Exide Announces Results for First Fiscal Quarter 2001
2 August 2000
Exide Announces Results for First Fiscal Quarter 2001
READING, Pa. - Exide Corporation , the global leader in electrical energy
storage solutions, today reported results for its first fiscal quarter ended
July 2, 2000.
The company reported a net loss of $9.4 million, or $.44 per diluted
share, for its first fiscal quarter, as compared to a net loss of
$9.3 million, or $.44 per diluted share, for the first fiscal quarter last
year.
Operating earnings were $14.8 million, as compared to operating earnings
of $15.3 million for the first fiscal quarter last year. Earnings before
interest, taxes, depreciation and amortization (EBITDA) were $36.6 million for
the first fiscal quarter, as compared to EBITDA of $42.7 million in the
comparable quarter last year. Operating earnings and EBITDA were reduced by
$1.3 million and $3.3 million, respectively, due to currency effects,
primarily a 12 percent decline in the EURO/dollar exchange rate. Revenues for
the first fiscal quarter were $465.8 million, as compared to $518.7 million in
the same quarter last year. Revenue declined by $37.0 million due to currency
effects.
Robert A. Lutz, Chairman and Chief Executive Officer of Exide, said, "Our
quarterly results reflect our strong European industrial business, offset by
continued disappointing performance in the North American automotive
aftermarket sector."
The company is on schedule to complete its acquisition of GNB Technologies
from Pacific Dunlop Limited. The acquisition, first announced May 9, 2000, is
expected to close by the end of September and received regulatory approval
during the first quarter. Financing, currently being arranged, is expected to
be sourced through an extension of the company's existing credit facilities
and the securitization of certain receivables.
"Our industrial business continues to grow, reflecting strong demand from
both the telecommunications and motive power markets. Our planned acquisition
of GNB will make us the global leader in both of these markets. While results
in the North American aftermarket have been disappointing, the GNB acquisition
will allow us to accelerate the rationalization of that business which we
expect will significantly improve our cost structure and competitive
position," Lutz continued.
Based on our new global business unit structure, the company's industrial
and automotive segments are reported separately herein. The automotive sector
had operating earnings of $7.8 million compared to $12.3 million a year ago.
Volume declined due to continued weaknesses in the North American aftermarket
business. The industrial sector had operating earnings of $12.7 million,
compared to $6.9 million a year ago, an increase of 84 percent. Strong growth
in sales volume from motive power battery customers and continued growth in
telecommunication and uninterruptible power supply applications accounted for
the increase.
The company will conduct an investor call to review first quarter results
on August 2, 2000 at 9:00 AM Eastern Standard Time. The call is available to
investors in a listen-only format on the Internet at http://www.Exideworld.com and
http://www.Streetfusion.com. The call will be repeated on Webcast from August 2,
2000 at 12:00 noon Eastern Standard Time until August 9, 2000 at 12:00 AM 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.
EXIDE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(In thousands, except per-share data)
For the Three Months Ended
July 2, July 4,
2000 1999
NET SALES $465,800 $518,715
COST OF SALES 342,362 389,546
Gross profit 123,438 129,169
OPERATING EXPENSES:
Selling, marketing and advertising 75,840 78,102
General and administrative 29,198 31,517
Goodwill amortization 3,555 4,257
108,593 113,876
Operating income 14,845 15,293
INTEREST EXPENSE, net 24,687 26,699
OTHER EXPENSE, net 2,363 1,310
Loss before income taxes
and minority interest (12,205) (12,716)
INCOME TAX BENEFIT (3,198) (3,664)
Loss before minority interest (9,007) (9,052)
MINORITY INTEREST 348 250
