Remy International, Inc. Announces Third Quarter 2012 Results
PENDLETON, Ind., Oct. 30, 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 September 30, 2012.
Highlights
- Net revenue of $277 million for the third quarter 2012, a decline of 8% compared to $300 million for the third quarter of 2011
- The revenue decline is attributable to weaker original equipment volume, unfavorable mix in our higher margin products, and lower U.S. dollar translation of revenue denominated in foreign currencies
- Adjusted EBITDA of $35.7 million (12.9% of revenue) for the third quarter of 2012, an improvement of 18% compared to adjusted EBITDA of $30.2 million (10.1% of revenue) for the third quarter of 2011
- Net earnings attributable to common shareholders were $96.5 million in the third quarter of 2012 compared to $1.2 million in the third quarter of 2011
- Third quarter 2012 results included the reversal of an $84.7 million valuation allowance on our deferred tax assets balance as well as
- approximately $5.4 million of charges primarily related to restructuring activities and actions to improve future operating performance
- Excluding these restructuring charges and the valuation allowance reversal, net earnings attributable to common shareholders would have been $17.2 million in the third quarter of 2012
- Third quarter 2011 net earnings attributable to common shareholders excluding $5.6 million in intangible asset impairment charges and $0.8 million in restructuring charges would have been $7.6 million
- Third quarter 2012 included the declaration and payment of $3.1 million in common stock dividends
- Generated $34.8 million in cash flow from operations during the third quarter of 2012 compared to $30.7 million in cash flow from operations in the third quarter of 2011. The global cash balance was $95.4 million at September 30th, 2012.
- Appointed Ed Neiheisel as Chairman of Remy China. Ed is leading the effort to:
- Establish our new plant and new China Engineering Center in Wuhan, China
- Identify sales growth opportunities and deliver operational efficiencies across our businesses in China
- During the third quarter, Fidelity National Financial, Inc. increased their ownership of Remy International to approximately 51%
- At the Annual Shareholder's Meeting on October 18th, shareholders elected seven directors to serve on the Board of Directors
- Today, the Board declared a $0.10 per share dividend to be paid on November 28th to shareholders of record as of November 15th
Consolidated Financials |
Three Months Ended |
Three Months Ended |
(in $millions) |
Sept. 30, 2012 |
Sept. 30, 2011 |
Total revenue |
277.4 |
300.4 |
Net earnings attributable to common shareholders |
96.5 |
1.2 |
Net cash provided by operating activities |
34.8 |
30.7 |
Adjusted EBITDA |
35.7 |
30.2 |
Nine Months Ended |
Nine Months Ended |
|
Sept. 30, 2012 |
Sept. 30, 2011 |
|
Total revenue |
865.3 |
910.3 |
Net earnings attributable to common shareholders |
122.7 |
50.3 |
Net cash provided by operating activities |
39.0 |
54.4 |
Adjusted EBITDA |
113.8 |
137.1 |
John Weber, Remy International President and Chief Executive Officer commented, "While the global macroeconomic environment continues to be a challenge as the U.S. commercial vehicle market has softened, demand in Europe has weakened and China has slowed, our adjusted EBITDA margins improved 2.8 percentage points in the third quarter of 2012 compared to the third quarter of 2011. We responded to the economic challenges early in the year and implemented numerous initiatives including closing plants and cutting costs while maintaining investments in key growth programs, which is reflected in our earnings results."
Fred Knechtel, Remy International Chief Financial Officer, added, "We were pleased to deliver higher core operating performance of $36 million in adjusted EBITDA during the quarter compared to $30 million in adjusted EBITDA for the third quarter of 2011. Our cash balance at September 30, 2012 increased to $95.4 million compared to $91.7 million at December 31, 2011. We continue to drive cost reductions to maintain strong financial performance and position ourselves to emerge as a stronger company when markets recover."
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 third 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
[email protected]
(765) 778-6749
SOURCE Remy International, Inc.
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