EX-99.01 2 acw13-99d1.htm EX-99.1 acw13-99d1.htm
 
 
Investor Relations: Chad Monroe
Media Relations: Timothy G. Weir, APR
Email: cmonroe@accuridecorp.com
Email: tweir@accuridecorp.com
Phone: (812) 962-5041
Phone: (812) 962-5128

FOR IMMEDIATE RELEASE

Accuride Reports Second Quarter 2013 Results
·  
Second-quarter 2013 results included:
o  
Net Sales of $211.3 million, compared to $268.8 million in Q2 2012, and $192.5 million in the prior quarter
o  
Operating income of $5.7 million, compared to $9.6 million in Q2 2012, and an operating loss of $6.0 million in the prior quarter
o  
Net loss of $5.4 million, or $0.11 per share, compared to a net loss of $0.8 million in Q2 2012, and a net loss of $15.9 million in the prior quarter
o  
Adjusted EBITDA of $17.9 million, compared to $25.3 million in Q2 2012, and $7.4 million in the prior quarter
·  
New $100 million ABL Credit Facility enhances liquidity, extends maturity to April 2018
·  
Class 8 vehicle orders and production beginning to grow

EVANSVILLE, Ind. – August 1, 2013 – Accuride Corporation (NYSE: ACW) – a leading supplier of components to the North American commercial vehicle industry – today reported financial results for the second quarter ended June 30, 2013.  These results demonstrate the beneficial impact of recent operational improvements, capital investments, trade working capital management and improved liquidity.

Accuride second quarter 2013 net sales from continuing operations were $211.3 million, compared with $268.8 million in the same period in 2012, a decline of 21.4 percent, reflecting the impact of macro-economic and industry conditions on its businesses.  Second quarter net sales from continuing operations increased $18.8 million, or 9.8 percent, over Q1 2013.  The Company achieved operating income of $5.7 million for the second quarter, as compared to $9.6 million of operating income in the second quarter of 2012.  The Company reported a net loss of $5.4 million, or $0.11 per share during the quarter, as compared to a net loss of $0.8 million, or $0.02 per share in the prior-year quarter.  Second quarter Adjusted EBITDA declined 29.4 percent year-over-year to $17.9 million, resulting in an Adjusted EBITDA margin of 8.5 percent, compared to 9.4 percent in the same quarter of 2012.  This compares to an Adjusted EBITDA of $7.4 million and an Adjusted EBITDA margin of 3.8 percent in Q1 2013.  As of June 30, 2013, Accuride had $32.9 million of cash plus $41.2 million in availability under its ABL Credit Facility, for total liquidity of $74.1 million.

Commenting on Accuride’s second-quarter results, President and Chief Executive Officer Rick Dauch said, “Second quarter revenues were stronger, as the North American commercial vehicle industry began to return to healthier volumes.  Results in our core businesses reflected higher OEM production and a strong spring selling season in the aftermarket.  The streamlining of our manufacturing footprint and investments to restore Accuride’s position as a dependable supplier to customers are substantially complete and aiding the performance of each business unit.  Our performance during the quarter also benefitted from targeted actions to reduce our cost structure in line with current conditions and more effectively manage our trade working capital, which now represents 8.2 percent of annualized sales.  In addition, we will enter the second half with a healthier balance sheet and improved liquidity due to the securing of our new $100 million ABL Credit Facility in July.  This, together with our reduced cost structure and stronger operational metrics, positions us to profitably convert on our share of volume during the expected second-half upturn in the North American commercial vehicle industry.”





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Industry Conditions
North American commercial vehicle production increased during the second quarter by 12.9 percent compared to the first quarter.  The Class 8 and Trailer segments remained lower on a year-over-year basis due to the slow pace of economic growth, while medium-duty builds were slightly higher.  Class 8 and Trailer segments declined by 13.8 percent and 2.2 percent, respectively, while Class 5-7 grew by 7.4 percent compared to the second quarter of 2012.  The North American commercial vehicle industry is expected to improve in the second half of 2013 compared to both the first half of 2013 and the second half of 2012.  Freight tonnage is projected to steadily increase over the next several years, fueling growth in demand for trucks and trailers. 
 
Second Quarter Business Segment Results

Accuride Wheels
Accuride Wheels segment net sales were $99.5 million, down $13.4 million, or 11.9 percent, from the same period in 2012, as improved aftermarket sales helped to temper some of the softness in the OEM market segment.  Wheels’ Adjusted EBITDA was $20.7 million, a decrease of $5.1 million, or 19.8 percent from the second quarter of 2012.  With our aluminum capacity expansion complete, we are shifting our investment focus to coating technologies.  We have begun installation of a new $5.8 million, state-of-the-art coating line at our Henderson, Ky. plant that will launch in       Q1 2014.

