Delco Remy Reports Sales and Earnings for the Q2 of Fiscal Year 2000
14 February 2000
Delco Remy International Reports Sales and Earnings for the Second Quarter of Fiscal Year 2000
ANDERSON, Ind., Feb. 14 -- Delco Remy International, Inc.
, a leading supplier of aftermarket and OEM electrical systems and
powertrain/drivetrain products for automotive and heavy duty industrial
applications, today reported sales and earnings for the second quarter of
fiscal year 2000 ending January 31, 2000.
Key financial highlights for the quarter compared to last year are as
follows:
* Net sales growth 17 percent
* Earnings per share growth 17 percent
* Cash generated from operating activities of $34.0 million used to reduce
debt by $19.6 million
Net sales were $260.0 million, up 17 percent from the $222.3 million
reported for the second quarter of fiscal 1999. The Company's sales growth
continues to be primarily driven by increased penetration of the aftermarket
and strong demand from OEM customers.
Net income for the quarter was $6.9 million, or $.27 per share, compared
to net income of $5.9 million, or $.23 per share, reported for the same period
last year, an increase of 17 percent.
Cash generated from operating activities in the second quarter reflects
improved operating results and reductions in working capital.
For the first six months of fiscal 2000, net sales increased
$82.1 million, or 18 percent, and net income and earnings per share of
$14.9 million and $.57, respectively, grew 32 percent.
Thomas J. Snyder, President and CEO, commented, "The strong earnings and
cash flow results in the first half of fiscal year 2000 are evidence of our
ability to initiate and successfully implement significant improvement
programs while growing the business through market penetration and
acquisition. Some of the recent acquisitions and market successes in
remanufactured engines and transmissions have increased our presence in this
market and currently represent 16% of our total revenue. Since becoming a
public company in December 1997, this quarter marks our ninth consecutive
quarter of achieving or exceeding investor expectations."
Delco Remy International, Inc., headquartered in Anderson, Indiana, is a
leading global manufacturer and remanufacturer of OEM and aftermarket
electrical, powertrain and drivetrain components for automotive, medium and
heavy truck, agriculture and construction industries. Delco Remy
International, Inc. began business in August 1994 as a partial divestiture of
the Delco Remy division of General Motors. The company now serves major OEM
and aftermarket customers worldwide, with manufacturing and marketing
facilities in North America, Europe, South 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's 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 Six Month Period
Ended January 31 Ended January 31
2000 1999 2000 1999
Net sales $260.0 $222.3 $537.2 $455.1
Cost of goods sold 202.3 175.6 419.0 366.6
Gross profit 57.7 46.7 118.2 88.5
Selling, engineering
and administrative
expenses 30.9 24.6 61.8 46.8
Amortization of goodwill
and intangibles 1.2 1.3 2.9 2.3
Operating income 25.6 20.8 53.5 39.4
Interest and other
non-operating expense (11.8) (11.2) (23.9) (21.7)
Income before income
taxes, minority interest
in income of subsidiaries
and income from
unconsolidated joint
ventures 13.8 9.6 29.6 17.7
Income tax expense 5.3 3.7 11.3 6.9
Minority interest in
income of subsidiaries (1.6) (0.8) (3.4) (1.6)
Income from unconsolidated
joint ventures -- 0.8 -- 2.0
Net income $6.9 $5.9 $14.9 $11.2
Basic earnings per
common share $0.29 $0.25 $0.61 $0.47
Diluted earnings per
common share $0.27 $0.23 $0.57 $0.43
Weighted average shares
outstanding (thousands):
Basic 24,224 23,842 24,216 23,808
Diluted 25,989 25,873 25,982 25,887
DELCO REMY INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions)
January 31, July 31,
2000 1999
ASSETS
Current Assets
Cash and cash equivalents $ 17.6 $ 15.3
Trade accounts receivable, net 160.0 148.0
Inventories 240.4 232.2
Other current assets 33.5 33.4
Total Current Assets 451.5 428.9
Property and equipment, net 204.2 195.2
Goodwill, net 135.4 137.4
Deferred financing costs 10.3 11.2
Other assets 10.1 10.0
Total Assets $ 811.5 $ 782.7
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $ 125.1 $ 119.3
Other accrued liabilities 55.7 48.7
Accrued restructuring charges 4.8 5.9
Current debt 5.0 12.6
Total Current Liabilities 190.6 186.5
Long-term debt 437.7 435.0
Other noncurrent liabilities 34.3 31.9
Minority interest in subsidiaries 23.7 19.8
Stockholders' Equity 125.2 109.5
Total Liabilities and
Stockholders' Equity $ 811.5 $ 782.7
DELCO REMY INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
Six Month Period
Ended January 31
2000 1999
Operating activities:
Net income $ 14.9 $ 11.2
Adjustments to reconcile
net income to net cash
provided by (used in)
operating activities:
Depreciation 13.6 8.5
Amortization 2.9 2.3
Change in net working capital (5.5) (35.4)
Other, net 8.6 2.9
Net cash provided by (used in)
operating activities 34.5 (10.5)
Investing activities:
Acquisitions, net of cash acquired (5.7) (40.1)
Purchases of property and equipment (21.7) (11.2)
Net cash used in investing activities (27.4) (51.3)
Financing activities:
Net (repayments) borrowings under
revolving line of credit and other (4.8) 63.8
Net cash (used in) provided by
financing activities (4.8) 63.8
Effect of exchange rate changes on cash -- --
Net increase in cash and cash equivalents 2.3 2.0
Cash and cash equivalents at
beginning of period 15.3 8.1
Cash and cash equivalents
at end of period $ 17.6 $ 10.1