Delco Remy Reports Pro Forma Sales and Earnings for Q3 of 2000
26 October 2000
Delco Remy International Reports Pro Forma Sales and Earnings for the Third Quarter of Calendar Year 2000
ANDERSON, Ind., Oct. 26 Delco Remy International, Inc.
, a leading supplier of aftermarket and OEM electrical systems and
powertrain/drivetrain products for automotive, heavy duty and industrial
applications, today reported pro forma sales and earnings for the third
quarter and nine months ending September 30, 2000.
Pro forma net sales for the third quarter were $267.7 million compared to
$261.1 million for the prior year. Sales growth was attributable to
acquisitions as well as new customers and strong market demand for the
Company's aftermarket products.
Pro forma net income for the third quarter was $7.5 million, or $.29 per
share, compared to pro forma net income of $6.7 million, or $.26 per share,
reported for the same period last year - increases of 11.9% and 11.5%,
respectively.
Pro forma net sales for the nine months ended September 30, 2000 were
$827.3 million compared to $756.7 million in the comparable period of 1999.
Pro forma net income, excluding a one-time charge for the realignment of
manufacturing facilities, was $26.3 million, or $1.01 per share, compared to
pro forma net income of $25.0 million, or $.96 per share, in 1999. Pro forma
net income, including the one-time charge, was $4.1 million, or $.16 per
share.
DELCO REMY INTERNATIONAL, INC.
UNAUDITED PRO FORMA
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except for per share data)
Three Month Period Nine Month Period
Ended September 30 Ended September 30
2000 1999 2000 1999
Net sales $267.7 $261.1 $827.3 $756.7
Cost of goods sold 213.2 207.2 647.2 596.6
Gross profit 54.5 53.9 180.1 160.1
Selling, general and
administrative expenses 26.3 28.0 88.8 79.6
Amortization of goodwill
and intangibles 1.6 1.6 4.6 4.0
Non-recurring charge - - 35.2 -
Operating income 26.6 24.3 51.5 76.5
Interest and other
non-operating expense (12.5) (11.7) (37.2) (35.9)
Income before income taxes,
minority interest in
income of subsidiaries
and income (loss) from
unconsolidated joint
ventures 14.1 12.6 14.3 40.6
Income tax expense 4.5 4.8 4.6 15.4
Minority interest in
income of subsidiaries (2.1) (2.0) (5.1) (3.9)
Income (loss) from
unconsolidated joint
ventures - 0.9 (0.5) 3.7
Net income $7.5 $6.7 $4.1 $25.0
Basic earnings per
common share $0.31 $0.28 $0.17 $1.04
Diluted earnings per
common share $0.29 $0.26 $0.16 $0.96
Adjusted net income:
Net income $7.5 $6.7 $4.1 $25.0
Non-recurring charge,
net of income tax
benefit - - 22.2 -
Adjusted net income $7.5 $6.7 $26.3 $25.0
Adjusted earnings per share:
Basic $0.31 $0.28 $1.09 $1.04
Diluted $0.29 $0.26 $1.01 $0.96
Weighted average shares
outstanding (thousands):
Basic 24,301 24,179 24,255 23,953
Diluted 26,044 25,955 26,010 25,939
DELCO REMY INTERNATIONAL, INC.
UNAUDITED PRO FORMA
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions)
September 30, December 31,
2000 1999
ASSETS
Current Assets
Cash and cash equivalents $15.2 $11.4
Trade accounts receivable, net 175.0 166.5
Inventories 286.6 244.8
Other current assets 42.8 33.4
Total Current Assets 519.6 456.1
Property and equipment, net 202.7 204.8
Goodwill, net 169.8 135.4
Deferred financing costs 9.1 10.5
Other assets 9.0 10.0
Total Assets $910.2 $816.8
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $146.5 $132.4
Other accrued liabilities 41.0 49.7
Accrued non-recurring charges 16.3 5.1
Current debt 7.3 5.6
Total Current Liabilities 211.1 192.8
Long-term debt 520.8 447.5
Other noncurrent liabilities 34.0 33.8
Minority interest in subsidiaries 27.6 22.9
Stockholders' Equity 116.7 119.8
Total Liabilities and
Stockholders' Equity $910.2 $816.8
DELCO REMY INTERNATIONAL, INC.
UNAUDITED PRO FORMA
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
Nine Month Period
Ended September 30
2000 1999
Operating activities:
Net income $4.1 $25.0
Adjustments to reconcile net
income to net cash provided
by operating activities:
Depreciation 19.5 15.4
Amortization 4.6 4.0
Change in net working capital (13.7) (8.6)
Other, net 4.8 9.2
Net cash provided by
operating activities 19.3 45.0
Investing activities:
Acquisitions, net of cash acquired (61.9) (15.3)
Purchases of property and equipment (23.7) (22.5)
Net cash used in
investing activities (85.6) (37.8)
Financing activities:
Net borrowings (repayments) under
revolving line of credit and other 71.9 (4.4)
Distributions to minority interests (1.2) -
Net cash provided by (used in)
financing activities 70.7 (4.4)
Effect of exchange rate
changes on cash (0.6) (0.5)
Net increase in cash
and cash equivalents 3.8 2.3
Cash and cash equivalents
at beginning of period 11.4 8.9
Cash and cash equivalents
at end of period $15.2 $11.2