Aftermarket Technology Corp. Reports First Quarter 2001 Results

Earnings Exceed First Quarter Forecast



Apr 26, 2001, 01:00 ET from Aftermarket Technology Corp.

    WESTMONT, Ill., April 26 /PRNewswire/ -- Aftermarket Technology Corp.
 (Nasdaq: ATAC), today reported financial results for the quarter ended
 March 31, 2001.
     Total revenue from continuing operations increased to $92.4 million in the
 first quarter of 2001 versus $86.5 million in the prior year's first quarter.
 As expected, income from continuing operations declined to $6.0 million from
 the first quarter 2000 level of $7.8 million primarily due to planned spending
 on growth and re-engineering initiatives, management delayering and severance
 costs, the impact of price and inventory reductions at DaimlerChrysler, and
 the impact of the favorable resolution of certain unusual items during the
 prior year.  These factors were partially offset by continued growth in the
 Logistics segment and strong market demand for remanufactured transmissions.
     On a per share basis, income from continuing operations was $0.29 per
 diluted share for the three months ended March 31, 2001, exceeding previously
 expected results of $0.27 per diluted share, versus $0.37 per diluted share
 for the three months ended March 31, 2000.  Total EPS, including discontinued
 operations for the three months ended March 31, 2000, was $0.25 per diluted
 share.
     Mike DuBose, Chairman, President and CEO said, "We are pleased to report
 better than expected financial results for the first quarter on strong sales.
 The progress on our internal initiatives combined with overall strong market
 demand for our products and services reinforce our 2001 outlook of $1.30 per
 share, representing another positive year for ATC."
     ATC is headquartered in Westmont, Illinois.  The Company's continuing
 operations include drivetrain remanufacturing, third party logistics and
 material recovery services.  ATC also remanufactures electronic control
 modules, instrument and display clusters and radios.
 
     The preceding paragraphs contain statements that are not related to
 historical results and are "forward-looking" statements within the meaning of
 the Private Securities Litigation Reform Act of 1995.  Forward-looking
 statements include those that are predictive or express expectations, that
 depend upon or refer to future events or conditions, or that concern future
 financial performance (including future revenues, earnings or growth rates),
 ongoing business strategies or prospects, or possible future Company actions.
 Forward-looking statements involve risks and uncertainties because such
 statements are based on current expectations, projections and assumptions
 regarding future events that may not prove to be accurate.  Actual results may
 differ materially from those projected or implied in the forward-looking
 statements.  The factors that could cause actual results to differ are
 discussed in the Company's Annual Report on Form 10-K for the year ended
 December 31, 2000 and other filings made by the Company with the Securities
 and Exchange Commission.
 
 
                          AFTERMARKET TECHNOLOGY CORP.
                       CONSOLIDATED STATEMENTS OF INCOME
                     (In thousands, except per share data)
 
                                                       For the three months
                                                          ended March 31,
                                                      2001              2000
                                                           (Unaudited)
 
     Net sales                                      $92,421           $86,502
     Cost of sales                                   61,468            55,128
     Gross profit                                    30,953            31,374
 
     Selling, general and
      administrative expense                         14,481            11,661
     Amortization of intangible assets                1,256             1,257
 
     Income from operations                          15,216            18,456
 
     Interest income                                    356                 -
     Other income, net                                    6                52
     Interest expense                                 5,790             5,836
 
     Income from continuing operations,
      before income taxes                             9,788            12,672
 
     Income tax expense                               3,768             4,841
 
     Income from continuing operations                6,020             7,831
 
     Loss from discontinued operations, net
      of income taxes                                     -            (2,494)
 
     Net income                                      $6,020            $5,337
 
     Per common share - basic:
       Income from continuing operations              $0.29             $0.38
       Loss from discontinued operations                  -             (0.12)
 
       Net income                                     $0.29             $0.26
 
     Weighted average number of common shares
      outstanding                                    20,578            20,539
 
     Per common share - diluted:
       Income from continuing operations              $0.29             $0.37
       Loss from discontinued operations                  -             (0.12)
 
       Net income                                     $0.29             $0.25
 
     Weighted average number of common and
      common equivalent shares outstanding           20,763            21,387
 
