Accuride Corporation Turnaround Continues In Second Quarter

Earnings Conference Call InformationAccuride will hold a conference call to discuss its Second Quarter 2012 financial and operational results on Friday, July 27, 2012, beginning at 9:00 a.m. Central Time. Analysts and investors may participate on the live conference call by dialing [phone] in the United States, or [phone] internationally, and using participant code 75071653. A live webcast of the conference call can be accessed at the Accuride Website’s Investor Information section: www.accuridecorp.com. A replay of the call will be available from July 27, 2012, at 11:00 a.m. Central Time until August 3, 2012, at 11:59 p.m. Central Time by calling [phone] in the United States, or [phone] internationally, using access code 76999878.

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, 2011. 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 June 30,
(Dollars in thousands)					2012								2011
Net sales:
Wheels					$	112,881			42.0	%			$	102,927			42.6	%
Gunite						67,280			25.0	%				67,093			27.7	%
Brillion Iron Works						49,326			18.4	%				38,194			15.8	%
Imperial Group						39,296			14.6	%				33,658			13.9	%
Total net sales					$	268,783			100	%			$	241,872			100	%
Gross Profit					$	24,825			9.2	%			$	22,444			9.3	%
Income (loss) from Operations:
Wheels					$	16,106			14.3	%			$	12,136			11.8	%
Gunite						(1,875	)		(2.8	)%				3,793			5.7	%
Brillion Iron Works						7,598			15.4	%				689			1.8	%
Imperial Group						(302	)		(0.8	)%				1,762			5.2	%
Corporate / Other						(11,935	)		—	%				(9,920	)		—	%
Consolidated Total					$	9,592			3.6	%			$	8,460			3.5	%
Net income (loss)					$	(841	)		(0.3	)%			$	1,277			0.5	%
Adjusted EBITDA
Wheels					$	25,796			22.9	%			$	21,524			20.9	%
Gunite						1,058			1.6	%				5,743			8.6	%
Brillion Iron Works						8,802			17.8	%				1,901			5.0	%
Imperial Group						(44	)		(0.1	)%				2,072			6.2	%
Corporate / Other						(10,304	)		—	%				(9,992	)		—	%
Continuing Operations					$	25,308			9.4	%			$	21,248			8.8	%
Bostrom Seating						—			—	%				—			—	%
Fabco Automotive						—			—	%				1,321			—	%
Consolidated Total					$	25,308			9.4	%			$	22,569			9.1	%

Six Months Operating Results
					Six Months Ended June 30,
(Dollars in thousands)					2012								2011
Net sales:
Wheels					$	229,825			42.7	%			$	194,436			43.0	%
Gunite						135,843			25.2	%				126,324			27.9	%
Brillion Iron Works						93,136			17.3	%				73,454			16.2	%
Imperial Group						79,497			14.8	%				58,553			12.9	%
Total net sales					$	538,301			100	%			$	452,767			100	%
Gross Profit					$	46,925			8.7	%			$	39,734			8.8	%
Income (loss) from Operations:
Wheels					$	34,548			15.0	%			$	23,624			12.2	%
Gunite						(4,043	)		(3.0	)%				2,076			1.6	%
Brillion Iron Works						10,771			11.6	%				1,422			1.9	%
Imperial Group						(821	)		(1.0	)%				2,891			4.9	%
Corporate / Other						(23,627	)		—	%				(20,112	)		—	%
Consolidated Total					$	16,828			3.1	%			$	9,901			2.2	%
Net loss					$	(3,790	)		(0.7	)%			$	(3,884	)		(0.9	)%
Adjusted EBITDA
Wheels					$	54,136			23.6	%			$	43,711			22.5	%
Gunite						1,574			1.2	%				6,746			5.3	%
Brillion Iron Works						13,242			14.2	%				4,646			6.3	%
Imperial Group						(311	)		(0.4	)%				2,945			5.0	%
Corporate / Other						(21,690	)		—	%				(20,719	)		—	%
Continuing Operations					$	46,951			8.7	%			$	37,329			8.2	%
Bostrom Seating						—			—	%				(22	)		—	%
Fabco Automotive						—			—	%				2,239			—	%
Consolidated Total					$	46,951			8.7	%			$	39,546			8.5	%

