Remy International, Inc. Announces Fourth Quarter and Full Year 2013 Results - Wandtv.com, NewsCenter17, StormCenter17, Central Illinois News-

Remy International, Inc. Announces Fourth Quarter and Full Year 2013 Results

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SOURCE Remy International, Inc.

PENDLETON, Ind., Feb. 12, 2014 /PRNewswire/ -- Remy International, Inc. (NASDAQ:REMY), a leading worldwide manufacturer, remanufacturer, and distributor of starters and alternators for light vehicle and commercial vehicle applications, locomotive products and hybrid electric motors, today announced its financial results for the fourth quarter and full year ended December 31, 2013.  

 

Financial Results

Three Months Ended December 31,


2013

2012

Net sales

$291.7 million

$268.3 million

Net income

$16.7 million

$16.5 million

Diluted earnings per share

$0.53

$0.51

Net cash provided by operating activities

$44.6 million

$26.8 million

Adjusted EBITDA

$38.9 million

$39.7 million





Years Ended December 31,


2013

2012

Net sales

$1,118.6 million

$1,133.5 million

Net income

$40.4 million

$141.4 million

Diluted earnings per share

$1.26

$4.47

Net cash provided by operating activities

$59.9 million

$65.8 million

Adjusted EBITDA

$136.4 million

$153.5 million

 

Fourth Quarter Highlights

  • Net sales of $291.7 million for the fourth quarter of 2013, an increase of 9% compared to $268.3 million for the fourth quarter of 2012
  • Adjusted EBITDA of $38.9 million for the fourth quarter of 2013, a decrease of 2% compared to $39.7 million for the fourth quarter of 2012
  • Net income was $16.7 million for the fourth quarter of 2013 compared to $16.5 million for fourth quarter of 2012

Full Year Highlights

  • Net sales of $1,118.6 million for 2013, a decline of 1% compared to $1,133.5 million for 2012
  • Adjusted EBITDA of $136.4 million for 2013, a decline of 11% compared to $153.5 million for 2012
  • Net income was $40.4 million for full year 2013 compared to $141.4 million for full year 2012
    • 2013 results included $7.0 million in executive separation cost, $4.3 million in loss on extinguishment of debt and refinancing fees and $4.1 million in restructuring and other charges
    • 2012 results included the reversal of a valuation allowance on certain deferred tax assets resulting in an income tax benefit of $89.4 million and $10.3 million in charges related to restructuring activities
  • Cash flow from operations of $59.9 million in 2013 compared to $65.8 million for 2012
  • During 2013, dividends of $0.40 per share were paid to common shareholders.

Fred Knechtel, Remy International, Inc. Sr. Vice President, CFO and Treasurer, added, "Our sales were off marginally from last year with new OE programs and increased aftermarket sales offsetting the reduction of  previously disclosed roll-off of programs with Remy content, and the continued softness of the North American commercial vehicle market.  Investments in China and Light Duty Aftermarket impacted results in 2013 but position us well for the coming year."

Jay Pittas, Remy International, Inc. President and CEO commented, "2013 was a successful year for Remy, anchored by our positive fourth quarter results.  We focused on winning new business, driving sustainable operational improvements, and aggressively controlling spending, while investing for growth in China and our Light Duty aftermarket. We made significant progress on all fronts.  The Remy team remains focused on driving superior long-term value for shareholders.  With healthy cash flows to support business investments, pay dividends, and fund potential M&A activities, I believe that we are well positioned with our expanded portfolio and quality products to grow our business."

About Remy

Founded by the Remy Brothers in 1896, Remy International, Inc. is a leading global manufacturer and remanufacturer of alternators, starter motors and electric traction motors.  Headquartered in Pendleton, IN, with global operations across five continents and 10 countries, Remy International markets products under the Delco Remy®, Remy®, and World Wide Automotive® brands.  Known for innovation, efficiency, quality, and best-in-class customer service and support, Remy International's products are integrated by leading industrial, specialty, automotive and heavy-duty OEMs, and aftermarket providers worldwide.  We Start the World & Keep It RunningTM.

Conference Call

Remy will host a call with investors and analysts to discuss fourth quarter and full year 2013 results on Thursday, February 13, 2014, beginning at 9 a.m. Eastern Time.  A live webcast of the conference call will be available on the Remy Investor Relations website at www.remyinc.com.   The conference call replay will also be available via webcast through the Remy Investor Relations website at www.remyinc.com.

