|
Milton, Georgia - (June 4, 2009) - Exide Technologies (NASDAQ: XIDE, www.exide.com), a global leader in stored electrical energy solutions, announced today its fiscal 2009 fourth quarter and full year financial results, for the periods ended March 31, 2009. Highlights of Fiscal 2009 Fourth Quarter and Full Year Results:
Fourth Quarter Consolidated Results Fiscal 2009 fourth quarter consolidated net sales were $654.3 million as compared to net sales of $1.03 billion in the fiscal 2008 fourth quarter. Net sales in the fiscal 2009 period were negatively impacted by foreign currency translation ($62 million), price reductions due to a 60% decline in average lead prices quarter over quarter ($102 million) and overall lower unit volumes ($212 million). The lower volume equates to an approximate 20% reduction in unit sales and is driven by lower original equipment builds in Transportation and Industrial Energy, lower capital spending in the Network channels and softer aftermarket volumes. Consolidated net loss for the fiscal 2009 fourth quarter was $64.4 million or ($0.85) per share compared to net income for the fiscal 2008 fourth quarter of $63.3 million or $0.80 per diluted share. The results for these comparable periods were impacted by the following items:
Excluding the impact of the above described, non-operational items, adjusted net loss for the fiscal 2009 fourth quarter was $2.2 million or ($0.03) per share. This compares with adjusted net income for the comparable prior year period of $22.5 million or $0.28 per share. A reconciliation of net income or loss and net income or loss per share to adjusted net income or loss and adjusted net income or loss per share is provided as an attachment to this release. Consolidated Adjusted EBITDA for the fiscal 2009 fourth quarter was $40.4 million as compared with Adjusted EBITDA of $80.1 million in the prior fiscal year fourth quarter. Although gross profit declined by $58.1 million in comparison to the prior fiscal year fourth quarter on lower volume, as a percent of net sales, margins increased to 18.4% in the fiscal 2009 fourth quarter, compared to 17.3% in the prior year period, a 110 basis point margin improvement. Gordon A. Ulsh, President and Chief Executive Officer, said, “We continued to drive improved gross margins in light of volume softness during the quarter by executing on our cost reduction, efficiency improvement and restructuring initiatives. These initiatives while providing benefit in this challenging quarter also lay the groundwork for stronger margins when market conditions improve.” Selling, general and administrative expenses for the fiscal 2009 fourth quarter decreased approximately 15% to $107.0 million versus the comparable prior year period of $126.6 million. Approximately $12.3 million of the decrease resulted from foreign currency translation. As previously announced, restructuring charges for the 2009 fiscal fourth quarter amounted to $43.6 million as we continue to right-size our global cost structure. Net interest expense decreased approximately 19% or $4.1 million to $17.1 million in the fiscal 2009 fourth quarter as compared to $21.2 million in the fiscal 2008 fourth quarter; a result of lower average net debt and the favorable impact of lower interest rates. At March 31, 2009, net debt decreased 6% to $588.7 million from $625.6 million at March 31, 2008. Factoring of European accounts receivable was reduced to $0.6 million at March 31, 2009 from $94.3 million at March 31, 2008. Fiscal 2009 Full Year Consolidated Results The Company reported a net loss for the 2009 fiscal year of $69.5 million or ($0.92) per share as compared to net income of $32.1 million or $0.46 per diluted share in the prior year period. Adjusted net income for fiscal 2009 was $47.3 million or $0.63 per share. This compares to an adjusted net income of $28.7 million or $0.41 per share for fiscal 2008. Refer to the attached reconciliation of net income or loss under Generally Accepted Accounting Principles to adjusted net income. Net sales for fiscal 2009 totaled $3.3 billion as compared with $3.7 billion for the prior fiscal year. Net sales for fiscal 2009 were negatively impacted by pricing reductions resulting from lead escalator arrangements of approximately $142 million, the result of a 42% decline in the average cost of lead in the current fiscal year when compared to the 2008 fiscal year. Additionally, net sales for fiscal 2009 were lower due to declining volumes of approximately 6% or $230 million as compared to fiscal 2008. Fiscal 2009 gross profit as a percent of net sales improved 250 basis points to 18.5% from 16.0% in the prior fiscal year. Adjusted EBITDA for fiscal 2009 increased 3.5% to $252.7 million versus $244.1 million in the comparable prior fiscal year. The increase in Adjusted EBITDA is the result of continued improvements in operational efficiencies and the retention of non-lead related pricing which have outweighed the impact of lower unit sales in most channels served by our businesses. Restructuring charges for fiscal 2009 totaled $63.3 million compared to $10.5 million in fiscal 2008. Mr. Ulsh stated, “The decisions taken to continue to adjust our cost base are certainly difficult ones, but are necessary to position the Company for continued improvements in earnings as the macro-economic environment improves. We expect the announced restructuring initiatives to produce annualized savings of approximately $70 million.” As of March 31, 2009, the Company had cash and cash equivalents of $69.5 million and $130.6 million availability under its bank revolving loan facility. This compares to cash and cash equivalents of $90.5 million and $136.4 million availability under the revolving loan facility at March 31, 2008. Free cash flow, which includes the negative impact of reducing by $94 million, the amount of European receivables factored was $19.4 million for fiscal 2009 as compared to a free cash flow burn of ($48.7) million for fiscal 2008. This increase is due to the increase in Adjusted EBITDA and improved working capital resulting from lower lead prices, partially offset by planned increases in restructuring and capital expenditures. Additionally, the Company pre-funded its fiscal 2010 pension contribution by approximately $25 million.
