Prestolite Electric Announces 1st Half and 2nd Quarter Results for 2000
8 August 2000
Prestolite Electric Announces First Half and Second Quarter Results for 2000
ANN ARBOR, Mich. - Prestolite Electric Inc. and its parent, Prestolite Electric Holding, Inc., today released financial results for the first half and second quarter of 2000.For the first six months of 2000, sales from continuing operations were $88.5 million, a decline of 7.4% from the first half of 1999. Second quarter 2000 sales from continuing operations of $43.6 million declined 9.2% from the second quarter of 1999 and 2.9% from the first quarter of 2000. Reported sales for each period exclude the sales of three business units being sold to AMETEK, Inc. in a separately announced third-quarter transaction. For the first half and second quarter of 2000, the Company reported a net loss of $4.6 and $2.8 million, respectively.
Including the businesses being sold, sales in the second quarter of 2000 were $62.7 million, down 4.7% from the same quarter in 1999. Those sales produced $5.9 million of second quarter earnings before interest, taxes, depreciation and amortization (EBITDA) before severance and non-cash foreign exchange charges. That compares to $5.4 million of EBITDA on sales of $63.8 million in the first quarter of 2000 and $6.3 million of EBITDA on sales of $65.7 million in the second quarter of 1999. On the same all-operations-as-continuing basis, first half sales of $126.5 million produced EBITDA of $11.3 million, compared to $130.5 million of sales and $14.0 million of EBITDA in the first half of 1999.
"With the sale of our DC motor, switch and battery charger businesses, we expect to strengthen our balance sheet and improve the Company's focus on our core alternator and starter motor products," said Company president and CEO P. Kim Packard. "Aftermarket sales of alternator and starter motor products are showing continuing softness. As a result, we are taking action intended to cut our fixed costs by more than $7 million annually, including the elimination of 300 jobs in our continuing operations."
Prestolite Electric Incorporated manufactures alternators and starter motors. These are supplied under the Prestolite Electric, 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 all the equity of Prestolite Electric Holding, Inc. which owns 100% of Prestolite Electric Incorporated.
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.
Prestolite Electric Holding, Inc.
(including Prestolite Electric Incorporated)
Unaudited Financial Highlights
(Thousands of dollars)
For the 3 months ended For the 6 months ended
---------------------- ----------------------
July 1 July 3 July 1 July 3
2000 1999 2000 1999
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Net sales from
continuing operations $ 43,577 $ 48,005 $ 88,464 $ 95,596
Cost of goods sold 36,531 39,434 72,974 76,412
-------- -------- -------- --------
Gross profit 7,046 8,571 15,490 19,184
Selling, general and
administrative 6,850 7,315 14,087 14,715
Restructuring and
severance 1,673 - 1,700 -
-------- -------- -------- --------
Operating income (loss) (1,477) 1,256 (297) 4,469
Other (income) expense (447) (932) (346) (1,091)
Foreign exchange loss 544 - 614 -
Interest expense 4,169 4,114 8,302 7,886
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Income (loss) from
continuing operations
before income taxes (5,743) (1,926) (8,867) (2,326)
Provision (benefit) for
income taxes (1,782) (862) (1,926) (45)
-------- -------- -------- --------
Income (loss) from
continuing operations (3,961) (1,064) (6,941) (2,281)
Income from discontinued
operations, net of tax 1,183 369 2,351 1,464
-------- -------- -------- --------
Net loss $ (2,778) $ (695) $ (4,590) $ (817)
-------- -------- -------- --------
-------- -------- -------- --------
Operating Income (loss) $ (1,477) $ 1,256 $ (297) $ 4,469
Other income (expense) 447 932 346 1,091
Foreign exchange loss (544) - (614) -
Depreciation 1,977 1,930 3,953 3,947
Amortization 352 415 707 783
-------- -------- -------- --------
Subtotal 755 4,533 4,095 10,290
Restructuring and
severance 1,673 - 1,700 -
Foreign exchange loss 544 - 614 -
-------- -------- -------- --------
EBITDA from continuing
operations 2,972 4,533 6,409 10,290
EBITDA from discontinued
operations 2,951 1,766 4,893 3,808
-------- -------- -------- --------
EBITDA from combined
operations $ 5,923 $ 6,299 $ 11,302 $ 14,098
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