ALPHARETTA, GA -- Exide Technologies has reported its financial results for its fiscal 2007 second quarter, which ended Sept. 30.
Consolidated net sales for the fiscal 2007 second quarter were $680.3 million versus $686.5 million for fiscal 2006 second quarter. The company had a net loss of $35.1 million or ($1.16) per share for the second quarter of 2007, compared with a net loss of $33 million or ($1.29) per share for the 2006 second quarter. The slight increase in net loss is primarily attributable to increased interest expense as a result of higher debt levels and higher interest rates related to amendments to a credit agreement made in the fourth quarter of fiscal 2006. Net loss per share for the second quarter of fiscal 2007 was impacted by higher weighted average shares outstanding as a result of the company’s $75 million rights offering and $50 million private sale of common stock.
Adjusted EBITDA in the second quarter of fiscal 2007 was $33.4 million, a 34 percent increase over fiscal 2006 adjusted EBITDA of $24.9 million. The increase in adjusted EBITDA is attributable to improved margins as a result of pricing actions, and a decrease in general and administrative expenses of approximately $6.7 million related to headcount reductions and other organizational and operational streamlining initiatives. These factors were partially offset, however, by higher lead costs.
Consolidated net sales for the first six months of fiscal 2007 were $1,363.5 million versus $1,355.8 million for the first six months of fiscal 2006. Excluding the favorable impact of exchange rates, sales were slightly down year-over-year principally due to lower unit volume in Exide's Transportation North America business driven by its pricing actions and soft network power demand in North America.
The company had a net loss of $73 million or ($2.61) per share for the first six months of 2007, compared with a net loss of $68.7 million or ($2.69) per share for the first six months of 2006. The increase in net loss is primarily attributable to an increase in restructuring charges of approximately $6.4 million driven principally by the April 2006 closing of the company’s automotive battery plant in Shreveport, LA, and to a $12.2 million increase in interest expense due to higher debt and higher rates resulting from the recent amendments to the company’s credit agreement. These were offset, to a degree, by improved operating results, the company said. Net loss per share was also impacted by an increase in weighted average shares outstanding as a result of the rights offering and private sale of common stock.
Combined adjusted EBITDA for the first six months of fiscal 2007 was $60.6 million, an increase of 38 percent over fiscal 2006 adjusted EBITDA of $44 million. The increase in adjusted EBITDA is attributable to improved margins as a result of pricing actions, slight reductions in selling, marketing, and advertising costs and savings of approximately $4.5 million in general and administrative expenses as a result of ongoing initiatives to streamline the organization. These savings were partially offset, however, by higher lead and fuel costs.
For more information about Exide, go to: http://www.exide.com.
