ANDERSON, Ind., May 12 /PRNewswire/ -- Remy International, Inc. ("Remy
International" or the "Company"), a leading, manufacturer, remanufacturer and
distributor of Delco Remy brand heavy duty systems and Remy brand starters and
alternators, diesel engines, locomotive products and hybrid power technology,
today announced net sales of $281.6 million and Adjusted EBITDA of $20.6
million for the quarter ending March 31, 2005 including two weeks of results
from the recent acquisition of Unit Parts Company in March 2005. Net sales
increased $12.5 million, or 4.7%, and Adjusted EBITDA decreased $8.1 million,
or 28.2%, compared with the first quarter of 2004. Operating income of $14.9
million in the first quarter of 2005 compares with $22.5 million in the same
period of 2004.
First Quarter Highlights:
* Significant net sales increases in certain markets over first quarter
2004:
* 52% increase in Powertrain Diesel Product Sales.
* 19% increase in Heavy-Duty OEM Sales.
* 16% increase in Core Services Sales.
* Unit Parts Company Acquisition Completed.
Commenting on the first quarter results, Tom Snyder, President and CEO,
stated, "Heavy-Duty OEM and Powertrain Diesel Product sales continue to be
robust while sales to Light-Duty OEMs are softening. Our gross margin was
negatively impacted by pricing pressures, higher commodity costs and adverse
currency fluctuations."
Adjusted EBITDA in the first quarter of 2005 decreased over the same
period in 2004 mainly due to lower gross margin and higher product engineering
and other costs for the approximately $250 million in new business awards.
These awards have been received over the past two years and are scheduled for
launch through 2007.
Cash provided by operating activities of $2.6 million in the first quarter
of 2005 represents a $10.7 million improvement over the comparable period in
2004. This increase primarily reflects improvements in working capital
performance and reduced restructuring payments, offset by lower earnings in
the quarter.
The acquisition of Unit Parts Company on March 18, 2005, did not have a
significant impact on the Company's results of operations for the first
quarter of 2005.
Recent Developments:
In April 2005, the Company was named as a General Motors Supplier of the
Year for its overall business performance in providing GM with world-class
parts and services.
In May 2005, the Company announced the opening of a new product technology
and customer service center in Wroclaw, Poland to support its aggressive
growth and significant demand for the Delco Remy brand within European
markets. The European facility will consolidate three smaller facilities and
will feature a full complement of on-site engineering, purchasing and supplier
development serving the Company's growing number of automotive, heavy duty and
industrial customers. Key product research, engineering and technical support
services will focus on Delco Remy and Remy branded starting motors and
alternators, as well as hybrid systems and DC motors.
Future Outlook:
Commenting on 2005, Snyder said, "We are pleased with our progress on the
initial integration activities of UPC. However, we do expect to continue being
affected by the difficult conditions in the automotive industry but remain
confident that our full year 2005 and long-term outlook remains positive."
Reconciliation to GAAP:
For a reconciliation of GAAP financial information to the non-GAAP
financial information appearing in this release, please refer to the table
following the accompanying Condensed Consolidated Statements of Operations.
First Quarter Conference Call:
Remy International's executive management team will conduct a live
conference call on Thursday, May 12 at 10:00 a.m. Eastern Daylight Time to
discuss additional details regarding the Company's performance for the first
quarter and the outlook for the remainder of 2005. The call may be accessed
by dialing 800-762-4758 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
781191.
About Remy International, Inc.:
Remy International, Inc., headquartered in Anderson, Indiana, is a
leading, manufacturer, remanufacturer and distributor of Delco Remy brand
heavy duty systems and Remy brand starters and alternators, diesel engines,
locomotive products and hybrid power technology. The Company also provides a
worldwide components core-exchange service for automobiles, light trucks,
medium and heavy-duty trucks and other heavy-duty, off-road and industrial
applications. Remy 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 commodity prices, 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.
