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UCI Holdings Limited Reports Results of Operations for First Quarter 2011
May 26, 2011
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By aftermarketNews staff
EVANSVILLE, Ind. — UCI Holdings Limited, the parent company of UCI International Inc., announced results for the first quarter ended March 31, 2011.

Combined net sales for Holdings and UCI of $245.6 million for the three months ended March 31, 2011, was up $15.3 million, or 6.6 percent, compared to the year-ago quarter. The company, a leading manufacturer of vehicle replacement parts, reported that net sales increased in the retail, OEM and heavy duty channels, with a decline in the traditional and OES (new car dealer service) channels.

Combined earnings before interest, taxes, depreciation and amortization (EBITDA), as adjusted, was $36.1 million for the first quarter, compared with $40.7 million for the year-ago quarter.

The combined net loss for the quarter was $48.1 million, including $53.1 million, net of tax, in special charges, consisting primarily of costs related to the UCI acquisition (including merger and acquisition costs, loss of early extinguishment of debt, debt commitment fees and inventory step up), other integration costs, stock compensation expense, patent and class action litigation costs, costs of obtaining new business and restructuring and severance costs. Excluding these items, adjusted net income would have been $5.0 million for the quarter. Adjusted net income attributable to UCI for the first quarter of 2010 was $10.2 million, excluding $3.6 million, net of tax, in special charges, consisting of restructuring and severance costs, patent and class action litigation costs, holding company non-operating costs and costs of obtaining new business.

“We continued showing revenue growth in the first quarter of 2011, particularly in our core retail market, as well as the heavy duty and OEM channels,” said Bruce Zorich, chief executive officer of UCI. “Near record gas prices, however, have begun to affect miles driven which, in turn is impacting the sale of replacement parts. On the operating side, while we had another strong quarter, our costs of sales were affected by a higher mix of purchased versus manufactured parts, higher commodities costs and increased labor and benefits costs. We continue to work diligently on our cost structure to offset these issues.”

As of March 31, 2011, the company’s cash on hand was $47.5 million, and total debt was $698.8 million.