Exide Technologies Reports Unaudited Preliminary Fiscal 2013 Results

Jun 10, 2013, 17:29 ET from Exide Technologies

MILTON, Ga., June 10, 2013 /PRNewswire/ -- Exide Technologies (NASDAQ: XIDE, www.exide.com), a global leader in stored electrical energy solutions, announced today its unaudited preliminary fiscal 2013 fourth quarter and full year financial results.  In addition earlier today the Company filed a voluntary petition for reorganization pursuant to U.S. federal restructuring laws.  The petition was filed in the District of Delaware.

The Company is currently completing its financial statement close process for deferred income taxes and other areas for the fiscal year ended March 31, 2013 in connection with filing of its Annual Report on Form 10-K expected to be filed on June 14, 2013.  Also, the estimates for net sales, Adjusted EBITDA as well as the consolidated financial statements accompanying this release are preliminary and have not been audited and could be subject to change upon completion of the audit of the Company's consolidated financial statements. 

Q4 Fiscal 2013

The Company expects to report preliminary net sales of $762 million for the fourth quarter as compared to net sales of $783 million in the prior year fourth quarter. Net sales in the fiscal 2013 period were positively impacted by foreign currency translation of approximately $3 million. Excluding the impact of foreign currency translation, expected net sales decreased 3.1%, primarily due to lower OEM unit sales in the Company's global transportation business and lower third party lead sales.

Fiscal 2013 fourth quarter preliminary Adjusted EBITDA is expected to be $12 million as compared to $45 million in the prior year fourth quarter. The decrease is primarily due to lower third-party lead margins in the Americas, combined with higher commodity costs and manufacturing inefficiencies due to lower production and certain plant related operational issues in Europe and the Americas.

Full Year Fiscal 2013

Fiscal 2013 preliminary net sales are expected to be $3.0 billion as compared with $3.1 billion for the prior fiscal year period. Net sales in fiscal 2013 were negatively impacted by lead related price decreases of approximately $78 million and unfavorable foreign currency translation of approximately $94 million, partially offset by higher unit sales in many of the Company's markets.

The Company expects to report fiscal 2013 preliminary Adjusted EBITDA of $104 million versus $179 million in the prior fiscal year. The decline is primarily the result of higher spent battery costs coupled with lower LME based escalator pricing, higher commodity costs, and manufacturing inefficiencies. Higher spent battery acquisition costs combined with lower third party lead margins in the Americas impacted results by approximately $58 million.

Non-GAAP Financial Measure

The Company uses Adjusted EBITDA as a key measure of its operational financial performance. This measure is a key indicator of the Company's operational performance and excludes the impact of the Company's restructuring actions.  Adjusted EBITDA is defined as operating income before depreciation, amortization, non-cash stock compensation, restructuring charges, impairment charges and non-cash gains or losses on asset sales. Please refer to the reconciliations of operating income to Adjusted EBITDA below.

The foregoing non-GAAP financial measure should be used in addition to, but not in isolation or as a substitute for, the analysis provided in the Company's measures of financial performance prepared in conformity with U.S. GAAP.  The non-GAAP financial measure should be read only in conjunction with the Company's consolidated financial statements prepared in accordance with GAAP.

About Exide Technologies

Exide Technologies, with operations in more than 80 countries, is one of the world's largest producers and recyclers of lead-acid batteries. The Company's four global business groups -- Transportation Americas, Transportation Europe and Rest of World, Industrial Energy Americas and Industrial Energy Europe and Rest of World -- provide a comprehensive range of stored electrical energy products and services for industrial and transportation applications.

Transportation markets include original-equipment and aftermarket automotive, heavy-duty truck, agricultural and marine applications, and new technologies for hybrid vehicles and automotive applications. Industrial markets include network power applications such as telecommunications systems, electric utilities, railroads, photovoltaic (solar-power related) and uninterruptible power supply (UPS), and motive-power applications including lift trucks, mining and other commercial vehicles.

Further information about the Company, including its financial results, are available at www.exide.com.

Forward-Looking Statements

Except for historical information, this news release may be deemed to contain "forward-looking" statements. The Company desires to avail itself of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 (the "Act") and is including this cautionary statement for the express purpose of availing itself of the protection afforded by the Act.

