<PAGE> 1
EXHIBIT 99.1
DATE: October 19, 2000
FROM: FOR:
Padilla Speer Beardsley Inc. Tower Automotive, Inc.
224 Franklin Avenue West 5211 Cascade Road S.E., Suite 300
Minneapolis, Minnesota 55404 Grand Rapids, Michigan 49546
John Mackay (612) 871-8877 Anthony Barone (616) 802-1600
FOR IMMEDIATE RELEASE
TOWER AUTOMOTIVE ANNOUNCES OPERATING RESULTS FOR THE THIRD QUARTER AND NINE
MONTHS ENDED SEPTEMBER 30, 2000
GRAND RAPIDS, Mich., Oct. 19-- Tower Automotive, Inc. (NYSE: TWR), today
announced its operating results for the third quarter and nine months ended
September 30, 2000.
On July 25, 2000, the company replaced its existing credit facility with a
new six-year $1.15 billion senior unsecured agreement. As a result, the company
recorded an extraordinary loss on the early extinguishment of debt, net of tax,
of approximately $3 million during the third quarter.
For both the third quarter of 2000 and 1999, revenues were $536 million.
Operating income declined 42 percent to $28 million from $48 million reported
last year. Net income before the extraordinary item charge for the third quarter
of 2000 was $10 million, or 21 cents per diluted share outstanding, versus $24
million, or 44 cents per diluted share, in the comparable 1999 period.
For the nine months ended September 30, 2000, revenues were $1,903 million,
a 22 percent increase, compared with $1,565 million in the same period for 1999.
Operating income rose 9 percent to $175 million from $161 million reported last
year. Net income before the extraordinary item charge for the nine months ended
September 30, 2000 was $86 million, or $1.54 per diluted share outstanding,
versus $84 million, or $1.52 per diluted share, in the comparable 1999 period.
In commenting on third-quarter and nine-month results, Dugald K. Campbell,
president and chief executive officer of Tower Automotive, said, "Our
third-quarter results were impacted by volume declines associated with the
Ranger and Explorer programs, heavy truck sales declines, new product launches,
and schedule disruptions created by irregular releases from our customers. These
conditions have offset a portion of the gains made during the first six months
to bring our nine-month results for 2000 to approximately the same level as the
results of the comparable 1999 period."
On July 7, 2000, the company announced that it completed the acquisition of
the remaining 60 percent equity interest in Metalurgica Caterina S.A.
("Caterina"), a supplier of structural stampings and assemblies to the Brazilian
automotive market. This remaining interest was acquired for consideration of
approximately $42 million. Tower Automotive acquired the initial 40 percent
equity interest in Caterina in March 1998.
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On September 21, 2000, the company announced that it acquired a 17 percent
equity interest in Yorozu Corporation ("Yorozu"), a supplier of suspension
modules and structural parts to the Asian and North American automotive markets,
from Nissan Motor Co. Ltd. Yorozu is based in Japan and is publicly traded on
the first tier of the Tokyo Stock Exchange. Its principal customers include
Nissan, Auto Alliance, General Motors, Ford, and Honda. The company will pay
Nissan approximately $38 million over the next two and a half years to acquire
the 17 percent interest. In addition, the company will have the opportunity to
increase its holdings in Yorozu through the purchase of additional Yorozu
shares.
On October 2, 2000, the company announced the signing of a definitive
agreement to sell its Roanoke, Va., heavy truck rail manufacturing business to
its joint venture partner, Metalsa S. de R.L., which is based in Monterrey,
Mexico, for $55 million plus an earnout to Tower Automotive of up to $30 million
based on Metalsa heavy truck achieving certain profit levels over the next three
years. The transaction is expected to close by the end of December 2000. The
company also announced plans to phase out its heavy truck rail manufacturing and
related activities in Milwaukee, Wis.; reduce its stamping capacity by closing
its Kalamazoo, Mich., facility; and consolidate related support activities
across the enterprise. These restructuring activities will result in a pre-tax
charge in the fourth quarter in the range of $140 million.
Tower Automotive, Inc., produces a broad range of assemblies and modules
for vehicle structures and suspension systems for the automotive manufacturers,
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.
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 as a consequence of certain risks and
uncertainties, including but not limited to general economic conditions in the
markets in which Tower Automotive operates; a change in the terms, timing or an
inability to complete the sale of business to Metalsa; unanticipated costs
associated with the discontinuation of operations at Kalamazoo and phasing out
of heavy truck rail operations in Milwaukee; and other risks detailed from time
to time in the company's Securities and Exchange Commission filings.
