Prestolite Electric Announces 2000 First Quarter Results
3 May 2000
Prestolite Electric Announces 2000 First Quarter Results
ANN ARBOR, Mich.--May 2, 2000--Prestolite Electric Incorporated and its parent, Prestolite Electric Holding Inc., today released 2000 first quarter financial results. Before treating two business units to be sold as discontinued, first quarter sales of $63.8 million increased 0.8% from the fourth quarter of 1999 while earnings before interest, taxes, depreciation and amortization (EBITDA) of $5.4 million increased 15.5%. The reported EBITDA was after a charge of $0.5 million related to the Chapter 11 filing of Clark Material Handling, a major customer. Sales and EBITDA from continuing operations were $52.1 million and $4.6 million in the first quarter of 2000, increasing by 1.4% and 27.8%, respectively, from the fourth quarter of 1999. The net loss for the quarter was $1.8 million compared to a net loss of $4.6 million in the fourth quarter of 1999. For the first quarter of 1999 sales and EBITDA from continuing operations were $53.9 million and $6.9 million, respectively. The net loss in the first quarter of 1999 was $0.1 million."Orders exceeded sales for the quarter, and we have a number of new product introductions and sales initiatives scheduled which we believe will improve our sales as the year progresses. We are also being helped by our international markets which seem to be rebounding from their weak performance in 1999," said P. Kim Packard, company president and CEO. "We are also emphasizing cash conservation and debt reduction. In that regard we are pleased to report that we reduced inventory by $3.0 million during the quarter with further reductions anticipated in the coming months."
Prestolite Electric Incorporated manufactures alternators, starter motors and switching devices. These are supplied under the Prestolite, Leece-Neville, 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 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. 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.
(Including Prestolite Electric Incorporated)
Consolidated Unaudited Financial Highlights
(Thousands of Dollars)
For the three months ended
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April 1 April 3 December 31
2000 1999 1999
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Net sales $ 52,113 $ 53,942 $ 51,437
Cost of goods sold 42,068 41,679 42,698
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Gross profit 10,045 12,263 8,739
Selling, general and
administrative 7,777 8,067 7,273
Costs associated with
option repurchase - - 2
Restructuring and redundancy 27 - 450
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Operating income 2,241 4,196 1,014
Other (income) expense 253 (60) 281
Interest expense 4,133 3,772 3,901
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Income (loss) before taxes (2,145) 484 (3,168)
Provision for income taxes (144) 817 (525)
Income (loss) before
extraordinary item (2,001) (333) (2,643)
Income from discontinued
operations, net of taxes 189 211 372
Estimated loss on disposal
of discontinued operations,
net of taxes - - (2,300)
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Net income (loss) $ (1,812) $ (122) $ (4,571)
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Operating income $ 2,241 $ 4,196 $ 1,014
Other income (expense) (253) 60 (281)
Depreciation 2,189 2,237 1,989
Amortization 355 368 453
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Subtotal 4,532 6,861 3,175
Costs associated with option
repurchase - - 2
Restructuring, redundancy and
foreign exchange 97 - 450
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EBITDA from continuing
operations 4,629 6,861 3,627
EBITDA from discontinued
operations 750 938 1,032
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EBITDA from continuing and
discontinued operations $ 5,379 $ 7,799 $ 4,659
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