Examples of forward-looking statements include, but are not limited to (a) preliminary financial results, projections of revenues, cost of raw materials, income or loss, earnings or loss per share, capital expenditures, growth prospects, dividends, the effect of currency translations, capital structure, and other financial items, (b) statements of plans and objectives of the Company or its management or Board of Directors, including the introduction of new products, or estimates or predictions of actions by customers, suppliers, competitors or regulating authorities, (c) statements of future economic performance, and (d) statements of assumptions, such as the prevailing weather conditions in the Company's market areas, underlying other statements and statements about the Company or its business.

Factors that could cause actual results to differ materially from these forward looking statements include, but are not limited to, the following general factors such as: (i) the ability of the Company to develop, prosecute, confirm and consummate the Chapter 11 plan of reorganization, (ii) the potential adverse impact of the Chapter 11 filing on the Company's liquidity and operations and the risks associated with operating businesses under Chapter 11 protection, (iii) the ability of the Company to comply with the terms of the DIP financing facility, (iv) the Company's ability to obtain additional financing, (v) the Company's ability to retain key management and employees, (vi) customer response to the Chapter 11 filing, (vii) the risk factors or uncertainties listed from time to time in the Company's filings with the Securities and Exchange Commission and with the U.S. Bankruptcy Court in connection with the company's Chapter 11 filing, (viii) the fact that lead, a major constituent in most of the Company's products, experiences significant fluctuations in market price and is a hazardous material that may give rise to costly environmental and safety claims, (ix) the Company's ability to implement and fund business strategies based on current liquidity, (x) the Company's ability to realize anticipated efficiencies and avoid additional unanticipated costs related to its restructuring activities, (xi) the cyclical nature of the industries in which the Company operates and the impact of current adverse economic conditions on those industries, (xii) unseasonable weather (warm winters and cool summers) which adversely affects demand for automotive and some industrial batteries, (xiii) the Company's substantial debt and debt service requirements which may restrict the Company's operational and financial flexibility, as well as imposing significant interest and financing costs, (xiv) the litigation proceedings to which the Company is subject, the results of which could have a material adverse effect on the Company and its business, (xv) the realization of the tax benefits of the Company's net operating loss carry forwards, which is dependent upon future taxable income, (xvi) competitiveness of the battery markets in the Americas and Europe, (xvii) risks involved in foreign operations such as disruption of markets, changes in import and export laws, currency restrictions, currency exchange rate fluctuations and possible terrorist attacks against U.S. interests, (xviii) the ability to acquire goods and services and/or fulfill later needs at budgeted costs, (xix) general economic conditions, (xx) the Company's ability to successfully pass along increased material costs to its customers, and (xxi) recently adopted U.S. lead emissions standards and the implementation of such standards by applicable states, and (xxii) those risk factors described in the Company's fiscal 2012 Form 10-K for the fiscal year ended March 31, 2012.

The Company cautions each reader of this news release to carefully consider those factors herein above set forth. Such factors and statements have, in some instances, affected and in the future could affect the ability of the Company to achieve its projected results and may cause actual results to differ materially from those expressed herein.

 

EXIDE TECHNOLOGIES AND SUBSIDIARIES

RECONCILIATION OF PRELIMINARY ADJUSTED EBITDA

(Unaudited, in thousands)

FOR THE THREE MONTHS ENDED MARCH 31, 2013

Transportation Americas

Transportation Europe and ROW

Industrial Energy Americas

Industrial Energy Europe and ROW

Unallocated Corporate

Total

 Operating Income (loss) 

$             (63,949)

$                  2,431

$                  6,345

$               (2,762)

$          (8,042)

$        (65,977)

Restructuring & impairments, net

52,938

295

701

723

438

55,095

Segment Income (loss)

(11,011)

2,725

7,046

(2,039)

(7,604)

(10,883)

Depreciation & amortization

7,535

5,073

2,893

4,712

1,100

21,314

Non cash stock compensation

-

-

-

-

1,708

1,708

 Adjusted EBITDA 

$          (3,476)