Gunite
Gunite segment net sales were $51.2 million, down $16.1 million, or 23.9 percent, from the second quarter of 2012.  Although low-cost offshore competition continued to impact sales, revenues expanded in the quarter, compared to the first quarter, due to strong seasonal demand.  Gunite’s Adjusted EBITDA was $4.6 million, compared to $1.1 million in the second quarter of 2012, and negative $0.6 million in Q1 2013.  Accuride’s recent $35 million capital investments in Gunite are beginning to bear fruit.  The business achieved four straight months of operating income improvement spanning the first and second quarters.  This resulted from consistent performance from its new drum and hub machining and slack adjuster assembly equipment and the actions Gunite has taken to consolidate and reduce its cost structure.  Although Gunite’s second quarter benefited from a strong spring selling season in the aftermarket, ongoing actions to lower material, logistics and distribution costs will aid future profitability.

Brillion Iron Works
Brillion Iron Works’ second quarter net sales were $29.3 million, down $20.0 million, or 40.6 percent, from the second quarter of 2012, while Adjusted EBITDA was $3.3 million, a drop of $5.5 million, or 62.5 percent, from the second quarter of 2012.  Brillion’s core construction and mining equipment markets remain weakened by global economic forces and are not expected to begin to recover until the fourth quarter of 2014.  To mitigate the impact of these negative industry conditions, Brillion took further steps to lower its breakeven level and realign its fixed cost structure during the quarter.

Imperial
Imperial segment’s second quarter net sales were $31.4 million, a decline of $7.9 million, or 20.1 percent, from the same period in 2012 due to continued low customer production volumes.  Imperial’s Adjusted EBITDA slightly improved to $0.1 million in the second quarter of 2012 from break-even performance in last year’s second quarter.  Imperial results were aided by improving OEM and bus volumes, but reflected the above-normal operating costs associated with major press repairs and consolidation of its Tennessee operations that were successfully completed during the quarter.

Liquidity and Debt
As of June 30, 2013, total debt was $349.7 million, consisting of $304.7 million of our outstanding 9.5% senior secured notes, net of discount, and a $45.0 million draw on our ABL Credit Facility. As of June 30, 2013, the Company had $32.9 million of cash plus $41.2 million in availability under its ABL Credit Facility for total liquidity of $74.1 million.   On July 11, 2013, Accuride closed on a new $100 million ABL Credit Facility that replaced its previous $100 million Senior Secured Credit Facility. Greg Risch, Accuride’s Vice President and Chief Financial Officer, commented, “Securing our new ABL gives Accuride greater financial flexibility to operate our business through the current North American commercial vehicle industry cycle.  In addition to increasing liquidity, as compared to our previous credit facility, the new ABL secures lower interest rates for revolving debt.”
 
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2
 
Outlook and Summary – Poised for Profitable Growth
“For the past two years, Accuride has focused the majority of our investments and operational restructuring efforts on the ‘Fix’ portion of our ‘Fix & Grow’ strategy,” said Rick Dauch.  “The resulting improvements in our operating performance are restoring Accuride’s reputation as a dependable supplier to our OEM and aftermarket customers.  Quality, delivery and lead-time performance as measured by our customers are fast approaching world-class levels – particularly on higher-volume parts – thanks to our investments in new equipment and implementation of LEAN systems across our manufacturing, distribution and supply chain.  With our actions to ’Fix’ Accuride’s operational performance substantially complete, we are well-positioned to achieve profitable growth and continue to improve our performance as the industry recovers.  We have begun focusing on ways to ‘Grow’ our core business in order to capitalize on the expected growth of the global commercial vehicle industry.”

2013 Financial Guidance
Based on the Company’s first-half results and the lower end of industry estimates for the projected North American commercial vehicle market recovery in the second half of the year, Accuride management expects the Company’s 2013 net sales to be in the range of $775 to $800 million, and Adjusted EBITDA ranging from $60 to $65 million for the year.  This guidance also reflects continued weakness in Brillion’s core construction and mining equipment markets.

