Collins & Aikman (NYSE:CKC)
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Collins & Aikman Announces Preliminary Second Quarter Operating
Results
TROY, Mich., July 8 /PRNewswire-FirstCall/ -- As previously announced, Collins
& Aikman Corporation (NYSE:CKC) is having a meeting today with certain
institutional investors in the company's debt securities at which the company
will discuss preliminary financial results for the second quarter ended June
30, 2004. The company is inviting automotive institutional investors, security
analysts, news media representatives, and other interested parties to listen
via a conference call. The dial-in number for the call is (973) 582-2729.
Callers should ask to be connected to the Collins & Aikman investor meeting
conference call. Supporting material will be made available on the company's
website at http://www.collinsaikman.com/investor/confcalls.html prior to the
start of the meeting.
Based on preliminary information, all of which is subject to review and change
as the company prepares its full financial statements for the second quarter of
2004, the company estimates that sales will be in the range of $1.02 billion to
$1.04 billion, operating profit will be in a range of $21 million to $27
million (after restructuring expenses of approximately $11 million and
impairments of long-term assets of approximately $28 million). Depreciation and
amortization is expected to be approximately $36 million to $37 million. The
company's net debt at June 30, 2004 is expected to be in the range of $1.436
billion to $1.442 billion. This information is preliminary and full financial
statements are not yet prepared. This information should be reviewed in the
context of the company's reported results once those are available. These
estimates will be discussed on the conference call later this morning.
Collins & Aikman Corporation, a Fortune 500 company, is a global leader in
cockpit modules and automotive floor and acoustic systems and a leading
supplier of instrument panels, automotive fabric, plastic-based trim and
convertible top systems. The company's current operations span the globe
through 16 countries, more than 100 facilities and nearly 24,000 employees who
are committed to achieving total excellence. Collins & Aikman's high-quality
products combine superior design, styling and manufacturing capabilities with
NVH "quiet" technologies that are among the most effective in the industry.
Information about Collins & Aikman is available on the Internet at
http://www.collinsaikman.com/ .
This news release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Actual results may differ
materially from the anticipated results because of certain risks and
uncertainties, including but not limited to conditions affecting the markets
and industry within which we operate, including declines in North American,
South American and European automobile and light truck builds, our dependence
on significant automotive customers, the level of competition in the automotive
supply industry and pricing pressures from automotive customers, fluctuations
in the productions of vehicles for which we are a supplier, changes in the
popularity of particular cars and interior trim programs, labor costs and
strikes at our major customers and at our facilities and risks associated with
doing business in foreign countries; the adequacy of our liquidity and capital
resources and required capital expenditures; our high debt levels and our
ability to obtain financing and service or refinance our debt, uncertainty
regarding our future operating results, prevailing levels of interest rates and
other factors detailed in the company's filings with the Securities and
Exchange Commission.
COLLINS & AIKMAN
SUPPLEMENTAL DATA - EBITDA RECONCILIATION SCHEDULE
(unaudited, in millions)
Three months ended
June 30, 2004
(est.) - Note 1
Operating income $24.1
Depreciation and amortization 36.7
EBITDA $60.8
Memo:
Restructuring charges $10.9
Impairment of long-lived assets 28.3
Total restructuring and impairment charges $39.2
This supplemental data presented above is a reconciliation of a certain
financial measure which is intended to facilitate analysis of Collins & Aikman
Corporation's business and operating performance.
EBITDA is defined as operating income plus depreciation and amortization.
Management considers EBITDA to be a key measure of the cash generated by our
business, and EBITDA is commonly used in our industry to analyze operating
performance, liquidity and entity valuation. EBITDA should not be considered
in isolation or as a substitute for net income or cash flows presented in
accordance with U.S. GAAP, or as a measure of our liquidity of financial
condition. Other companies may calculate EBITDA differently.
Note 1: Numbers are based on midpoint of Operating Income range of $21.1
million to $27.1 million and current estimates for depreciation and
amortization, restructuring charges and impairment of long-lived assets.
DATASOURCE: Collins & Aikman Corporation
CONTACT: J. Michael Stepp, Vice Chairman & CFO, +1-248-824-1520,
, or Robert A. Krause, Vice President & Treasurer, Head
of Investor Relations, +1-248-733-4355, , both of
Collins & Aikman Corporation
Web site: http://www.collinsaikman.com/