ACCURIDE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
					Three Months Ended June 30,									Six Months Ended June 30,
(in thousands except per share data)					2012				2011					2012				2011
NET SALES					$	268,783			$	241,872				$	538,301			$	452,767
COST OF GOODS SOLD					243,958				219,428					491,376				413,033
GROSS PROFIT					24,825				22,444					46,925				39,734
OPERATING EXPENSES:
Selling, general and administrative					15,233				13,984					30,097				29,833
INCOME FROM OPERATIONS					9,592				8,460					16,828				9,901
OTHER INCOME (EXPENSE):
Interest expense, net					(8,658		)		(8,400		)			(17,403		)		(16,740		)
Other income (loss), net					(436		)		233					(279		)		2,396
INCOME (LOSS) BEFORE INCOME TAXES FROM CONTINUING OPERATIONS					498				293					(854		)		(4,443		)
INCOME TAX PROVISION (BENEFIT)					1,339				(107		)			2,936				392
INCOME (LOSS) FROM CONTINUING OPERATIONS					(841		)		400					(3,790		)		(4,835		)
DISCONTINUED OPERATIONS, NET OF TAX					—				877					—				951
NET INCOME (LOSS)					$	(841	)		$	1,277				$	(3,790	)		$	(3,884	)
Weighted average common shares outstanding—basic					47,376				47,277					47,347				47,259
Basic income (loss) per share – continuing operations					$	(0.02	)		$	0.01				$	(0.08	)		$	(0.10	)
Basic income (loss) per share – discontinued operations					—				0.02					—				0.02
Basic income (loss) per share					$	(0.02	)		$	0.03				$	(0.08	)		$	(0.08	)
Weighted average common shares outstanding—diluted					47,376				47,442					47,347				47,259
Diluted income (loss) per share – continuing operations					$	(0.02	)		$	0.01				$	(0.08	)		$	(0.10	)
Diluted income (loss) per share – discontinued operations					—				0.02					—				0.02
Diluted income (loss) per share					$	(0.02	)		$	0.03				$	(0.08	)		$	(0.08	)
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX:
Foreign currency translation adjustments					179				(28		)			(39		)		(147		)
COMPREHENSIVE INCOME (LOSS)					$	(662	)		$	1,249				$	(3,829	)		$	(4,031	)

ACCURIDE CORPORATION CONSOLIDATED ADJUSTED EBITDA (UNAUDITED)
					Three Months Ended June 30,
(In thousands)					2012				2011
Net income (loss)					$	(841	)		$	1,277
Income tax expense (benefit)					1,339				(109		)
Interest expense, net					8,658				8,400
Depreciation and amortization					12,782				11,770
Restructuring, severance and other charges 1					1,967				764
Other items related to our credit agreement 2					1,403				467
Adjusted EBITDA					$	25,308			$	22,569

Note:
1)			For the three months ended June 30, 2012, Adjusted EBITDA represents net income before net interest expense, income tax expense, depreciation and amortization, plus $2.0 million in costs associated with restructuring items. For the three months ended June 30, 2011, Adjusted EBITDA represents net income before net interest expense, income tax benefit, depreciation and amortization, plus $0.8 million in costs associated with restructuring 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 three months ended June 30, 2012, items related to our credit agreement consisted of foreign currency losses and other income or expenses of $1.4 million. For the three months ended June 30, 2011, items related to our credit agreement consisted of foreign currency income and other income or expenses of $0.5 million.

					Six Months Ended June 30,
(In thousands)					2012				2011
Net loss					$	(3,790	)		$	(3,884	)
Income tax expense					2,936				391
Interest expense, net					17,403				16,740
Depreciation and amortization					25,312				25,953
Restructuring, severance and other charges 1					3,096				1,301
Other items related to our credit agreement 2					1,994				(955		)
Adjusted EBITDA					$	46,951			$	39,546

Note:
1)			For the six months ended June 30, 2012, Adjusted EBITDA represents net income before net interest expense, income tax expense, depreciation and amortization, plus $3.1 million in costs associated with restructuring items. For the six months ended June 30, 2011, Adjusted EBITDA represents net income before net interest expense, income tax expense, depreciation and amortization, plus $1.3 million in costs associated with restructuring 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 six months ended June 30, 2012, items related to our credit agreement consisted of foreign currency income and other income or expenses of $2.0 million. For the six months ended June 30, 2011, items related to our credit agreement consisted of foreign currency income and other income or expenses of $1.0 million.

