Remy International, Inc. Announces 3rd Quarter 2009 Results

PENDLETON, Ind., Nov. 16 /PRNewswire-FirstCall/ -- Remy International, Inc., a leading worldwide manufacturer, remanufacturer, and distributor of heavy duty systems, starters and alternators, locomotive products and hybrid technology, announced today its operating results for the third quarter ended September 30, 2009. Sales for the quarter were $223.7 million compared to $279.4 million a year earlier. Earnings before interest, taxes, depreciation, amortization, and restructuring charges (EBITDAR) for the quarter were $41.3 million compared to $29.8 million in the third quarter of 2008. Gross profit less SG&A was $32.4 million in the third quarter of 2009 compared to $23.3 million in the third quarter of 2008. Net income attributable to Remy International in the quarter was $16.5 million, compared to 2008's third quarter's net income of $4.3 million.

"Our third quarter EBITDAR, Net Income, and Gross Profit included a one-time $12.0 million non-cash gain from GM transferring certain post retirement healthcare liabilities to a UAW sponsored VEBA. Without this one-time gain, EBITDAR would have been $29.3 million for the third quarter," stated John Weber, Remy International, President and Chief Executive Officer.

"Our third quarter results and prior periods also reflect a change in the presentation of factoring expense. One of Remy's major publicly traded competitors includes factoring expense as a component of interest expense, versus Remy's historical presentation of factoring expense as a separate line item netted against operating income. This inconsistency in treatment put Remy at a distinct disadvantage when comparing results. Therefore, in consultation with our advisors, we have changed the presentation of factoring expense of $6.0 million to interest expense for 2009 year-to-date, and $5.6 million to interest expense for the comparable period of 2008."

"We saw faint signs of recovery in the OE light duty and heavy duty sales in the third quarter over prior quarters, as it appears these markets have bottomed. Remy Power Products sales are benefiting from our strong customer position with retailers, as well as, winning selectively new customers in the WD markets."

"As reported previously, Remy took tough actions, such as, reductions in staffing and pay reductions as sales declined in the first half of the year. Though we experienced a modest sales improvement in the third quarter, the Remy team is committed to maintaining the cost savings from these actions through year-end and beyond if necessary."

"Remy continued to meet its loan covenants for the third quarter, and expects to be in full compliance with all loan covenants for all of 2009. Our liquidity remains fully sufficient to meet our needs, and we expect it to remain so for the balance of the year, " added Weber.

This press announcement may contain forecasts, projections, expectations, or opportunities regarding Remy that are "forward-looking statements" as defined in the Private Securities Litigation Act of 1995. Such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from anticipated results, including, but not limited to, future financial results and liquidity, development of new products and services, the effect of competitive products or pricing, the effect of commodity and raw material prices, the impact of supply chain cost management initiatives, restructuring risks, customs duty claims, litigation uncertainties and warranty claims, conditions in the automotive industry, foreign currency fluctuations, costs related to re-sourcing and outsourcing products, the effect of economic conditions, in addition to other factors identified in Remy International statements.

A copy of the 2009 Third Quarter's Financial Report is available on the Remy International Website at http://www.remyinc.com under Investor Relations.

SOURCE Remy International, Inc.

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