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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 Nine Months Ended
September 30, September 30,
------------------------------ ------------------------------
2000 1999 2000 1999
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Revenues $ 536,210 $ 536,152 $ 1,902,594 $ 1,565,404
Cost of sales 471,482 453,851 1,611,773 1,316,627
----------- ----------- ----------- -----------
Gross profit 64,728 82,301 290,821 248,777
Selling, general and administrative
expenses 31,535 29,382 99,622 76,386
Amortization expense 5,576 4,451 15,793 11,642
----------- ----------- ----------- -----------
Operating income 27,617 48,468 175,406 160,749
Interest expense, net 16,405 10,642 43,136 25,171
----------- ----------- ----------- -----------
Income before provision for
income taxes 11,212 37,826 132,270 135,578
Provision for income taxes 4,484 15,130 52,908 54,231
----------- ----------- ----------- -----------
Income before equity in earnings of
joint ventures and minority interest 6,728 22,696 79,362 81,347
Equity in earnings of joint ventures 5,844 3,664 14,864 10,959
Minority interest - dividends on trust
preferred securities, net (2,619) (2,619) (7,857) (7,861)
----------- ----------- ----------- -----------
Income before extraordinary item 9,953 23,741 86,369 84,445
Extraordinary loss on early
extinguishment of debt, net 2,988 -- 2,988 --
----------- ----------- ----------- -----------
Net income $ 6,965 $ 23,741 $ 83,381 $ 84,445
=========== =========== =========== ===========
Basic earnings per common share:
Income before extraordinary loss $ 0.21 $ 0.50 $ 1.81 $ 1.80
Extraordinary loss (0.06) -- (0.06) --
----------- ----------- ----------- -----------
Net income $ 0.15 $ 0.50 $ 1.75 $ 1.80
=========== =========== =========== ===========
Basic shares outstanding 47,986 47,081 47,649 46,871
=========== =========== =========== ===========
Diluted earnings per common share:
Income before extraordinary loss $ 0.21 $ 0.44 $ 1.54 $ 1.52
Extraordinary loss $ (0.06) -- (0.05) --
----------- ----------- ----------- -----------
Net income $ 0.15 $ 0.44 $ 1.49 $ 1.52
=========== =========== =========== ===========
Diluted shares outstanding 48,411 64,099 64,284 64,010
=========== =========== =========== ===========
</TABLE>
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TOWER AUTOMOTIVE, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(AMOUNTS IN THOUSANDS)
<TABLE>
<CAPTION>
September 30, December 31,
Assets 2000 1999
------------------------------------------------------------------ ----------------- ----------------
(unaudited)
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 1,404 $ 3,617
Accounts receivable 347,272 353,351
Inventories 116,506 110,897
Prepaid tooling and other 107,353 90,191
----------------- ----------------
Total current assets 572,535 558,056
----------------- ----------------
Property, plant and equipment, net 1,213,065 1,075,861
Investments in joint ventures 309,081 290,705
Goodwill and other assets, net 814,945 627,928
----------------- ----------------
$ 2,909,626 $ 2,552,550
================= ================
Liabilities and Stockholders' Investment
------------------------------------------------------------------
Current liabilities:
Current maturities of long-term debt and capital
lease Obligations $ 20,660 $ 13,876
Accounts payable 235,110 276,673
Accrued liabilities 129,396 140,567
----------------- ----------------
Total current liabilities 385,166 431,116
----------------- ----------------
Long-term debt, net of current maturities 975,405 699,678
Obligations under capital leases, net of current maturities 17,437 21,543
Convertible subordinated notes 200,000 200,000
Deferred income taxes 67,525 50,736
Other noncurrent liabilities 180,325 163,592
----------------- ----------------
Total noncurrent liabilities 1,440,692 1,135,549
----------------- ----------------
Mandatorily redeemable trust convertible preferred securities 258,750 258,750
Stockholders' investment:
Preferred stock - -
Common stock 475 469
Additional paid-in capital 452,403 437,210
Retained earnings 377,903 294,522
Warrants to acquire common stock - 2,000
Deferred income stock plan (8,942) (4,484)
Accumulated other comprehensive income (loss) 3,179 (2,582)
----------------- ----------------
Total stockholders' investment 825,018 727,135
----------------- ----------------
$ 2,909,626 $ 2,552,550
================= ================
</TABLE>
