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TheStreet Open House

Accuride Corporation Returns To Profitability In Fourth Quarter Of 2011

Earnings Conference Call InformationAccuride will hold a conference call to discuss the financial and operational results of its fourth quarter and full-year fiscal 2011 on Thursday, March 1, 2012, beginning at 9:00 a.m. Central Time. Analysts and investors may participate by dialing (866) 831-6291 in the United States, or (617) 213-8860 internationally, and using participant code 50380262. A live webcast of the conference call can be accessed via the Investor Information section of the Company’s website at www.accuridecorp.com. A replay will be available March 1, 2012, at 11:00 a.m. CST until midnight, March 8, 2012, by calling (888) 286-8010 in the United States, or (617) 801-6888 internationally, using access code 24701158.

Information covered on the call and financial results for the three-month and full-year period ended December 31, 2011 will be available in the Investor Relations section of the company's website at http://www.accuridecorp.com.

Fresh-Start ReportingUpon Accuride Corporation’s emergence from Chapter 11 bankruptcy proceedings on February 26, 2010, we adopted fresh-start accounting in accordance with the provisions of ASC 852 Reorganizations (ASC 852), pursuant to which the midpoint of the range of our reorganization value was allocated to our assets and liabilities in conformity with the procedures specified by ASC 805, “Business Combinations.” The results for the ten-month period ended December 31, 2010 (references to the Company for such period, the “Successor”) and the results for the two-month period ended February 26, 2010 (references to the Company for such periods, the “Predecessor”) are presented separately. This presentation is required by GAAP, as the Successor is considered to be a new entity for financial reporting purposes, and the results of the Successor reflect the application of fresh-start reporting. Accordingly, the Company’s financial statements after February 26, 2010, are not comparable to its financial statements for any period prior to its emergence from Chapter 11, unless otherwise noted.

About Accuride CorporationWith headquarters in Evansville, Indiana, Accuride Corporation is a leading supplier of components to the commercial vehicle industry. The company’s products include commercial vehicle wheels, wheel-end components and assemblies, truck body and chassis parts, and other commercial vehicle components. The company’s products are marketed under its brand names, which include Accuride ®, Gunite ®, Imperial TM and Brillion TM. 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, 2010. 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

 
Three Months Ended December 31,
(Dollars in thousands)         2011   2010
   
Net sales:
Wheels $ 106,157 43.8 % $ 75,403 42.9 %
Gunite 61,368 25.3 % 49,600 28.2 %
Brillion Iron Works 36,662 15.1 % 29,595 16.9 %
Imperial Group   38,312 15.8 %   21,122 12.0 %
Total net sales $ 242,499 100.0 % $ 175,720 100.0 %
 
Gross Profit $ 21,839 9.0 % $ 11,509 6.5 %
 
Income (loss) from Operations:
Wheels $ 18,832 17.7 % $ 6,591 8.7 %
Gunite (778 ) (1.3 )% (1,478 ) (3.0 )%
Brillion Iron Works 512 1.4 % (1,792 ) (6.1 )%
Imperial Group (37 ) (0.1 )% 1,501 7.1 %
Corporate / Other   (9,009 ) %   (12,588 ) %
Consolidated Total $ 9,520 3.9 % $ (7,766 ) (4.4 )%
 
Net income (loss) $ 4,073 1.7 % $ (110,865 ) (63.1 )%
 
Adjusted EBITDA
Wheels $ 29,782 28.1 % $ 15,654 20.8 %
Gunite 1,190 1.9 % 704 1.4 %
Brillion Iron Works 1,923 5.2 % 2,098 7.1 %
Imperial Group 616 1.6 % 192 0.9 %
Corporate / Other   (9,184 ) %   (6,227 ) %
Continuing Operations $ 24,327 10.0 % $ 12,421 7.1 %
 
Bostrom Seating % 6 %
Fabco Automotive % 2,191 %
Brillion Farm   %   503 %
Consolidated Total $ 24,327 10.0 % $ 15,121 8.6 %
 
