2012-07-31 14:34:28 -
AVX Corporation Announces Preliminary First Quarter Results
GREENVILLE, S.C. - July 31, 2012 -- AVX Corporation (NYSE: AVX) today reported
preliminary unaudited results for the first quarter ended June 30, 2012.
Chief Executive Officer and President, John Gilbertson, stated, "During the
quarter, we executed well in a challenging market environment, generating a
gross profit margin of 19.5%. We are optimistic that the market demand will
increase later in the year as a result of an increase in order activity since
the prior quarter."
Net sales were $353.2 million for the quarter ended June 30, 2012.
As discussed in the Company's Annual Report on Form
10-K for the year ended
March 31, 2012, on April 18, 2012, the Environmental Protection Agency (EPA)
issued an enforcement order to the Company to implement certain remedial work at
the New Bedford Harbor Superfund Site in Massachusetts. An alleged legal
predecessor company, Aerovox Corporation, produced liquid filled capacitors
adjacent to the harbor from the late 1930's through the early 1970's. Subsequent
owners of the facility are dissolved or in bankruptcy. AVX itself has never
produced this type of capacitor, nor does it do so today. The Company has been
in mediation with the EPA and other government agencies in order to resolve this
matter. The Company recorded an additional pre-tax charge of $266 million, or
$0.98 per share on an after-tax basis, related to this matter in the results for
the fiscal quarter ended June 30, 2012 in order to increase its current estimate
of potential liability to $366 million.
As a result of the environmental charge, the Company had a net loss of $(136.8)
million, or $(0.81) per share, for the quarter ended June 30, 2012. Net income,
excluding the environmental charge, was $29.6 million, or $0.17 per share, for
the quarter ended June 30, 2012.
Chief Financial Officer, Kurt Cummings, stated, "Despite what continues to be a
challenging market environment, we have continued to generate positive operating
cash flows while focusing carefully on cost reductions and operating
efficiencies. The Company's financial position remains exceptionally strong with
cash, cash equivalents and short and long-term investments in securities of $1.1
billion and no debt at June 30, 2012. During the quarter, we paid $12.7 million
of dividends to stockholders and spent $1.8 million to repurchase shares of AVX
stock on the open market which are held as treasury stock."
AVX, headquartered in Greenville, South Carolina, is a leading manufacturer and
supplier of a broad line of passive electronic components and related products.
Please visit our website at www.avx.com.
AVX CORPORATION
Consolidated Condensed Statements of Income
(unaudited)
(in thousands, except per share data)
Three Months Ended
June 30,
2011 2012
------------------- ----------------
Net sales $ 436,422 $ 353,154
Cost of sales 311,763 284,197
------------------- ----------------
Gross profit 124,659 68,957
Selling, general & admin. expense 31,107 29,694
Environmental charge - 266,250
------------------- ----------------
Profit (loss) from operations 93,552 (226,987)
Other income 1,658 1,879
------------------- ----------------
Income before income taxes 95,210 (225,108)
Provision for taxes 27,611 (88,324)
------------------- ----------------
Net income (loss) $ 67,599 $ (136,784)
------------------- ----------------
Basic income (loss) per share $ 0.40 $ (0.81)
Diluted income (loss) per share $ 0.40 $ (0.81)
Weighted average common
shares outstanding:
Basic 170,139 169,528
Diluted 170,605 169,528
AVX CORPORATION
GAAP to Non-GAAP Reconciliation
(unaudited)
(in thousands, except per share data)
Three Months Ended
June 30,
2011 2012
-------------------- -----------------
Including special charge (GAAP)
Net Sales $ 436,422 $ 353,154
------------------ ---------------
Net income (loss) $ 67,599 $ (136,784)
------------------ ---------------
Basic income (loss) per share $ 0.40 $ (0.81)
Diluted income (loss) per share $ 0.40 $ (0.81)
Excluding special charge (Non-GAAP)
Special charge (after-tax)
Environmental charge $ - $ 166,406
------------------ ---------------
Net income $ 67,599 $ 29,622
------------------ ---------------
Basic income per share $ 0.40 $ 0.17
Diluted income per share $ 0.40 $ 0.17
In order to better understand the Company's short-term and long-term financial
trends, investors may find it helpful to consider results excluding the
environmental charge. The resulting non-GAAP financial measure provides
additional information to investors regarding the underlying business trends and
performance of the Company's ongoing operations and may be of assistance for
period-over-period comparisons of such operations. Management considers the
exclusion of such charges as part of its evaluation of the operating performance
of the Company. Investors should consider the non-GAAP measure as a supplement
to, and not as a substitute for, financial performance measures prepared in
accordance with GAAP. In addition, the non-GAAP financial measure may not be
similar to non-GAAP information presented by other companies. Detail of the
Company's non-GAAP measure is provided in the table above.
