Exide Announces Results for the Fourth Quarter and Full
Year
PRINCETON, N.J., May 17 Exide Technologies , the
global leader in stored electrical energy solutions, today announced results
for its fourth fiscal quarter and full year results for fiscal 2001 ended
March 31, 2001.
For the fourth fiscal quarter, consolidated net income was $0.5 million,
or $0.02 per diluted share, excluding non-recurring items, on consolidated
revenues of $707.7 million. This compares to a net loss of $1.0 million, or
$0.04 per diluted share, excluding non-recurring items, on consolidated
revenues of $524.7 million for the same period the year before. Earnings
before interest, taxes, depreciation and amortization and losses on sales of
receivables (EBITDA), excluding non-recurring items, was $71.7 million for the
quarter, as compared with $47.7 million for the same period a year earlier.
On a pro forma basis for the GNB acquisition EBITDA was $60.3 million last
year, excluding non-recurring items.
Robert A. Lutz, Chairman and Chief Executive Officer, said, "In the fourth
quarter, we saw the initial benefits of our restructuring program as well as
the initial savings generated from our acquisition of GNB. This is the first
time in six years that we have been able to report a profit, excluding non-
recurring items, in the fourth fiscal quarter. Strong earnings from our
global industrial business, an improved cost structure in our transportation
business and the superb efforts of our employees globally made it possible."
In the company's industrial business, operating earnings for the fourth
fiscal quarter, excluding non-recurring items, were $34.8 million versus
$12.0 million a year ago, reflecting the acquisition of GNB Technologies and
the strong growth globally of the network power and motive power businesses.
On a pro forma basis for the GNB acquisition, operating earnings in the fourth
quarter last year were $24.8 million, excluding non-recurring items. Revenues
in the industrial business on a pro forma basis grew 11.8 percent, excluding
the effect of currency and non-recurring items, over the same period a year
ago.
Operating earnings for the fourth quarter in the transportation group,
excluding non-recurring items, were $9.1 million, versus last year's
$9.9 million. This decline was due to the inclusion of the less profitable
GNB transportation business in North America and higher energy related costs.
On a pro forma basis for the GNB acquisition, operating earnings in the fourth
quarter last year were $1.6 million.
As a result of its cost reduction and restructuring initiatives, Exide
realized approximately $7 million in savings in its fourth fiscal quarter, and
reiterated its expectation that these initiatives will result in annualized
cost savings of approximately $90 million.
Including non-recurring items, the company reported a net loss of
$144.7 million, or $5.67 per diluted share, for the fourth quarter of fiscal
2001, compared with a net loss, including non-recurring items, of
$127.3 million, or $5.99 per diluted share, for the fourth quarter last year.
The company reported a non-recurring charge of $125.1 million in the fourth
quarter ended March 31, 2000.
The company recorded pre-tax, non-recurring items of $135.0 million in the
fourth quarter including charges totaling $96.0 million related to its
restructuring and integration initiatives. These charges include the closure
of an automotive battery plant in the U.S., workforce reductions at two
manufacturing facilities in Europe, reorganization of its European
transportation business sales force, a charge for commitments for future
purchases of materials in excess of current expected requirements and other
costs associated with the integration of GNB. The non-recurring items also
include a $31.0 million provision for the fine and associated costs resulting
from the previously announced plea agreement with the U.S. Attorney of the
Southern District of Illinois related to past improper business practices of
the company's former management. The company also recorded reserves for an
automotive battery plant closure of $14.5 million in connection with the
purchase accounting for the GNB acquisition.
For the full year, consolidated net income was $1.3 million, or $.06 per
diluted share, excluding non-recurring items, on consolidated revenues of
$2,432.1 million. This compares to consolidated net income of $6.5 million,
or $0.31 per diluted share, excluding non-recurring items, on consolidated
revenues of $2,218.4 million for fiscal year 2000. The company's fiscal year
2001 results include six months of results from the former GNB Technologies,
which Exide acquired on September 29, 2000.
EBITDA, excluding non-recurring items, was $248.3 million for fiscal year
2001. On a pro-forma basis, EBITDA was $285.8 million for fiscal 2001,
excluding non-recurring items.
Including non-recurring pre-tax items of $169.0 million, Exide
Technologies reported a net loss of $164.6 million, or $7.02 per diluted
share, for fiscal year 2001, compared with a net loss of $136.0 million, or
$6.40 per diluted share, for fiscal year 2000, including non-recurring items
of $142.6 million.
At March 31, 2001, the company had total debt of $1,347 million and
availability under its revolving credit facility of $126 million.
The company is planning to hold an investor conference on June 7, 2001, in
New York City where it expects to provide a review of its current business
developments including providing earnings guidance for the first quarter of
fiscal 2002, as well as for the full year of fiscal 2002. Conference details
will be announced via a future press release.
