PENDLETON, Ind., Aug. 5, 2011 /PRNewswire/ -- Remy International, Inc., a leading worldwide manufacturer, remanufacturer, and distributor of starters and alternators for light vehicle and commercial vehicle applications, locomotive products and hybrid electric motors, announced today its operating results for the second quarter ended June 30, 2011. Sales for the second quarter were $303.5 million, Adjusted EBITDA was $53.1 million and Net income attributable to common stockholders was $30.7 million.
Remy's second quarter results reflect the positive impact of a contract settlement with an OEM customer and an insurance settlement related to a prior period claim. Excluding these items, Adjusted EBITDA was $45.8 million, and Net income attributable to common stockholders was $23.4 million.
In comparison, the Company reported 2010 second quarter sales of $279.4 million, Adjusted EBITDA of $39.0 million and Net income attributable to common stockholders of $7.8 million.
"Remy continued to experience strong sales during April following record sales in the first quarter in both the original equipment and aftermarket sales channels. As inventory days began to build for OEMs and aftermarket customers, we saw a relative softening of demand in May and June. Despite these market drivers, and even excluding the positive effects of one-time events in the quarter, Remy continues to show improvement in underlying performance over prior year periods," stated John Weber, Remy International President and Chief Executive Officer.
Free cash flow in the second quarter 2011 was $48.0 million compared to $35.4 million in 2010. Working capital turns were 5.9. Several factors affected working capital in the second quarter including timing of customer payments and planned inventory increases to support forecasted sales growth. The delayed customer payments were collected in August and plans are in place to reduce inventory by the end of the fourth quarter.
"Our strong results allow us to pursue strategic initiatives and new product offerings including products featuring our leading Hybrid technology. Remy's recognized operational excellence provides the foundation to pursue further opportunities for geographic expansion, product extensions and new business alliances," added John Weber, Remy International President and Chief Executive Officer.
Forward-Looking Statements:
This press announcement contains forecasts, projections, expectations, or opportunities regarding Remy that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from anticipated results, including, but 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 factors identified in Remy International statements.
In this document and in future releases, we will use the term Adjusted EBITDA to conform to Regulation-G. There is no difference between our prior calculation of EBITDAR and Adjusted EBITDA. Adjusted EBITDA" is defined by the Company as net income before (i) interest expense, (ii) tax expense, (iii) depreciation and amortization expense (excluding OID and DFC amortization), (iv) stock-based compensation expense, (v) net income attributable to noncontrolling interest and (vi) restructuring and other charges. Adjusted EBITDA as defined by the Company may differ from non-GAAP measures used by other companies and is not a measurement under GAAP. Management believes that using Adjusted EBITDA as a metric can enhance an overall understanding of the Company's expected financial performance from ongoing operations, and Adjusted EBITDA is used by management for that purpose. We believe that Adjusted EBITDA is frequently used by analysts, investors and other interested parties in evaluating companies such as ours and that it provides a useful measure of our financial performance since its use eliminates the effects of period to period changes in costs associated with restructuring costs and impairment of assets related to capital investments, interest on our debt and non-cash stock based compensation charges.
There are limitations inherent in non-GAAP financial measures such as Adjusted EBITDA in that they exclude a variety of charges and credits that are required to be included in a GAAP presentation, and do not therefore present the full measure of the Company's recorded costs against its revenue. Management compensates for these limitations in non-GAAP measures by also evaluating our performance based on traditional GAAP financial measures. Accordingly, in analyzing our future financial performance, investors should consider these non-GAAP results together with GAAP results, rather than as an alternative to GAAP basis financial measures.
Free Cash Flow is measured as Adjusted EBITDA less net Capital Expenditures.
Net working Capital is defined as Accounts Receivable plus Inventory less Accounts Payable.
A copy of the first quarter 2011 Financial Report is available on the Remy International Website at http://www.remyinc.com under Investor Relations.
Contact: Remy International
Media Contact: Fred Knechtel
Knechtel.fred@remyinc.com
(765) 778-6499
SOURCE Remy International, Inc.
