Delco Remy Reports Pro Forma Sales and Earnings for Calendar
Year 2000
ANDERSON, Ind., Feb. 22 Delco Remy International, Inc.
, a leading supplier of aftermarket and OEM electrical systems and
powertrain/drivetrain products for automotive, heavy duty and industrial
applications, today announced record results and reported pro forma financial
performance for the fourth quarter and calendar year ended December 31, 2000.
Highlights for calendar year 2000 included:
* Sales growth of 6.3 percent to a record $1.1 billion
* Sixth consecutive year of top line growth
* Continued year over year improvement in gross margins
* Record operating income, excluding one-time charges, of $113.1 million,
an increase of 12.2 percent over 1999
* Record earnings per share, excluding one-time charges, of $1.33
* Significant progress on realignment of global manufacturing footprint
* Initiation of lean manufacturing techniques globally
* Successful launch of new product lines for automotive starters
* Successful integration of two acquisitions
For the full year, net sales of $1,087.2 million increased 6.3%, operating
income $113.1 million increased 12.2% and net income of $34.5 million, or
$1.33 per share, increased 10.6% and 10.8%, respectively. These results
exclude a non-recurring charge recorded in June 2000 for the realignment of
manufacturing facilities of $35.2 million before tax, or $.85 per share after
tax. Including the non-recurring charge, calendar year pro forma earnings per
share were $.48. In the fourth quarter, net sales of $259.9 were down 2.3%
while operating income of $26.3 million and earnings per share of $.32
increased 7.8% and 33.3%, respectively.
"We are pleased with the calendar year results given the issues faced by
the automotive industry in the second half of the year, including the downturn
in the heavy duty market, OEM customer production cuts and rising interest
costs," commented Thomas J. Snyder, President and Chief Executive Officer of
Delco Remy International. Snyder continued, "We will stay focused on the
productivity improvements and strategic acquisitions that contributed to the
year over year top line growth and margin expansion."
DELCO REMY INTERNATIONAL, INC.
UNAUDITED PRO FORMA
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except for per share data)
Three Month Period Twelve Month Period
Ended December 31 Ended December 31
2000 1999 2000 1999
Net sales $259.9 $265.9 $1,087.2 $1,022.6
Cost of goods sold 204.4 211.8 851.5 808.4
Gross profit 55.5 54.1 235.7 214.2
Selling, general and
administrative expenses 27.6 28.0 116.4 107.6
Amortization of goodwill
and intangibles 1.6 1.7 6.2 5.8
Operating income 26.3 24.4 113.1 100.8
Interest and other
non-operating expense (11.2) (11.9) (48.4) (47.6)
Income before income taxes,
minority interest in income
of subsidiaries and income
(loss) from unconsolidated
joint ventures 15.1 12.5 64.7 53.2
Income tax expense 4.8 4.8 22.7 20.2
Minority interest in income
of subsidiaries (1.6) (1.6) (6.7) (5.5)
Income (loss) from
unconsolidated joint ventures (0.3) - (0.8) 3.7
Net income $8.4 $6.1 $34.5 $31.2
Basic earnings per
common share $0.34 $0.25 $1.42 $1.30
Diluted earnings per
common share $0.32 $0.24 $1.33 $1.20
Weighted average shares
outstanding (thousands):
Basic 24,329 24,207 24,274 24,016
Diluted 26,078 25,977 26,027 25,949
Pro forma results for 2000 exclude a non-recurring charge for the
realignment of manufacturing facilities of $35.2 million before tax, or
$.85 per share after tax.
DELCO REMY INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions)
December 31,
December 31, 1999 (unaudited,
2000 pro forma)
ASSETS
Current Assets
Cash and cash equivalents $24.6 $11.4
Trade accounts receivable, net 173.5 166.6
Inventories 293.9 244.8
Other current assets 45.3 33.3
Total Current Assets 537.3 456.1
Property and equipment, net 199.8 204.8
Goodwill, net 169.2 135.4
Deferred financing costs 8.7 10.5
Other assets 10.7 10.0
Total Assets $925.7 $816.8
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $155.7 $132.4
Other accrued liabilities 50.4 49.6
Accrued non-recurring charges 7.7 5.2
Current debt 8.1 5.6
Total Current Liabilities 221.9 192.8
Long-term debt 519.3 447.5
Other non-current liabilities 34.6 33.7
Minority interest in subsidiaries 28.0 23.0
Stockholders' Equity 121.9 119.8
Total Liabilities and
Stockholders' Equity $925.7 $816.8
DELCO REMY INTERNATIONAL, INC.
UNAUDITED PRO FORMA
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
Twelve Month Period
Ended December 31
2000 1999
Operating activities:
Net income $34.5 $31.2
Adjustments to reconcile net income
to net cash provided by
operating activities:
Depreciation 26.0 22.5
Amortization 6.2 5.8
Change in net working capital (27.1) 14.6
Cash payments for non-recurring charges (26.1) (7.0)
Other, net 21.8 12.9
Net cash provided by operating activities 35.3 80.0
Investing activities:
Acquisitions, net of cash acquired (62.3) (15.3)
Purchases of property and equipment (30.0) (35.4)
Net cash used in investing activities (92.3) (50.7)
Financing activities:
Net borrowings (repayments) under
revolving line of credit and other 70.8 (26.3)
Net cash provided by (used in)
financing activities 70.8 (26.3)
Effect of exchange rate changes on cash (0.6) (0.5)
Net increase in cash and cash equivalents 13.2 2.5
Cash and cash equivalents at
beginning of period 11.4 8.9
Cash and cash equivalents
at end of period $24.6 $11.4