$            7,798

$               9,939

$            2,673

$    (4,795)

$    12,139

FOR THE THREE MONTHS ENDED MARCH 31, 2012

Transportation Americas

Transportation Europe and ROW

Industrial Energy Americas

Industrial Energy Europe and ROW

Unallocated Corporate

Total

 Operating Income (loss) 

$                  9,809

$               13,497

$                9,075

$               (6,294)

$       (10,205)

$          15,881

Restructuring & impairments, net

421

4,131

96

1,287

1,222

7,157

Segment Income (loss)

10,229

17,627

9,171

(5,007)

(8,983)

23,038

Depreciation & amortization

7,356

4,020

2,800

5,152

1,036

20,364

Non cash stock compensation

-

-

-

-

1,468

1,468

 Adjusted EBITDA 

$          17,585

$         21,648

$         11,971

$               144

$    (6,479)

$    44,870

FOR THE TWELVE MONTHS ENDED MARCH 31, 2013

Transportation Americas

Transportation Europe and ROW

Industrial Energy Americas

Industrial Energy Europe and ROW

Unallocated Corporate

Total

 Operating Income (loss) 

$             (80,262)

$               12,172

$               27,130

$               17,174

$       (29,576)

$        (53,361)

Restructuring & impairments, net

57,104

8,163

1,136

4,613

479

71,495

Segment Income (loss)

(23,158)

20,335

28,266

21,787

(29,096)

18,134

Depreciation & amortization

28,465

19,052

10,963

17,386

4,320

80,187

Non cash stock compensation

-

-

-

-

5,624

5,624

 Adjusted EBITDA 

$            5,307

$         39,387

$             39,229

$         39,173

$ (19,152)

$  103,944

FOR THE TWELVE MONTHS ENDED MARCH 31, 2012

Transportation Americas

Transportation Europe and ROW

Industrial Energy Americas

Industrial Energy Europe and ROW

Unallocated Corporate

Total

 Operating Income (loss) 

$                  7,145

$               51,813

$             41,006

$        12,134

$       (33,223)

$          78,875

Restructuring & impairments, net

2,369

4,115

652

2,301

1,442

10,878

Segment Income (loss)

9,513

55,928

41,657

14,435

(31,780)

89,753

Depreciation & amortization

28,215

18,590

11,701

21,039

4,807

84,353

Non cash stock compensation

-

-

-

-

5,152

5,152

 Adjusted EBITDA 

$          37,728

$         74,518

$         53,359

$         35,474

$    (21,821)

$    179,258

 

 

EXIDE TECHNOLOGIES AND SUBSIDIARIES

PRELIMINARY CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands except per-share data)

For the Fiscal Year Ended

March 31, 2013

March 31, 2012

March 31, 2011

Net sales

$       2,971,698

$       3,084,650

$       2,887,516

Cost of sales

2,564,403

2,599,822

2,346,189

Gross profit

407,295

484,828

541,327

Selling and administrative expenses

389,161

395,075

403,268

Restructuring and impairments, net

71,495

10,878

42,286

Operating (loss) income

(53,361)

78,875

95,773

Other expense, net

4,180

6,320

2,220

Interest expense, net

65,635

71,804

62,410

Loss on early extinguishment of debt

10,827

(Loss) income before income taxes

(123,176)

751

20,316

Income tax provision (benefit)

99,915

(55,203)

(6,496)

Net (loss) income

(223,091)

55,954

26,812

Net income (loss) attributable to noncontrolling interests

308

(785)

369

Net (loss) income attributable to

Exide Technologies

$        (223,399)

$            56,739

$            26,443

(Loss) earnings per share

Basic

$              (2.89)

$                0.73

$                0.34

Diluted

$              (2.89)

$                0.69

$                0.33

Weighted average shares

Basic

77,270

77,667

76,678

Diluted

77,270

82,081

81,309

 

 

EXIDE TECHNOLOGIES AND SUBSIDIARIES

PRELIMINARY CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands)

March 31, 2013

March 31, 2012

ASSETS

Current assets:

