Delco Remy International Reports Record Sales and Earnings
29 August 2000
Delco Remy International Reports Record Sales and Earnings for the Fourth Quarter and Fiscal Year 2000
ANDERSON, Ind., Aug. 29 Delco Remy International, Inc.
, a leading supplier of aftermarket and OEM electrical systems and
powertrain/drivetrain products for automotive and heavy duty and industrial
applications, today reported sales and earnings for the fourth quarter and
fiscal year ending July 31, 2000.
Highlights for 2000 included:
* Sales rose 14.4 percent to a record $1.1 billion
* Sixth consecutive year of sales growth
* Record cash flow from operations, excluding one-time charges, of $80
million compared to $58 million in 1999, an increase of 38%
* Record operating income, excluding one-time charge, of $115 million, an
increase of 29% over 1999
* Record earnings per share, excluding one time charge, of $1.33.
* Successful integration of 3 new acquisitions
* Named "Best of the Best Suppliers" by Automotive Industries magazine for
the second consecutive year
Net sales for the fourth quarter were $278.9 million compared to
$249.8 million for the prior year. Sales growth was attributable to
acquisitions and stronger market demand for the Company's aftermarket and
original equipment products. Additionally, the Company believes it is
increasing market penetration for its aftermarket products due to new
distribution, a broad product offering and high level of quality.
Net income for the fourth quarter, excluding a one-time charge for the
realignment of the Company's global manufacturing facilities, was $9.5
million, or $.37 per share, compared to net income of $8.9 million, or $.34
per share, reported for the same period last year. The net loss for the
fourth quarter, including the one-time charge, was $12.7 million, or $.49 per
share.
Net sales for fiscal year 2000 were $1,090.9 million, up 14.4 percent over
the $953.7 million reported the previous year. Net income, excluding the one-
time charge, was $34.6 million, or $1.33 per share, compared to net income of
$28.3 million, or $1.09 per share, last year. Net income, including the one-
time charge, was $12.4 million, or $.48 per share.
Cash generated from operating activities, excluding cash expenditures
related to one-time charges, was $79.9 million in fiscal year 2000 compared
with $58.0 million generated in the same period last year. This increase
reflects improved earnings year over year.
Thomas J. Snyder, President and CEO, commented, "Our fourth quarter and
fiscal year results continue to reflect benefits from our strategic
acquisitions and productivity improvements. These strategies have also
produced double digit top line growth over the last five years. The
productivity improvements have driven year over year margin improvements for
the last eight quarters and with the completion of our realignment of our
global manufacturing facilities, the Company will be better positioned to
continue these trends."
DELCO REMY INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except for per share data)
Three Month Period Twelve Month Period
Ended July 31 Ended July 31
2000 1999 2000 1999
Net sales $278.9 $249.8 $1,090.9 $953.7
Cost of goods sold 216.1 196.9 845.4 759.8
Gross profit 62.8 52.9 245.5 193.9
Selling, general and
administrative expenses 31.1 26.0 123.9 99.9
Amortization of goodwill
and intangibles 2.6 1.9 7.1 5.2
Non-recurring charge 35.2 -- 35.2 --
Operating income (loss) (6.1) 25.0 79.3 88.8
Interest and other
non-operating expense (11.6) (11.1) (48.3) (45.5)
Income (loss) before income
taxes, minority interest
in income of subsidiaries
and income (loss) from
unconsolidated joint
ventures (17.7) 13.9 31.0 43.3
Income tax expense
(benefit) (7.0) 5.0 11.5 16.5
Minority interest in
income of subsidiaries (1.7) (1.6) (6.7) (3.9)
Income (loss) from
unconsolidated joint
ventures (0.3) 1.6 (0.4) 5.4
Net income (loss) $(12.7) $8.9 $12.4 $28.3
Basic earnings (loss)
per common share $(0.52) $0.37 $0.51 $1.19
Diluted earnings (loss)
per common share $(0.49) $0.34 $0.48 $1.09
Adjusted net income:
Net income (loss) $(12.7) $8.9 $12.4 $28.3
Non-recurring charge,
net of income
tax benefit 22.2 - 22.2 -
Adjusted net income $9.5 $8.9 $34.6 $28.3
Adjusted earnings per share:
Basic $0.39 $0.37 $1.43 $1.19
Diluted $0.37 $0.34 $1.33 $1.09
Weighted average shares
outstanding (thousands):
Basic 24,301 24,179 24,243 23,914
Diluted 26,044 25,970 26,002 25,945
DELCO REMY INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions)
July 31, July 31,
2000 1999
ASSETS
Current Assets
Cash and cash equivalents $17.8 $15.3
Trade accounts receivable, net 169.6 148.0
Inventories 268.1 232.2
Other current assets 41.9 33.4
Total Current Assets 497.4 428.9
Property and equipment, net 201.9 195.2
Goodwill, net 171.0 137.4
Deferred financing costs 9.5 11.2
Other assets 9.1 10.0
Total Assets $888.9 $782.7
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $139.8 $119.3
Other accrued liabilities 59.0 48.7
Accrued non-recurring charges 24.8 5.9
Current debt 4.7 12.6
Total Current Liabilities 228.3 186.5
Long-term debt 485.8 435.0
Other noncurrent liabilities 31.8 31.9
Minority interest in subsidiaries 25.2 19.8
Stockholders' Equity 117.8 109.5
Total Liabilities and Stockholders' Equity $888.9 $782.7
DELCO REMY INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
Twelve Month Period
Ended July 31
2000 1999
Operating activities:
Net income $12.4 $28.3
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 26.2 18.4
Amortization 7.1 5.2
Change in net working capital excluding
non-recurring charges (5.2) 0.6
Non-recurring charge 35.2 -
Cash payments for non-recurring charges (8.9) (14.9)
Other, net 4.2 5.5
Net cash provided by operating activities 71.0 43.1
Investing activities:
Acquisitions, net of cash acquired (68.0) (48.3)
Purchases of property and equipment (38.4) (25.1)
Net cash used in investing activities (106.4) (73.4)
Financing activities:
Net borrowings under revolving line of credit
and other 39.7 38.1
Distributions to minority interests (1.2) -
Net cash provided by financing activities 38.5 38.1
Effect of exchange rate changes on cash (0.6) (0.6)
Net increase in cash and cash equivalents 2.5 7.2
Cash and cash equivalents at beginning of year 15.3 8.1
Cash and cash equivalents at end of year $17.8 $15.3