EVANSVILLE, Ind. – UCI Holdings Limited, parent company of UCI International Inc., has announced results for the third quarter ended Sept. 30, 2011. UCI Holdings reported net sales of $254.2 million for the quarter, up $12.7 million, or 5.3 percent, compared to the year-ago quarter. The company, a leading manufacturer of vehicle replacement parts, reported that net sales increased in the retail, OES (new car dealer service), OEM and heavy-duty channels, with a decline in the traditional channel.
 
Earnings before interest, taxes, depreciation and amortization, or EBITDA, as adjusted, was $42.3 million for the third quarter, compared with $43.9 million for the year-ago quarter. The reconciliation of net income (loss) to adjusted EBITDA, a non-GAAP measure of financial performance, is set forth in Schedule A.
 
Net income for the quarter was $2 million, including $1.7 million, net of tax, in special charges, consisting of business integration costs, patent and class action litigation costs, a valuation allowance for non-trade receivables, costs related to the UCI acquisition, and restructuring and severance costs, changes in the value of a swaption contract and costs of obtaining new business. Excluding these items, adjusted net income would have been $3.7 million for the quarter. Adjusted net income attributable to UCI for the third quarter of 2010 was $4.4 million, including $8.2 million, net of tax, in special charges, consisting primarily of a loss on early extinguishment of debt, patent and class action litigation costs, holding company non-operating costs and costs of obtaining new business.
 
“We are pleased to report another strong quarter, in both revenue and operations,” said Bruce Zorich, CEO of UCI. “While our sales continued to increase, both year-over-year and sequentially, miles driven have now declined in each of the last seven months compared to last year. Along with the uncertain economic climate, this data indicates that the sale of our replacement parts could be impacted.”
 
“Adjusted EBITDA grew sequentially, although it was slightly off last year’s performance,” continued Zorich. “We again saw lower margins on our sales of parts for newer model cars, but those margins moved up toward historical levels as our ‘make vs. buy’ initiatives in this area have begun to reap benefits. And we continually try to stay ahead of the curve by aggressively working on our overall cost structure.”
 
As of Sept. 30, 2011, the company’s cash on hand was $47.1 million, and total debt was $699.2 million.