Use of Non-GAAP Financial Information

Accounting principles generally accepted in the United States (U.S. GAAP) is the standard framework of guidelines for financial accounting. U.S. GAAP includes the standards, conventions, and rules accountants follow in recording and summarizing transactions and in the preparation of financial statements. In addition to reporting financial results in accordance with U.S. GAAP, Remy has provided Adjusted EBITDA, a non-U.S. GAAP financial measure, which is frequently used by management, analysts, investors and other interested parties. Management believes that the non-U.S. GAAP financial measure presented provides a useful measure of Remy's financial performance since it excludes certain items which do not reflect ongoing operations including costs associated with restructuring costs, impairment of assets related to capital investments, interest on our debt and non-cash stock-based compensation charges. Adjusted EBITDA is defined by the Company as net income attributable to common stockholders before (i) interest expense–net, (ii) income tax expense (benefit), (iii) depreciation and amortization, (iv) stock-based compensation expense, (v) net income attributable to noncontrolling interest, (vi) restructuring, other charges and other impairment charges, (vii) loss on extinguishment of debt and refinancing fees, (viii) executive officer separation cost and (ix) other adjustments. Adjusted EBITDA as defined by the Company may differ from non-U.S. GAAP measures used by other companies and is not a measurement under U.S. GAAP. There are limitations inherent in non-U.S. GAAP financial measures in that they exclude a variety of charges and credits that are required to be included in a U.S. GAAP presentation, and therefore do not present the full measure of the Company's recorded costs against its revenue. Accordingly, in analyzing Remy's future financial performance, non-U.S. GAAP results presented should be considered together with U.S. GAAP results, rather than as an alternative to U.S. GAAP basis financial measures. Reconciliations of non-U.S. GAAP measures to related U.S. GAAP measures are presented in the financial schedules which accompany this release.

Forward Looking Statements

This press release contains forward-looking statements. Forward-looking statements provide our current expectations or forecasts of future events. Forward-looking statements include statements about our expectations, beliefs, plans, objectives, intentions, assumptions and other statements that are not historical facts. Such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from anticipated results. We undertake no obligation to publicly revise any forward-looking statement to reflect circumstances or events to reflect the new information, future events, or otherwise. The risks and uncertainties which forward-looking statements are subject to include, but are not limited to, future financial results and liquidity, development of new products and services, the effect of competitive products or pricing, the effect of commodity and raw material prices, the impact of supply chain cost management initiatives, restructuring risks, customs duty claims, litigation uncertainties and warranty claims, conditions in the automotive industry, foreign currency fluctuations, costs related to re-sourcing and outsourcing products, the effect of economic conditions, and other risks identified in the "Special note regarding forward-looking statements", "Risk Factors" and other sections of the Company's previously filed most recent Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission.

A copy of the Annual Report on Form 10-K for the year ended December 31, 2013 will be available on the Remy International Website at http://www.remyinc.com under Investor Relations.

Investor Contact:  Fred Knechtel, Sr. Vice President, CFO and Treasurer
Knechtel.Fred@remyinc.com
(765) 778-6871

 

Remy International, Inc.


Index of consolidated financial information




Consolidated statements of operations (unaudited) for the three months ended December 31, 2013 and December 31, 2012

A-2

Consolidated statements of operations for the years ended December 31, 2013 (unaudited) and December 31, 2012

A-3

Reconciliation of non-GAAP financial measures (unaudited) for the three months and years ended December 31, 2013 and December 31, 2012

A-4

 

The accompanying unaudited consolidated financial information and reconciliation schedules should be read in conjunction with the Remy International, Inc. Annual Report on Form 10-K for the year ended December 31, 2012 and Quarterly Reports on Form 10-Q for the periods ended March 31, 2013, June 30, 2013 and September 30, 2013, each of which were filed with the United States Securities and Exchange Commission.

 

A-2

Remy International, Inc.