Transportation Segments Net sales of the Company’s combined Transportation segments in the fiscal 2009 fourth quarter were $418.1 million as compared to $636.2 million in the same period of fiscal 2008. Approximately $113 million of the decline in net sales is the result of lower unit volumes by both Transportation segments for OE production and aftermarket sales, as well as lower third party lead sales. A stronger dollar against most foreign currencies resulted in unfavorable currency translation of approximately $29.4 million. Price reductions resulting from lead escalator arrangements negatively impacted net sales by $75.8 million in the fiscal 2009 fourth quarter as compared to the fiscal 2008 period. Net sales for fiscal 2009 were $2.0 billion as compared to $2.3 billion for fiscal 2008. Adjusted EBITDA for the combined Transportation segments was $18.6 million in the fiscal 2009 fourth quarter versus $55.3 million in the comparable fiscal 2008 period. Adjusted EBITDA for the Transportation segments declined in the current fiscal quarter from the prior year period primarily due to lower sales volumes and lower profits from its recycling operations; the result of dramatically lower lead prices. Adjusted EBITDA for fiscal 2009 was $139.3 million versus $181.6 million for fiscal 2008. Industrial Energy Segments Fiscal 2009 fourth quarter total net sales for the Company’s combined Industrial Energy segments were $236.2 million as compared to $394.1 million in the comparable fiscal 2008 period. This decrease was primarily due to a 25% decline in unit volumes for both motive power and network power products in the fiscal 2009 fourth quarter as compared to the prior year period. Net sales were negatively impacted by unfavorable foreign currency translation of $32.4 million and lead related price reductions due to lead escalator arrangements of approximately $26.1 million over the prior year period. Net sales for fiscal 2009 were $1.3 billion compared to $1.4 billion for fiscal 2008. Total Adjusted EBITDA for the Industrial Energy segments in the fiscal 2009 fourth quarter totaled $30.8 million versus $37.5 million in the fiscal 2008 fourth quarter. This decrease is primarily due to lower sales volumes for motive power and network power products, partially offset by overall effective pricing actions and increased sales volumes in military markets. Adjusted EBITDA for fiscal 2009 was $144.4 million versus $100.9 million in the prior year period. Non-GAAP Financial Measures The Company uses Adjusted EBITDA as a key measure of its operational financial performance. This measure is the key indicator of the Company’s operational performance and excludes the nonrecurring impact of the Company’s current restructuring actions. Adjusted EBITDA is defined as earnings before interest, taxes, depreciation, amortization and restructuring charges. Our Adjusted EBITDA definition also adjusts reported earnings for the effect of non-cash currency remeasurement gains or losses, the non-cash gain or loss from revaluation of the Company’s warrants liability, impairment charges and non-cash gains or losses on asset sales as well as a specific exclusion for the loss on early extinguishment of debt recorded in the fiscal 2008 first quarter. Please refer to the reconciliations of net loss to EBIT and Adjusted EBITDA below. The Company calculates Adjusted Earnings Per Share by excluding from net income (loss) per diluted share certain items, such as non-cash tax valuation allowances, reorganization items related to the Company's prior bankruptcy proceedings and the non-cash gain or loss from revaluation of the Company's warrants liability. The Company also excludes the impact of restructuring charges incurred to improve its relative cost position when compared with the competition. Further, non-cash currency remeasurement gains and losses have been excluded as these are the result of financing as opposed to operating decisions. The Company believes that these measures are useful to investors and management because they allow investors to evaluate the Company's performance for different periods on a more comparable basis by excluding these non-operational items that the Company believes are not indicative of, or may obscure trends useful in evaluating, the Company's continuing operations. This supplemental presentation should not be construed as an inference that the Company's future results will be unaffected by similar adjustments to net income (loss) per share determined in accordance with GAAP. The Company also defines Free Cash Flow as cash from operating activities and cash from investing activities, both as measured in accordance with Generally Accepted Accounting Principles. We believe that Free Cash Flow provides useful information about the cash generated by our core operations after capital expenditures and the sale of non-core assets. All of the foregoing non−GAAP financial measures should be used in addition to, but not in isolation or as a substitute for, the analysis provided in the Company's measures of financial performance prepared in conformity with U.S. GAAP. The non-GAAP financial measures should be read only in conjunction with the Company's condensed consolidated financial statements prepared in accordance with GAAP.
