Prestolite Electric Reports First Quarter 2004 Results
ANN ARBOR, Mich.--May 12, 2004--Prestolite Electric Incorporated and its parent, Prestolite Electric Holding, Inc., today announced financial results for the first quarter of 2004. First quarter sales of $57.0 million generated EBITDA (earnings before interest, taxes, depreciation, amortization and certain other items) of $8.4 million. Sales increased 34% from the first quarter of 2003; EBITDA grew 62%. The $37.2 million pretax gain on the sale of the company's facility in Acton, England pushed pretax income to $39.8 million and net income to $27.6 million."We were pleased to produce our ninth consecutive quarter of EBITDA growth and our seventh consecutive quarter of trailing twelve-month sales growth," said P. Kim Packard, Prestolite President and CEO. "We are especially proud of being able to achieve this growth while in the process of selling the company. The fact that we did so is a tribute to the many fine managers throughout our company." As previously announced, Prestolite was sold on May 4, 2004 to an affiliate of First Atlantic Capital, Ltd. a New York City-based private equity investment firm.
Capital spending during the quarter was $1.4 million. The company ended the quarter with cash of $49.9 million and debt of $106.2 million. The resulting net debt of $56.3 million compares to $99.1 million at the end of 2003.
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. Headquartered in Ann Arbor, Michigan, Prestolite Electric has operations in Arcade, NY; Garfield, NJ; Florence, KY; Acton and Leyland, England; Buenos Aires and San Luis, Argentina; and Beijing, China. For additional information, please visit www.prestolite.com.
As a consequence of the May 4, 2004 sale of Prestolite Electric Holding, Inc. and the redemption of the 9.625% Senior Notes of Prestolite Electric Incorporated on the same day, Prestolite Electric Holding, Inc. will no longer file reports with the U.S. Securities and Exchange Commission.
EBITDA is a widely accepted financial indicator of a company's operating performance and 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. A reconciliation of EBITDA to operating income is provided at the bottom of the accompanying income statement.
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
(In thousands of dollars)
For the Quarter Ended
----------------------------
March 30, March 29, April 3,
2002 2003 2004
--------- --------- --------
Income Statement
--------------------------------------
Net sales $36,641 $42,377 $57,005
Cost of goods sold 28,109 31,086 43,863
--------- --------- --------
Gross profit 8,532 11,291 13,142
Percent to sales 23.3% 26.6% 23.1%
Selling, general & administrative 5,555 5,679 7,215
Stock option expense - - 300
Severance 91 22 31
Costs incurred to sell company - - 899
--------- --------- --------
Operating income 2,886 5,590 4,697
Other (income) expense 67 (79) (62)
Real estate provision and gain on sale - - (37,171)
Loss on foreign exchange 576 (206) (713)
Interest expense 2,871 2,726 2,466
Minority interest expense 318 555 700
--------- --------- --------
Pretax income (loss) (946) 2,594 39,477
Income taxes (benefit) 159 404 11,847
--------- --------- --------
Net Income (loss) $(1,105) $2,190 $27,630
========= ========= ========
Income Statement Reconciliation
-----------------------------------------
Operating income $2,886 $5,590 $4,697
Other income (67) 79 62
Stock option expense - - 300
Severance 91 22 31
Costs incurred to sell company - - 899
Depreciation 1,553 1,660 2,272
Amortization 195 185 177
--------- --------- --------
Adjusted EBITDA $4,658 $7,536 $8,438
========= ========= ========
Percent to sales 12.7% 17.8% 14.8%
Prestolite Electric Holding, Inc.
Consolidated Unaudited Balance Sheet Highlights
(In thousands of dollars)
Dec 31 Dec 31 April 3
2002 2003 2004
--------- --------- ---------
Balance Sheet
-------------------------------------
Cash $4,386 $8,657 $49,894
Accounts receivable, net 28,264 34,797 39,196
Inventory, net 38,699 41,854 42,674
Prepaid and other current assets 2,675 2,601 2,460
--------- --------- ---------
Total current assets 74,024 87,909 134,224
Property, plant and equipment, net 33,032 30,587 20,700
Deferred tax asset - 2,982 2,990
Investments 577 577 577
Intangible assets, net 7,441 7,471 7,408
Other long term assets 3,435 2,102 1,987
Assets held for sale - 368 354
Net assets of discontinued operations 1,976 2,457 2,535
--------- --------- ---------
Total assets $120,485 $134,453 $170,775
========= ========= =========
Current debt $4,315 $4,193 $3,450
Accounts payable 16,118 20,581 23,135
Accrued liabilities 15,006 16,925 23,394
--------- --------- ---------
Total current liabilities 35,439 41,699 49,979
Long-term debt 105,125 103,573 102,753
Other non-current liabilities 9,955 10,574 10,609
Deferred tax liabilities - 1,263 1,297
--------- --------- ---------
Total liabilities 150,519 157,109 164,638
Minority interest 5,908 6,497 7,197
Cumulative translation adjustment (13,589) (8,147) (8,017)
Minimum pension liability (9,156) (7,058) (7,062)
Other shareholders equity (13,197) (13,948) 14,019
--------- --------- ---------
Total liabilities and equity $120,485 $134,453 $170,775
========= ========= =========
Debt Summary:
--------------------------------------
U.S. float $130 $372 $763
United Kingdom 7,177 6,091 4,599
South Africa 990 1,096 865
--------- --------- ---------
Bank debt 8,297 7,559 6,227
Senior notes 98,533 98,533 98,533
Argentina - Mosal 1,040 641 527
Capital leases & other 1,570 1,033 916
--------- --------- ---------
Total debt 109,440 107,766 106,203
Less cash (4,386) (8,657) (49,894)
--------- --------- ---------
Net debt $105,054 $99,109 $56,309
========= ========= =========