VALLEY CITY, Ohio, June 8,
2016 /PRNewswire/ -- Shiloh Industries, Inc. (NASDAQ: SHLO), a
leading global supplier of lightweighting, noise and vibration
solutions, today reported financial results for the second-quarter
2016.
Second Quarter 2016 Highlights:
- Revenue for the second quarter was $284.3 million, compared with $272.3 million in the second quarter of 2015, an
increase of 4.4 percent.
- Product wins represent an expected $136
million in sales over the life-of-program.
- Gross margin for the second quarter expanded by 250 basis
points to 8.9 percent compared to the first quarter of fiscal 2016
and is regaining profitability compared to prior year quarter gross
margin of 10.3 percent.
- Net income was $3.1 million, an
improvement versus a net loss of $5.1
million in the first quarter of 2016, compared to
$6.4 million in the year ago
quarter.
- Adjusted EBITDA was $18.3
million, an improvement versus $9.0
million in the first quarter of 2016, compared to
$19.7 million in the year ago
quarter.
- Net income per diluted share was $0.17 per share which included a negative
$0.02 per share scrap impact.
- Generated $12.8 million of cash
from operating activities during the quarter, an improvement
compared to $1.1 million in the year
ago quarter.
- Reduced long-term debt by $10.1
million during the quarter to $266.3
million.
"Our revenue growth outpaced global automotive production during
the second quarter. In addition, our profitability improved
meaningfully compared to the first quarter of the year.
Furthermore, our new business awards were consistent with our
strategy to focus on high value opportunities and efficient use of
our capital resources," according to Ramzi
Hermiz, president and chief executive officer. "We remain
committed to providing sustainable lightweighting solutions for our
customers that improve performance and benefit the environment by
lowering fuel consumption and greenhouse gas emissions. This is the
core to our strategy of Lightweighting Without Compromise," said
Hermiz.
Shiloh to Host Conference Call Today at 8:00 A.M. EDT
Shiloh Industries will host a conference call on Wednesday, June 8th at 8:00 A.M. Eastern Time to discuss the Company's
2016 second quarter financial results. The conference call
can be accessed by dialing +1-877-407-0784, or for international
callers, +1-201-689-8560. Please dial-in approximately five minutes
in advance and request the Shiloh Industries second quarter
conference call. A replay will be available two hours after
the call and can be accessed by dialing +1-877-870-5176, or for
international callers, +1-858-384-5517. The passcode for the
replay is 13638241. The replay will be available until
June 22, 2016. Interested
investors and other parties may also listen to a simultaneous
webcast of the conference call by logging onto the Investor
Relations section of the Company's website at www.shiloh.com.
For inquiries, please contact Thomas
Dugan, Vice President Finance and Treasurer at:
investor@shiloh.com.
Non-GAAP Financial Measures
This press release includes the following non-GAAP financial
measures: "EBITDA," "adjusted EBITDA" and "adjusted earnings per
share." We define EBITDA as net income / (loss) before
interest, taxes, stock compensation, depreciation and amortization.
We define adjusted EBITDA as net income / (loss) before interest,
taxes, stock compensation, depreciation, amortization,
restructuring items and other adjustments described in the
reconciliations accompanying this press release. Adjusted earnings
per share exclude certain income and expense items described in the
reconciliation accompanying this press release. We use
EBITDA, adjusted EBITDA and adjusted earnings per share as
supplements to information provided in accordance with generally
accepted accounting principles ("GAAP") in evaluating our business
and they are included in this press release because they are
principal factors upon which our management assesses performance.
Reconciliations of these non-GAAP financial measures to the most
directly comparable financial measures calculated in accordance
with GAAP are set forth below. The non-GAAP measures presented in
this release are not measures of performance under GAAP. These
measures should not be considered as alternatives for the most
directly comparable financial measures calculated in accordance
with GAAP. Other companies in our industry may define these
non-GAAP measures differently than we do and, as a result, these
non-GAAP measures may not be comparable to similarly titled
measures used by other companies; and certain of our non-GAAP
financial measures exclude financial information that some may
consider important in evaluating our performance. Given the
inherent uncertainty regarding special items and other expenses in
any future period, a reconciliation of forward-looking financial
measures to the most directly comparable financial measures
calculated and presented in accordance with GAAP is not feasible.
