PENDLETON, Ind. — Remy International has announced its operating results for the second quarter ended June 30. Sales for the second quarter were $303.5 million, adjusted EBITDA was $53.1 million and net income attributable to common stockholders was $30.7 million.
Remy says its second quarter results reflect the positive impact of a contract settlement with an OEM customer and an insurance settlement related to a prior period claim. Excluding these items, adjusted EBITDA was $45.8 million, and net income attributable to common stockholders was $23.4 million. In comparison, the company reported 2010 second quarter sales of $279.4 million, adjusted EBITDA of $39 million and net income attributable to common stockholders of $7.8 million.
"Remy continued to experience strong sales during April following record sales in the first quarter in both the original equipment and aftermarket sales channels," said John Weber, Remy International president and CEO. "As inventory days began to build for OEMs and aftermarket customers, we saw a relative softening of demand in May and June. Despite these market drivers, and even excluding the positive effects of one-time events in the quarter, Remy continues to show improvement in underlying performance over prior year periods."
Free cash flow in the second quarter 2011 was $48 million compared to $35.4 million in 2010. Working capital turns were 5.9. Several factors affected working capital in the second quarter including timing of customer payments and planned inventory increases to support forecasted sales growth. The delayed customer payments were collected in August and plans are in place to reduce inventory by the end of the fourth quarter.
"Our strong results allow us to pursue strategic initiatives and new product offerings including products featuring our leading hybrid technology. Remy’s recognized operational excellence provides the foundation to pursue further opportunities for geographic expansion, product extensions and new business alliances," added Weber.
