Prestolite Electric Reports First Quarter Results
21 April 1999
Prestolite Electric Reports First Quarter Results
ANN ARBOR, Mich.--(AutomotiveWire)--April 21, 1999--Prestolite Electric Incorporated and its parent, Prestolite Electric Holding, Inc., today announced that consolidated first quarter net sales of $64.8 million had generated earnings before interest, taxes, depreciation, and amortization (EBITDA) of $7.8 million. Net sales declined by 13% from the first quarter of 1998 while EBITDA increased slightly. Operating income of $4.6 million was up 185% from $1.6 million in the year-earlier quarter. Results for the first quarter of 1998 included charges for restructuring and redundancy and costs associated with an option repurchase. The Company recorded a net loss of $122,000 for the quarter compared to a net loss of $2.3 million in the first quarter of 1998.Company President Kim Packard commented, "We experienced good growth in both original equipment and aftermarket sales to the North American heavy duty market and in United Kingdom aftermarket sales. However, that growth was more than offset by sales declines in Argentina, in United Kingdom original equipment sales, and in the North American defense and material handling markets." He continued, "Some of the sales decline was due to the reduction of low-margin sales in business units acquired from Lucas last year. Fortunately, the shift in our sales mix towards higher margin products and our cost savings efforts offset the negative impact of the volume decline. As a result, our EBITDA was a record 12% of sales."
Prestolite Electric Incorporated manufactures alternators, starter motors, direct current motors, battery chargers and switching devices. These are supplied under the Prestolite, Leece-Neville, Hobart, 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 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 revisions to forward-looking statements 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
(In thousands of dollars)
for the three months ended:
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April 3 April 4
1999 1998
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Net Sales $ 64,758 $ 74,525
Cost of goods sold 50,504 60,031
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Gross Profit 14,254 14,494
Selling, general and administrative 9,673 9,806
Costs associated with option repurchase - 2,101
Restructuring and redundancy - 980
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Operating Income 4,581 1,607
Other (income) expense (131) (86)
Interest expense 3,772 3,281
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Income before income taxes and
extraordinary item 940 (1,588)
Loss from unconsolidated subsidiaries 90 -
Provision for (benefit from)
income taxes 972 (606)
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Income before extraordinary item (122) (982)
Extraordinary item - 1,275
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Net income (loss) (122) (2,257)
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Operating income 4,581 1,607
Other income (expense) 131 86
Depreciation 2,637 2,784
Amortization 450 208
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EBITDA 7,799 4,685
Costs associated with option repurchase - 2,101
Restructuring and redundancy - 980
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EBITDA before redundancy and
option repurchase $ 7,799 $ 7,766
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