Delco Remy Reports Record Sales and Earnings for Q1 2000
15 November 1999
Delco Remy International Reports Record Sales and Earnings for the First Quarter of Fiscal Year 2000
ANDERSON, Ind., Nov. 15 -- Delco Remy International, Inc.
, a leading supplier of aftermarket and OEM electrical systems and
powertrain/drivetrain products for automotive and heavy duty applications,
today reported record sales and earnings for the first quarter of fiscal year
2000 ending October 31, 1999.
Key financial highlights for the first quarter compared to last year are
as follows:
* Net sales growth 19 percent
* Earnings per share growth 48 percent
* Gross profit margin improvement from 18.0 percent to 21.8 percent
* Operating margin improvement from 7.9 percent to 10.1 percent
Net income for the quarter was $8.0 million, or $.31 per share, compared
to net income of $5.4 million, or $.21 per share, reported for the same period
last year, an increase of 48 percent. Operating income for the quarter of
$27.9 million represented a 51 percent improvement over the $18.5 million
reported for fiscal 1999. Operating margin for the quarter was 10.1 percent
compared to 7.9 percent the prior year.
Net sales were $277.2 million, up 19 percent from the $232.8 million
reported for the first quarter of fiscal 1999. The Company's sales growth
continues to be driven by increased penetration of the aftermarket,
acquisitions and strong demand from OEM customers.
Harold K. Sperlich, Chairman, commented, "The excellent financial results
for the first quarter highlight the progress we are making with initiatives to
improve our penetration of the aftermarket and continuous improvement
programs. Since becoming a public company in December 1997, this quarter
marks our eighth consecutive quarter of achieving or exceeding investor
expectations."
Delco Remy International designs, manufactures, remanufactures and
distributes electrical, powertrain/drivetrain and related components for
automobiles, light trucks, medium and heavy duty trucks and other heavy duty
vehicles. The Company's products include starter motors, alternators,
engines, transmissions, torque converters, fuel systems and traction control
systems. The Company serves the aftermarket and original equipment
manufacturer market, principally in North America, as well as in Europe, Latin
America and Asia Pacific.
Statements in this press announcement, which are not historical, are
forward-looking statements that involve certain risks and uncertainties,
including, but not limited to risks associated with the uncertainty of future
financial results, acquisitions, additional financing requirements,
development of new products and services, the effect of competitive products
or pricing, the effect of economic conditions and other uncertainties detailed
in the Company filings with the Securities and Exchange Commission.
DELCO REMY INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except for per share data)
Three Month Period
Ended October 31
1999 1998
Net sales $ 277.2 $ 232.8
Cost of goods sold 216.8 191.0
Gross profit 60.4 41.8
Selling, engineering and
administrative expenses 30.9 22.2
Amortization of goodwill and intangibles 1.6 1.1
Operating income 27.9 18.5
Interest and other non-operating
expenses (12.1) (10.4)
Income before income taxes, minority
interest in income of subsidiaries
and income from unconsolidated
joint ventures 15.8 8.1
Income tax expense 6.0 3.2
Minority interest in income of subsidiaries (1.8) (0.7)
Income from unconsolidated joint ventures -- 1.2
Net income $ 8.0 $ 5.4
Basic earnings per common share $0.33 $0.23
Diluted earnings per common share $0.31 $0.21
Weighted average shares outstanding
(thousands):
Basic 24,207 23,775
Diluted 25,976 25,900
DECLO REMY INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions)
October 31, July 31,
1999 1999
ASSETS
Current Assets
Cash and cash equivalents $ 11.8 $ 15.3
Trade accounts receivable, net 185.7 148.0
Inventories 239.2 232.2
Other current assets 33.5 33.4
Total Current Assets 470.2 428.9
Property and equipment, net 203.3 195.2
Goodwill, net 135.4 137.4
Deferred financing costs 10.8 11.2
Other assets 10.3 10.0
Total Assets $ 830.0 $ 782.7
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $ 133.8 $ 119.3
Other accrued liabilities 56.5 48.7
Accrued restructuring charges 5.4 5.9
Current debt 11.1 12.6
Total Current Liabilities 206.8 186.5
Long-term debt 451.2 435.0
Other noncurrent liabilities 33.3 31.9
Minority interest in subsidiaries 21.6 19.8
Stockholders' Equity 117.1 109.5
Total Liabilities and
Stockholders' Equity $ 830.0 $ 782.7