Earnings Conference Call Information
Accuride will hold a conference call to discuss its Second Quarter 2013 financial and operational results on Thursday, August 1, 2013, beginning at 1:00 p.m. Central Time.  Analysts and investors may participate on the live conference call by dialing (866) 638-3013 in the United States, or (630) 691-2761 internationally, using participant code 35338923.  A live webcast of the conference call can be accessed via the Investors section of the Company’s website at Accuridecorp.com/investors.  A replay of the call will be available from August 1, 2013, at 3:30 p.m. Central Time until August 7, 2013, at 11:59 p.m. Central Time by calling (888) 843-7419 in the United States, or (630) 652-3042 internationally, using access code 35338923.

About Accuride Corporation
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, truck body and chassis parts, and other commercial vehicle components. The company’s products are marketed under its brand names, which include Accuride®, Accuride Wheel End SolutionsTM, Gunite®, ImperialTM and BrillionTM. 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 http://www.accuridecorp.com.

Forward-Looking Statements
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, 2012. 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.








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3
 
Three Months Operating Results
(UNAUDITED)

   
Quarter Ended
     
(Dollars in thousands)
  
June 30,
2013
  
March 31,
2013
  
June 30,
2012
                             
Net sales:
                            
Wheels
  
$
99,468
  
47.1
%
  
$
93,162
  
48.4
%
  
$
112,881
  
42.0
%
Gunite
    
51,207
  
24.2
%
    
39,396
  
20.5
%
    
67,280
  
25.0
%
Brillion Iron Works
    
29,266
  
13.9
%
    
30,429
  
15.8
%
    
49,326
  
18.4
%
Imperial Group
    
31,377
  
14.8
%
    
29,473
  
15.3
%
    
39,296
  
14.6
%
Total net sales
  
$
211,318
  
100
%
  
$
192,460
  
100
%
  
$
268,783
  
100
%
                                     
Gross Profit
  
$
18,447
  
8.7
%
  
$
5,086
  
2.6
%
  
$
24,825
  
9.2
%
                                     
Income (loss) from Operations:
                                    
Wheels
  
$
11,751
  
11.8
%
  
$
5,743
  
6.2
%
  
$
16,106
  
14.3
%
Gunite
    
3,323
  
6.5
%
    
(1,777
)
(4.5
)%
    
(1,875
)
(2.8
)%
Brillion Iron Works
    
1,855
  
6.3
%
    
575
  
1.9
%
    
7,598
  
15.4
%
Imperial Group
    
(284
)
(0.9
)%
    
(1,217
)
(4.1
)%
    
(302
)
(0.8
)%
Corporate / Other
    
(10,945
)
—
      
(9,313
)
—
      
(11,935
)
—
  
Consolidated Total
  
$
5,700
  
2.7
%
  
$
(5,989
)
(3.1
)%
  
$
9,592
  
3.6
%
                                     
Net (loss)
  
$
(5,362
)
(2.5
)%
  
$
(15,947
 )
8.3
%
  
$
(841
)
(0.3
)%
                                     
Adjusted EBITDA
                                    
Wheels
  
$
20,686
  
20.8
%
  
$
16,040
  
17.2
%
  
$
25,796
  
22.9
%
Gunite
    
4,588
  
9.0
%
    
(564
)
(1.4
)%
    
1,058
  
1.6
%
Brillion Iron Works
    
3,289
  
11.2
%
    
1,720
  
5.7
%
    
8,802
  
17.8
%
Imperial Group
    
117
  
0.4
%
    
(821
)
(2.8
)%
    
(44
)
(0.1
)%
Corporate / Other
    
(10,778
)
—
      
(8,969
)
—
      
(10,304
)
—
  
Consolidated Total
  
$
17,902
  
8.5
%
  
$
7,406
  
3.8
%
  
$
25,308
  
9.4
%



















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4
 
Six Months Operating Results
(UNAUDITED)

     
   
Six Months Ended June 30,
(Dollars in thousands)
  
2013
  
2012
                 
Net sales:
                  
Wheels
  
$
192,630
  
47.7
%
  
$
229,825
  
42.7
%
Gunite
    
90,603
  
22.4
%
    
135,843
  
25.2
%
Brillion Iron Works
    
59,695
  
14.8
%
    
93,136
  
17.3
%
Imperial Group
    
60,850
  
15.1
%
    
79,497
  
14.8
%
Total net sales
  
$
403,778
  
100
%
  
$
538,301
  
100
%
                         
Gross Profit
  
$
23,533
  
5.8
%
  
$
46,925
  
8.7
%
                         
Income (loss) from Operations:
                        
