PENDLETON, Ind. -- Remy International has announced its operating results for the third quarter ending Sept. 30. Sales for the third quarter were $280 million, EBITDAR was $36.5 million and net income was $13.8 million.

In comparison, the company reported 2009 third quarter sales of $223.7 million, EBITDAR of $39.2 million and net income of $14.6 million. The 2009 third quarter reported results included a one-time $12 million non-cash gain relating to elimination of certain liabilities. Excluding this one-time event, 2009 EBITDAR was $27.3 million and net income was $2.6 million.

"Remy sales and profits continue to show dramatic improvement over last year. Our team is focused on growth through innovation, unparalleled customer service and operational excellence. We are well positioned as the global economy improves and demand increases," said John Weber, president and CEO.

Going forward, Remy says it will be reporting in two global business segments: aftermarket and OE. Aftermarket sales were up 3.8 percent compared to the same period in 2009. Aftermarket performance remains strong through operational productivity. OE sales were up 40 percent compared to the same period in 2009. This growth was led by increased global demand.

Net working capital (accounts receivable plus inventory less accounts payable) for the third quarter 2010 improved 3.2 percent from third quarter 2009 and increased 5.5 percent over 2009 year-end. Remy's cash balance improved $19 million in the third quarter 2010.

"Year to date Remy's continued focus on working capital and cash flow has generated $37 million in free cash flow. This allows for strategic investments and the opportunity to enhance our capital structure. With trailing twelve month EBITDAR of $137.3 million, enhanced cash flow and attractive capital markets, we believe it is an ideal time to refinance our debt. We have engaged several banks to assist us in this refinancing and plan to close by Dec. 23," said Fred Knechtel, Remy International CFO and treasurer.

Last quarter, Remy announced an exchange of preferred shares for newly issued shares of common stock. On Oct. 11, Remy suspended that solicitation.

On Nov. 8, the board approved a rights offering to allow holders of common shares to purchase equity in the company at $11 per share. Management intends to raise up to $237 million. These funds will be used to pay accrued dividends, redeem preferred shares and reduce debt. Current shareholders who participate in the rights offering will have the ability to maintain their percentage ownership in the company without dilution. Any shares unsubscribed in the first tranche of this offering will be re-offered to the participating shareholders on a pro-rata basis.

"I am confident that this is the best solution for all stakeholders. The board supports these transactions. They are committed to maximizing value. As required by our certificate, we will solicit common shareholder approval for any preferred redemption and/or share purchase by a ‘Related Party."’ Solicitation for shareholder approval begins this Thursday, Nov. 18 and we urge our common shareholders to respond quickly," added Weber.