Exide Announces Results for Fiscal Year Ended March 31, 2000
8 June 2000
Exide Announces Results for Fiscal Year Ended March 31, 2000
READING, Pa. - Exide Corporation , the global leader in electrical energy
storage solutions, today reported results for its fiscal year and fourth fiscal
quarter ended March 31, 2000.
Excluding non-recurring or unusual charges, the company reported net
income of $6.5 million, or $.31 per diluted share, for the fiscal year ended
March 31, 2000, as compared to a restated net loss, excluding non-recurring or
unusual charges, of $8.5 million, or $.40 per diluted share, for the previous
fiscal year. Earnings before interest, taxes, depreciation and amortization
(EBITDA) was $227.5 million for the fiscal year and $47.7 million for the
fourth fiscal quarter.
Net sales for fiscal year 2000 were $2.2 billion as compared to
$2.4 billion in the previous fiscal year.
For the fourth quarter ended March 31, 2000, the company reported a net
loss, excluding non-recurring or unusual items, of $1.0 million, or $.04 per
diluted share, as compared to a restated net loss, excluding non-recurring or
unusual items, of $12.6 million, or $.59 per diluted share, in the previous
year. Net sales for the fourth fiscal quarter were $524.7 million compared to
$550.0 million in the fourth quarter of the previous year.
Including non-recurring or unusual items, the company reported a net loss
of $136.0 million, or $6.40 per diluted share, for the fiscal year and
$127.3 million, or $5.99 per diluted share for its fourth fiscal quarter,
compared to a restated net loss of $127.0 million, or $5.98 per diluted share,
for the previous fiscal year and a restated net loss of $78.8 million, or
$3.70 per diluted share for the same quarter of the previous year.
Non-recurring or unusual pre-tax items for the fourth quarter ending
March 31, 2000 totaled $125.1 million, consisting of:
-- A $13.4 million provision to cover resolution of quality claims
litigation.
-- $39.3 million of restructuring charges, related primarily to our
realignment to a customer-focused global business strategy. This
includes severance charges, along with costs related to planned
closures of manufacturing operations and other facilities.
-- $18.4 million of writedowns to net realizable value related to the
ongoing divestiture of non-core businesses.
-- Other non-cash charges related to asset writedowns and adjustments of
balance sheet reserves, including $23.9 million in warranty reserves,
$3.0 million in environmental reserves and $27.1 million of other
charges.
The Company also recorded $17.5 million of unusual items in the third
fiscal quarter, including a charge for in-process research and development of
$14.3 million for the acquisition of Lion Compact Energy and additional
divestiture related charges of $3.2 million.
Robert A. Lutz, Chairman and Chief Executive Officer of Exide Corporation,
said, "The company reported improved results for the year, although the
continuing decline in demand for aftermarket automotive batteries in North
America and the weakness of the Euro versus the dollar adversely affected our
financial results for the fiscal year. We have taken major strategic
initiatives to ensure the long-term success of the company. With these
actions, and our new management team and structure in place, we are confident
of Exide's ability to perform well in the coming fiscal year."
Among strategic and other items cited by Lutz were:
-- The appointment of Craig H. Muhlhauser, former Vice President of Ford
Motor Company and President of Visteon Corporation, as President and
Chief Operating Officer and the appointment of Kevin R. Morano, former
President and Chief Operating Officer of ASARCO, as Chief Financial
Officer.
-- An agreement to purchase GNB Technologies from Pacific Dunlop Ltd. The
acquisition would mark Exide's re-entry into the U.S. industrial
battery business as well as greatly strengthening its U.S. automotive
business. The acquisition remains subject to due diligence, regulatory
review and financing.
-- The appointments of Lynne V. Cheney, a senior fellow at the American
Enterprise Institute for Public Policy Research, and Jody G. Miller, a
venture partner with Maveron LLC, to the company's board of directors.
-- The realignment of the company into global business units, including
Emerging Technologies; Transportation/Original Equipment;
Transportation/Aftermarket; Military; Standby and Motive Power.
-- The introduction of a "Fresh Check" seal and plain-language dating to
its automotive aftermarket batteries in North America, making them the
most consumer-friendly batteries in the industry.
-- The sale of non-core businesses and other assets, which generated more
than $80 million in cash and assumed liabilities in fiscal 2000.