The magnitude of these items, however, may be significant.
Adjusted earnings
per share (EPS)
|
Three Months
Ended
April 30,
|
|
|
2016
|
|
2015
|
Net income (loss) per
common share (GAAP)
|
|
|
|
Diluted
|
$
|
0.17
|
|
|
$
|
0.37
|
|
|
Amortization of
intangibles
|
0.02
|
|
|
0.03
|
|
Diluted adjusted
earnings per share (non-GAAP)
|
$
|
0.19
|
|
|
$
|
0.40
|
|
Adjusted EBITDA
Reconciliation
|
|
Three Months
Ended
April 30,
|
|
Three Months
Ended January 31,
|
|
|
|
2016
|
|
2015
|
|
2016
|
Net income
(loss)
|
|
$
|
3,057
|
|
|
$
|
6,353
|
|
|
$
|
(5,059)
|
|
|
Depreciation and
amortization
|
|
9,584
|
|
|
8,252
|
|
|
9,289
|
|
|
Stock compensation
expense
|
|
262
|
|
|
344
|
|
|
189
|
|
|
Interest
expense
|
|
4,520
|
|
|
2,067
|
|
|
4,352
|
|
|
Provision (benefit)
for income taxes
|
|
12
|
|
|
2,665
|
|
|
(1,854)
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
17,435
|
|
|
19,681
|
|
|
6,917
|
|
|
Adjustment to prepaid
expenses
|
|
842
|
|
|
—
|
|
|
—
|
|
|
Non-recurring
professional fees
|
|
—
|
|
|
—
|
|
|
1,800
|
|
|
Asset impairment
expense
|
|
—
|
|
|
—
|
|
|
273
|
|
Adjusted
EBITDA
|
|
$
|
18,277
|
|
|
$
|
19,681
|
|
|
$
|
8,990
|
|
About Shiloh Industries,
Inc.
Shiloh Industries, Inc. is a leading global supplier of
lightweighting, noise and vibration solutions to the automotive,
commercial vehicle and industrial segments, capable of delivering
solutions in aluminum, magnesium, steel and high-strength steel
alloys to original equipment manufacturers and suppliers. The
company offers the broadest portfolio of lightweighting solutions
in the industry through their BlankLight®,
CastLight™ and StampLight™ brands. Shiloh
designs and manufactures components in body, chassis and powertrain
systems with expertise in precision blanks, ShilohCore™
acoustic laminates, aluminum and steel laser welded blanks, complex
stampings, modular assemblies, aluminum and magnesium die casting,
as well as precision machined components. Shiloh has over
3,500 dedicated employees with operations, sales and technical
centers throughout Asia,
Europe and North America.
FORWARD-LOOKING STATEMENTS
Certain statements made by Shiloh in this Press Release
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.
Listed below are some of the factors that could potentially
cause actual results to differ materially from expected future
results. Other factors besides those listed here could also
materially affect the Company's business.
- The impact on historical financial statements of any known or
unknown accounting errors or irregularities; and the magnitude of
any adjustments in restated financial statements of the Company's
operating results.
- The Company's ability to accomplish its strategic
objectives.
- The Company's 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
businesses, including businesses located outside of
the United States. Risks
associated with doing business internationally, including economic,
political and social instability, foreign currency exposure and the
lack of acceptance of its products.
- Inefficiencies related to production and product launches that
are greater than anticipated; changes in technology and
technological risks.
- 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 affecting car and light truck production.
- 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
aluminum, magnesium or steel, the Company's primary raw materials,
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 Company's outstanding
indebtedness or a decrease in customer demand which could cause a
covenant default under the Company's outstanding indebtedness.
- Pension plan funding requirements.
See "Part I, Item 1A. Risk Factors" in the Company's Annual
Report on Form 10-K for the fiscal year ended October 31, 2015
for a more complete discussion of these risks and
uncertainties. 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 Press Release.
The Company undertakes no obligation to publicly revise these
forward-looking statements to reflect events or circumstances that
arise after the date of filing this Press Release. 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 SEC.