Remy International Web Site: http://www.RemyInc.com
Remy International, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
IN THOUSANDS, For the three months ended March 31, 2005 2004
(unaudited)
Net sales $281,568 $269,028
Cost of goods sold 236,209 218,758
Gross profit 45,359 50,270
Selling, general and administrative expenses 31,257 26,914
Restructuring (credit) charge (799) 813
Operating income 14,901 22,543
Interest expense, net 15,392 14,601
Income (loss) from continuing operations before
income taxes, minority interest and loss (income)
from unconsolidated joint ventures (491) 7,942
Income tax expense 1,350 1,240
Minority interest 1,093 548
Loss (income) from unconsolidated joint ventures (83) 454
Net (loss) income from continuing operations (2,851) 5,700
Discontinued operations:
Loss from discontinued operations, net of tax (201) (552)
Gain on disposal of discontinued operations,
net of tax 155 108
Net loss from discontinued operations, net of tax (46) (444)
Net (loss) income (2,897) 5,256
Accretion for redemption of preferred stock - 8,552
Net loss attributable to common stockholders $(2,897) $(3,296)
Adjusted EBITDA:
Operating income $14,901 $22,543
Depreciation and amortization 6,534 5,393
Restructuring (credit) charge (799) 813
Adjusted EBITDA $20,636 $28,749
Remy International, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
March 31, December 31,
IN THOUSANDS, At 2005 2004
Assets:
Current assets:
Cash and cash equivalents $23,085 $62,545
Trade accounts receivable, net 176,097 154,333
Inventories 284,041 217,912
Other current assets 32,789 30,667
Total current assets 516,012 465,457
Property, plant and equipment, net 160,290 137,293
Goodwill, net 168,245 106,400
Other assets 58,126 46,608
Total assets $902,673 $755,758
Liabilities and Stockholders' Deficit:
Current liabilities:
Accounts payable $206,483 $170,776
Accrued restructuring 11,553 6,451
Deferred income taxes 2,611 3,065
Other liabilities and accrued expenses 138,539 95,166
Current maturities of long-term debt 28,539 22,890
Total current liabilities 387,725 298,348
Long-term debt, net of current portion 629,856 610,330
Accrued restructuring 3,158 4,407
Other non-current liabilities 80,651 34,775
Minority interest 10,985 10,498
Total stockholders' deficit (209,702) (202,600)
Total liabilities and stockholders' deficit $902,673 $755,758
Remy International, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
IN THOUSANDS, For the three months ended March 31, 2005 2004
Cash Flows from Operating Activities:
Net loss attributable to common stockholders $(2,897) $(3,296)
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities:
Discontinued operations 46 444
Depreciation and amortization 6,534 5,393
Non-cash interest expense 852 1,028
Accretion for redemption of preferred stock - 8,552
Minority interest and loss from unconsolidated
joint ventures, net 1,010 1,002
Deferred income taxes (427) 2
Restructuring (credit) charge (799) 813
Cash payments for restructuring charges (509) (6,409)
Changes in accounts receivable, inventory and
accounts payable, net (5,054) (19,043)
Other, net 3,811 3,377
Net cash provided by (used in) operating activities
of continuing operations 2,567 (8,137)
Cash Flows from Investing Activities:
Acquisitions, net of cash acquired (56,014) -
Net proceeds on sale of businesses 156 108
Purchases of property, plant and equipment (10,860) (5,915)
Net cash used in investing activities
of continuing operations (66,718) (5,807)
Cash Flows from Financing Activities:
Net borrowings under revolving line of credit
and other 25,176 11,678
Distributions to minority interests - (1,010)
Net cash provided by financing activities
of continuing operations 25,176 10,668
Effect of exchange rate changes on cash (252) 244
Cash flows of discontinued operations (233) (1,050)
Net decrease in cash and cash equivalents (39,460) (4,082)
Cash and cash equivalents at beginning of year 62,545 21,207
Cash and cash equivalents at end of period $23,085 $17,125
SOURCE Remy International, Inc.
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http://www.remyinc.com
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http://www.prnewswire.com/comp/111635.html
CONTACT:
Investor Relations: Keri Webb of Remy
International, Inc., +1-765-778-6602
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