PENDLETON, Ind., March 16, 2011 /PRNewswire/ -- Remy International, Inc., a leading worldwide manufacturer, remanufacturer, and distributor of starters and alternators for light and heavy duty applications, locomotive products and hybrid electric motors, announced today its operating results for the full year ending December 31, 2010. Sales for 2010 were $1,103.8 million, EBITDAR was $140.1 million and Net income attributable to Remy was $16.9 million.
In comparison, the Company reported full year 2009 sales of $910.7 million, EBITDAR of $121.2 million and Net income Attributable to Remy of $10.8 million. The reported 2009 numbers include the effects of several one-time transactions. Without these one-time events, 2009 Sales would have been $875.3 million, EBITDAR would have been $102.6 million and Net Loss attributable to Remy would have been $7.8 million.
"Remy sales and profits in 2010 continued to show dramatic improvement over 2009. Our team is focused on profitable growth through innovation, unparalleled customer service and operational excellence. We are well positioned as the global economy improves and demand increases," said John Weber, Remy International, Inc. President and Chief Executive Officer.
Net working capital (accounts receivable plus inventory less accounts payable) for 2010 improved 12% from 5.8 WCT in 2009 to 6.5 WCT in 2010. 2010 free cash flow was $58.9 million compared to $40.2 million in 2009.
"Our 2010 cash flow positioned us to refinance our debt on December 17th with a new $95 million ABL Revolver and a $300 million Term Loan B. Subsequently, we closed a $ 217 million rights offering on January 24th. The proceeds from this offering were used to call and redeem the outstanding Preferred stock, pay down debt and add cash to the balance sheet. Our enhanced capital structure provides us the liquidity and financial flexibility necessary to make investments to grow the company," added John Weber.
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.
EBITDAR" 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. EBITDAR 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 EBITDAR as a metric can enhance an overall understanding of the Company's expected financial performance from ongoing operations, and EBITDAR is used by management for that purpose. We believe that EBITDAR 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 EBITDAR 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 the Company's cash flow from operating activities less net cash used in investing activities and is calculated from the Company's reported Consolidated Statement of Cash Flows.
A copy of the 2010 Financial Report is available on the Remy International Website at http://www.remyinc.com under Investor Relations.
SOURCE Remy International, Inc.