SHILOH INDUSTRIES,
INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Dollar amounts in
thousands)
(Unaudited)
|
|
|
|
April 30,
2016
|
|
October 31,
2015
|
|
ASSETS:
|
|
|
|
Cash and cash
equivalents
|
$
|
4,860
|
|
|
$
|
13,100
|
|
Investment in
marketable securities
|
182
|
|
|
356
|
|
Accounts receivable,
net of allowance for doubtful accounts of $709 and $821 at April
30, 2016 and October 31, 2015, respectively
|
183,500
|
|
|
194,373
|
|
Related-party
accounts receivable
|
1,978
|
|
|
1,092
|
|
Prepaid income
taxes
|
1,981
|
|
|
3,799
|
|
Inventories,
net
|
60,908
|
|
|
58,179
|
|
Deferred income
taxes
|
2,483
|
|
|
2,837
|
|
Prepaid expenses and
other assets
|
37,285
|
|
|
48,267
|
|
Total current
assets
|
293,177
|
|
|
322,003
|
|
Property, plant and
equipment, net
|
269,242
|
|
|
280,260
|
|
Goodwill
|
28,923
|
|
|
28,843
|
|
Intangible assets,
net
|
18,418
|
|
|
19,543
|
|
Deferred income
taxes
|
4,858
|
|
|
4,431
|
|
Other
assets
|
17,400
|
|
|
11,509
|
|
Total
assets
|
$
|
632,018
|
|
|
$
|
666,589
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY:
|
|
|
|
Current
debt
|
$
|
1,497
|
|
|
$
|
2,080
|
|
Accounts
payable
|
158,516
|
|
|
160,405
|
|
Other accrued
expenses
|
35,881
|
|
|
34,459
|
|
Accrued income
taxes
|
103
|
|
|
—
|
|
Total current
liabilities
|
195,997
|
|
|
196,944
|
|
Long-term
debt
|
266,276
|
|
|
298,873
|
|
Long-term benefit
liabilities
|
15,777
|
|
|
17,376
|
|
Deferred income
taxes
|
6,153
|
|
|
6,180
|
|
Interest rate swap
agreement
|
5,726
|
|
|
4,989
|
|
Other
liabilities
|
896
|
|
|
1,312
|
|
Total
liabilities
|
490,825
|
|
|
525,674
|
|
Commitments and
contingencies
|
|
|
|
Stockholders'
equity:
|
|
|
|
Preferred stock, $.01
per share; 5,000,000 shares authorized; no shares issued and
outstanding at April 30, 2016 and October 31, 2015,
respectively
|
—
|
|
|
—
|
|
Common stock, par
value $.01 per share; 50,000,000 and 25,000,000 shares authorized
at April 30, 2016 and October 31, 2015, respectively; 17,615,374
and 17,309,623 shares issued and outstanding at April 30, 2016 and
October 31, 2015, respectively
|
176
|
|
|
173
|
|
Paid-in
capital
|
69,769
|
|
|
69,334
|
|
Retained
earnings
|
119,455
|
|
|
121,457
|
|
Accumulated other
comprehensive loss, net
|
(48,207)
|
|
|
(50,049)
|
|
Total stockholders'
equity
|
141,193
|
|
|
140,915
|
|
Total liabilities and
stockholders' equity
|
$
|
632,018
|
|
|
$
|
666,589
|
|
SHILOH INDUSTRIES,
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in
thousands, except per share data)
(Unaudited)
|
|
|
|
Three Months
Ended
April
30,
|
|
Six Months
Ended
April
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net
revenues
|
$
|
284,264
|
|
|
$
|
272,300
|
|
|
$
|
535,319
|
|
|
$
|
518,165
|
|
Cost of
sales
|
259,039
|
|
|
244,345
|
|
|
494,113
|
|
|
471,533
|
|
Gross
profit
|
25,225
|
|
|
27,955
|
|
|
41,206
|
|
|
46,632
|
|
Selling, general
& administrative expenses
|
16,992
|
|
|
16,869
|
|
|
34,576
|
|
|
30,484
|
|
Amortization of
intangible assets
|
565
|
|
|
677
|
|
|
1,129
|
|
|
1,309
|
|
Operating
income
|
7,668
|
|
|
10,409
|
|
|
5,501
|
|
|
14,839
|
|
Interest
expense
|
4,520
|
|
|
2,067
|
|
|
8,872
|
|
|
3,829
|
|
Interest
income
|
(4)