Wheels
  
$
17,494
  
9.1
%
  
$
34,548
  
15.0
%
Gunite
    
1,546
  
1.7
%
    
(4,043
)
(3.0
)%
Brillion Iron Works
    
2,430
  
4.1
%
    
10,771
  
11.6
%
Imperial Group
    
(1,501
)
(2.5
)%
    
(821
)
(1.0
)%
Corporate / Other
    
(20,258
 )
—
      
(23,627
)
—
  
Consolidated Total
  
$
(289
)
(0.1
)%
  
$
16,828
  
3.1
%
                         
Net loss
  
$
(21,309
)
(5.3
)%
  
$
(3,790
)
(0.7
)%
                         
Adjusted EBITDA
                        
Wheels
  
$
36,726
  
19.1
%
  
$
54,136
  
23.6
%
Gunite
    
4,024
  
4.4
%
    
1,574
  
1.2
%
Brillion Iron Works
    
5,009
  
8.4
%
    
13,242
  
14.2
%
Imperial Group
    
(704
)
(1.2
)%
    
(311
)
(0.4
)%
Corporate / Other
    
(19,747
)
—
      
(21,690
)
—
  
Consolidated Total
  
$
25,308
  
6.3
%
  
$
46,951
  
8.7
%




















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5
 
ACCURIDE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME (LOSS)
(UNAUDITED)

   
Quarter Ended
 
  
(In thousands except per share data)
  
June 30,
2013
  
March 31,
2013
  
June 30,
2012
  
               
NET SALES
  
$
211,318
  
$
192,460
  
$
268,783
  
COST OF GOODS SOLD
  
192,871
  
187,374
  
243,958
  
GROSS PROFIT
  
18,447
  
5,086
  
24,825
  
OPERATING EXPENSES:
              
Selling, general and administrative
  
12,747
  
11,075
  
15,233
  
INCOME (LOSS) FROM OPERATIONS
  
5,700
  
(5,989
)
9,592
  
OTHER INCOME (EXPENSE):
              
Interest expense, net
  
(9,157
)
(8,694
)
(8,658
)
Other income (loss), net
  
(441
)
145
  
(436
)
INCOME (LOSS) BEFORE INCOME TAXES
  
(3,898
)
(14,538
)
498
  
INCOME TAX PROVISION
  
1,464
  
1,409
  
1,339
  
NET LOSS
  
$
(5,362
)
$
(15,947
)
$
(841
)
Weighted average common shares outstanding—  basic
  
47,563
  
47,453
  
47,376
  
Basic income (loss) per share
  
$
(0.11
)
$
(0.34
)
$
(0. 02
)
Weighted average common shares outstanding—diluted
  
47,563
  
47,453
  
47,376
  
Diluted income (loss) per share
  
$
(0.11
)
$
(0.34
)
$
(0.02
)
OTHER COMPREHENSIVE INCOME (LOSS),  NET OF TAX:
              
Defined benefit plans
  
417
  
331
  
179
  
COMPREHENSIVE LOSS
  
$
(4,945
)
$
(15,616
)
$
(662
)




















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6
 
ACCURIDE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME (LOSS)
(UNAUDITED)

   
Six Months Ended
June 30,
 
  
(In thousands except per share data)
  
2013
  
2012
  
           
NET SALES
  
$
403,778
  
$
538,301
  
COST OF GOODS SOLD
  
380,245
  
491,376
  
GROSS PROFIT
  
23,533
  
46,925
  
OPERATING EXPENSES:
          
Selling, general and administrative
  
23,822
  
30,097
  
INCOME (LOSS) FROM OPERATIONS
  
(289
)
16,828
  
OTHER INCOME (EXPENSE):
          
Interest expense, net
  
(17,851
)
(17,403
)
Other income (loss), net
  
(296
)
(279
)
INCOME (LOSS) BEFORE INCOME TAXES
  
(18,436
)
(854
)
INCOME TAX PROVISION
  
2,873
  
2,936
  
NET LOSS
  
$
(21,309
)
$
(3,790
)
Weighted average common shares outstanding—  basic
  
47,508
  
47,347
  
Basic income (loss) per share
  
$
(0.45
)
$
(0.08
)
Weighted average common shares outstanding—diluted
  
47,508
  
47,347
  
Diluted income (loss) per share
  
$
(0.45
)
$
(0.08
)
OTHER COMPREHENSIVE INCOME (LOSS),  NET OF TAX:
          
Defined benefit plans
  
748
  
(39
)
COMPREHENSIVE LOSS
  
$
(20,561
)
$
(3,829
)


















