JAII
Looks like a very good earnings report. Looks to open about 1 point above yesterday's close.
Johnstown America Reports Record Revenues and Earnings in Second Quarter and First Half
BusinessWire, Wednesday, July 29, 1998 at 08:54
CHICAGO--(BUSINESS WIRE)--July 29, 1998--Johnstown America
Industries, Inc. (NASDAQ:JAII) reported second quarter records for
revenues and net income, with revenues in the quarter ended June 30,
1998 increasing to $238.2 million from $158.2 million a year earlier
and net income rising to $6.2 million, or 61 cents per share, compared
to a loss of $0.5 million, or 5 cents per share, in the second quarter
of 1997.
Through six months, revenues and earnings were the best in the
company's history, with revenues increasing to $469.4 million from
$274.0 million in the 1997 period and net income increasing to $20.2
million, or $2.00 per share, up from a loss of $2.4 million, or 25
cents per share, a year ago.
Earnings for the second quarter of 1998 include an extraordinary
charge of $1.0 million ($0.6 million after-tax), or 5 cents per share,
from the write off of non-cash deferred financing costs in connection
with $15 million of senior debt prepayments and a one time increase in
operating income of $1.7 million ($1.0 million after-tax), or 10 cents
per share, from the settlement of a former pension plan at Gunite
Corporation. The pension gain was generally offset by the impact of
the three week strike in May at Gunite. Earnings for the first half of
1998 also include an increase in operating income of $16.8 million
($10.0 million after-tax), or $1.00 per share, from the previously
announced settlement of patent infringement litigation against Trinity
Industries, Inc.
Earnings before interest, taxes, depreciation and amortization
(EBITDA) were $25.7 million in the current quarter including the $1.7
million pension termination gain and $65.2 million through six months
including $18.5 million from the patent litigation settlement and
pension termination gains, compared to $15.8 million and $28.4
million, respectively, in the comparable periods last year. Non-cash
amortization, after tax, was $1.8 million, or 18 cents per share, in
the second quarter of both 1998 and 1997 and $3.6 million, or 36 cents
per share, for the first six months of both 1998 and 1997.
"The accelerating momentum of our freight car operations and the
continuing strong performance of our truck components and iron
castings businesses produced our best first half results ever," said
Thomas M. Begel, chairman, president and chief executive officer.
"Revenues and earnings have improved sharply from year-earlier levels
resulting in our fifth consecutive quarter of improved operating
performance."
Truck components operations, which include Gunite Corporation,
Bostrom Seating and Fabco Automotive, recorded sales of $73.8 million
in the current quarter compared to $75.1 million a year ago. Through
six months, revenues were $148.7 million, up from $141.5 million in
the first half of 1997.
"Second-quarter revenues were negatively affected by a three-week
strike at Gunite that ended in mid-May, resulting in a one time
reduction in margins and operating income for the group. First half
margins and operating income however, were ahead of last year's
performance," Mr. Begel said. "Gunite now is back in full production
and the truck components operations are operating near capacity to
meet customer demand resulting from the continuing strength of the
heavy-duty truck market."
Iron castings operations produced sales of $35.2 million in the
second quarter and $74.1 million through six months, up from $34.0
million and $69.0 million, respectively, a year ago. Margins and
operating income increased as well in both the quarter and first half.
"This business continues to benefit from strong demand for castings
from a broad customer base and a high degree of customer loyalty
driven by a reputation for superior quality and customer service," Mr.
Begel said.
Revenues from freight car operations were $129.2 million in the
quarter and $246.6 million in the first half, both marking dramatic
improvement from the $49.1 million and $63.5 million reported in the
comparable periods last year.
Second quarter 1998 shipments of 2,163 new and rebuilt freight
cars more than doubled the year-earlier total of 1,043. The order
backlog increased for the sixth successive quarter and on June 30,
1998 stood at 5,194 cars, compared to 1,949 cars a year earlier and
4,625 cars on March 31, 1998.
"The steps taken in recent years to improve efficiency and reduce
costs are being reflected in sharply improved margins and operating
income for our freight car operations," Begel said. "Future prospects
are enhanced by the strong customer demand for our aluminum Auto Flood
II and BethGon Coalporter designs, which comprise a substantial part
of the order backlog."
At June 30, 1998, the company had $27.9 million in cash on hand,
compared with $17.3 million a year earlier and $19.7 million at March
31, 1998. There were no outstanding borrowings under the company's $75
million revolving credit facility at quarter end. During the second
quarter the proceeds from the Trinity settlement and cash provided by
operating activities were used to prepay long-term senior bank debt by
$15.0 million.
Prospects for the remainder of 1998 are very bright, Mr. Begel
said. "Our diversified operations all are benefitting from strong
demand in the market sectors they serve and from their positions of
market leadership. As a result, we expect that revenues and earnings
will continue to be strong throughout the year."
Johnstown America Industries, Inc., headquartered in Chicago, IL,
has three operating groups: truck components and assemblies
operations, a leading supplier of wheel-end components, seating,
steerable drive axles and gear boxes for the heavy-duty truck
industry; iron castings operations, a major producer of complex iron
castings for a wide range of industries; and freight car operations, a
leading manufacturer and lessor of new and rebuilt freight cars used
for hauling coal, intermodal containers, highway trailers,
agricultural and mining products.
The statements herein, which are not historical facts, including
statements about future expectations, are "forward-looking statements"
that involve certain risks and uncertainties that could cause actual
future results to differ materially from those stated. These risks are
spelled out more fully in the company's SEC filings. The company
assumes no obligation to update its forward-looking statements. In
addition, industry data included herein has been compiled by
independent industry sources and accordingly the company assumes no
responsibility for such data. |
