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, 2012.
Fourth Quarter Highlights
- Net sales of $268.3 million for the fourth quarter of 2012, a decline of 6% compared to $284.7 million for the fourth quarter of 2011
- Adjusted EBITDA of $39.7 million for the fourth quarter of 2012, an improvement of 13% compared to $35.2 million for the fourth quarter of 2011
- Net earnings attributable to common shareholders were $15.9 million for the fourth quarter of 2012 compared to $11.9 million for fourth quarter of 2011
- Became a public reporting company in November and filed our first 10-Q
- Listed on NASDAQ Stock Exchange on December 13, 2012
- New business awarded during the quarter
- Dongfeng Peugeot Citroen and Shanghai GM alternator awards in China
- Hyundai starter award in North America
- Perkins motor award in China
- Renault OES award in Europe
- Mekonomen aftermarket business in Europe
Full Year Highlights
- Net sales of $1,133.5 million for 2012, a decline of 5% compared to $1,195.0 million for 2011
- Adjusted EBITDA of $153.5 million (13.5% of revenue), a decline of 11% compared to $172.4 million (14.4% of revenue) for 2011
0 2011 results included one-time commercial settlements of $7.3 million - Net earnings attributable to common shareholders were $138.6 million for full year 2012 compared to $62.2 million for full year 2011
o 2012 results included the reversal of a valuation allowance on certain deferred tax assets resulting in an income tax benefit of $89.4 million as well as
0 approximately $10.3 million of charges related to restructuring activities - Cash flow from operations of $65.8 million in 2012 compared to $69.5 million for 2011
- Reduced net debt outstanding by $34.2 million from 2011 year-end net outstanding debt of $219.5 million to 2012 year-end net outstanding debt of $185.3 million
- Secured new customer wins in the Original Equipment, Aftermarket and the Hybrid business
- Completed construction and began installing equipment at the Wuhan, China plant and engineering center to meet the demand of newly awarded business
- Completed plant closure of light duty aftermarket plant in Matehuala, Mexico
- Made significant progress closing original equipment plant in Mezokovesd, Hungary
- During the year, the Board commenced a quarterly dividend of $0.10 per share to common shareholders.
For the full year, dividends of $0.30 per share were paid to common shareholders.
| Financial Results | Three Months Ended | Three Months Ended |
| Dec. 31, 2012 | Dec. 31, 2011 | |
| Net sales | $ 268.3 million | $ 284.7 million |
| Net earnings attributable to common shareholders | $ 15.9 million | $ 11.9 million |
| Diluted earnings per share | $ 0.51 | $ 0.39 |
| Net cash provided by operating activities | $ 26.8 million | $ 15.2 million |
| Adjusted EBITDA | $ 39.7 million | $ 35.2 million |
| Twelve Months Ended | Twelve Months Ended | |
| Dec. 31, 2012 | Dec. 31, 2011 | |
| Net sales | $ 1,133.5 million | $ 1,195.0 million |
| Net earnings attributable to common shareholders | $ 138.6 million | $ 62.2 million |
| Diluted earnings per share | $ 4.47 | $ 2.10 |
| Net cash provided by operating activities | $ 65.8 million | $ 69.5 million |
| Adjusted EBITDA | $ 153.5 million | $ 172.4 million |
“In spite of challenges in many of our markets, 2012 was a successful year for Remy. We delivered $1.1 billion in revenue and adjusted EBITDA of $153.5 million. We grew with key customers across the globe and built our backlog of new business. During the year, we signed significant contracts. We continued our growth with Asian customers and completed construction of a new facility in Wuhan, China that will be integral to our growth in the Chinese market. We also secured new business with wholesale distributor customers. While the hybrid market did not develop as anticipated, we are well positioned with all the major North American suppliers, and will be prepared as the market develops. We also accomplished a major milestone by becoming a publicly listed company on the NASDAQ stock market and initiated quarterly dividends for the first time in many years,” stated John Weber, Remy International, Inc. President and Chief Executive Officer.
Fred Knechtel, Remy International, Inc. Chief Financial Officer, added, “Full year financial performance for the company was solid in spite of recession in Europe, slower than anticipated North American commercial vehicle market and currency headwinds. Our balance sheet continued to improve and is at its strongest point in over 10 years. The operational restructuring efforts improved our cost structure at the end of 2012.”
Weber continued, “I recently announced my decision to transition from day-to-day management responsibilities as CEO. As I complete my seven year tenure at Remy, I’d like to thank the employees of Remy for accomplishing what we set out to do. Remy is a stable, profitably growing, industry leading global company whose best days are ahead. I’d also like to affirm the Board’s choice of Jay Pittas to be President and CEO of Remy effective March 1, 2013. His Remy experience, industry knowledge, astute insight and unwavering integrity make him the right leader at this time for Remy. I will continue to serve on Remy’s Board of Directors. As Remy’s fourth largest shareholder, I will continue to help the company any way I can.”
Jay Pittas added, “I believe I speak for everyone at Remy when I say that we could not have completed this remarkable turnaround without the passion and energy of John Weber. I am glad he will stay on the board at Remy. I am excited to help continue the success of Remy. I’m very proud of our Company. I believe we can grow our business globally and we can continue to take advantage of the changes and expansion of the transportation industry. We have the people, global resources, and the reputation to lead that change.”