EXIDE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per-share data)
For the Three Months For the Twelve Months
Ended Ended
(unaudited)
March 31, March 31, March 31, March 31,
2001 2000 2001 2000
NET SALES $707,743 $500,770 $2,432,102 $2,194,447
COST OF SALES BEFORE
ASSET SALES 566,101 401,067 1,849,323 1,640,371
NET LOSS ON ASSET SALES --- 18,409 --- 21,584
Cost of
Sales 566,101 419,476 1,849,323 1,661,955
Gross
profit 141,642 81,294 582,779 532,492
OPERATING EXPENSES:
Selling, marketing
and advertising 100,201 81,501 340,616 319,476
General and
administrative 63,609 46,970 157,459 145,770
Restructuring and
other 73,985 39,336 113,166 39,336
Purchased research
and development --- --- --- 14,262
Goodwill
amortization 4,079 4,502 14,949 17,165
241,874 172,309 626,190 536,009
Operating
income (100,232) (91,015) (43,411) (3,517)
INTEREST EXPENSE, net 32,498 24,929 117,652 103,988
OTHER (INCOME) EXPENSE,
net (1,846) 9,130 (6,733) 16,043
Income(loss)
before income
taxes and
minority
interest (130,884) (125,074) (154,330) (123,548)
INCOME TAX EXPENSE
(BENEFIT) 13,362 1,872 8,632 10,769
Income(loss)
before minority
interest (144,246) (126,946) (162,962) (134,317)
MINORITY INTEREST 418 377 1,623 1,725
Net income
(loss) $(144,664) $(127,323) $(164,585) $(136,042)
EARNINGS (LOSS) PER
SHARE:
Basic $(5.67) $(5.99) $(7.02) $(6.40)
Diluted $(5.67) $(5.99) $(7.02) $(6.40)
WEIGHTED AVERAGE
SHARES:
Basic 25,500 21,253 23,447 21,263
Diluted 25,500 21,253 23,447 21,263
EXIDE CORPORATION AND SUBSIDIARIES
SEGMENT INFORMATION
(In thousands)
For the Three Months Ended March 31, 2001 (unaudited)
Industrial Transportation Other Consolidated
Net sales $290,034 $417,709 $--- $707,743
Gross profit 94,653 46,989 --- 141,642
Operating earnings 34,409 (91,234) (43,407) (100,232)
For the Three Months Ended March 31, 2000 (unaudited)
Industrial Transportation Other Consolidated
Net Sales $171,374 $329,396 $--- $500,770
Gross profit 51,266 30,028 --- 81,294
Operating earnings 8,983 (71,464) (28,534) (91,015)
For the Twelve Months Ended March 31, 2001
Industrial Transportation Other Consolidated
Net sales $909,571 $1,522,531 $--- $2,432,102
Gross profit 280,482 302,297 --- 582,779
Operating earnings 85,378 (65,072) (63,717) (43,411)
For the Twelve Months Ended March 31, 2000
Industrial Transportation Other Consolidated
Net Sales $707,589 $1,486,858 $--- $2,194,447
Gross profit 210,583 321,909 --- 532,492
Operating earnings 42,923 14,037 (60,477) (3,517)
EXIDE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
SUPPLEMENTAL INFORMATION: EXCLUDING NON-RECURRING ITEMS
(In thousands, except per-share data)
For the Three Months For the Twelve Months
Ended Ended
March 31, March 31, March 31, March 31,
2001 2000 2001 2000
NET SALES $707,743 $524,717 $2,432,102 $2,218,394
COST OF SALES 533,724 387,015 1,809,146 1,626,319
Gross profit 174,019 137,702 622,956 592,075
OPERATING EXPENSES:
Selling, marketing and
advertising 97,280 81,501 337,695 319,476
General and
administrative 33,608 32,044 127,458 130,844
Goodwill amortization 4,079 3,347 14,949 16,010
134,967 116,892 480,102 466,330
Operating
income 39,052 20,810 142,854 125,745
INTEREST EXPENSE, net 32,498 24,239 117,652 103,298
OTHER EXPENSE, net 2,437 (3,480) 10,550 3,433
Income (loss)
before income
taxes and minority
interest 4,117 51 14,652 19,014
INCOME TAX EXPENSE 3,192 634 11,715 10,769
Income (loss)
before
minority
interest 925 (583) 2,937 8,245
MINORITY INTEREST 418 373 1,623 1,721
Net income
(loss) $507 $(956) $1,314 $6,524
EARNINGS PER SHARE:
Basic $0.02 $(0.04) $0.06 $0.31
Diluted $0.02 $(0.04) $0.06 $0.31
WEIGHTED AVERAGE SHARES:
Basic 25,500 21,253 23,447 21,263
Diluted 25,638 21,253 23,505 21,263
EXIDE CORPORATION AND SUBSIDIARIES
SEGMENT INFORMATION (unaudited)
SUPPLEMENTAL INFORMATION EXCLUDING NON-RECURRING ITEMS
(In thousands)
For the Three Months Ended March 31, 2001
Industrial Transportation Other Consolidated
Net sales $290,034 $417,709 $--- $707,743
Gross profit 95,189 78,830 --- 174,019
Operating earnings 34,838 9,125 (4,911) 39,052
For the Three Months Ended March 31, 2000
Industrial Transportation Other Consolidated
Net Sales $173,474 $351,243 $--- $524,717
Gross profit 53,824 83,878 --- 137,702
Operating earnings 12,041 9,897 (1,128) 20,810
For the Twelve Months Ended March 31, 2001
Industrial Transportation Other Consolidated
Net sales $909,571 $1,522,531 $--- $2,432,102
Gross profit 288,819 334,138 --- 622,956
Operating earnings 95,097 65,288 (17,531) 142,854
For the Twelve Months Ended March 31, 2000
Industrial Transportation Other Consolidated
Net Sales $709,689 $1,508,705 $--- $2,218,394
Gross profit 213,141 378,934 --- 592,075
Operating earnings 45,981 98,573 (18,809) 125,745
