ANDERSON, Ind., May 5 /PRNewswire/ -- Delco Remy International, Inc., a
leading worldwide manufacturer and remanufacturer of automotive electrical and
drivetrain/powertrain products, today announced record first quarter net sales
and strong Adjusted EBITDA performance. Net sales of $293.2 million in the
first quarter of 2004 increased $36.6 million, or 14.3%, and Adjusted EBITDA
of $31.1 million increased $6.4 million, or 25.8%, over the first quarter of
2003. Operating income of $24.0 million in the first quarter of 2004 compares
with an operating loss of $27.9 million in the first quarter of 2003.
Restructuring charges of $1.1 million and $45.1 million were recorded in the
first quarter of 2004 and 2003, respectively.
Year over year sales growth primarily reflected stronger customer demand
in the heavy-duty and industrial sectors, increased retail and GM SPO sales in
the Electrical Aftermarket and increased Automotive OEM volume from new
alternator business awards. Double digit sales growth compared to the first
quarter of 2003 was recorded in these product groups, as well as
remanufactured diesel engines and parts.
Significant gross margin and Adjusted EBITDA improvements reflected the
sales volume increases and benefits of the restructuring and other cost
reduction actions taken in 2003.
Commenting on these results, Thomas J. Snyder, President and CEO, stated,
"Delco Remy's strong first quarter performance is testimony to the successful
efforts of our team to restructure and improve our operations through
globalization and the implementation of lean manufacturing processes. Our
competitive cost structure and global footprint is enabling us to leverage
organic sales growth and new business wins."
Subsequent Events:
On April 23, 2004, Delco Remy issued $125.0 million of Second-Priority
Senior Secured Floating Rate Notes due 2009 and $150.0 million of 9 3/8%
Senior Subordinated Notes due 2012. The proceeds from these notes were used
to pay down existing indebtedness under the Company's senior credit facility,
including repayment of the $60.0 million term loan and relevant prepayment
premium, and to finance the redemption of the Company's 10 5/8% Senior
Subordinated Notes due 2006, including the call premium and accrued interest.
In connection with this offering, Delco Remy amended its senior credit
facility to reflect the extinguishment of the $60.0 million term loan, reduce
the amount of the asset based facility from $190.0 million to $160.0 million,
which provides borrowings of up to $120.0 million, and extend the maturity
date from March 31, 2006 to June 30, 2007.
Commenting on the transaction, Rajesh K. Shah, Executive Vice President
and Chief Financial Officer, said, "We are pleased with the completion of this
important milestone for the Company. The overall package substantially
increases liquidity, reduces our cost of capital, extends debt maturities and
provides resources and operational flexibility as we continue to grow the
business and improve operations."
Future Outlook:
Commenting on the remainder of 2004, Snyder said, "We expect solid full
year sales and Adjusted EBITDA performance driven by stronger sales and profit
improvements from prior facility rationalizations."
Reconciliation to GAAP:
For a reconciliation of the non-GAAP financial information appearing in
this release to GAAP financial information, please refer to the table
following the accompanying Condensed Consolidated Statements of Operations.
First Quarter Conference Call:
Delco Remy's executive management team will conduct a live conference call
on Wednesday May 5 at 11:30 a.m. Eastern Daylight Time (10:30 a.m. Eastern
Standard Time) to discuss additional details regarding the Company's
performance for the first quarter and the outlook for 2004. The call may be
accessed by dialing 888-423-3275 ten minutes prior to the start of the
presentation. A replay of the conference will be archived for two weeks, and
may be accessed by dialing 800-475-6701 (USA), 320-365-3844 (International),
Access Code 730100.
About Delco Remy:
Delco Remy International, Inc., headquartered in Anderson, Indiana, is a
leading designer, manufacturer, remanufacturer and distributor of electrical,
drivetrain/powertrain and related products for automobiles, light-duty trucks,
heavy-duty trucks and other heavy-duty off-road and industrial applications.
Products include starter motors, alternators, engines, transmissions, torque
converters and fuel systems. The Company also provides exchange services for
used components, commonly known as cores, for remanufacturers. Delco Remy
International, Inc. was formed in 1994 as a partial divestiture by General
Motors Corporation of the former Delco Remy division, which traces its roots
to Remy Electric, founded in 1896.
Caution Regarding Forward-Looking Statements:
This press announcement contains statements relating to future results of
the Company that are "forward-looking statements" as defined in the Private
Securities Litigation Reform Act of 1995 (the "Act") or by the Securities and
Exchange Commission ("SEC") in its rules, regulations and releases. The
Company desires to take advantage of the "safe harbor" provisions in the Act
for forward-looking statements made in this press announcement. Any
statements set forth in this press announcement with regard to its
expectations as to financial results and other aspects of its business may
constitute forward-looking statements. These statements relate to the
Company's future plans, objectives, expectations and intentions and may be
identified by words like "believe," "expect," "may," "will," "should," "seek,"
or "anticipate," and similar expressions. The Company cautions readers that
any such forward-looking statements are based on assumptions that the Company
believes are reasonable, but are subject to a wide range of risks including,
but not limited to, risks associated with the uncertainty of future financial
results, acquisitions, additional financing requirements, development of new
products and services, the effect of competitive products or pricing, the
effect of economic conditions and other uncertainties detailed from time to
time in the Company's filings with the SEC. Due to these uncertainties, the
Company cannot assure readers that any forward-looking statements will prove
to have been correct.
