(UNAUDITED)
Three Months EndedDecember
31,
Year Ended December 31,
(In thousands except per share data) 2015
2014 2015 2014 NET
SALES $ 153,107 $ 172,812 $ 685,574 $
705,178 COST OF GOODS SOLD 138,502
158,691 605,869 631,700 GROSS PROFIT
14,605 14,121 79,705 73,478 OPERATING EXPENSES: Selling, general
and administrative 11,781 10,400 45,871 40,840 Impairment of
Goodwill 4,414 — 4,414
— INCOME FROM OPERATIONS (1,590) 3,721 29,420 32,638
OTHER EXPENSE: Interest expense, net (8,423) (8,362) (33,376)
(33,713) Other loss, net (1,745)
(2,002) (4,143) (3,506)
INCOME (LOSS) BEFORE INCOME TAXES FROM
CONTINUING OPERATIONS
(11,758) (6,643) (8,099) (4,581)
INCOME TAX EXPENSE (BENEFIT)
3,525 (1,560) (138)
(2,527) INCOME FROM CONTINUING OPERATIONS (15,283)
(5,083) (7,961) (2,054 ) DISCONTINUED OPERATIONS, NET OF TAX
(352) (45) (103)
(253) NET LOSS (15,635) (5,128) (8,064) (2,307)
NET LOSS ATTRIBUTABLE TO
NONCONTROLLING
MINORITY INTEREST
(430) — (430)
— NET LOSS ATTRIBUTABLE TO STOCKHOLDERS $ (15,205) $
(5,128) $ (7,634) $ (2,307)
OTHER COMPREHENSIVE INCOME (LOSS), NET
OF
TAX:
Defined benefit plans and foreign currency 16,632
17,767 32,213 (30,926)
COMPREHENSIVE INCOME (LOSS) $ 1,427 $ 12,639 $
24,579 $ (33,233) AMOUNTS ATTRIBUTABLE TO
STOCKHOLDERS
Income (Loss) from continuing operations,
net of tax
$ (14,853) $ (5,083) $ (7,531) $ (2,054) Discontinued operations,
net of tax (352) (45)
(103) (253) NET LOSS ATTRIBUTABLE TO STOCKHOLDERS $
(15,205) $ (5,128) $ (7,634) $ (2,307)
EARNINGS PER SHARE ATTRIBUTABLE TO
STOCKHOLDERS
Weighted average common shares outstanding—basic 48,016 47,749
47,961 47,708 Basic income per share-continuing operations (0.31)
(0.11) (0.16) (0.04) Basic income per share-discontinued operations
(0.01) — —
(0.01) Basic income per share $ (0.32) $ (0.11) $
(0.16) $ (0.05)
Weighted average common shares
outstanding—
diluted
48,016 47,749 47,961 47,708 Diluted income per share-continuing
operations (0.31) (0.11) (0.16) (0.04) Diluted income per
share-discontinued operations (0.01) —
— (0.01) Diluted income per share $
(0.32) $ (0.11) $ (0.16) $ (0.05)
ACCURIDE CORPORATION
CONSOLIDATED ADJUSTED EBITDA
(UNAUDITED)
Three Months Ended December 31,
(In thousands) 2015 2014
Net income (loss) $ (15,635) $ (5,128) Income tax benefit 3,525
(1,560) Interest expense, net 8,423 8,362 Depreciation and
amortization 11,292 10,869 Impairment of goodwill 4,414 —
Noncontrolling interest 430 —
Restructuring, severance and other
charges1
1,177 442 Other items related to our credit agreement2 1,967
2,661 Adjusted EBITDA $ 15,593 $ 15,646
Note:
1)
For the three months ended December 31,
2015, Adjusted EBITDA represents net income before net
interestexpense, income tax expense, depreciation and amortization,
$4.4 million in impairment of goodwill, noncontrollinginterest,
plus $1.2 million in costs associated with restructuring severance,
and other charges. For the three monthsended December 31, 2014,
Adjusted EBITDA represents net income before net interest expense,
income tax benefit,depreciation and amortization, plus $0.4 million
in costs associated with restructuring, severance and other
charges.
2)
Items related to our credit agreement
refer to amounts utilized in the calculation of financial covenants
in Accuride’ssenior credit facility. For the three months ended
December 31, 2015, items related to our credit agreement
consistedof foreign currency losses and other income or expenses of
$2.0 million. For the three months ended December 31,2014, items
related to our credit agreement consisted of foreign currency
losses and other income or expenses of$2.7 million.
Year Ended December 31,
(In thousands) 2015 2014
Net income (loss) $ (8,064) $ (2,307) Income tax benefit (138)
(2,527) Interest expense, net 33,376 33,713 Depreciation and
amortization 42,792 41,873 Impairment of goodwill 4,414 —
Noncontrolling interest 430 — Restructuring, severance and other
charges1 2,892 1,069 Other items related to our credit agreement2
6,232 6,173 Adjusted EBITDA $ 81,934 $ 77,994
Note:
1)
For the full year ended December 31, 2015,
Adjusted EBITDA represents net income before net interest
expense,income tax expense, depreciation and amortization, $4.4
million impairment of goodwill, noncontrolling interest plus$2.9
million in costs associated with restructuring, severance and other
charges. For the full year ended December31, 2014, Adjusted EBITDA
represents net income before net interest expense, income tax
benefit, depreciation andamortization, plus $1.1 million in costs
associated with restructuring, severance and other charges.
