Remy International, Inc. Announces Third Quarter 2011 Results
PENDLETON, Ind., Nov. 7, 2011 /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 third quarter ended September 30, 2011. Sales for the third quarter were $300.4 million, Adjusted EBITDA was $30.2 million and Net income attributable to common stockholders was $1.2 million.
In comparison, the Company reported 2010 third quarter sales of $280.0 million, Adjusted EBITDA of $34.2 million and Net income attributable to common stockholders was $1.4 million.
"We have posted solid results for the first nine months of 2011. Although Remy achieved robust sales during the third quarter following record sales in the first half of the year, net income was below our expectations but largely consistent with what other automotive suppliers have experienced," stated John Weber, Remy International President and Chief Executive Officer.
Fred Knechtel, Remy International Chief Financial Officer, added, "The decline in year-over year EBITDA was the result of the mark to market of currency contracts, rising materials costs, competitive pricing pressures, increased legal expenses to enforce and expand our intellectual property portfolio, and higher SG&A costs to support growth initiatives. This was partially offset by favorable volume and reduced warranty expenses."
Weber continued, "We will continue to strategically grow our business. I am pleased to announce a hybrid electric motor deal with BAE and as well as a business cooperation agreement with India's Lucas-TVS. The BAE agreement further reaffirms our hybrid motor strategy. The Lucas-TVS agreement significantly enhances our presence in India, the world's fastest growing automotive market."
Third Quarter Highlights
For the third quarter, the Company reported:
- Net Sales of $300.4 million, an increase of 7% compared to $280.0 million for the third quarter of 2010
- Adjusted EBITDA of $30.2 million compared to EBITDA of $34.2 million in the third quarter of 2010
- Net income attributable to common shareholders of $1.2 million compared to $1.4 million for the same period in 2010
- Free Cash Flow of $25.1 million compared to $15.7 million in the third quarter of 2010
Year-to Date Highlights
For first nine months, the Company reported:
- Net Sales of $910.3 million, an increase of 11% compared to $819.8 million for the first nine months of 2010
- Adjusted EBITDA of $137.1 million compared to EBITDA of $106.6 million in 2010
- Net income attributable to common shareholders of $50.3 million compared to $11.9 million for the same period in 2010
- Free Cash Flow of $40.5 million compared to $45.1 million for 2010
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 third quarter 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
SOURCE Remy International, Inc.