Remy International, Inc. Announces First Quarter 2011 Results
PENDLETON, Ind., May 6, 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, announced today its operating results for the first quarter ended March 31, 2011.
Sales for the first quarter were $306.4 million, Adjusted EBITDA was $53.8 million and Net income attributable to Remy International was $28.1 million. In comparison, the Company reported 2010 first quarter sales of $260.4 million, Adjusted EBITDA of $33.4 million and Net income attributable to Remy International of $9.7 million. Remy profited in the first quarter from several opportunities including increased commercial vehicle starter motor replacements due to extreme weather, inventory replenishment at certain customers, and positive copper hedge positions.
"Remy experienced strong sales in both the original equipment and aftermarket sales channels. We enjoyed increased heavy duty product sales for both on-highway and off-highway commercial vehicle applications. Our strong aftermarket product sales for commercial vehicle applications were driven by extreme winter weather conditions and increased freight miles driven. Light duty aftermarket product sales growth was a result of customer inventory replenishment and share gain by customers. Light duty original equipment product sales outpaced light vehicle production growth across the major markets. We continued to effectively contain costs so incremental sales are contributing materially to bottom line results," stated John Weber, Remy International President and Chief Executive Officer.
Net working capital turns of 6.4 for the first quarter 2011 increased 7.3% from first quarter 2010. Free cash flow in the first quarter 2011 was $50.2 million compared to $30.3 million in 2010. Remy's cash balance improved $16.8 million in the first quarter 2011.
"In January, we closed a $217.0 million rights offering with our existing shareholders. The proceeds of the offering were used to call and redeem Remy's Preferred Stock, pay down debt and increase cash reserves. These transactions enhance our capital structure and provide us with the necessary liquidity and financial flexibility to grow the Company," added Fred Knechtel, Remy International SVP and CFO.
Remy scheduled a shareholder meeting for May 31st, 2011. The shareholder of record date was established as May 3rd. The purpose of the meeting is to approve an omnibus plan and approve an amendment to Remy's certificate of incorporation.
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 income or loss from continuing operations before (i) interest expense, (ii) tax expense, (iii) depreciation and amortization expense (excluding OID and DFC amortization), (iv) stock-based compensation expense, (v) minority interest and (vi) restructuring and impairment. 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 Adjusted EBITDA less Capital Expenditures.
Net working Capital is defined as Accounts Receivable plus Inventory less Accounts Payable.
A copy of the first quarter 2011 Financial Report is available on the Remy International Website at http://www.remyinc.com under Investor Relations.
Contact: Remy International
Media Contact: Matt Steward, Westcomm
(317) 270-4894
SOURCE Remy International, Inc.
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