VALLEY CITY, OH -- (Marketwire) -- 03/01/13 --
Shiloh Industries, Inc. (NASDAQ:SHLO) today reported financial results for the first quarter of its fiscal year ending Oct. 31, 2013.
First Quarter Highlights:
- Sales revenue for the quarter ended Jan. 31, 2013 increased to $145.4 million, a 9.8 percent increase from the first quarter a year earlier.
- Gross profit for the quarter improved 21.7 percent to $11.8 million, or 8.1 percent of sales revenue compared to the prior year quarter.
- Operating income for the quarter improved 34.2 percent to $4.1 million, compared to the prior year quarter.
- Net income per share diluted improved 66.7 percent to $0.15 for the quarter, compared to net income of $0.09 per share diluted in the prior year quarter.
- The company declared and paid a special dividend of $0.25 per share during the quarter.
First Quarter 2013 Results:
The company reported revenue of $145.4 million for the first quarter ended Jan. 31, 2013, an increase of 9.8 percent over the $132.4 million in the same quarter of the previous year. Sales reflect an increase in the North American car and light truck industry production volume of 6.8 percent compared to the first quarter of the prior year and new business wins.
Gross profit for the first quarter increased 21.7 percent to $11.8 million, or 8.1 percent of sales, compared to $9.7 million or 7.3 percent of sales for the first quarter of 2012. Improved productivity, increased sales volume and reductions in fixed manufacturing expenses contributed to the increase.
For the first quarter, operating income improved 34.2 percent to $4.1 million, compared to $3.1 million in the first quarter of the previous year.
The company reported net income for the first quarter of fiscal year 2013 of $2.6 million or $0.15 per share diluted, compared to the first quarter of 2012 net income of $1.6 million or $0.09 per share diluted.
"Shiloh's improved profitability is being driven by increased revenue as a result of higher volume in the North American vehicle production levels, new sales activities, and our continued focus on operating efficiency improvements and effective cost management," said Ramzi Hermiz, President and CEO. "As we move forward through fiscal 2013, we remain optimistic about industry trends and vehicle demand in North America. We will continue to evaluate opportunities for growth, and will remain true to our key tenants of leading with technology and innovation, achieving sustainable global profitable growth and acting with a sense of purpose and speed."
Headquartered in Valley City, Ohio, Shiloh Industries is a leading supplier, providing light weighting and noise, vibration and harshness (NVH) solutions to automotive, commercial vehicle and other industrial markets. Shiloh delivers these solutions through design, engineering and manufacturing of first operation blanks, engineered welded blanks, complex stampings, modular assemblies and highly engineered aluminum die casting and machined components serving the body-in-white, emission, powertrain, structural and seating needs of OEM and Tier 1 customers. The company has 16 wholly owned subsidiaries at locations in Alabama, Ohio, Georgia, Michigan, Tennessee, Kentucky, Wisconsin and Mexico, and has approximately 1,770 employees.
A conference call to discuss first quarter of fiscal 2013 results will be held on Friday, March 1, 2013, at 10:00 a.m. EST. To listen to the conference call, dial (888) 389-5988 approximately five minutes prior to the start time and request the Shiloh Industries first quarter conference call.
Certain statements made by Shiloh Industries, Inc. in this release and other periodic oral and written statements, including filings with the Securities and Exchange Commission, regarding the Company's operating performance, events or developments that the Company believes or expects to occur in the future, including those that discuss strategies, goals, outlook or other non-historical matters, or which relate to future sales, earnings expectations, cost savings, awarded sales, volume growth, earnings or general belief in the Company's expectations of future operating results are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements are made on the basis of management's assumptions and expectations. As a result, there can be no guarantee or assurance that these assumptions and expectations will in fact occur. The forward-looking statements are subject to risks and uncertainties that may cause actual results to materially differ from those contained in the statements. Some, but not all of the risks, include the ability of the Company to accomplish its strategic objectives with respect to implementing its sustainable business model; the ability to obtain future sales; changes in worldwide economic and political conditions, including adverse effects from terrorism or related hostilities; costs related to legal and administrative matters; the Company's ability to realize cost savings expected to offset price concessions; the Company's ability to successfully integrate acquired business; inefficiencies related to production and product launches that are greater than anticipated; changes in technology and technological risks; increased fuel and utility costs; work stoppages and strikes at the Company's facilities and that of the Company's customers or suppliers; the Company's dependence on the automotive and heavy truck industries, which are highly cyclical; the dependence of the automotive industry on consumer spending, which is subject to the impact of domestic and international economic conditions, including increased energy costs affecting car and light truck production, and regulations and policies regarding international trade; financial and business downturns of the Company's customers or vendors, including any production cutbacks or bankruptcies; increases in the price of, or limitations on the availability of, steel, the Company's primary raw material, or decreases in the price of scrap steel; the successful launch and consumer acceptance of new vehicles for which the Company supplies parts; the occurrence of any event or condition that may be deemed a material adverse effect under the Credit Agreement or a decrease in customer demand which could cause a covenant default under the Credit Agreement; pension plan funding requirements; and other factors, uncertainties, challenges and risks detailed in the Company's other public filings with the Securities and Exchange Commission. Any or all of these risks and uncertainties could cause actual results to differ materially from those reflected in the forward-looking statements. These forward-looking statements reflect management's analysis only as of the date of this release.
