Remy International, Inc. Announces First Quarter 2012 Results

PENDLETON, Ind., May 8, 2012 /PRNewswire/ -- Remy International, Inc. (OTC-PINK: RMYI), a leading worldwide manufacturer, remanufacturer, and distributor of starters and alternators for light vehicle and commercial vehicle applications, locomotive products and hybrid electric motors, today announced its financial results for the quarter ended March 31, 2012.   

Highlights

  • Net sales of $293 million for the first quarter 2012, a decrease of 4% compared to $306 million for the first quarter of 2011
  • Adjusted EBITDA of $38.4 million for the first quarter 2012, compared to adjusted EBITDA of $53.8 million for the first quarter of 2011
    • First quarter 2012 adjusted EBITDA of $38.4 million included $4.0 million of Aftermarket competitive price pressure
    • First Quarter 2011 adjusted EBITDA of $53.8M included approximately $13.0 million of favorable one-time events related to unusual Aftermarket update orders, and commodity and currency hedge gains.  Excluding these benefits, adjusted EBITDA was $40.8 million
  • Net income attributable to common shareholders of $8.7 million
  • Board of Directors declared a $0.10 quarterly dividend to May 14th shareholders of record payable on May 21st 
  • Paid down $7.8 million of long term debt.  Net debt was $233 million at the end of the quarter
  • Secured major new business awards in Aftermarket and Hybrid segments
  • Hired Mark McFeely as Chief Operations Officer responsible for manufacturing, engineering and supply chain

Consolidated Financials                    

   Three Months Ended        

Three Months Ended


Mar. 31, 2012               

Mar. 31, 2011

Total revenue                                        

        $    293.1 million              

                      $   306.4 million               

Net earnings attributable to common shareholders      

   $        8.7 million              

                  $     18.4 million               

Net cash provided by (used in) operating activities     

   $     (7.6) million              

                   $       2.3 million               

Adjusted EBITDA                                  

         $      38.4 million              

                         $    53.8  million               

John Weber, Remy International President and Chief Executive Officer commented, "Remy had a solid first quarter, with several noteworthy highlights.  Mark McFeely joined Remy as our new Chief Operations Officer.  Mark brings a wealth of experience to the Company and will help transform how we design, build and source our products.  We entered into a new long-term supply agreement with Enova, a hybrid vehicle integrator.  We secured a hybrid contract with a major North American commercial transmission supplier.  Our aftermarket business was awarded a major new contract with Pronto, one of North America's largest warehouse distribution buying groups."

Fred Knechtel, Remy International Chief Financial Officer, added, "Our underlying business continued to perform well in the first quarter.  Operating performance improved relative to the fourth quarter of last year despite weakness in the European market and softening in the U.S. aftermarket segment.  In the first quarter, we made significant investments to support hybrid development, new product launches, growth initiatives, develop and protect our intellectual property and improve supply chain cost.  We will continue to make these investments throughout the year."

Weber continued, "We remain focused on driving value through rotating electric leadership.  We will build on market leading positions in commercial vehicle products, leverage original equipment and aftermarket synergies, invest in hybrid technology, focus on opportunities in Asia and South America and pursue accretive strategic partnerships and acquisitions.  Our recently announced dividend payment reflects an opportunity to return value to our shareholders and preserves our ability to invest in the future."

This press announcement contains forecasts, projections, expectations, or opportunities regarding Remy that are "forward-looking statements" as defined in the Private Securities Litigation Reform 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, and other factors identified in Remy International statements.

In this document and in future releases, we will use the term Adjusted EBITDA to conform to Regulation-G.  There is no difference between our prior calculation of EBITDAR and Adjusted EBITDA.  Adjusted EBITDA" is defined by the Company as net income before (i) interest expense, (ii) tax expense, (iii) depreciation and amortization expense (excluding OID and DFC amortization), (iv) stock-based compensation expense, (v) net income attributable to noncontrolling interest and (vi) restructuring and other charges.   Adjusted EBITDA as defined by the Company may differ from non-GAAP measures used by other companies and is not a measurement under GAAP.  Management believes that using Adjusted EBITDA as a metric can enhance an overall understanding of the Company's expected financial performance from ongoing operations, and Adjusted EBITDA is used by management for that purpose.  We believe that Adjusted EBITDA is frequently used by analysts, investors and other interested parties in evaluating companies such as ours and that it provides a useful measure of our financial performance since its use eliminates the effects of period to period changes in costs associated with restructuring costs and impairment of assets related to capital investments, interest on our debt and non-cash stock based compensation charges. 

There are limitations inherent in non-GAAP financial measures such as Adjusted EBITDA in that they exclude a variety of charges and credits that are required to be included in a GAAP presentation, and do not therefore present the full measure of the Company's recorded costs against its revenue.  Management compensates for these limitations in non-GAAP measures by also evaluating our performance based on traditional GAAP financial measures.  Accordingly, in analyzing our future financial performance, investors should consider these non-GAAP results together with GAAP results, rather than as an alternative to GAAP basis financial measures.

Free Cash Flow is measured as Net cash provided by operating activities less net Capital Expenditures.

Net working Capital is defined as Accounts Receivable plus Inventory less Accounts Payable.

A copy of the first quarter 2012 Financial Report is available on the Remy International Website at http://www.remyinc.com under Investor Relations.

Contact:  Remy International
Investor Contact:  Eric Struik
Struik.eric@remyinc.com 
(765) 778-6749

SOURCE Remy International, Inc.



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