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7
 
ACCURIDE CORPORATION
CONSOLIDATED ADJUSTED EBITDA
(UNAUDITED)

   
Quarter Ended
  
(In thousands)
  
June 30,
2013
  
March 31, 2013
  
June 30, 2012
  
               
Net loss
  
$
(5,362
)
$
(15,947
)
$
(841
)
Income tax expense
  
1,464
  
1,409
  
1,339
  
Interest expense, net
  
9,157
  
8,694
  
8,658
  
Depreciation and amortization
  
10,952
  
11,431
  
12,782
  
Restructuring, severance and other charges1 
  
591
  
411
  
1,967
  
Other items related to our credit agreement2 
  
1,100
  
1,408
  
1,403
  
Adjusted EBITDA
  
$
17,902
  
$
7,406
  
$
25,308
  

Note:
1)  
For the three months ended June 30, 2013, Adjusted EBITDA represents net income before net interest expense, income tax expense, depreciation and amortization, plus $0.6 million in costs associated with restructuring items. For the three months ended March 31, 2013, Adjusted EBITDA represents net income before net interest expense, income tax expense, depreciation and amortization, plus $0.4 million in costs associated with restructuring items. For the three months ended June 30, 2012, Adjusted EBITDA represents net income before net interest expense, income tax benefit, depreciation and amortization, plus $2.0 million in costs associated with restructuring items.
2)  
Items related to our credit agreement refer to amounts utilized in the calculation of financial covenants in Accuride’s senior credit facility.  For the three months ended June 30, 2013, items related to our credit agreement consisted of foreign currency losses and other income or expenses of $1.1 million.  For the three months ended March 31, 2013, items related to our credit agreement consisted of foreign currency income and other income or expenses of $1.4 million. For the three months ended June 30, 2012, items related to our credit agreement consisted of foreign currency income and other income or expenses of $1.4 million.



   
Six Months Ended June 30,
  
(In thousands)
  
2013
  
2012
  
           
Net loss
  
$
(21,309
)
$
(3,790
)
Income tax expense
  
2,873
  
2,936
  
Interest expense, net
  
17,851
  
17,403
  
Depreciation and amortization
  
22,383
  
25,312
  
Restructuring, severance and other charges1 
  
1,002
  
3,096
  
Other items related to our credit agreement2 
  
2,508
  
1,994
  
Adjusted EBITDA
  
$
25,308
  
$
46,951
  

Note:
1)  
For the six months ended June 30, 2013, Adjusted EBITDA represents net income before net interest expense, income tax expense, depreciation and amortization, plus $1.0 million in costs associated with restructuring items.  For the six months ended June 30, 2012, Adjusted EBITDA represents net income before net interest expense, income tax expense, depreciation and amortization, plus $3.1 million in costs associated with restructuring items.
2)  
Items related to our credit agreement refer to amounts utilized in the calculation of financial covenants in Accuride’s senior credit facility.  For the six months ended June 30, 2013, items related to our credit agreement consisted of foreign currency income and other income or expenses of $2.5 million.  For the six months ended June 30, 2012, items related to our credit agreement consisted of foreign currency income and other income or expenses of $2.0 million.





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8
 
ACCURIDE CORPORATION
SEGMENT ADJUSTED EBITDA RECONCILIATION
(UNAUDITED)



   
Three Months Ended June 30, 2013
  
(In thousands)
  
Income (loss) from Operations
  
Depreciation and Amortization
  
Other
  
Adjusted EBITDA
  
Wheels
  
$
11,751
  
$
7,735
  
$
1,200
  
$
20,686
  
Gunite
    
3,323
    
1,015
    
250
    
4,588
  
Brillion Iron Works
    
1,855
    
1,068
    
366
    
3,289
  
Imperial Group
    
(284
)
  
376
    
25
    
117
  
Corporate / Other
    
(10,945
)
  
758
    
(591
)
  
(10,778
)
Consolidated Total
  
$
5,700
  
$
10,952
  
$
1,250
  
$
17,902
  



   
Three Months Ended March 31, 2013
  
(In thousands)
  
Income (loss) from Operations
  
Depreciation and Amortization
  
Other
  
Adjusted EBITDA
  
Wheels
  
$
5,743
  
$
8,238
  
$
2,059
  
$
16,040
  
Gunite
    
(1,777
)
  
963
    
250
    
(564
)
Brillion Iron Works
    
575
    
1,115
    
30
    
1,720
  
Imperial Group
    
(1,217
)
  