Cash and cash equivalents

$          104,289

$          155,368

Accounts receivable, net

504,795

500,375

Inventories

488,221

479,467

Prepaid expenses and other current assets

33,316

21,840

Deferred income taxes

11,470

30,804

Total current assets

1,142,091

1,187,854

Property, plant and equipment, net

558,115

622,975

Other assets:

Goodwill and intangibles, net

145,310

164,039

Deferred income taxes

107,865

174,601

Other noncurrent assets

51,049

45,517

304,224

384,157

Total assets

$       2,004,430

$       2,194,986

 

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Short-term borrowings

$            22,017

$            20,014

Current maturities of long-term debt

60,131

3,787

Accounts payable

435,736

390,549

Accrued expenses

281,432

276,809

Deferred income taxes

8,721

Total current liabilities

808,037

691,159

Long-term debt

693,864

752,930

Noncurrent retirement obligations

233,404

236,312

Deferred income taxes

17,171

17,158

Other noncurrent liabilities

98,022

95,075

Total liabilities

1,850,498

1,792,634

 

STOCKHOLDERS' EQUITY

Preferred stock, $0.01 par value, 1,000 shares authorized, 0 shares issued and

outstanding

Common stock, $0.01 par value, 200,000 shares authorized, 79,253 and 78,351

shares issued and outstanding

793

783

Additional paid-in capital

1,139,030

1,133,417

Accumulated deficit

(939,312)

(715,913)

Accumulated other comprehensive loss

(47,439)

(16,493)

Total stockholders' equity attributable to Exide Technologies

153,072

401,794

Noncontrolling interests

860

558

Total stockholders' equity

153,932

402,352

Total liabilities and stockholders' equity

$       2,004,430

$       2,194,986

 

 

EXIDE TECHNOLOGIES AND SUBSIDIARIES

PRELIMINARY CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in thousands)

For the Fiscal Year Ended

March 31, 2013

March 31, 2012

March 31, 2011

Cash flows from operating activities:

Net (loss) income

$        (223,091)

$            55,954

$            26,812

Adjustments to reconcile net (loss) income to net cash provided by

operating activities-

Depreciation and amortization

80,187

84,353

84,067

Unrealized gain on warrants

(68)

(268)

Impairments, net

60,144

3,773

9,055

Deferred income taxes

93,178

(77,913)

(11,383)

Provision for doubtful accounts

1,284

1,529

(759)

Non-cash stock compensation

5,624

5,152

6,567

Amortization of deferred financing costs

4,266

4,289

4,798

Loss on early extinguishment of debt

10,827

Currency remeasurement loss (gain)

2,883

10,036

(2,373)

Changes in assets and liabilities—

Receivables

(1,655)

(9,899)

(2,094)

Inventories

(33,644)

20,025

(83,369)

Other current assets

(2,144)

866

(4,360)

Payables

57,375

(9,099)

66,925

Accrued expenses

12,812

13,131

(4,383)

Other noncurrent liabilities

(26,193)

(25,236)

(21,302)

Other, net

(3,009)

14,875

1,230

     Net cash provided by operating activities

28,017

91,768

79,990

Cash flows from investing activities:

Capital expenditures

(101,501)

(109,836)

(88,589)

Insurance Proceeds

3,290

Proceeds from asset sales

18,965

635

16,793

     Net cash used in investing activities

(79,246)

(109,201)

(71,796)

Cash flows from financing activities:

Increase in short-term borrowings

2,965

12,408

1,820

Decrease in borrowings under Senior Secured Credit Facility

(285,423)

(Decrease) increase in other debt

(1,505)

5,409

(291,695)

Issuance of Senior Secured Notes

675,000

Financing costs

(23,093)

Debt redemption premium

(3,865)

Acquisition of noncontrolling interests/other

(544)

(15,145)

     Net cash provided by financing activities

1,460

17,273

57,599

Effect of exchange rate changes on cash and cash equivalents

(1,310)

(5,835)

6,012

Net (decrease) increase in cash and cash equivalents

(51,079)

(5,995)

71,805

Cash and cash equivalents, beginning of period

155,368

161,363

89,558

Cash and cash equivalents, end of period

$          104,289

$          155,368

$          161,363

 

SOURCE Exide Technologies



RELATED LINKS

http://www.exide.com