       
 

Fiscal Year Operating Results

 
Successor   Predecessor
(Dollars in thousands)        

Year Ended December 31, 2011

 

Period from February 26, 2010 to December 31, 2010

Period from January 1, 2010 to February 26, 2010

     
Net sales:
Wheels $ 406,587 43.4 % $ 247,673 42.5 % $ 38,379 41.9 %
Gunite 251,113 26.8 % 175,352 30.1 % 29,804 32.5 %
Brillion Iron Works 146,837 15.7 % 90,492 15.6 % 11,442 12.5 %
Imperial Group   131,558 14.1 %   68,790 11.8 %   12,022 13.1 %
Total net sales $ 936,095 100.0 % $ 582,307 100.0 % $ 91,647 100.0 %
 
Gross Profit $ 80,811 8.6 % $ 40,448 6.9 % $ 2,250 2.5 %
 
Income (loss) from Operations:
Wheels $ 57,864 14.2 % $ 23,577 9.5 % $ 2,663 6.9 %
Gunite (1,785 ) (0.7 )% 2,623 1.5 % 277 0.9 %
Brillion Iron Works 2,301 1.6 % (1,171 ) (1.3 )% (986 ) (8.6 )%
Imperial Group 3,141 2.4 % (579 ) (0.8 )% (1,011 ) (8.4 )%
Corporate / Other   (37,609 ) %   (38,149 ) %   (5,172 ) %
Consolidated Total $ 23,912 2.6 % $ (13,699 ) (2.4 )% $ (4,229 ) (4.6 )%
 
Net income (loss) $ (17,031 ) (1.8 )% $ (126,532 ) (21.7 )% $ 50,802 55.4 %
 
Adjusted EBITDA
Wheels $ 99,037 24.4 % $ 53,944 21.8 % $ 7,052 18.4 %
Gunite 6,571 2.6 % 11,661 6.7 % 1,999 6.7 %
Brillion Iron Works 8,205 5.6 % 5,421 6.0 % (50 ) (0.4 )%
Imperial Group 5,524 4.2 % 403 0.6 % (233 ) (1.9 )%
Corporate / Other   (38,402 ) %   (24,787 ) %   (5,761 ) %
Continuing Operations $ 80,935 8.6 % $ 46,642 8.0 % $ 3,007 3.3 %
 
Bostrom Seating (22 ) % (155 ) % (230 ) %
Fabco Automotive 5,172 % 12,638 % 1,067 %
Brillion Farm   %   2,430 %   839 %
Consolidated Total $ 86,085 9.2 % $ 61,555 10.6 % $ 4,683 5.1 %
 
         
 

ACCURIDE CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

 
Successor Predecessor  

Year Ended December 31,

 

Period from February 26 to December 31,

Period from January 1 to February 26,

(In thousands except per share data) 2011 2010 2010
 
NET SALES $ 936,095 $ 582,307

$

91,647
COST OF GOODS SOLD 855,284 541,859 89,397
GROSS PROFIT (LOSS) 80,811 40,448 2,250
OPERATING EXPENSES:
Selling, general and administrative 56,899 54,147 6,479
INCOME (LOSS) FROM OPERATIONS 23,912 (13,699 ) (4,229 )
OTHER INCOME (EXPENSE):
Interest income 46 143 54
Interest expense (34,143 ) (33,593 ) (7,550 )
Gain on mark to market valuation of convertible debt 75,574
Inducement expense (166,691 )
Other income, net 3,596 2,575 566
LOSS BEFORE REORGANIZATION ITEMS AND INCOME TAXES FROM CONTINUING OPERATIONS (6,589 ) (135,691 ) (11,159 )
Reorganization expense (income) (59,311 )
INCOME (LOSS) BEFORE INCOME TAXES FROM CONTINUING OPERATIONS (6,589 ) (135,691 ) 48,152
INCOME TAX PROVISION (BENEFIT) 7,761 (2,207 ) (1,931 )
INCOME (LOSS) FROM CONTINUING OPERATIONS (14,350 ) (133,484 ) 50,083
DISCONTINUED OPERATIONS, NET OF TAX (2,681 ) 6,952 719
NET INCOME (LOSS) $ (17,031 ) $ (126,532 )

