Remy International, Inc. Announces Second Quarter 2012 Results

PENDLETON, Ind., Aug. 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 June 30, 2012.   

Highlights

  • Net sales of $295 million for the second quarter 2012, a decline of 3% compared to $304 million for the second quarter of 2011
    • Two thirds of the revenue decline was attributable to foreign exchange
  • Adjusted EBITDA of $39.7 million for the second quarter of 2012, compared to adjusted EBITDA of $53.1 million for the second quarter of 2011
    • Second quarter 2011 adjusted EBITDA of $53.1M included $7.3 million from a favorable contract settlement with an OEM customer and an insurance settlement as well as $4.5 million of favorable commodity and currency hedge gains.  Excluding these benefits, adjusted EBITDA was $41.3 million.
    • Second quarter 2012 adjusted EBITDA of $39.7 million reflects $4.0 million of Aftermarket competitive price pressure related to actions taken in the 3rd quarter of 2011
  • On August 3rd, the Board declared a $0.10 per share dividend to be paid on August 20th to shareholders of record August 13th   
  • Completed several operational restructuring initiatives including closing Matehuala, Mexico aftermarket plant
  • Announced intention to close Mezokovesd, Hungary plant.  Products will be transferred to other Remy facilities by the end of this year
  • Established Wuhan, China plant to meet demand of awarded heavy duty and hybrid business
  • Despite softening markets, built overall base business 
    • Dongfeng Peugeot Citroen award
    • Completed Cummins long term agreement through July 2015
    • Perkins and Cummins program awards in China
    • Success with independent aftermarket distributors led by Pronto group award
  • Hybrid backlog growing with global customers 
    • Quantum Fuel Systems to supply motors
    • Derindere award for Turkish taxi and fleet conversions
    • Zap China taxi fleet
    • Firming orders from specialty vehicle customers

Consolidated Financials

Three Months Ended

Three Months Ended


June 30, 2012

June 30, 2011

Total revenue 

$ 294.8 million

$  303.5 million

Net earnings attributable to common shareholders 

$  17.4 million

$    30.7 million

Net cash provided by operating activities   

$  11.8 million

$    21.4 million

Adjusted EBITDA   

$  39.7 million

$    53.1 million

 


Six Months Ended

Six Months Ended


June 30, 2012

June 30, 2011

Total revenue

$  587.9 million

$  609.9 million

Net earnings attributable to common shareholders   

$   26.2 million

$    49.1 million

Net cash provided by operating activities  

$    4.2 million

$    23.7 million

Adjusted EBITDA      

     $   78.1 million      

 $ 106.9  million

John Weber, Remy International President and Chief Executive Officer commented, "In spite of a more challenging global macroeconomic environment than anticipated, Remy continues to deliver solid operating performance.  We posted $40 million in adjusted EBITDA for the second quarter.  We made significant progress on our cost savings initiatives including closing facilities.  We completed a detailed review of our global manufacturing and distribution footprint that will drive significant savings in 2013 and beyond.  Our light and heavy duty, aftermarket and hybrid businesses all won significant new contracts with global customers."

Fred Knechtel, Remy International Chief Financial Officer, added, "Our business continued to perform well in the second quarter despite the European recession and a softer Chinese market and North American aftermarket.  The second quarter was the third consecutive quarter of sequential improved operating performance.  To protect our operating performance regardless of market conditions, we continue to drive cost reductions."

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.

A copy of the second 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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