Delco Remy Web Site: http://www.delcoremy.com
Delco Remy International, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)
IN THOUSANDS, For the three months ended March 31, 2004 2003
Net sales $293,187 $256,570
Cost of goods sold 240,467 213,139
Gross profit 52,720 43,431
Selling, general and administrative expenses 27,578 26,222
Restructuring charges 1,095 45,085
Operating income (loss) 24,047 (27,876)
Interest expense, net 16,202 14,116
Income (loss) from continuing operations before income
taxes, minority interest and loss from unconsolidated
joint ventures 7,845 (41,992)
Income tax expense 1,437 5,260
Minority interest 548 (213)
Loss from unconsolidated joint ventures 454 715
Net income (loss) from continuing operations 5,406 (47,754)
Discontinued operations:
Loss from discontinued operations, net of tax (258) (3,747)
Gain on disposal of discontinued operations, net of tax 108 2,417
Net loss from discontinued operations, net of tax (150) (1,330)
Net income (loss) 5,256 (49,084)
Accretion for redemption of preferred stock 8,552 7,556
Net loss attributable to common stockholders $(3,296) $(56,640)
Adjusted EBITDA:
Operating income (loss) $24,047 $(27,876)
Depreciation and amortization 5,912 7,480
Restructuring charges 1,095 45,085
Adjusted EBITDA $31,054 $24,689
Delco Remy International, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
March 31 December 31
IN THOUSANDS, At 2004 2003
(Unaudited)
Assets:
Current assets:
Cash and cash equivalents $17,305 $21,328
Trade accounts receivable, net 176,424 151,221
Inventories 231,156 214,764
Other current assets 33,960 28,921
Total current assets 458,845 416,234
Property, plant and equipment, net 136,705 135,746
Goodwill, net 132,571 132,571
Other assets 37,397 39,425
Total assets $765,518 $723,976
Liabilities and Stockholders' Deficit:
Current liabilities:
Accounts payable $181,041 $161,828
Accrued restructuring 5,703 10,826
Other liabilities and accrued expenses 141,717 133,222
Liabilities of discontinued operations 1,506 1,565
Current maturities of long-term debt 29,989 31,397
Total current liabilities 359,956 338,838
Long-term debt, net of current portion 606,183 593,103
Accrued restructuring 8,427 8,801
Other noncurrent liabilities 36,661 37,066
Minority interest in subsidiaries 15,475 15,193
Redeemable preferred stock 315,521 306,969
Total stockholders' deficit (576,705) (575,994)
Total liabilities and stockholders' deficit $765,518 $723,976
Delco Remy International, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited)
IN THOUSANDS, For the three months ended March 31, 2004 2003
Cash Flows from Operating Activities:
Net loss attributable to common stockholders $(3,296) $(56,640)
Adjustments to reconcile net loss to net cash
used in operating activities:
Loss from discontinued operations 258 3,747
Gain on disposal of discontinued operations (108) (2,417)
Depreciation and amortization 5,912 7,480
Accretion for redemption of preferred stock 8,552 7,556
Restructuring charges 1,095 45,085
Cash payments for restructuring charges (6,607) (7,019)
Changes in net working capital, net of acquisitions
and restructuring charges (17,615) (9,133)
Other, net 2,966 (5,512)
Net cash used in operating activities
of continuing operations (8,843) (16,853)
Cash Flows from Investing Activities:
Acquisitions, net of cash acquired - (4,837)
Net proceeds on sale of businesses 108 27,876
Purchases of property, plant and equipment (6,030) (5,257)
Net cash (used in) provided by investing
activities of continuing operations (5,922) 17,782
Cash Flows From Financing Activities:
Net borrowings under revolving
line of credit and other 11,672 205
Distributions to minority interests (1,010) -
Net cash provided by financing activities
of continuing operations 10,662 205
Effect of exchange rate changes on cash 241 (62)
Cash flows of discontinued operations (161) (552)
Net (decrease) increase in cash and cash equivalents (4,023) 520
Cash and cash equivalents at beginning of year 21,328 12,426
Cash and cash equivalents at end of period $17,305 $12,946
SOURCE Delco Remy International
 back to top
Related links:
http://www.delcoremy.com
Company News On-Call:
http://www.prnewswire.com/comp/111635.html
CONTACT:
Investor Relations: David E. Stoll,
+1-765-778-6523, or Keri Webb, +1-765-778-6602, both of Delco
Remy International
|