Consolidated statements of operations

(Unaudited)




Three months ended December 31,

(In thousands of dollars, except per share amounts)

2013

2012

Net sales

$

291,673


$

268,266


Cost of goods sold

230,615


208,901


Gross profit

61,058


59,365


Selling, general, and administrative expenses

32,088


31,629


Restructuring and other charges

(197)


1,307


Operating income

29,167


26,429


Interest expense–net

4,519


6,710


Income before income taxes

24,648


19,719


Income tax expense

7,957


3,181


Net income

16,691


16,538


Less net income attributable to noncontrolling interest

-


611


Net income attributable to common stockholders

$

16,691


$

15,927





Basic earnings per share:



Earnings per share

$

0.53


$

0.52


Weighted average shares outstanding

31,240


30,676


Diluted earnings per share:



Earnings per share

$

0.53


$

0.51


Weighted average shares outstanding

31,539


30,996


Dividends declared per common share

$

0.10


$

0.10


 

A-3

Remy International, Inc.

Consolidated statements of operations

(Unaudited)




Years ended December 31,

(In thousands of dollars, except per share amounts)

2013

2012

Net sales

$

1,118,580


$

1,133,547


Cost of goods sold

895,610


895,843


Gross profit

222,970


237,704


Selling, general, and administrative expenses

134,413


129,520


Restructuring and other charges

4,066


10,271


Operating income

84,491


97,913


Interest expense–net

19,957


27,757


Loss on extinguishment of debt and refinancing fees

4,256


-


Income before income taxes

60,278


70,156


Income tax expense (benefit)

19,924


(71,229)


Net income

40,354


141,385


Less net income attributable to noncontrolling interest

659


2,774


Net income attributable to common stockholders

$

39,695


$

138,611





Basic earnings per share:



Earnings per share

$

1.27


$

4.53


Weighted average shares outstanding

31,207


30,616


Diluted earnings per share:



Earnings per share

$

1.26


$

4.47


Weighted average shares outstanding

31,388


30,990


Dividends declared per common share

$

0.40


$

0.30


 

A-4
Remy International, Inc.
Reconciliation of non-GAAP financial measures
(Unaudited)

Adjusted EBITDA is not a measure of performance defined in accordance with U.S. GAAP. We use adjusted EBITDA as a supplement to our U.S. GAAP results in evaluating our business. Other companies in our industry define adjusted EBITDA differently from us and, as a result, our measure is not comparable to similarly titled measures used by other companies in our industry.

We define adjusted EBITDA as net income attributable to common stockholders before interest expense–net, income tax expense (benefit), depreciation and amortization, stock-based compensation expense, net income attributable to noncontrolling interest, restructuring, other charges and other impairment charges, loss on extinguishment of debt and refinancing fees, executive officer separation and other adjustments as set forth in the reconciliations provided below.

Adjusted EBITDA is one of the key factors upon which we assess performance. As an analytical tool, adjusted EBITDA assists us in comparing our performance over various reporting periods on a consistent basis because it excludes items that we do not believe reflect our ongoing operating performance.

Adjusted EBITDA should not be considered as an alternative to net income as an indicator of our performance, as an alternative to net cash provided by operating activities as a measure of liquidity, or as an alternative to any other measure prescribed by U.S. GAAP. There are limitations to using non-U.S. GAAP measures such as adjusted EBITDA. Although we believe that adjusted EBITDA may make an evaluation of our operating performance more consistent because it removes items that do not reflect our ongoing operations, adjusted EBITDA excludes certain financial information that some may consider important in evaluating our performance.

The following table sets forth a reconciliation of adjusted EBITDA to its most directly comparable U.S. GAAP measure, net income attributable to common stockholders.

 


Three months ended

 December 31,

Years ended December 31,

(in thousands)

2013

2012

2013

2012

Net income attributable to common stockholders

$

16,691


$

15,927


$

39,695


$

138,611


Adjustments:





Interest expense–net

4,519


6,710


19,957


27,757


Income tax expense (benefit)

7,957


3,181


19,924


(71,229)


Depreciation and amortization

8,003


10,050


33,770


38,060


Stock-based compensation expense

1,667


1,842


6,561


7,261


Net income attributable to noncontrolling interest

-


611


659


2,774


Restructuring and other charges

(197)


1,307


4,066


10,271


Loss on extinguishment of debt and refinancing fees

-


-


4,256


-


Executive officer separation

-


-


7,000


-


Other

243


99


494


24


  Total adjustments

22,192


23,800


96,687


14,918


Adjusted EBITDA

$

38,883


$

39,727


$

136,382


$

153,529




















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