$

50,802
Weighted average common shares outstanding—basic 47,277 15,670 47,572
Basic income (loss) per share – continuing operations $ (0.30 ) $ (8.52 ) $ 1.05
Basic income (loss) per share – discontinued operations   (0.06 )   0.45   0.02
Basic income (loss) per share $ (0.36 ) $ (8.07 ) $ 1.07
Weighted average common shares outstanding—diluted 47,277 15,670 47,572
Diluted income (loss) per share – continuing operations $ (0.30 ) $ (8.52 ) $ 1.05
Diluted income (loss) per share – discontinued operations   (0.06 )   0.45   0.02
Diluted income (loss) per share $ (0.36 ) $ (8.07 ) $ 1.07
 
       
 

ACCURIDE CORPORATION

CONSOLIDATED ADJUSTED EBITDA

(UNAUDITED)

 
Historical Results
Successor   Predecessor     Combined

Year Ended December 31,

 

Period from February 26 to December 31,

Period from January 1 to February 26,

 

Year Ended December 31,

(In thousands) 2011 2010 2010 2010
 
Net income (loss) $ (17,031 ) $ (126,532 ) $ 50,802 $ (75,730 )
Income tax expense (benefit) 7,408 1,591 (1,534 ) 57
Interest expense, net 34,097 33,450 7,496 40,946
Depreciation and amortization 51,278 43,759 7,532 51,291
Restructuring, severance and other charges 1 4,806 19,091 (59,092 ) (40,001 )
Other items related to our credit agreement 2 5,527 90,196 (521 ) 89,675
Adjusted EBITDA $ 86,085 $ 61,555 $ 4,683 $ 66,238
 

Note:

1)

   

For the year ended December 31, 2011, Adjusted EBITDA represents net income before net interest expense, income tax expense, depreciation and amortization, plus $4.8 million in costs associated with restructuring, acquisition, and divestiture items. For the year ended December 31, 2010, Adjusted EBITDA represents net income before net interest expense, income tax expense, depreciation and amortization, less $40.0 million in benefits associated with restructuring and reorganization items.

2)

Items related to our credit agreement refer to amounts utilized in the calculation of financial covenants in Accuride’s senior credit facility. For the year ended December 31, 2011, items related to our credit agreement consisted of foreign currency income and other net income of $5.5 million. For the year ended December 31, 2010, items related to our credit agreement consisted of foreign currency losses and other income or expenses of $89.7 million.

 
       
 

ACCURIDE CORPORATION

SEGMENT ADJUSTED EBITDA RECONCILIATION

(UNAUDITED)

 
Three Months Ended December 31, 2011
(In thousands)        

Income (loss) from Operations

   

Depreciation and Amortization

    Other    

Adjusted EBITDA

Wheels $ 18,832   $ 9,196   $ 1,754   $ 29,782
Gunite (778 ) 1,923 45 1,190
Brillion Iron Works 512 1,384 27 1,923
Imperial Group (37 ) 181 472 616
Corporate / Other   (9,009 )   529   (704 )   (9,184 )
Continuing Operations $ 9,520 $ 13,213 $ 1,594 $ 24,327
 
Bostrom
Fabco Automotive
Farm        
Consolidated Total $ 9,520 $ 13,213 $ 1,594 $ 24,327
 
Three Months Ended December 31, 2010
(In thousands)        

Income (loss) from Operations

   

