Prestolite Electric Announces 2001 First-Quarter Results
ANN ARBOR, Mich.--April 26, 2001--Prestolite Electric Incorporated and its parent, Prestolite Electric Holding Inc., today released 2001 first-quarter financial results. First-quarter sales from continuing operations of $42.0 million declined 6.5% from the first quarter of 2000 while earnings before interest, taxes, depreciation and amortization (EBITDA) of $4.8 million increased 39.0%. Compared to the fourth quarter of 2000, sales increased 3.1% while EBITDA decreased by 9.5%. The net loss from continuing operations for the quarter was $0.8 million compared to a net loss of $2.6 million in the first quarter of 2000 and net income of $0.2 million in the fourth quarter of 2000."The continuing softness in the North American heavy truck aftermarket means we must maintain our cost reduction emphasis," said P. Kim Packard, company president and CEO. "Accordingly we took action in March and April to reduce our costs by $3 million annually. Those cost reductions and our new product introductions should result in improved performance for the balance of the year." Reductions in salaried personnel make up $1.4 million of the $3 million in annual cost savings. In conjunction with those personnel reductions, Prestolite recorded a $341,000 charge for severance in the first quarter and expects to record a charge of about $0.8 million in the second quarter.
Prestolite Electric Incorporated manufactures alternators and starter motors in the United States, United Kingdom, Argentina, South Africa and China. These are supplied under the Prestolite, 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.
(Including Prestolite Electric Incorporated)
Consolidated Unaudited Financial Highlights
(Thousands of Dollars)
For the three months ended
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Apr 1 Apr 1 Dec 31
2001 2000 2000
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Net sales $ 41,964 $ 44,887 $ 40,717
Cost of goods sold 33,759 36,443 32,341
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Gross profit 8,205 8,444 8,376
Selling, general
and administrative 5,488 7,237 5,055
Costs associated with
option repurchase -- -- 5
Severance 341 27 107
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Operating income 2,376 1,180 3,209
Other (income) expense 133 101 (199)
Unrealized foreign
exchange losses 25 70 401
Interest expense 3,096 4,133 3,067
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Income (loss) before taxes (878) (3,124) (60)
Income tax provision (benefit) (21) (515) (244)
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Income (loss) before
extraordinary item (857) (2,609) 184
Income (loss) from
discontinued operations, net -- 797 (9)
Gain (loss) on sale of
discontinued operations, net -- -- (608)
Gain on senior
note repurchases, net -- -- 396
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Net income (loss) $ (857) $ (1,812) $ (37)
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Operating income $ 2,376 $ 1,180 $ 3,209
Other income (expense) (133) (101) 199
Costs associated with
option repurchase -- -- 5
Severance 341 27 107
Depreciation 1,877 1,976 1,416
Amortization 315 355 341
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EBITDA from
continuing operations $ 4,776 $ 3,437 $ 5,277
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