EVANSVILLE, Ind. – April 27, 2015 – Accuride Corporation (NYSE: ACW) – a leading supplier of components to the North American commercial vehicle industry – today reported strong financial results for the first quarter ended March 31, 2015.
First quarter 2015 net sales from continuing operations were $183.7 million, compared with $166.8 million in the same period in 2014, an increase of 10.1 percent, primarily reflecting the impact of stronger industry conditions in the Company’s Wheels and Brillion segments during the quarter. Accuride’s operating income was $9.3 million for the quarter, as compared to operating income of $6.6 million in the first quarter of 2014. The Company reported a net loss of $0.6 million, or $0.01 per share, during the quarter, compared to a net loss of $3.3 million, or $0.07 per share, in 2014. First quarter Adjusted EBITDA increased by 18.5 percent year-over-year to $21.3 million, or 11.6 percent of net sales, compared to $18.0 million, or 10.8 percent of net sales, in the same quarter of 2014. As of March 31, 2015, Accuride had $17.6 million of cash plus $53.3 million in availability under its ABL Credit Facility for total liquidity of $70.9 million.
In the first quarter, North American truck and trailer production continued to increase at a healthy pace. Class 8, Class 5-7 and Trailer production grew by 19 percent, 13 percent and 28 percent, respectively, compared to 2014. Class 8 net orders, although still strong, began to level out toward a more normalized pace. Continued order strength is expected to translate into increased OEM production levels over the next several quarters, with full-year Class 8 production at levels 5 to 10 percent higher than 2014. Trailer segment net orders in the first quarter also began to level off and trailer builds are expected to grow by approximately 5 to 10 percent over 2014 levels. Driven by the expanding U.S. economy, first-quarter Medium-duty segment orders increased by 6 percent year-over-year, and full-year production is projected to be up 2 percent over 2014 levels. Fleets are generally optimistic about current conditions within the trucking industry. Freight tonnage is forecasted to steadily increase throughout the next several years, which will continue to drive increased demand for trucks and trailers going forward.
Accuride Wheels segment net sales were $108.3 million, up $16.1 million, or 17.5 percent, from the same period in 2014, primarily due to stronger OEM demand and market share gains in the aftermarket. Wheels’ Adjusted EBITDA was $22.2 million, an increase of $3.0 million, or 15.8 percent, from the first quarter of 2014. Additional shifts were added in Camden and Mexico to meet rising customer demand for aluminum wheels.
Gunite segment net sales of $37.7 million were down $6.2 million, or 14.2 percent, from the first quarter of 2014, attributable primarily to lower aftermarket demand for brake drums and OEM demand for hubs. Gunite’s Adjusted EBITDA decreased by $0.2 million to $4.1 million, from $4.3 million in the first quarter of 2014.
Brillion Iron Works’ first quarter net sales were $37.6 million, up $7.0 million, or 22.8 percent, from the first quarter of 2014 on higher customer volumes. Brillion’s Adjusted EBITDA was $3.4 million, an increase of $1.0 million, from the first quarter of 2014. The Company currently expects Brillion’s top-line growth in 2015 to be flat compared to its previous guidance of 5 percent to 10 percent, due primarily to reduced demand in Brillion’s oil and gas, agricultural and mining end markets.
As of March 31, 2015, total debt was $326.5 million, consisting of $306.5 million of our outstanding 9.5% senior secured notes, net of discount, and a $20.0 million draw on our ABL Credit Facility. As of March 31, 2015, Accuride had $17.6 million of cash plus $53.3 million in availability under its ABL Credit Facility, for total liquidity of $70.9 million.
“Accuride had a strong first quarter,” said Rick Dauch, Accuride’s President and CEO. “Our industry-leading quality, delivery and lead-time performance allowed us to renew and secure new long-term customer agreements at our Wheels and Gunite businesses. We are experiencing near-term headwinds at Brillion due to macro industry conditions.”
Accuride management expects the Company’s 2015 net sales to be in the range of $725 million to $775 million, and Adjusted EBITDA to be in the range of $85 million to $95 million. The midpoints of the Company’s revenue and Adjusted EBITDA ranges represent increases of 6 percent and 15 percent, respectively, over Accuride’s 2014 results. The Company has based its 2015 guidance on the following projections for the North American commercial vehicle industry: Class 8 production in the range of 310,000 to 330,000 units, Class 5-7 production in the range of 220,000 to 225,000 units and Trailer segment production in the range of 280,000 to 300,000 units. In addition, management expects net sales for the Brillion business unit to be flat versus 2014.
Accuride will host a conference call to discuss the financial and operational results of its First Quarter Fiscal Year 2015 on Monday, April 27, 2015, beginning at 9:00 a.m. CDT. Analysts and investors may participate on the conference call by dialing (800) 708-4539 in the United States, or (847) 619-6396 internationally, and using participant code 39490750. A live webcast of the conference call can be accessed via the Investors section of the company’s website – www.AccurideCorp.com/investors. A replay will be available from April 27, 2015, at 11:30 a.m. CDT until 11:59 p.m. CDT, May 4, 2015, by calling (888) 843-7419 in the United States, or (630) 652-3042 internationally, using access code 39490750.
With headquarters in Evansville, Ind., USA, Accuride Corporation is a leading supplier of components to the North American commercial vehicle industry. The company’s products include commercial vehicle wheels; wheel-end components and assemblies; and specialty cast-iron components for a range of agricultural, construction and mining, and oil and gas equipment applications. The company’s products are marketed under its brand names, which include Accuride®, Accuride Wheel End Solutions™, Gunite®, and Brillion™. Accuride’s common stock trades on the New York Stock Exchange under the ticker symbol ACW. For more information, visit the Company’s website at https://www.accuridecorp.com.
Statements contained in this news release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding Accuride’s expectations, hopes, beliefs, and intentions with respect to future results. Such statements are subject to the impact on Accuride’s business and prospects generally of, among other factors, market demand in the commercial vehicle industry, general economic, business and financing conditions, labor relations, governmental action, competitor pricing activity, expense volatility and other risks detailed from time to time in Accuride’s Securities and Exchange Commission filings, including those described in Item 1A of Accuride’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014. Any forward-looking statement reflects only Accuride’s belief at the time the statement is made. Although Accuride believes that the expectations reflected in these forward-looking statements are reasonable, it cannot guarantee its future results, levels of activity, performance or achievements. Except as required by law, Accuride undertakes no obligation to update any forward-looking statements to reflect events or developments after the date of this news release.
Phone: (812) 962-5105
Timothy G. Weir, APR
Director of Public Affairs, Communications and Marketing
Phone: (812) 962-5128