2012-10-25 14:32:47 -
GREENVILLE, S.C. - October 25, 2012 -- AVX Corporation (NYSE: AVX) today
reported preliminary unaudited results for the second quarter ended September
30, 2012.
Chief Executive Officer and President, John Gilbertson, stated, "During the
quarter, the business performed well and maintained the gross profit margin in a
difficult economic environment. We are optimistic that the market demand will
provide more growth opportunities in the quarters ahead."
Net sales were $360.8 million for the quarter and net income was $28.0 million,
or $0.17 per diluted share.
On October 16, 2012, we announced that AVX has agreed to acquire the Tantalum
Components Division of Nichicon Corporation for approximately $86 million. The
all-cash purchase, which is expected to close before
the end of the fiscal year,
comprises tantalum component manufacturing subsidiaries in Shiga, Japan and
Tianjin, China. AVX Vice President of Tantalum Products, Peter Collis, stated,
"The acquisition of this well respected development and manufacturing
organization further expands our presence in Asia and particularly in the
growing automotive segment. It also provides AVX with an expanded tantalum
product offering that will continue to allow AVX to be the leader in the
Tantalum Component market."
For the six months ended September 30, 2012, net sales were $714.0 and net loss
was $108.7 million, or $0.64 per diluted share as a result of the special
environmental charge recorded in the quarter ended June 30, 2012. As announced
on October 10, 2012, we reached a $366.25 million financial settlement with
respect to the EPA's ongoing clean-up of New Bedford Harbor in Massachusetts.
The Company recorded a pre-tax charge of $266.25 million, or $0.98 per share on
an after-tax basis, related to this matter in the quarter ended June 30, 2012
and no additional charge related to the matter was required in the results for
the quarter ended September 30, 2012.
Net income, excluding the environmental charge, was $57.7 million, or $0.34 per
share, for the six months ended September 30, 2012.
Chief Financial Officer, Kurt Cummings, stated, "We have continued to generate
positive operating cash flows while focusing carefully on operating efficiencies
and strategic growth opportunities. 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 September 30, 2012.
During the quarter, we paid $12.7 million of dividends to stockholders and
spent $3.7 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 Six Months Ended
September 30, September 30,
2011 2012 2011 2012
-------------- -------------- ------------- --------------
Net sales $ 404,767 $ 360,823 $ 841,189 $ 713,977
Cost of sales 293,949 291,898 605,712 576,095
-------------- -------------- ------------- --------------
Gross profit 110,818 68,925 235,477 137,882
Selling, general & 29,307 29,670
59,364
admin. expense 60,414
Environmental -
266,250
charge - -
-------------- -------------- ------------- --------------
Profit (loss) from 81,511 39,255 175,063 (187,732)
operations
Other income 1,536
3,415
(expense) (27) 1,631
-------------- -------------- ------------- --------------
Income before 81,484 40,791 176,694 (184,317)
income taxes
Provision for 19,565 12,754
(75,570)
(benefit from) 47,176
taxes
-------------- -------------- ------------- --------------
Net income (loss) $ 61,919 $ 28,037 $ 129,518 $ (108,747)
-------------- -------------- ------------- --------------
Basic income $ 0.36 $ 0.17 $ 0.76 $ (0.64)
(loss) per share
Diluted income $ 0.36 $ 0.17 $ 0.76 $ (0.64)
(loss) per share
Weighted average
common
shares
outstanding:
169,968 169,221 170,053
169,374
Basic
170,181 169,248 170,369
169,374
Diluted
AVX CORPORATION
GAAP to Non-GAAP Reconciliation
(unaudited)
(in thousands, except per share data)
Three Months Ended Six Months Ended
September 30, September 30,
2011 2012 2011 2012
------ ------ ------ ------
Including
special charge
(GAAP)
Net sales $ 404,767 $ 360,823 $ 841,189 $ 713,977
------------- ------------- ------------ -------------
Net income
(loss) $ 61,919 $ 28,037 $ 129,518 $ (108,747)
------------- ------------- ------------ -------------
Basic income
(loss) per share $ 0.36 $ 0.17 $ 0.76 $ (0.64)
Diluted income
(loss) per share $ 0.36 $ 0.17 $ 0.76 $ (0.64)
Excluding
special charge
(Non-GAAP)
Special charge
(after-tax)
Environmental
charge $ - $ - $ - $ 166,406
------------- ------------- ------------ -------------
Net income $ 61,919 $ 28,037 $ 129,518 $ 57,659
------------- ------------- ------------ -------------
Basic income per
share $ 0.36 $ 0.17 $ 0.76 $ 0.34
Diluted income
per share $ 0.36 $ 0.17 $ 0.76 $ 0.34
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, September 30,
2012 2012
-------------------- ---------------
Assets
Cash and cash equivalents $ 395,284 $ 481,546
Short-term investments in securities 418,133 405,673
Accounts receivable, net 208,053 205,668
Inventories 566,117 544,401
Other current assets 139,558 148,227
-------------------- ---------------
Total current assets 1,727,145 1,785,515
Long-term investments in securities 238,112 203,746
Property, plant and equipment, net 236,488 238,300
Goodwill and other intangibles 240,928 238,732
Other assets 25,339 108,455
-------------------- ---------------
TOTAL ASSETS $ 2,468,012 $ 2,574,748
-------------------- ---------------
Liabilities and Stockholders' Equity
Accounts payable $ 103,797 $ 94,195
Income taxes payable and accrued 193,276 223,074
expenses
-------------------- ---------------
Total current liabilities 297,073 317,269
Other liabilities 50,186 281,590
-------------------- ---------------
TOTAL LIABILITIES 347,259 598,859
TOTAL STOCKHOLDERS' EQUITY 2,120,753 1,975,889
-------------------- ---------------
TOTAL LIABILITIES AND STOCKHOLDERS' $ 2,468,012 $ 2,574,748
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#1652119]