Depreciation and Amortization

    Other    

Adjusted EBITDA

Wheels $ 6,591 $ 7,463 $ 1,600 $ 15,654
Gunite (1,478 ) 1,792 390 704
Brillion Iron Works (1,792 ) 3,666 224 2,098
Imperial Group 1,501 (1,326 ) 17 192
Corporate / Other   (12,588 )   283   6,078   (6,227 )
Continuing Operations $ (7,766 ) $ 11,878 $ 8,309 $ 12,421
 
Bostrom (837 ) 843 6
Fabco Automotive 2,062 129 2,191
Farm   416   181   (94 )   503
Consolidated Total $ (6,125 ) $ 13,031 $ 8,215 $ 15,121
 
Year Ended December 31, 2011
(In thousands)        

Income (loss) from Operations

   

Depreciation and Amortization

    Other    

Adjusted EBITDA

Wheels $ 57,864 $ 34,129 $ 7,044 $ 99,037
Gunite (1,785 ) 7,931 425 6,571
Brillion Iron Works 2,301 5,793 111 8,205
Imperial Group 3,141 360 2,023 5,524
Corporate / Other   (37,609 )   1,607   (2,400 )   (38,402 )
Continuing Operations $ 23,912 $ 49,820 $ 7,203 $ 80,935
 
Bostrom (112 ) 90 (22 )
Fabco Automotive 3,804 1,368 5,172
Farm        
Consolidated Total $ 27,604 $ 51,278 $ 7,203 $ 86,085
 
Period from February 26 to December 31, 2010 (Successor)
(In thousands)        

Income (loss) from Operations

   

Depreciation and Amortization

    Other    

Adjusted EBITDA

Wheels $ 23,577 $ 23,916 $ 6,451 $ 53,944
Gunite 2,623 7,923 1,115 11,661
Brillion Iron Works (1,171 ) 6,065 527 5,421
Imperial Group (579 ) 850 132 403
Corporate / Other   (38,149 )   1,517   11,845   (24,787 )
Continuing Operations $ (13,699 ) $ 40,271 $ 20,070 $ 46,642
 
Bostrom (1,809 ) 1,654 (155 )
Fabco Automotive 11,145 1,265 228 12,638
Farm   1,506   569   355   2,430
Consolidated Total $ (2,857 ) $ 43,759 $ 20,653 $ 61,555
 
Period from January 1 to February 26, 2010 (Predecessor)
(In thousands)        

Income (loss) from Operations

   

Depreciation and Amortization

    Other    

Adjusted EBITDA

Wheels $ 2,663 $ 3,322 $ 1,067 $ 7,052
Gunite 277 1,501 221 1,999
Brillion Iron Works (986 ) 890 46 (50 )
Imperial Group (1,011 ) 766 12 (233 )
Corporate / Other   (5,172 )   514   (1,103 )   (5,761 )
Continuing Operations $ (4,229 ) $ 6,993 $ 243 $ 3,007
 
Bostrom (544 ) 293 21 (230 )
Fabco Automotive 953 114 1,067
Farm   707   132     839
Consolidated Total $ (3,113 ) $ 7,532 $ 264 $ 4,683
 

We define Adjusted EBITDA as our net income or loss before income tax expense or benefit, interest expense, net, depreciation and amortization, restructuring, severance, and other charges, impairment, and currency losses, net. 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) 2011 2010
 
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 56,915 $ 78,466
Customer and other receivables 98,075 75,702
Inventories, net 72,827 55,818
Other current assets 12,332 18,518
Total current assets 240,149 228,504
PROPERTY, PLANT AND EQUIPMENT, net 271,562 241,052
OTHER ASSETS:
Goodwill and other assets 357,151 404,494
TOTAL $ 868,862 $ 874,050
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable $ 80,261 $ 55,324
Other current liabilities 48,228 57,196
Total current liabilities 128,489 112,520
LONG-TERM DEBT 323,082 302,031
OTHER LIABILITIES 159,908 161,400
STOCKHOLDERS’ EQUITY:
Total stockholders’ equity 257,383 298,099
TOTAL $ 868,862 $ 874,050
 




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