The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. In addition to the disclosures contained herein, readers should carefully review risks and uncertainties contained in other documents the Company files from time to time with the Securities and Exchange Commission.
SHILOH INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollar amounts in thousands)
January 31,
2013 October 31,
(Unaudited) 2012
----------- -----------
ASSETS
Cash and cash equivalents $ 140 $ 174
Accounts receivable, net of allowance for doubtful
accounts of $421 and $482 at January 31, 2013 and
October 31, 2012, respectively 78,160 77,556
Related-party accounts receivable 2,202 536
Income tax receivable 392 1,201
Inventories, net 47,592 44,687
Deferred income taxes 2,205 2,153
Prepaid expenses 3,773 1,532
----------- -----------
Total current assets 134,464 127,839
Property, plant and equipment, net 153,503 117,101
Goodwill 7,220 --
Intangible assets, net 11,412 --
Deferred income taxes 4,539 3,294
Other assets 1,100 868
----------- -----------
Total assets $ 312,238 $ 249,102
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current debt $ 224 $ 447
Accounts payable 55,085 63,633
Other accrued expenses 20,813 21,395
----------- -----------
Total current liabilities 76,122 85,475
Long-term debt 95,700 21,150
Long-term benefit liabilities 31,927 32,819
Other liabilities 2,330 2,255
----------- -----------
Total liabilities 206,079 141,699
----------- -----------
Commitments and contingencies
Stockholders' equity:
Preferred stock, $.01 per share; 5,000,000
shares authorized; no shares issued and
outstanding at January 31, 2013 and October 31,
2012, respectively -- --
Common stock, par value $.01 per share;
25,000,000 shares authorized; 16,997,179 and
16,983,012 shares issued and outstanding at
January 31, 2013 and October 31, 2012,
respectively 169 169
Paid-in capital 65,539 65,120
Retained earnings 71,762 73,425
Accumulated other comprehensive loss: Pension
related liability, net (31,311) (31,311)
----------- -----------
Total stockholders' equity 106,159 107,403
----------- -----------
Total liabilities and stockholders' equity $ 312,238 $ 249,102
=========== ===========
SHILOH INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Amounts in thousands, except per share data)
(Unaudited)
Three Months Ended
January 31,
------------------------
2013 2012
----------- -----------
Revenues $ 145,383 $ 132,371
Cost of sales 133,622 122,709
----------- -----------
Gross profit 11,761 9,662
Selling, general and administrative expenses 7,637 6,648
Asset recovery (7) (65)
----------- -----------
Operating income 4,131 3,079
Interest expense 430 285
Interest income 6 --
Other income (expense), net (23) 47
----------- -----------
Income before income taxes 3,684 2,841
Provision for income taxes 1,101 1,262
----------- -----------
Net income $ 2,583 $ 1,579
=========== ===========
Earnings per share:
Basic earnings per share $ 0.15 $ 0.09
=========== ===========
Basic weighted average number of common shares 16,988 16,765
=========== ===========
Diluted earnings per share $ 0.15 $ 0.09
=========== ===========
Diluted weighted average number of common shares 17,040 16,856
=========== ===========
SHILOH INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME
(Dollar amounts in thousands)
(Unaudited)
Three Months Ended
January 31,
-----------------------
2013 2012
----------- -----------
Net income $ 2,583 $ 1,579
Other comprehensive income (loss), net of tax:
Defined benefit pension plans & other
postretirement benefits -- --
----------- -----------
Comprehensive income, net $ 2,583 $ 1,579
=========== ===========
SHILOH INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollar amounts in thousands)
(Unaudited)
Three Months Ended
January 31,
------------------------
2013 2012
----------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 2,583 $ 1,579
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 4,252 5,054
Asset recovery (7) --
Recovery of restructuring charge -- (65)
Amortization of deferred financing costs 75 87
Deferred income taxes 5 (14)
Stock-based compensation expense 187 209
Gain on sale of assets -- 18
Changes in operating assets and liabilities:
Accounts receivable 6,908 (3,057)
Inventories 1,265 (2,805)
Prepaids and other assets (283) 305
Payables and other liabilities (17,477) (2,640)
Accrued income taxes 808 1,100
----------- -----------
Net cash provided by operating activities (1,684) (229)
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (5,769) (1,983)
Acquisitions, net of cash acquired (62,684) --
Proceeds from sale of assets 7 137
----------- -----------
Net cash used in investing activities (68,446) (1,846)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of dividends (4,226) --
Proceeds from long-term borrowings 78,850 4,900
Repayments of long-term borrowings (4,300) (2,600)
Payment of deferred financing costs (307) (40)
Proceeds from exercise of stock options 79 17
----------- -----------
Net cash provided by in financing
activities 70,096 2,277
----------- -----------
Net increase (decrease) in cash and cash
equivalents (34) 202
Cash and cash equivalents at beginning of period 174 20
----------- -----------
Cash and cash equivalents at end of period $ 140 $ 222
=========== ===========
Supplemental Cash Flow Information:
Cash paid for interest $ 331 $ 289
Cash paid for income taxes $ 61 $ 89
CONTACT:
Thomas M. Dugan
Vice President of Finance and Treasurer
Shiloh Industries, Inc.
(330) 558-2600
Source: Shiloh Industries