Shiloh Industries, Inc. Amends Agreement with Bank Lenders to Provide Additional Financial Flexibility as It Resumes Producti...
June 15 2020 - 4:31PM
Business Wire
Board of Directors Names Anna Phillips to the
Board
Shiloh Industries, Inc. (NASDAQ: SHLO) (the “Company”) an
environmentally focused global supplier of lightweighting, noise
and vibration solutions, announced today that the Company and
certain of its subsidiaries have reached an agreement with their
bank lenders on certain amendments to the Company’s credit
agreement. Among other things, the amendments provide certain
covenant relief as the Company continues to resume production
across its global operations.
The entire automotive sector has been impacted by OEM production
shutdowns in recent months. Shiloh and its management team have
taken proactive steps expected to protect the Company’s liquidity
and enable it to successfully navigate the current environment.
Recent actions include realigning capital expenditure plans for the
changing business environment, significantly reducing discretionary
spending across the entire Company, and temporarily reducing
salaries and benefits during the lowest period of customer demand.
Shiloh now has safely restarted nearly all of its global production
facilities as the Company ramps up production to continue to serve
customers. As Shiloh’s North American and European employees
increasingly return to work, the Company has established new safety
protocols, including acquiring and distributing PPE for returning
employees, completing preventive maintenance to ensure optimal
performance at start-up, reviewing inventory to ensure sufficient
levels and prioritizing schedules based upon customers’ return to
production.
“We are pleased to reach this agreement with our lenders, which
ensures liquidity and additional financial flexibility as we
continue to navigate the current environment,” said Cloyd J.
Abruzzo, Interim Chief Executive Officer. “In recent months, we
have responded to the changing environment and the impact of
COVID-19 with decisive action to pull back production and preserve
liquidity across our global organization. As we now take steps to
safely resume production to support our customers, we are also
continuing discussions with our lenders seeking an appropriate
capital structure to support the Company’s operations over the long
term.”
The Company also announced today that Anna Phillips has been
elected as a new independent director on the Company’s Board of
Directors. Ms. Philips will join the Audit Committee and a newly
formed Special Committee that is assisting in the refinancing
efforts.
“Anna Phillips is a welcome addition to Shiloh’s Board of
Directors,” said Curtis E. Moll, Chairman of the Board. “She brings
significant financial expertise and experience advising companies
on strengthening their balance sheets, and I am confident she will
be a valuable contributor to the Board as the Company continues to
takes steps to weather the current environment.”
Further details of the amended credit agreement have been
disclosed in Current Report on Form 8-K filed today with the U.S.
Securities and Exchange Commission.
About Anna Phillips
Ms. Phillips, 55, has worked in corporate finance in the Far
East, London and North America for over 30 years. She currently
serves as an independent non-executive director at several private
companies. Before transitioning full time to her board roles, she
was employed as a Senior Managing Director at FTI Consulting, Inc
from 2009 to 2013. Prior to that she was a Senior Managing Director
at Macquarie Group and predecessor organizations including Ernst
& Young Corporate Finance. Ms. Phillips has a Bachelor of
Commerce from the University of Tasmania in Australia and was
previously a member of the Australian Institute of Chartered
Accountants.
Investor Contact:
For inquiries, please contact our Investor Relations department
at 1-646-378-2986 or at investors@shiloh.com.
Media Contact:
For inquiries, please contact Hilary Brazin at 1-734-738-1362 or
at hilary.brazin@shiloh.com.
About Shiloh Industries, Inc.
Shiloh Industries, Inc. (NASDAQ: SHLO) is a global innovative
solutions provider focusing on lightweighting technologies that
provide environmental and safety benefits to the mobility market.
Shiloh designs and manufactures products within body structure,
chassis and propulsion systems. Shiloh’s multicomponent,
multi-material solutions are comprised of a variety of alloys in
aluminum, magnesium and steel grades, along with its proprietary
line of noise and vibration reducing ShilohCore® acoustic laminate
products. The strategic BlankLight®, CastLight® and StampLight®
brands combine to maximize lightweighting solutions without
compromising safety or performance. Shiloh has approximately 3,600
dedicated employees with operations, sales and technical centers
throughout Asia, Europe and North America.
