PENDLETON, Ind. -- Remy International has announced its operating results for the first quarter ended March 31.
Sales for the first quarter were $306.4 million, adjusted EBITDA was $53.8 million and net income attributable to Remy International was $28.1 million. In comparison, the company reported 2010 first quarter sales of $260.4 million, adjusted EBITDA of $33.4 million and net income attributable to Remy International of $9.7 million.
Remy profited in the first quarter from several opportunities including increased commercial vehicle starter motor replacements due to extreme weather, inventory replenishment at certain customers and positive copper hedge positions.
"Remy experienced strong sales in both the original equipment and aftermarket sales channels. We enjoyed increased heavy duty product sales for both on-highway and off-highway commercial vehicle applications. Our strong aftermarket product sales for commercial vehicle applications were driven by extreme winter weather conditions and increased freight miles driven. Light duty aftermarket product sales growth was a result of customer inventory replenishment and share gain by customers. Light duty original equipment product sales outpaced light vehicle production growth across the major markets. We continued to effectively contain costs so incremental sales are contributing materially to bottom line results," said John Weber, Remy International president and CEO.
Net working capital turns of 6.4 for the first quarter 2011 increased 7.3 percent from first quarter 2010. Free cash flow in the first quarter 2011 was $50.2 million compared to $30.3 million in 2010. Remy's cash balance improved $16.8 million in the first quarter 2011.
"In January, we closed a $217 million rights offering with our existing shareholders," added Fred Knechtel, Remy International SVP and CFO. "The proceeds of the offering were used to call and redeem Remy's Preferred Stock, pay down debt and increase cash reserves. These transactions enhance our capital structure and provide us with the necessary liquidity and financial flexibility to grow the company."
