EVANSVILLE, Ind. — UCI Holdings Limited, parent company of UCI International Inc. (UCI), has announced results for the second quarter ended June 30.
The company reported that net sales for Holdings of $251.9 million for the three months ended June 30, 2011 was up $15.7 million, or 6.6 percent, compared to the year-ago quarter. Net sales increased in the retail, OES (new car dealer service) and OEM channels, with a decline in the traditional and heavy duty channels, the company said.
Earnings before interest, taxes, depreciation and amortization, or EBITDA, as adjusted, was $40.9 million for the second quarter, compared with $44.3 million for the year-ago quarter.
Net income for the quarter was $5.9 million, including $2 million, net of tax, in special charges, consisting primarily of costs related to the UCI acquisition (including merger and acquisition costs and inventory step up), restructuring and severance costs, patent and class action litigation costs, changes in the value of a “swaption” contract and costs of obtaining new business. Excluding these items, adjusted net income would have been $7.9 million for the quarter. Adjusted net income attributable to UCI for the second quarter of 2010 was $12.2 million, excluding $3.3 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.
“Net sales in the second quarter of 2011 continued to increase, both year-over-year and sequentially, particularly in our core retail market, as well as the OEM and OES channels,” said Bruce Zorich, CEO of UCI. “While our sales have held up well, the uncertain economic climate and continued high gas prices may adversely affect miles driven, which could impact the sale of our replacement parts.
“We also had another strong operating quarter, with adjusted EBITDA once again over $40 million,” added Zorich. “As we saw last quarter, however, some of our sales growth was in parts for newer model cars, more of which are purchased versus manufactured parts. Lower margins on those sales, as well as continued higher commodities costs and increased labor and benefits costs, tempered our results for the quarter. We have initiatives in place to address the ‘make vs. buy’ issue and, as always, we are aggressively working on our overall cost structure.”
As of June 30, the company’s cash on hand was $65.6 million, and total debt was $698.3 million.