Forward-Looking Statements
Certain statements made by Shiloh in this press release
regarding our operating performance, events or developments that we
believe or expect to occur in the future, including those that
discuss strategies, goals, outlook or other non-historical matters,
or which relate to future expectations, growth or general belief in
our expectations of future operating results are “forward-looking”
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. The forward-looking statements are made on the
basis of management’s assumptions and expectations. As a result,
there can be no guarantee or assurance that these assumptions and
expectations will in fact occur. The forward-looking statements are
subject to risks and uncertainties that may cause actual results to
materially differ from those contained in the statements due to a
variety of factors, including (1) the duration and severity of the
COVID-19 pandemic, any preventive or protective actions taken by
governmental authorities, the effectiveness of actions taken
globally to contain or mitigate its effects, and any unfavorable
effects of the COVID-19 pandemic on either our manufacturing
operations, or those of our customer’s or suppliers; (2) reduction
in demand for our solutions, including any reduction in demand as a
result of a COVID-19 triggered economic recession, including any
determination that the value of our assets is impaired or that we
do not have the ability to continue as a going concern; (3) our
ability to accomplish our strategic objectives; (4) our ability to
obtain future sales; (5) changes in worldwide economic and
political conditions, including adverse effects from terrorism or
related hostilities; (6) costs related to legal and administrative
matters; (7) our ability to realize cost savings expected to offset
price concessions; (8) our ability to successfully integrate
acquired businesses, including businesses located outside of the
United States; (9) risks associated with doing business
internationally, including economic, political and social
instability, foreign currency exposure and the lack of acceptance
of our products; (10) inefficiencies related to production and
product launches that are greater than anticipated; (11) changes in
technology and technological risks; (12) work stoppages and strikes
at our facilities and that of our customers or suppliers; (13) our
dependence on the automotive and heavy truck industries, which are
highly cyclical; (14) the dependence of the automotive industry on
consumer spending, which is subject to the impact of domestic and
international economic conditions affecting car and light truck
production; (15) regulations and policies regarding international
trade; (16) financial and business downturns of our customers or
vendors, including any production cutbacks or bankruptcies; (17)
increases in the price of, or limitations on the availability of
aluminum, magnesium or steel, our primary raw materials, or
decreases in the price of scrap steel; (18) the successful launch
and consumer acceptance of new vehicles for which we supply parts;
(19) the impact on financial statements of any known or unknown
accounting errors or irregularities; and the magnitude of any
adjustments in restated financial statements of our operating
results; (20) the occurrence of any event or condition that may be
deemed a material adverse effect under agreements related to our
outstanding indebtedness or a decrease in customer demand which
could cause a covenant default under agreements related to our
outstanding indebtedness; (21) increases in pension plan funding
requirements; (22) our ability to derive a substantial portion of
our sales from large customers; (23) a successful transition of the
CEO position and our ability to successfully identify a qualified
and effective full-time CEO; and (24) other factors besides those
listed here could also materially affect our business. See “Part I,
Item 1A. Risk Factors” in our Annual Report on Form 10-K for the
fiscal year ended October 31, 2019, as updated by our Current
Report on Form 8-K filed with the SEC on June 8, 2020, for a more
complete discussion of these risks and uncertainties. Any or all of
these risks and uncertainties could cause actual results to differ
materially from those reflected in the forward-looking statements.
These forward-looking statements reflect management’s analysis only
as of the date of this Press Release. We undertake no obligation to
publicly revise these forward-looking statements to reflect events
or circumstances that arise after the date of filing this Press
Release. In addition to the disclosures contained herein, readers
should carefully review risks and uncertainties contained in other
documents we file from time to time with the SEC.
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version on businesswire.com: https://www.businesswire.com/news/home/20200615005769/en/
Investor Contact: Investor Relations department
1-646-378-2986 investors@shiloh.com
Media Contact: Hilary Brazin 1-734-738-1362
hilary.brazin@shiloh.com.
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