Accuride Corporation (NYSE: ACW) – a leading supplier of components to the North American commercial vehicle industry – today reported financial results for the fourth quarter and fiscal year 2012 ended December 31, 2012.
Fourth Quarter 2012 Results
Fourth quarter 2012 net sales from continuing operations were $176.3 million, compared with $242.5 million in the same period in 2011, a decline of 27.3 percent, primarily reflecting the impact of weaker economic and industry conditions during the quarter. The Company experienced a $150.4 million operating loss for the quarter, as compared to $9.5 million of operating income in the fourth quarter of 2011. The 2012 operating loss included $139.6 million in one-time impairment charges related to goodwill and other assets related to Gunite and other one-time charges (as detailed below). The Company reported a net loss of $156.5 million, or $3.30 per share during the quarter, including one-time charges. Fourth quarter Adjusted EBITDA declined year-over-year to $5.1 million, resulting in an Adjusted EBITDA margin of 2.9 percent, compared to 10.0 percent in the same quarter of 2011. As of December 31, 2012, the Company had $26.8 million of cash plus $37.2 million in availability under its ABL credit facility for total liquidity of $64.0 million.
Fiscal Year 2012 Results
Net sales from continuing operations for the fiscal year ended December 31, 2012 were $929.8 million, compared with $936.1 million in the prior year, a decrease of 0.7 percent. The decline in net sales resulted from weak second-half industry conditions that saw commercial vehicle manufacturers cut production schedules, previously announced OEM customer decisions for Gunite, and aftermarket demand fall. In addition, Brillion’s industrial end-markets were weak during the second half of 2012. The Company believes the industry cycle is at or near the bottom, with a market recovery expected in the second half of 2013. Accuride reported a fully diluted loss per share of $3.76 for the year ended December 31, 2012, which includes the impact from the one-time impairment charges for Gunite of approximately $2.78 per share and other one-time charges of approximately $0.17 per share. Adjusted EBITDA from continuing operations for fiscal-year 2012 was $62.8 million, compared to $86.1 million in the prior year, a 27.1 percent decrease. Cash was $26.8 million at year end, while free cash flow was negative $31.2 million for the year which included $59.2 million of capital expenditures to selectively expand capacity and improve facilities and operations.
Commenting on Accuride’s results and business outlook, President and CEO Rick Dauch said, “We continue to take the tough, necessary actions to “FIX” Accuride and restore our reputation as an industry leading supplier. The majority of our capital investments and restructuring activities are now complete, positioning our business units to compete aggressively in the marketplace now and during the expected industry upturn in the second half of 2013.