The Company previously announced that it will hold a conference call to discuss its results on Friday, June 5, 2009 at 9:00 a.m. Eastern Time. Conference call details: Dial-in number for US/Canada: 877-296-1542
A telephonic replay of the conference call is available: Dates: from 12:00 p.m. ET June, 5 2009 to 11:59 p.m. ET June 19, 2009
Exide Technologies, with operations in more than 80 countries, is one of the world's largest producers and recyclers of lead-acid batteries. The Company's four global business groups -- Transportation Americas, Transportation Europe and Rest of World, Industrial Energy Americas and Industrial Energy Europe and Rest of World -- provide a comprehensive range of stored electrical energy products and services for industrial and transportation applications. Transportation markets include original-equipment and aftermarket automotive, heavy-duty truck, agricultural and marine applications, and new technologies for hybrid vehicles and automotive applications. Industrial markets include network power applications such as telecommunications systems, electric utilities, railroads, photovoltaic (solar-power related) and uninterruptible power supply (UPS), and motive-power applications including lift trucks, mining and other commercial vehicles. Further information about Exide, including its financial results, are available at www.exide.com.
Except for historical information, this press release may be deemed to contain “forward-looking” statements. The Company is including this cautionary statement for the express purpose of availing itself of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Examples of forward-looking statements include, but are not limited to, (a) projections of revenues, cost of raw materials, income or loss, earnings or loss per share, capital expenditures, growth prospects, dividends, the effect of currency translations, capital structure and other financial items, (b) statements of plans and objectives of the Company or its management or Board of Directors, including the introduction of new products, or estimates or predictions of actions by customers, suppliers, competitors or regulating authorities, (c) statements of future economic performance and (d) statements of assumptions, such as the prevailing weather conditions in the Company’s market areas, underlying other statements and statements about the Company or its business. Factors that could cause actual results to differ materially from these forward looking statements include, but are not limited to, the following general factors such as: (i) the fact that lead, a major constituent in most of the Company’s products, experiences significant fluctuations in market price and is a hazardous material that may give rise to costly environmental and safety claims, (ii) the Company’s ability to implement and fund business strategies based on current liquidity, (iii) the Company’s ability to realize anticipated efficiencies and avoid additional unanticipated costs related to its restructuring activities, (iv) the cyclical nature of the industries in which the Company operates and the impact of current adverse economic conditions on those industries, (v) unseasonable weather (warm winters and cool summers) which adversely affects demand for automotive and some industrial batteries, (vi) the Company’s substantial debt and debt service requirements which may restrict the Company’s operational and financial flexibility, as well as imposing significant interest and financing costs, (vii) the litigation proceedings to which the Company is subject, the results of which could have a material adverse effect on the Company and its business, (viii) the realization of the tax benefits of the Company’s net operating loss carry forwards, which is dependent upon future taxable income, (ix) competitiveness of the battery markets in the Americas and Europe, (x) risks involved in foreign operations such as disruption of markets, changes in import and export laws, currency restrictions, currency exchange rate fluctuations and possible terrorist attacks against U.S. interests, and (xi) the ability to acquire goods and services. Therefore, the Company cautions each reader of this press release carefully to consider those factors set forth above and those factors described in the Company’s annual report on Form 10-K filed on June 4, 2009. Such factors and statements have, in some instances, affected and in the future could affect the ability of the Company to achieve its projected results and may cause actual results to differ materially from those expressed herein. We undertake no obligation to update any forward-looking statements in this press release. Financial tables attached (137 KB PDF).
|
||
|