-- The acquisition of a majority interest in Lion Compact Energy, a
company doing research in breakthrough dual graphite battery
technology.
As previously reported, the company is restating results for fiscal year
1999 as a result of improperly deferring a pre-fiscal 1998 charge until fiscal
1998 and 1999. This results in an increase in earnings of $.06 per diluted
share and $.14 per diluted share for the fourth quarter and full year,
respectively, of fiscal 1999. Additionally, the company will change its method
of valuing inventory for U.S. battery inventories from the last-in, first-out
("LIFO") method to the first-in, first-out ("FIFO") method. This change will
not impact the company's earnings for any of the periods presented.
The company will conduct an investor call to discuss fourth quarter
results on June 9, 2000 at 10:00 a.m. Eastern Time. The call is available to
investors in a listen-only format on the Internet at http://www.Exideworld.com, and
at http://www.StreetFusion.com. The call will be repeated on Webcast from June 9,
2000 at 2:00 p.m. Eastern Time until June 16, 2000 at 11:45 p.m. Eastern Time
at the same Internet addresses.
Exide Corporation, with annual revenues of approximately $2.2 billion and
operations in 23 countries, is the world's largest manufacturer of automotive
and industrial lead-acid batteries and a leader in electric storage solutions.
Certain statements in this press release may constitute forward-looking
statements as defined by the Securities Litigation Reform Act of 1995. As
such, they involve known and unknown risks, uncertainties and other factors,
which may cause the actual results of the Company to be materially different
from any results expressed or implied by such forward-looking statements.
These are enumerated in further detail in the Company's Form 10-K.
EXIDE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except share and per-share data)
For the Three Months Ended For the Fiscal Year Ended
(Unaudited)
(Restated) (Restated)
March 31, March 31, March 31, March 31,
2000 1999 2000 1999
NET SALES $500,770 $550,080 $2,194,447 $2,374,278
COST OF SALES
BEFORE ASSET SALES 401,067 457,774 1,640,371 1,815,022
(GAIN)/LOSS ON
ASSET SALES 18,409 -- 21,584 --
Cost of sales 419,476 457,774 1,661,955 1,815,022
Gross profit 81,294 92,306 532,492 559,256
OPERATING EXPENSES:
Selling, marketing
and advertising 81,501 87,274 319,476 334,638
General and
administrative 46,970 42,294 145,770 169,744
Restructuring 39,336 -- 39,336 --
Purchased research
and development -- -- 14,262 --
Goodwill amortization 4,502 4,642 17,165 20,016
172,309 134,210 536,009 524,398
Operating
income (loss) (91,015) (41,904) (3,517) 34,858
INTEREST EXPENSE, net 24,929 28,477 103,988 111,679
OTHER (INCOME)
EXPENSE, net 9,130 10,750 16,043 28,852
Income (loss)
before income
taxes, minority
interest and
extraordinary
loss (125,074) (81,131) (123,548) (105,673)
INCOME TAX EXPENSE 1,872 (643) 10,769 23,001
Loss before
minority interest
and extraordinary
loss (126,946) (80,488) (134,317) (128,674)
MINORITY INTEREST 377 (1,672) 1,725 (1,981)
Loss before
extraordinary
loss (127,323) (78,816) (136,042) (126,693)
EXTRAORDINARY LOSS
RELATED TO EARLY
RETIREMENT OF DEBT,
net of income tax
benefit of $0 -- -- -- (301)
Net loss $(127,323) $(78,816) $(136,042) $(126,994)
BASIC EARNINGS
PER SHARE:
Loss before
extraordinary loss $(5.99) $(3.70) $(6.40) $(5.97)
Extraordinary loss -- -- -- (0.01)
Net loss $(5.99) $(3.70) $(6.40) $(5.98)
DILUTED EARNINGS
PER SHARE:
Loss before
extraordinary loss $(5.99) $(3.70) $(6.40) $(5.97)
Extraordinary loss -- -- -- (0.01)
Net loss $(5.99) $(3.70) $(6.40) $(5.98)
WEIGHTED
AVERAGE SHARES:
Basic 21,253,062 21,276,232 21,263,101 21,245,494
Diluted 21,253,062 21,276,232 21,263,101 21,245,494