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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (Date of earliest event reported): JULY 15, 1999
TOWER AUTOMOTIVE, INC.
(Exact Name of Registrant as Specified in its Charter)
DELAWARE
(State or Other Jurisdiction of Incorporation)
1-12733 41-1746238
(Commission File Number) (I.R.S. Employer Identification No.)
4508 IDS CENTER, MINNEAPOLIS, MINNESOTA 55402
(Address of Principal Executive Offices) (Zip Code)
(612) 342-2310
(Registrant's Telephone Number, Including Area Code)
NOT APPLICABLE
(Former Name or Former Address, if Changed Since Last Report)
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Item 5. OTHER EVENTS
On July 15, 1999, the Registrant issued a press release disclosing its
second quarter operating results. A copy of this press release is attached
hereto as Exhibit 99.1 and is hereby incorporated by reference.
Item 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND
EXHIBITS
(c) EXHIBITS
Press release dated July 15, 1999 - Tower Automotive, Inc.,
Announces Increased Revenues, Operating Income and Net Income
for the Second Quarter
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this Report to be signed on its behalf by the
undersigned thereunto duly authorized.
TOWER AUTOMOTIVE, INC.
Date: July 20, 1999 By:/s/ Anthony A. Barone
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Name: Anthony A. Barone
Title: Vice President and Chief Financial
Officer (Principal Accounting and
Financial Officer)
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EXHIBIT 99.1
DATE: July 15, 1999
FROM: FOR:
Padilla Speer Beardsley Inc. Tower Automotive, Inc.
224 Franklin Avenue West 4508 IDS Center
Minneapolis, Minnesota 55404 Minneapolis, Minnesota 55402
John Mackay (612) 871-8877 Scott Rued (612) 342-2310
FOR IMMEDIATE RELEASE
- ---------------------
TOWER AUTOMOTIVE, INC., ANNOUNCES
INCREASED REVENUES, OPERATING INCOME AND NET INCOME FOR THE
SECOND QUARTER ENDED JUNE 30, 1999
MINNEAPOLIS, July 15 -- Tower Automotive, Inc. (NYSE: TWR), today
announced increased operating results for the second quarter and six months
ended June 30, 1999.
For the second quarter of 1999, revenues were $531 million, a 14
percent increase, compared with $466 million in the 1998 period. Operating
income increased 26 percent to $59 million versus $47 million reported last
year. Net income for the second quarter of 1999 was $33 million, or 58 cents per
diluted share outstanding, versus $24 million, or 46 cents per diluted share, in
the comparable 1998 period.
For the six months ended June 30, 1999, revenues were $1,029 million an
11 percent increase compared with $923 million in the same period for 1998.
Operating income rose 30 percent to $112 million from $86 million reported last
year. Net income for the six months ended June 30, 1999 was $61 million, or
$1.08 per diluted share outstanding, versus $43 million, or 83 cents per diluted
share, in the comparable 1998 period.
In commenting on second-quarter and six-month results, Dugald K.
Campbell, president and chief executive officer of Tower Automotive, said, "We
are very encouraged with the improvements in our operating results for the
second quarter. Strong sales growth for the quarter and the first six months of
1999 continue to provide a solid contribution, resulting in increases in both
gross and operating margins compared with a year ago. Additionally, continuing
productivity and increased attention to maximizing resource and capital
utilization are providing a positive impact to the earnings for the company."
(more)
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Tower Automotive, Inc., produces a broad range of assemblies and
modules for vehicle structures and suspension systems for original equipment
manufacturers of automobiles including Ford, DaimlerChrysler, GM, Honda, Toyota,
Nissan, Auto Alliance, Fiat, BMW and Volkswagen. Products include body
structural assemblies such as pillars and package trays, control arms,
suspension links, engine cradles and full frame assemblies. The company is based
in Grand Rapids, Mich., and has its corporate office in Minneapolis, Minn.
(more)
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TOWER AUTOMOTIVE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS - UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended June 30, Six Months Ended June 30,
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1999 1998 1999 1998
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<S> <C> <C> <C> <C>
Revenues $ 530,680 $ 465,874 $ 1,029,252 $ 923,003
Cost of sales 443,651 395,020 862,776 788,960
---------------- --------------- -------------- ---------------
Gross profit 87,029 70,854 166,476 134,043
Selling, general and administrative
expenses 24,584 20,825 47,004 41,965
Amortization expense 3,741 3,309 7,191 6,573
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Operating income 58,704 46,720 112,281 85,505
Interest expense, net 7,262 12,695 14,529 24,610
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Income before provision for
income taxes 51,442 34,025 97,752 60,895
Provision for income taxes 20,577 13,612 39,101 24,360
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Income before equity in earnings of
joint ventures and minority interest 30,865 20,413 58,651 36,535
Equity in earnings of joint ventures 4,382 3,973 7,295 6,671
Minority interest - dividends on trust
preferred securities, net (2,619) (640) (5,242) (640)
---------------- --------------- -------------- ---------------
Net income $ 32,628 $ 23,746 $ 60,704 $ 42,566
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Basic earnings per common share $ 0.69 $ 0.51 $ 1.30 $ 0.92
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Basic shares outstanding 46,965 46,204 46,766 46,142
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Diluted earnings per common share $ 0.58 $ 0.46 $ 1.08 $ 0.83
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Diluted shares outstanding 64,143 57,133 63,966 55,995
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</TABLE>
(more)
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TOWER AUTOMOTIVE, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(AMOUNTS IN THOUSANDS)
<TABLE>
<CAPTION>
June 30, December 31,
ASSETS 1999 1998
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(unaudited)
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 877 $ 3,434
Accounts receivable 309,371 239,888
Inventories 80,719 76,913
Prepaid tooling and other 82,734 115,859
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Total current assets 473,701 436,094
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Property, plant and equipment, net 886,109 821,873
Restricted cash - 2,677
Investments in joint ventures 219,115 209,625
Goodwill and other assets, net 463,047 465,898
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$ 2,041,972 $ 1,936,167
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LIABILITIES AND STOCKHOLDERS' INVESTMENT
Current liabilities:
Current maturities of long-term debt and capital lease
obligations $ 23,400 $ 18,191
Accounts payable 208,329 214,194
Accrued liabilities 124,482 96,773
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Total current liabilities 356,211 329,158
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Long-term debt, net of current maturities 351,048 316,579
Obligations under capital leases, net of current maturities 23,435 25,770
Convertible subordinated notes 200,000 200,000
Deferred income taxes 20,376 20,376
Other noncurrent liabilities 157,336 178,738
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Total noncurrent liabilities 752,195 741,463
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Mandatorily redeemable trust convertible preferred securities 258,750 258,750
Stockholders' investment:
Preferred stock - -
Common stock 470 463
Warrants to acquire common stock 2,000 2,000
Additional paid-in capital 434,799 426,471
Retained earnings 238,138 177,434
Accumulated other comprehensive income (591) 428
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Total stockholders' investment 674,816 606,796
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$ 2,041,972 $ 1,936,167
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