Prestolite Electric Reports Results for 2000
ANN ARBOR, Mich.--March 1, 2001--Prestolite Electric Incorporated and its parent, Prestolite Electric Holding, Inc., today announced sales from continuing operations of $171.9 million and net income of $11.5 million for the year ended December 31, 2000. Sales from continuing operations declined 8.5% from those of 1999. Earnings before interest, taxes, depreciation, amortization and the special items discussed below (EBITDA) from those operations declined 8.2 % from the prior year, to $16.9 million. Net income changed from negative in 1999 to positive in 2000.P. Kim Packard, Prestolite President and CEO said, "During the first half of 2000 difficult market conditions caused our sales from continuing operations to decline by four percent from the previous six months. At the same time our EBITDA from those operations declined by 21 percent, to $6.4 million. As a result, we took vigorous action to trim costs. Market conditions did not improve in the second half. But, while our second half sales declined by 6 percent from the first half, our EBITDA grew by 64 percent, reflecting the benefit of those cost reductions. In the fourth quarter we generated EBITDA of $5.3 million on sales of $40.7 million."
Net income for 2000 includes several special items. Prestolite reported an after-tax gain of $14.5 million on the previously announced sale of three businesses. The company purchased $23.1 million, face value, of its senior notes on the open market for 68.6% of face value, recording a gain of $4.1 million after the write-off of related unamortized financing costs and after provision for taxes. The company recorded pretax charges of $3.4 million related to two specialty alternator projects, $2.2 million for severance costs, and $0.2 million covering the repurchase of stock options. The company also recorded a $1.1 million charge to reflect the reduced dollar value of the pound sterling.
Prestolite Electric Incorporated manufactures alternators and starter motors. These are supplied under the Prestolite Electric, Leece-Neville, and Indiel brand names for original equipment and aftermarket application on a variety of vehicles and industrial equipment. Genstar Capital Corporation and management own the equity of the company.
EBITDA is a widely accepted financial indicator of a company's ability to service debt, but is not calculated the same by all companies. EBITDA should not be considered by an investor as an alternative to net income as an indicator of a company's operating performance or as an alternative to cash flow as a measure of liquidity. This release contains forward-looking statements that involve risks and uncertainties regarding the anticipated financial and operating results of the Company. The Company undertakes no obligation to publicly release any revisions to any forward-looking statements contained herein to reflect events or circumstances occurring after the date of this release. The Company's actual results may differ materially from those projected in forward-looking statements made by, or on behalf of, the Company.
Prestolite Electric Holding, Inc.
Consolidated Unaudited Statement of Operations - Preliminary
(In thousands of dollars)
1998 1999 2000
---- ---- ----
Net sales from continuing
operations $208,999 $187,874 $171,890
Cost of goods sold 167,453 151,613 139,641
-------- -------- --------
Gross profit 41,546 36,261 32,249
Selling, general & administrative 29,444 28,462 24,713
Costs associated with option
repurchase 2,101 2 173
Charge and write-down related to
two speciality alternator projects - - 3,450
Redundancy 711 450 2,226
-------- -------- --------
Operating income (loss) 9,290 7,347 1,687
Other (income) (88) (1,024) (618)
Unrecognized loss on foreign
exchange - - 1,121
Interest expense 13,494 15,816 15,025
-------- -------- --------
(Loss) from continuing operations
before income taxes and
extraordinary items (4,116) (7,445) (13,841)
Income tax provision (benefit) (693) (715) (4,485)
-------- -------- --------
(Loss) from continuing
operations (3,423) (6,730) (9,356)
Income (loss) from discontinued
operations, net 4,928 2,839 2,290
Gain (loss) on sale of discontinued
operations, net - (2,300) 14,488
Extraordinary item - gain (loss) on
senior note transactions, net (1,275) - 4,063
-------- -------- --------
Net income (loss) $ 230 (6,191) $ 11,485
======== ======== ========
Operating income (loss) $ 9,290 7,347 $ 1,687
Other income 88 1,024 618
Costs associated with option
repurchase 2,101 2 173
Specialty alternator charge - - 3,450
Redundancy 711 450 2,226
Depreciation 8,015 7,946 7,329
Amortization 1,137 1,619 1,395
-------- -------- --------
EBITDA from continuing
operations $ 21,342 $ 18,388 $ 16,878
======== ======== ========
Prestolite Electric Incorporated
Results by Quarter
$ Million
Q1 Q2 Q3 Q4 Year
---- ---- ---- ---- ----
1999 Sales
United States $ 21.4 $ 20.6 $ 22.1 $ 22.6 $ 86.7
United Kingdom 13.8 13.4 12.4 12.2 51.8
Argentina 9.4 11.0 10.1 8.5 39.0
South Africa 3.4 3.6 4.0 3.3 14.3
Elim/Adjust (0.5) (0.6) (1.2) (1.6) (3.9)
------ ------ ------ ------ ------
Total $ 47.5 $ 48.0 $ 47.4 $ 45.0 $ 187.9
2000 Sales
United States $ 21.4 $ 19.6 $ 19.9 $ 19.8 $ 80.7
United Kingdom 11.8 10.9 10.2 11.3 44.2
Argentina 9.3 10.5 10.7 10.3 40.8
South Africa 3.6 3.4 3.6 2.3 12.9
Elim/Adjust (1.2) (0.8) (1.7) (3.0) (6.7)
------ ------ ------ ------ ------
Total $ 44.9 $ 43.6 $ 42.7 $ 40.7 $ 171.9
Q1 Q2 Q3 Q4 Year
---- ---- ---- ---- ----
1999 EBITDA
United States $ 3.7 $ 3.0 $ 3.5 $ 2.5 $ 12.7
United Kingdom 2.8 1.6 1.7 1.6 7.7
Argentina 0.2 0.9 0.4 - 1.5
South Africa 0.5 0.5 0.6 - 1.6
Corporate & Other (1.4) (1.5) (1.1) (1.1) (5.1)
------ ------ ------ ------ ------
Total 5.8 4.5 5.1 3.0 18.4
2000 EBITDA
United States $ 2.6 $ 2.4 $ 3.5 $ 3.8 $ 12.3
United Kingdom 1.7 1.2 1.3 1.4 5.6
Argentina - 0.2 1.1 1.0 2.3
South Africa 0.3 0.2 0.4 (0.2) 0.7
Corporate & Other (1.2) (1.0) (1.1) (0.7) (4.0)
------ ------ ------ ------ ------
Total $ 3.4 $ 3.0 $ 5.2 $ 5.3 $ 16.9