371
    
25
    
(821
)
Corporate / Other
    
(9,313
)
  
744
    
(400
)
  
(8,969
)
Consolidated Total
  
$
(5,989
)
$
11,431
  
$
1,964
  
$
7,406
  



   
Three Months Ended June 30, 2012
  
(In thousands)
  
Income (loss) from Operations
  
Depreciation and Amortization
  
Other
  
Adjusted EBITDA
  
Wheels
  
$
16,106
  
$
8,090
  
$
1,600
  
$
25,796
  
Gunite
    
(1,875
)
  
2,683
    
250
    
1,058
  
Brillion Iron Works
    
7,598
    
1,174
    
30
    
8,802
  
Imperial Group
    
(302
)
  
233
    
25
    
(44
)
Corporate / Other
    
(11,935
)
  
602
    
1,029
    
(10,304
)
Consolidated Total
  
$
9,592
  
$
12,782
  
$
2,934
  
$
25,308
  











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9
 

   
Six Months Ended June 30, 2013
  
(In thousands)
  
Income (loss) from Operations
  
Depreciation and Amortization
  
Other
  
Adjusted EBITDA
  
Wheels
  
$
17,494
  
$
15,973
  
$
3,259
  
$
36,726
  
Gunite
    
1,546
    
1,978
    
500
    
4,024
  
Brillion Iron Works
    
2,430
    
2,183
    
396
    
5,009
  
Imperial Group
    
(1,501
)
  
747
    
50
    
(704
)
Corporate / Other
    
(20,258
)
  
1,502
    
(991
)
  
(19,747
)
Consolidated Total
  
$
(289
)
$
22,383
  
$
3,214
  
$
25,308
  



   
Six Months Ended June 30, 2012
  
(In thousands)
  
Income (loss) from Operations
  
Depreciation and Amortization
  
Other
  
Adjusted EBITDA
  
Wheels
  
$
34,548
  
$
16,110
  
$
3,478
  
$
54,136
  
Gunite
    
(4,043
)
  
5,117
    
500
    
1,574
  
Brillion Iron Works
    
10,771
    
2,411
    
60
    
13,242
  
Imperial Group
    
(821
)
  
460
    
50
    
(311
)
Corporate / Other
    
(23,627
)
  
1,214
    
723
    
(21,690
)
Consolidated Total
  
$
16,828
  
$
25,312
  
$
4,811
  
$
46,951
  


We define Adjusted EBITDA as our net income or loss before income tax expense or benefit, interest expense, net, depreciation and amortization, restructuring, severance, and other charges, impairment, and currency losses, net. Adjusted EBITDA has been included because we believe that it is useful for us and our investors to measure our ability to provide cash flows to meet debt service.  Adjusted EBITDA should not be considered an alternative to net income (loss) or other traditional indicators of operating performance and cash flows determined in accordance with accounting principles generally accepted in the United States (“GAAP”).  We present the table of Adjusted EBITDA because covenants in the agreements governing our material indebtedness contain ratios based on this measure on a quarterly basis.  While Adjusted EBITDA is used as a measure of liquidity and the ability to meet debt service requirements, it is not necessarily comparable to other similarly titled captions of other companies due to differences in methods of calculations.



















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10
 
ACCURIDE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)


   
June 30,
  
December 31,
  
(In thousands)
  
2013
  
2012
  
           
ASSETS
          
CURRENT ASSETS:
          
Cash and cash equivalents
  
$
32,880
  
$
26,751
  
Customer and other receivables
  
91,984
  
64,596
  
Inventories
  
58,525
  
61,192
  
Other current assets
  
16,218
  
10,175
  
Total current assets
  
199,607
  
162,714
  
PROPERTY, PLANT AND EQUIPMENT, net
  
247,868
  
267,377
  
OTHER ASSETS:
          
Goodwill and other assets
  
242,369
  
247,725
  
TOTAL
  
$
689,844
  
$
677,816
  
LIABILITIES AND STOCKHOLDERS’ EQUITY
          
CURRENT LIABILITIES:
          
Accounts payable
  
$
72,174
  
$
59,181
  
Other current liabilities
  
44,454
  
47,580
  
Total current liabilities
  
116,628
  
106,761
  
LONG-TERM DEBT
  
349,658
  
324,133
  
OTHER LIABILITIES
  
178,102
  
182,049
  
STOCKHOLDERS’ EQUITY:
          
Total stockholders’ equity
  
45,456
  
64,873
  
TOTAL
  
$
689,844
  
$
677,816
  


###

 
11