|
|
|
(7)
|
|
|
(6)
|
|
|
(14)
|
|
Other (income)
expense
|
83
|
|
|
(669)
|
|
|
479
|
|
|
(1,064)
|
|
Income (loss) before
income taxes
|
3,069
|
|
|
9,018
|
|
|
(3,844)
|
|
|
12,088
|
|
Provision (benefit)
for income taxes
|
12
|
|
|
2,665
|
|
|
(1,842)
|
|
|
3,292
|
|
Net income
(loss)
|
$
|
3,057
|
|
|
$
|
6,353
|
|
|
$
|
(2,002)
|
|
|
$
|
8,796
|
|
Earnings (loss) per
share:
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share
|
$
|
0.17
|
|
|
$
|
0.37
|
|
|
$
|
(0.11)
|
|
|
$
|
0.51
|
|
Basic weighted
average number of common shares
|
17,615
|
|
|
17,211
|
|
|
17,615
|
|
|
17,217
|
|
Diluted earnings
(loss) per share
|
$
|
0.17
|
|
|
$
|
0.37
|
|
|
$
|
(0.11)
|
|
|
$
|
0.51
|
|
Diluted weighted
average number of common shares
|
17,620
|
|
|
17,236
|
|
|
17,615
|
|
|
17,248
|
|
SHILOH INDUSTRIES,
INC.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollar amounts in
thousands)
(Unaudited)
|
|
|
|
|
Six Months Ended
April 30,
|
|
|
2016
|
|
2015
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
Net income
(loss)
|
|
$
|
(2,002)
|
|
|
$
|
8,796
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
|
18,873
|
|
|
16,984
|
|
Asset impairment,
net
|
|
273
|
|
|
—
|
|
Amortization of
deferred financing costs
|
|
1,244
|
|
|
298
|
|
Deferred income
taxes
|
|
(2)
|
|
|
684
|
|
Stock-based
compensation expense
|
|
451
|
|
|
542
|
|
Gain on sale of
assets
|
|
(26)
|
|
|
(17)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
|
11,909
|
|
|
(12,929)
|
|
Inventories
|
|
(2,172)
|
|
|
158
|
|
Prepaids and other
assets
|
|
6,663
|
|
|
(2,658)
|
|
Payables and other
liabilities
|
|
(5,608)
|
|
|
(9,074)
|
|
Accrued income
taxes
|
|
1,934
|
|
|
774
|
|
Net cash provided by
operating activities
|
|
31,537
|
|
|
3,558
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
Capital
expenditures
|
|
(8,818)
|
|
|
(21,785)
|
|
Proceeds from sale of
assets
|
|
1,166
|
|
|
123
|
|
Net cash used for
investing activities
|
|
(7,652)
|
|
|
(21,662)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
Payment of capital
leases
|
|
(403)
|
|
|
(435)
|
|
Proceeds from
long-term borrowings
|
|
63,300
|
|
|
62,500
|
|
Repayments of
long-term borrowings
|
|
(95,649)
|
|
|
(44,143)
|
|
Payment of deferred
financing costs
|
|
(308)
|
|
|
(1,256)
|
|
Proceeds from
exercise of stock options
|
|
—
|
|
|
155
|
|
Net cash provided by
(used for) financing activities
|
|
(33,060)
|
|
|
16,821
|
|
Effect of foreign
currency exchange rate fluctuations on cash
|
|
935
|
|
|
(796)
|
|
Net decrease in cash
and cash equivalents
|
|
(8,240)
|
|
|
(2,079)
|
|
Cash and cash
equivalents at beginning of period
|
|
13,100
|
|
|
12,014
|
|
Cash and cash
equivalents at end of period
|
|
$
|
4,860
|
|
|
$
|
9,935
|
|
|
|
|
|
|
Supplemental Cash
Flow Information:
|
|
|
|
|
Cash paid for
interest
|
|
$
|
7,641
|
|
|
$
|
3,734
|
|
Cash paid for (refund
of) income taxes
|
|
$
|
(3,203)
|
|
|
$
|
2,176
|
|
|
|
|
|
|
Non-cash
Activities:
|
|
|
|
|
Capital equipment
included in accounts payable
|
|
$
|
3,823
|
|
|
$
|
3,703
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/shiloh-industries-reports-second-quarter-2016-results-300281450.html
SOURCE Shiloh Industries, Inc.