EBITDA for the first quarter of 2002 decreased by $3.0 million, or 46.2%, to $3.5 million from $6.5 million for the first quarter of 2001. Diamond Triumph Auto Glass, Inc. ($ in Millions) Three Months Ended March 31, 2002 2001 (unaudited) Net Sales $48.2 $50.0 Cost of Sales 13.7 14.3 Gross Profit 34.5 35.7 Operating Expenses 31.7 29.8 Income (Loss) From Operations $2.8 $5.9 Net Income $0.2 $2.0 EBITDA (A) $3.5 $6.5 Cash Interest $2.3 $2.3 Total Long-Term Debt $100.0 $100.0 (A) EBITDA represents income before taxes, interest expense, depreciation and amortization expense.
Norm Harris, Diamond Triumph's Chief Executive Officer, had the following comments regarding the Company. "The Company's operating results have been affected by the weaker industry demand experienced during the first quarter of 2002. Industry wide demand has been adversely impacted by the historically mild winter weather conditions experienced throughout a large portion of the United States and the recessionary economic climate experienced in the aftermath of September 11th. It is important to note that the Company continued its expansion plans in the first quarter with the opening of six new service centers. In calendar year 2002, we plan to continue our expansion as well as our investment in our service offering to customers, MIS infrastructure and sales and marketing resources to enhance our growth potential."
Michael Sumsky, Diamond Triumph's President and Chief Financial Officer added, "Our advantageous capital structure and lower cost environment has benefited us during this period of weaker demand. The Company continued to build additional cash reserves during the quarter and we anticipate that we will continue to generate positive cash flow to fund our operations and increase our cash reserves. As of March 31, 2002, the Company had no outstanding bank borrowings and had $21.5 million of available and unused borrowing capacity under our credit facility. We do not forecast utilization of our credit facility over the short term."
Diamond Triumph Auto Glass, Inc. headquartered in Kingston, PA, is a leading provider of automotive glass replacement and repair services. Diamond operates 262 company owned automotive glass service centers, over 1,150 mobile installation vehicles and six distribution centers in 45 states.