Net income for 2003 increased by $0.9 million, or 947.19%, to $0.8 million from ($0.1) million loss in 2002. EBITDA for 2003 remained at $12.0 million, which was flat compared to 2002.
Norm Harris, Diamond Triumph's Chief Executive Officer, had the following comments regarding the Company. "We are pleased that we were able to drive more units through our service center network during 2003, which allowed us to achieve a record high annual sales volume despite weak industry pricing. Overall pricing continues to be a very difficult issue for our industry. Our challenge as a company will be to sustain our unit growth as we continue to explore opportunities to broaden our revenue base and leverage costs throughout the organization."
Michael Sumsky, Diamond Triumph's President and Chief Financial Officer, added, "Our 2003 performance combined with our capital structure and reduced interest expense allowed us to generate additional cash reserves despite the industry's pricing environment. Our cash position allowed us to repurchase an additional $13.2(m) in aggregate principal amount of senior notes during 2003 at a financial gain of approximately $1.1 (m). Since December 2002, we have repurchased approximately $20.2(m) in aggregate principal amount of senior notes. We are satisfied with this reduction in ongoing interest expense, and we will continue to explore opportunities to de-lever the Company."
Diamond Triumph Auto Glass, Inc., headquartered in Kingston, PA, is a leading provider of automotive glass replacement and repair services. Diamond Triumph currently operates 277 company owned automotive glass service centers, approximately 1,100 mobile installation vehicles and six distribution centers in 46 states. For more information about Diamond Triumph, visit the website at www.diamondtriumph.com.
Diamond Triumph Auto Glass, Inc.'s Senior Management has scheduled a conference call to discuss fiscal year 2003 financial results on Thursday, April 1, 2004, at 12:00 EST. To participate in this conference call please contact our Investor Relations Department at 800-999-2688, extension 3182.
(1) EBITDA represents net income before interest, taxes, depreciation and amortization. Diamond Triumph presents EBITDA because it considers it an important supplemental measure of its performance and believes it is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in its industry, many of which present EBITDA when reporting their results.
Diamond Triumph believes issuers of "high yield" securities also present EBITDA because investors, analysts and rating agencies consider it useful in measuring the ability of those issuers to meet debt service obligations. Diamond Triumph believes EBITDA is an appropriate supplemental measure of debt service capacity, because cash expenditures on interest are, by definition, available to pay interest, and tax expense is inversely correlated to interest expense because tax expense goes down as deductible interest expense goes up; depreciation and amortization are non-cash charges.
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