Net loss $(9,355) $(9,302)
EARNINGS PER SHARE:
Basic $(0.44) $(0.44)
Diluted $(0.44) $(0.44)
WEIGHTED AVERAGE SHARES:
Basic 21,400 21,271
Diluted 21,400 21,271
EXIDE CORPORATION AND SUBSIDIARIES
SEGMENT INFORMATION (unaudited)
(In thousands)
For the Three Months Ended July 2, 2000
Industrial Automotive Other Consolidated
Net sales $165,090 $297,850 $2,860 $465,800
Gross profit 51,365 72,028 45 123,438
Operating earnings 12,703 7,778 (5,636) 14,845
For the Three Months Ended July 4, 1999
Industrial Automotive Other Consolidated
Net Sales $171,485 $332,197 $15,033 $518,715
Gross profit 48,880 78,349 1,940 129,169
Operating earnings 6,922 12,300 (3,929) 15,293
EXIDE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
(In thousands, except per-share data)
July 2, March 31,
2000 2000
(unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $16,529 $28,110
Receivables, net of allowance for doubtful
accounts of $62,102 and
$64,177, respectively 355,504 379,490
Inventories 402,700 405,720
Prepaid expenses and other 17,796 16,026
Deferred income taxes 20,083 20,138
Total current assets 812,612 849,484
PROPERTY, PLANT AND EQUIPMENT 780,840 790,791
Less _ Accumulated depreciation (351,880) (347,447)
Property, plant and equipment, net 428,960 443,344
OTHER ASSETS:
Goodwill, net 496,941 501,117
Investments in affiliates 25,037 20,665
Deferred financing costs, net 11,903 12,796
Deferred income taxes 38,372 37,583
Other 36,893 36,472
609,146 608,633
Total assets $1,850,718 $1,901,461
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Short_term borrowings $24,764 $24,666
Current maturities of long_term debt 32,111 32,047
Accounts payable 241,168 260,352
Accrued expenses 273,401 318,951
Total current liabilities 571,444 636,016
LONG_TERM DEBT 1,085,617 1,061,672
NONCURRENT RETIREMENT OBLIGATIONS 128,851 128,827
OTHER NONCURRENT LIABILITIES 121,137 123,329
MINORITY INTEREST 18,338 17,993
STOCKHOLDERS' EQUITY
Common stock, $.01 par value 60,000
shares authorized; 21,455 and 21,359
shares issued and outstanding 215 214
Additional paid_in capital 490,424 490,399
Accumulated deficit (329,303) (319,530)
Notes receivable _ stock award plan (734) (734)
Accumulated other comprehensive loss (235,271) (236,725)
Total stockholders' equity (74,669) (66,376)
Total liabilities and
stockholders' equity $ 1,850,718 $ 1,901,461
EXIDE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
(In thousands)
For the Three Months Ended
July 2, July 4,
2000 1999
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $(9,355) $(9,302)
Adjustments to reconcile net loss to net
cash used in operating activities -
Depreciation and amortization 22,331 27,315
Deferred income taxes (824) (6,729)
Original issue discount on notes 2,727 2,526
Provision for losses on accounts
receivable 1,611 1,728
Minority interest 348 250
Net proceeds from sale of receivables (5,535) (36,267)
Changes in assets and liabilities
excluding effects of divestitures -
Receivables 16,861 427
Inventories (14,943) (7,941)
Prepaid expenses and other (2,091) (1,841)
Payables and accrued expenses (44,036) (47,421)
Other, net (4,937) (6,512)
Net cash used in operating activities (37,843) (83,767)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (7,748) (12,731)
Proceeds from sale of assets 2,973 7,248
Net cash used in investing activities (4,775) (5,483)
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in short-term borrowings 3,461 12,297
Borrowings under Global Credit
Facilities Agreement 149,118 200,194
Repayments under Global Credit
Facilities Agreement (121,278) (121,743)
Decrease in other debt - (4,444)
Dividends paid (428) (427)
Net cash provided by
financing activities 30,873 85,877
EFFECT OF EXCHANGE RATE CHANGES ON CASH
AND CASH EQUIVALENTS 164 (621)
NET DECREASE IN CASH AND CASH EQUIVALENTS (11,581) (3,994)
CASH AND CASH EQUIVALENTS,
BEGINNING OF PERIOD 28,110 20,596
CASH AND CASH EQUIVALENTS,
END OF PERIOD $16,529 $16,602
SUPPLEMENTAL DISCLOSURES OF CASH
FLOW INFORMATION:
Cash paid during the period for -
Interest $ 35,847 $ 37,515
Income taxes (net of refunds) $ 978 $ 615