ACCURIDE CORPORATION SEGMENT ADJUSTED EBITDA RECONCILIATION (UNAUDITED)
					Three Months Ended June 30, 2012
(In thousands)					Income (loss) from Operations				Depreciation and Amortization				Other				Adjusted EBITDA
Wheels					$	16,106			$	8,090			$	1,600			$	25,796
Gunite						(1,875	)			2,683				250				1,058
Brillion Iron Works						7,598				1,174				30				8,802
Imperial Group						(302	)			233				25				(44	)
Corporate / Other						(11,935	)			602				1,029				(10,304	)
Continuing Operations					$	9,592			$	12,782			$	2,934			$	25,308
Bostrom						—				—				—				—
Fabco Automotive						—				—				—				—
Consolidated Total					$	9,592			$	12,782			$	2,934			$	25,308
					Three Months Ended June 30, 2011
(In thousands)					Income (loss) from Operations				Depreciation and Amortization				Other				Adjusted EBITDA
Wheels					$	12,136			$	7,582			$	1,806			$	21,524
Gunite						3,793				1,901				49				5,743
Brillion Iron Works						689				1,185				27				1,901
Imperial Group						1,762				281				29				2,072
Corporate / Other						(9,920	)			377				(449	)			(9,992	)
Continuing Operations					$	8,460			$	11,326			$	1,462			$	21,248
Bostrom						—				—				—				—
Fabco Automotive						877				444				—				1,321
Consolidated Total					$	9,337			$	11,770			$	1,462			$	22,569
					Six Months Ended June 30, 2012
(In thousands)					Income (loss) from Operations				Depreciation and Amortization				Other				Adjusted EBITDA
Wheels					$	34,548			$	16,110			$	3,478			$	54,136
Gunite						(4,043	)			5,117				500				1,574
Brillion Iron Works						10,771				2,411				60				13,242
Imperial Group						(821	)			460				50				(311	)
Corporate / Other						(23,627	)			1,214				723				(21,690	)
Continuing Operations					$	16,828			$	25,312			$	4,811			$	46,951
Bostrom						—				—				—				—
Fabco Automotive						—				—				—				—
Consolidated Total					$	16,828			$	25,312			$	4,811			$	46,951
					Six Months Ended June 30, 2011
(In thousands)					Income (loss) from Operations				Depreciation and Amortization				Other				Adjusted EBITDA
Wheels					$	23,624			$	16,681			$	3,406			$	43,711
Gunite						2,076				4,337				333				6,746
Brillion Iron Works						1,422				3,167				57				4,646
Imperial Group						2,891				4				50				2,945
Corporate / Other						(20,112	)			658				(1,265	)			(20,719	)
Continuing Operations					$	9,901			$	24,847			$	2,581			$	37,329
Bostrom						(112	)			90				—				(22	)
Fabco Automotive						1,223				1,016				—				2,239
Consolidated Total					$	11,012			$	25,953			$	2,581			$	39,546

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)
					June 30,				December 31,
(In thousands)					2012				2011
ASSETS
CURRENT ASSETS:
Cash and cash equivalents					$	35,661			$	56,915
Customer and other receivables					114,678				98,075
Inventories, net					82,299				72,827
Other current assets					13,390				12,332
Total current assets					246,028				240,149
PROPERTY, PLANT AND EQUIPMENT, net					288,776				271,562
OTHER ASSETS:
Goodwill and other assets					349,488				357,151
TOTAL					$	884,292			$	868,862
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable					$	83,584			$	80,261
Other current liabilities					50,669				48,228
Total current liabilities					134,253				128,489
LONG-TERM DEBT					323,607				323,082
OTHER LIABILITIES					171,373				159,908
STOCKHOLDERS’ EQUITY:
Total stockholders’ equity					255,059				257,383
TOTAL					$	884,292			$	868,862

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