AVX CORPORATION
Consolidated Condensed Balance Sheets
(unaudited)
(in thousands)
March 31, June 30,
2012 2012
------------------- -----------
Assets
Cash and cash equivalents $ 395,284 $ 421,829
Short-term investments in securities 418,133 415,138
Accounts receivable, net 208,053 203,155
Inventories 566,117 541,404
Other current assets 139,558 137,205
------------------- -----------
Total current assets 1,727,145 1,718,731
Long-term investments in securities 238,112 254,304
Property, plant and equipment, net 236,488 229,884
Goodwill and other intangibles 240,928 239,830
Other assets 25,339 115,458
------------------- -----------
TOTAL ASSETS $ 2,468,012 $ 2,558,207
------------------- -----------
Liabilities and Stockholders' Equity
Accounts payable $ 103,797 $ 101,969
Income taxes payable and accrued expenses 193,276 210,228
------------------- -----------
Total current liabilities 297,073 312,197
Other liabilities 50,186 294,197
------------------- -----------
TOTAL LIABILITIES 347,259 606,394
TOTAL STOCKHOLDERS' EQUITY 2,120,753 1,951,813
------------------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS' $ 2,468,012 $ 2,558,207
EQUITY
------------------- -----------
This Press Release contains "forward-looking" information within the meaning of
the Private Securities Litigation Reform Act of 1995. All statements other than
statements of historical fact, including statements regarding industry prospects
and future results of operations or financial position, made in this Press
Release are forward-looking. The forward-looking information may include, among
other information, statements concerning our outlook for fiscal year 2013,
overall volume and pricing trends, cost reduction and acquisition strategies and
their anticipated results, expectations for research and development, and
capital expenditures. There may also be other statements of expectations,
beliefs, future plans and strategies, anticipated events or trends, and similar
expressions concerning matters that are not historical facts. Forward-looking
statements reflect management's expectations and are inherently uncertain. The
forward-looking information and statements in this Press Release are subject to
risks and uncertainties, including those discussed in our Annual Report on Form
10-K for fiscal year ended March 31, 2012, that could cause actual results to
differ materially from those expressed in or implied by the information or
statements herein. Forward-looking statements should be read in context with,
and with the understanding of, the various other disclosures concerning the
Company and its business made elsewhere in this Press Release as well as other
public reports filed by the Company with the SEC. You should not place undue
reliance on any forward-looking statements as a prediction of actual results or
developments.
Any forward-looking statements by the Company are intended to speak as of the
date thereof. We do not intend to update or revise any forward-looking statement
contained in this Press Release to reflect new events or circumstances unless
and to the extent required by applicable law. All forward-looking statements
contained in this Press Release constitute "forward-looking statements" within
the meaning of Section 21E of the United States Securities Exchange Act of 1934
and, to the extent it may be applicable by way of incorporation of statements
contained in this Press Release by reference or otherwise, Section 27A of the
United States Securities Act of 1933, each of which establishes a safe-harbor
from private actions for forward-looking statements as defined in those
statutes.
Contact:
AVX Corporation, Greenville
Kurt Cummings
864-967-9303
finance@avxus.com
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: AVX Corporation via Thomson Reuters ONE
[HUG#1630580]
