Delco Remy International Announces Results for the First
Quarter of 2001
ANDERSON, Ind., May 11 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 reported financial performance for the first quarter ended
March 31, 2001.
Net sales of $261.7 million declined $14.4 million, or 5.2%, compared with
the first quarter of 2000 due to continued softness in the heavy duty and
automotive OE markets. Sales declines were partially offset by sales growth
in the aftermarket realized from the acquisitions of Knopf and Elmot, acquired
in March and April of 2000, respectively.
Operating income of $18.9 million was down $12.6 million, or 40.0%, and a
net loss of $1.9 million compares with pro forma net income of $10.9 million
in the first quarter of 2000. Excluding one-time costs associated with the
tender offer and merger of approximately $3.7 million before tax, net income
was $600 thousand.
Additional first quarter accomplishments:
* The completion of the tender offer and merger with our largest
stockholder, Court Square Capital Limited, an affiliate of Citicorp Venture
Capital, taking the company private.
* The acquisition of XL Component Distribution Ltd., headquartered in
Droitwich, Worcestershire, England. XL is involved in the remanufacturing,
packaging and distribution of steering racks, brake calipers, ignition
distributors, ignition leads, transmission components and rotating electrics.
* Entered into an agreement to acquire 100% of the stock of Auto Matic
Transmission International A/S, aka "AMT", and its wholly owned subsidiary,
Mr. Transmission Aps. This transaction closed on May 1, 2001. AMT is based in
Soborg, a suburb of Copenhagen, Denmark. AMT will expand our existing
business of remanufacturing automatic transmissions for passenger cars and
commercial vehicles.
DELCO REMY INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions)
Three Month Period
Ended March 31
Pro Forma
2001 2000
Net sales $ 261.7 $ 276.1
Cost of goods sold 213.4 214.6
Gross profit 48.3 61.5
Selling, general and administrative expenses 28.1 28.5
Amortization of goodwill and intangibles 1.3 1.5
Operating income 18.9 31.5
Interest expense (13.3) (11.1)
Non-recurring merger/tender offer expenses (3.7) -
Other non-operating expense (1.4) (0.4)
Income before income taxes, minority interest in
income of subsidiaries and loss from
unconsolidated joint ventures 0.5 20.0
Income tax expense 0.2 7.4
Minority interest in income of subsidiaries (1.8) (1.7)
Loss from unconsolidated joint ventures (0.4) -
Net income (loss) $(1.9) $10.9
DELCO REMY INTERNATIONAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions)
March 31, December 31,
2001 2000
ASSETS
Current Assets
Cash and cash equivalents $14.4 $24.4
Trade accounts receivable, net 188.9 173.5
Inventories 300.9 293.8
Other current assets 44.4 41.6
Total Current Assets 548.6 533.3
Property and equipment, net 194.4 199.8
Goodwill, net 168.5 169.2
Deferred financing costs 8.3 8.7
Other assets 16.1 13.5
Total Assets $ 935.9 $ 924.5
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $ 156.0 $ 156.1
Other accrued liabilities 51.0 42.9
Accrued restructuring charges 8.0 7.7
Short-term debt 7.6 8.1
Total Current Liabilities 222.6 214.8
Long-term debt 528.6 519.3
Other noncurrent liabilities 43.5 41.3
Minority interest in subsidiaries 28.5 28.0
Stockholders' Equity 112.7 121.1
Total Liabilities and Stockholders' Equity $935.9 $924.5
DELCO REMY INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
Three Month Period
Ended March 31
Pro Forma
2001 2000
Operating activities:
Net income (loss) $(1.9) $10.9
Adjustments to reconcile net income
(loss) to net cash provided by
(used in) operating activities:
Depreciation 7.0 7.1
Amortization 1.3 1.5
Change in net working capital excluding
non-recurring charges (15.2) (0.5)
Cash payments for non-recurring charges (0.8) (0.6)
Other, net (1.8) 0.7
Net cash provided by (used in) operating
activities (11.4) 19.1
Investing activities:
Acquisitions, net of cash acquired (2.5) (61.2)
Purchases of property and equipment (3.5) (7.2)
Net cash used in investing activities (6.0) (68.4)
Financing activities:
Net borrowings under revolving line of credit
and other 8.8 55.7
Distributions to minority interests (0.8) -
Net cash provided by financing activities 8.0 55.7
Effect of exchange rate changes on cash (0.6) -
Net increase (decrease) in cash and
cash equivalents (10.0) 6.4
Cash and cash equivalents at beginning of period 24.4 11.4
Cash and cash equivalents at end of period $14.4 $17.8