 
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SOURCE Aftermarket Technology Corp.
    WESTMONT, Ill., April 26 /PRNewswire/ -- Aftermarket Technology Corp.
 (Nasdaq: ATAC), today reported financial results for the quarter ended
 March 31, 2001.
     Total revenue from continuing operations increased to $92.4 million in the
 first quarter of 2001 versus $86.5 million in the prior year's first quarter.
 As expected, income from continuing operations declined to $6.0 million from
 the first quarter 2000 level of $7.8 million primarily due to planned spending
 on growth and re-engineering initiatives, management delayering and severance
 costs, the impact of price and inventory reductions at DaimlerChrysler, and
 the impact of the favorable resolution of certain unusual items during the
 prior year.  These factors were partially offset by continued growth in the
 Logistics segment and strong market demand for remanufactured transmissions.
     On a per share basis, income from continuing operations was $0.29 per
 diluted share for the three months ended March 31, 2001, exceeding previously
 expected results of $0.27 per diluted share, versus $0.37 per diluted share
 for the three months ended March 31, 2000.  Total EPS, including discontinued
 operations for the three months ended March 31, 2000, was $0.25 per diluted
 share.
     Mike DuBose, Chairman, President and CEO said, "We are pleased to report
 better than expected financial results for the first quarter on strong sales.
 The progress on our internal initiatives combined with overall strong market
 demand for our products and services reinforce our 2001 outlook of $1.30 per
 share, representing another positive year for ATC."
     ATC is headquartered in Westmont, Illinois.  The Company's continuing
 operations include drivetrain remanufacturing, third party logistics and
 material recovery services.  ATC also remanufactures electronic control
 modules, instrument and display clusters and radios.
 
     The preceding paragraphs contain statements that are not related to
 historical results and are "forward-looking" statements within the meaning of
 the Private Securities Litigation Reform Act of 1995.  Forward-looking
 statements include those that are predictive or express expectations, that
 depend upon or refer to future events or conditions, or that concern future
 financial performance (including future revenues, earnings or growth rates),
 ongoing business strategies or prospects, or possible future Company actions.
 Forward-looking statements involve risks and uncertainties because such
 statements are based on current expectations, projections and assumptions
 regarding future events that may not prove to be accurate.  Actual results may
 differ materially from those projected or implied in the forward-looking
 statements.  The factors that could cause actual results to differ are
 discussed in the Company's Annual Report on Form 10-K for the year ended
 December 31, 2000 and other filings made by the Company with the Securities
 and Exchange Commission.
 
 
                          AFTERMARKET TECHNOLOGY CORP.
                       CONSOLIDATED STATEMENTS OF INCOME
                     (In thousands, except per share data)
 
                                                       For the three months
                                                          ended March 31,
                                                      2001              2000
                                                           (Unaudited)
 
     Net sales                                      $92,421           $86,502
     Cost of sales                                   61,468            55,128
     Gross profit                                    30,953            31,374
 
     Selling, general and
      administrative expense                         14,481            11,661
     Amortization of intangible assets                1,256             1,257
 
     Income from operations                          15,216            18,456
 
     Interest income                                    356                 -
     Other income, net                                    6                52
     Interest expense                                 5,790             5,836
 
     Income from continuing operations,
      before income taxes                             9,788            12,672
 
     Income tax expense                               3,768             4,841
 
     Income from continuing operations                6,020             7,831
 
     Loss from discontinued operations, net
      of income taxes                                     -            (2,494)
 
     Net income                                      $6,020            $5,337
 
     Per common share - basic:
       Income from continuing operations              $0.29             $0.38
       Loss from discontinued operations                  -             (0.12)
 
       Net income                                     $0.29             $0.26
 
     Weighted average number of common shares
      outstanding                                    20,578            20,539
 
     Per common share - diluted:
       Income from continuing operations              $0.29             $0.37
       Loss from discontinued operations                  -             (0.12)
 
       Net income                                     $0.29             $0.25
 
     Weighted average number of common and
      common equivalent shares outstanding           20,763            21,387
 
 
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 SOURCE  Aftermarket Technology Corp.