Remy International, Inc. Announces Fourth Quarter and Full Year 2011 Results

PENDLETON, Ind., March 5, 2012 /PRNewswire/ -- Remy International, Inc., 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 fourth quarter and full year ended December 31, 2011.

Highlights

  • Net sales of $1.2 billion in 2011, an increase of 8% compared to $1.1 billion for 2010
  • Gross Margins of 22.6% for 2011, an improvement of 110 basis points compared to 21.5% in 2010
  • Adjusted EBITDA of $165.1 million in 2011 ($172.4 million in reported adjusted EBITDA including commercial settlements of $7.3 million), an increase of 18% compared to adjusted EBITDA of $140.1 in 2010
  • Adjusted EBITDA margins of 13.8% in 2011 compared to 12.7% in 2010
  • Net income (loss) attributable to common shareholders of $62.2 million compared to $(13.7) million for 2010
  • Free Cash Flow of $50.6 million compared to $25.8 million for 2010, an increase of 96%
  • Completed recapitalization of balance sheet through Rights Offering and retirement of Preferred Stock
  • Year-end cash balance of $92 million; total debt of $311 million

Consolidated Financials                         

Three Months Ended

Three Months Ended

 

Dec. 31, 2011

Dec. 31, 2010

Total revenue                                                            

$  284.7 million

$   284.0 million

Net earnings attributable to common shareholders    

$    11.9 million

$   (25.5) million

Net cash provided by (used in) operating activities     

$    15.2 million

$   (15.7) million

Adjusted EBITDA                                                             

$    35.2 million

$    33.5  million

 

 

 

 

Twelve Months Ended

Twelve Months Ended

 

Dec. 31, 2011

Dec. 31, 2010

Total revenue                                                                  

$ 1,195.0 million

$  1,103.8 million

Net earnings attributable to common shareholders      

$      62.2 million

$    (13.7) million

Net cash provided by (used in) operating activities         

$      69.5 million

$      40.9 million

Adjusted EBITDA                                                           

$    165.1 million

$    140.1 million

"2011 was a very successful year for Remy.  We delivered almost $1.2 Billion in revenue and record adjusted EBITDA of $165 million.  Our focus on profitable growth paid off as we grew with key customers and built our backlog of new business.  During the year we signed significant contracts for our hybrid business, including long term supply agreements with BAE, Alt-e, and Via Motors.  We gained share in our original equipment business and renewed contracts with our major customers in the aftermarket business," stated John Weber, Remy International President and Chief Executive Officer.

Fred Knechtel, Remy International Chief Financial Officer, added, "Full year financial performance for the company was excellent.  We experienced several one-time events through the year.  In the first half, we benefited from aftermarket customer update orders, weather related aftermarket sales and favorable commodity contracts.  In the third quarter, commodity contracts, currency, pricing and spending unfavorably impacted financial performance.  In the fourth quarter we benefited from operational improvements and currency hedge reversal.  We will continue to realize these benefits into 2012."

Weber continued, "As we look ahead to 2012, we will build on the successes of 2011.   In the first few months of this year, we have signed long term contracts to supply hybrid motors to ENOVA and Quantum.  As our hybrid backlog matures into orders we will clearly be the largest global supplier of hybrid technology to the commercial vehicle segment.  In addition to investing in long term growth we will maintain an intense focus on costs and continue to strengthen the balance sheet."

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 fourth quarter and full year 2011 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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