ANDERSON, IN --
Remy International has reported its financial results for the three and twelve-month periods ending Dec. 31, 2005.
Net sales for the fourth quarter increased $63.3 million to $319.1 million,
a 24.7 percent increase, compared with $255.8 million reported in the corresponding
period last year. The increase reflects the impact of the Unit Parts Co.
acquisition in March 2005, as well as a 51.1 percent increase in powertrain sales and
a 10.4 percent increase in OEM sales. For the year, net
sales amounted to $1,229 million, a 16.9 percent increase, compared to $1,051.2
million in the same period last year.
The company reported an adjusted EBITDA (loss) for the fourth quarter of
$(0.2) million, a $23.2 decrease, compared to adjusted EBITDA of $23 million
in the fourth quarter 2004. The decline in adjusted EBITDA primarily reflects
lower selling prices and higher raw material costs. The decline also reflects
charges associated with the write-down of certain assets, an increase in the
reserve for an environmental matter and the costs associated with an
organizational realignment. For the full year 2005 the company reported
adjusted EBITDA of $38.1 million compared to $110.3 million reported in the
corresponding period last year.
The company reported an operating loss of $(24) million in the fourth
quarter 2005, compared with operating income of $17.2 million in the fourth
quarter 2004. For the year, the company reported an
operating loss of $(10.7) million compared with operating income of $86.3
million last year. The operating loss for the fourth quarter and the full
year 2005 includes a goodwill impairment charge of $13.9 million relating to
its core services business.
Net cash used in operating activities for the year was $(46.9) million, compared with $(9.4) million for the corresponding period last year. The company's liquidity as of Dec. 31 amounted to approximately $118 million, consisting of $99.8 million of availability on its senior credit facility in addition to unrestricted cash of $18.2 million on the balance sheet.
Results for the fourth quarter and the calendar year are
preliminary and may be revised prior to the filing of the company's 2005
annual report on Form 10K.
The company believes that 2006 sales and adjusted EBITDA will be in the
ranges of $1,275 to $1,300 million and $90-$110 million, respectively, with
adjusted EBITDA comprised of $60 - $80 million of operating income and about
$30 million of depreciation and amortization. The company expects net cash
provided by operating activities for 2006 will be in the range of $10 to $20
million including cash usage for restructuring payments. Capital expenditures
for 2006 are expected to be approximately $35 million.
For the first quarter of 2006, the company said it believes sales will be in the
range of $335-$340 million with an adjusted EBITDA of roughly $22-$24 million
consisting of operating income of approximately $15-$17 million and
depreciation and amortization of approximately $7 million. The company expects
cash usage will be approximately $15-$20 million, principally driven by
seasonal working capital and restructuring payouts. Capital expenditures are
expected to be $8 to $10 million for the quarter.
To learn more about Remy International, go to: http://www.remyinc.com .
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