2)
Items related to our credit agreement
refer to amounts utilized in the calculation of financial covenants
in Accuride’ssenior credit facility. For the full year ended
December 31, 2015, items related to our credit agreement consisted
offoreign currency losses and other income or expenses of $6.2
million. For the full year ended December 31, 2014,items related to
our credit agreement consisted of foreign currency losses and other
income or expenses of $6.2million.
ACCURIDE CORPORATION
SEGMENT ADJUSTED EBITDA
RECONCILIATION
(UNAUDITED)
Three Months Ended December 31,
2015
(In thousands)
Income
(loss)fromOperations
Depreciation
andAmortization
Other
AdjustedEBITDA
Wheels $ 10,461 $ 8,125 $ 1,662 $
20,248 Gunite 4,755 1,219 250 6,224 Brillion Iron Works (8,719)
1,229 4,932 (2,558) Corporate / Other (8,087)
709 (930) (8,308) Continuing
Operations $ (1,590) $ 11,282 $ 5,914 $ 15,606 Discontinued
Operations (23) 10 —
(13) Consolidated Total $ (1,613) $
11,292 $ 5,914 $ 15,593
Three Months Ended December 31,
2014
(In thousands)
Income
(loss)fromOperations
Depreciation
andAmortization
Other
AdjustedEBITDA
Wheels $ 8,377 $ 7,987 $ 1,200 $ 17,564
Gunite 2,040 1,228 250 3,518 Brillion Iron Works 1,079 1,148 30
2,257 Corporate / Other (7,775) 495
(413) (7,693) Continuing Operations $
3,721 $ 10,858 $ 1,067 $ 15,646 Discontinued Operations
(11) 11 — —
Consolidated Total $ 3,710 $ 10,869 $ 1,067 $
15,646
Year Ended December 31, 2015
(In thousands)
Income
(loss)fromOperations
Depreciation
andAmortization
Other
AdjustedEBITDA
Wheels $ 54,833 $ 30,856 $ 5,262 $
90,951 Gunite 19,895 4,567 1,000 25,462 Brillion Iron Works
(11,643) 4,745 5,022 (1,876) Corporate / Other
(33,665) 2,583 (1,508)
(32,590) Continuing Operations $ 29,420 $ 42,751 $ 9,776 $ 81,947
Discontinued Operations (54) 41
— (13) Consolidated Total $ 29,366 $
42,792 $ 9,776 $ 81,934
Year Ended December 31, 2014
(In thousands)
Income
(loss)fromOperations
Depreciation
andAmortization
Other
AdjustedEBITDA
Wheels $ 41,823 $ 31,695 $ 5,147 $
78,665 Gunite 16,710 3,826 1,000 21,536 Brillion Iron Works 4,523
4,429 120 9,072 Corporate / Other (30,418)
1,881 (2,742) (31,279)
Continuing Operations $ 32,638 $ 41,831 $ 3,525 $ 77,994
Discontinued Operations (42) 42
— — Consolidated Total $ 32,596 $
41,873 $ 3,525 $ 77,994
We define Adjusted EBITDA as our net income before net interest
expense, income tax expense, depreciation and amortization,
impairment of goodwill, noncontrolling interest, restructuring,
severance and other charges. Adjusted EBITDA has been included
because we believe that it is useful for us and our investors to
measure our ability to provide cash flows to meet debt service.
Adjusted EBITDA should not be considered an alternative to net
income (loss) or other traditional indicators of operating
performance and cash flows determined in accordance with accounting
principles generally accepted in the United States (“GAAP”). We
present the table of Adjusted EBITDA because covenants in the
agreements governing our material indebtedness contain ratios based
on this measure on a quarterly basis. While Adjusted EBITDA is used
as a measure of liquidity and the ability to meet debt service
requirements, it is not necessarily comparable to other similarly
titled captions of other companies due to differences in methods of
calculations.
ACCURIDE CORPORATION
CONDENSED CONSOLIDATED BALANCE
SHEETS
(UNAUDITED)
December 31,
December 31,
(In thousands)
2015 2014 ASSETS CURRENT ASSETS: Cash
and cash equivalents $ 29,759 $ 29,773 Customer and other
receivables 65,980 63,570 Inventories 47,792 43,065 Other current
assets 8,399 13,472 Total current assets 151,930
149,880 PROPERTY, PLANT AND EQUIPMENT, net 224,762 212,183 OTHER
ASSETS: Goodwill and other assets 230,024 236,359
TOTAL $ 606,716 $ 598,422
LIABILITIES AND STOCKHOLDERS’
EQUITY CURRENT LIABILITIES: Accounts payable $ 71,782 $ 56,452
Short term debt obligations 10,286 — Other current liabilities
39,830 40,619 Total current liabilities 121,898
97,071 LONG-TERM DEBT 307,351 323,234 OTHER LIABILITIES 106,613
147,314 STOCKHOLDERS’ EQUITY: Total stockholders’ equity
70,854 30,803 TOTAL $ 606,716 $ 598,422
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160226005212/en/
Accuride CorporationInvestor Relations:Todd Taylor,
812-962-5105ttaylor@accuridecorp.comorMedia Relations:Timothy G.
Weir, APR, 812-962-5128tweir@accuridecorp.com
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