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Remy International, Inc. Announces Fourth Quarter and Full Year 2012 Results
By: PR Newswire
Feb. 18, 2013 07:06 PM
PENDLETON, Ind., Feb. 18, 2013 /PRNewswire/ -- Remy International, Inc. (NASDAQ: REMY), a leading worldwide manufacturer, remanufacturer, and distributor of starters and alternators for light vehicle and commercial vehicle applications, locomotive products and hybrid electric motors, today announced its financial results for the fourth quarter and full year ended December 31, 2012.
Fourth Quarter Highlights
Full Year Highlights
"In spite of challenges in many of our markets, 2012 was a successful year for Remy. We delivered $1.1 billion in revenue and adjusted EBITDA of $153.5 million. We grew with key customers across the globe and built our backlog of new business. During the year, we signed significant contracts. We continued our growth with Asian customers and completed construction of a new facility in Wuhan, China that will be integral to our growth in the Chinese market. We also secured new business with wholesale distributor customers. While the hybrid market did not develop as anticipated, we are well positioned with all the major North American suppliers, and will be prepared as the market develops. We also accomplished a major milestone by becoming a publicly listed company on the NASDAQ stock market and initiated quarterly dividends for the first time in many years," stated John Weber, Remy International, Inc. President and Chief Executive Officer.
Fred Knechtel, Remy International, Inc. Chief Financial Officer, added, "Full year financial performance for the company was solid in spite of recession in Europe, slower than anticipated North American commercial vehicle market and currency headwinds. Our balance sheet continued to improve and is at its strongest point in over 10 years. The operational restructuring efforts improved our cost structure at the end of 2012."
Weber continued, "I recently announced my decision to transition from day-to-day management responsibilities as CEO. As I complete my seven year tenure at Remy, I'd like to thank the employees of Remy for accomplishing what we set out to do. Remy is a stable, profitably growing, industry leading global company whose best days are ahead. I'd also like to affirm the Board's choice of Jay Pittas to be President and CEO of Remy effective March 1, 2013. His Remy experience, industry knowledge, astute insight and unwavering integrity make him the right leader at this time for Remy. I will continue to serve on Remy's Board of Directors. As Remy's fourth largest shareholder, I will continue to help the company any way I can."
Jay Pittas added, "I believe I speak for everyone at Remy when I say that we could not have completed this remarkable turnaround without the passion and energy of John Weber. I am glad he will stay on the board at Remy. I am excited to help continue the success of Remy. I'm very proud of our Company. I believe we can grow our business globally and we can continue to take advantage of the changes and expansion of the transportation industry. We have the people, global resources, and the reputation to lead that change."
Founded by the Remy Brothers in 1896, Remy International, Inc. is a leading global manufacturer and remanufacturer of alternators, starter motors and electric traction motors. Headquartered in Pendleton, IN, with global operations across five continents and 10 countries, Remy International markets products under the Delco Remy® and Remy® brands. Known for innovation, efficiency, quality, and best-in-class customer service and support, Remy International's products are integrated by leading industrial, specialty, automotive and heavy-duty OEMs, and aftermarket providers worldwide. We Start the World & Keep It RunningTM.
Remy will host a call with investors and analysts to discuss fourth quarter and full year 2012 results on Tuesday, February 19, 2013, beginning at 9 a.m. Eastern Time. A live webcast of the conference call will be available on the Remy Investor Relations website at www.remyinc.com. The conference call replay will also be available via webcast through the Remy Investor Relations website at www.remyinc.com.
Use of Non-GAAP Financial Information
Generally Accepted Accounting Principles (GAAP) is the term used to refer to the standard framework of guidelines for financial accounting. GAAP includes the standards, conventions, and rules accountants follow in recording and summarizing transactions and in the preparation of financial statements. In addition to reporting financial results in accordance with GAAP, Remy has provided Adjusted EBITDA, a non-GAAP financial measure, which is frequently used by management, analysts, investors and other interested parties. Management believes that the non-GAAP financial measure presented provides a useful measure of Remy's financial performance since it excludes certain items which do not reflect ongoing operations including costs associated with restructuring costs, impairment of assets related to capital investments, interest on our debt and non-cash stock based compensation charges. Adjusted EBITDA is defined by the Company as net earnings before (i) interest expense, (ii) tax expense, (iii) depreciation and amortization expense, (iv) stock-based compensation expense, (v) net income attributable to noncontrolling interest, (vi) restructuring, other charges and other impairment charges, (vii) loss on extinguishment of debt, (viii) preferred stock dividends, (ix) loss on extinquishment of preferred stock, (x) and other adjustments. Adjusted EBITDA as defined by the Company may differ from non-GAAP measures used by other companies and is not a measurement under GAAP. Net debt is defined as short-term debt plus long-term debt less cash and cash equivalents. There are limitations inherent in non-GAAP financial measures in that they exclude a variety of charges and credits that are required to be included in a GAAP presentation, and therefore do not present the full measure of the Company's recorded costs against its revenue. Accordingly, in analyzing Remy's future financial performance, non-GAAP results presented should be considered together with GAAP results, rather than as an alternative to GAAP basis financial measures. Reconciliations of non-GAAP measures to related GAAP measures are presented below.
Forward Looking Statements
This press release contains forward-looking statements. Forward-looking statements provide our current expectations or forecasts of future events. Forward-looking statements include statements about our expectations, beliefs, plans, objectives, intentions, assumptions and other statements that are not historical facts. Such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from anticipated results. We undertake no obligation to publicly revise any forward-looking statement to reflect circumstances or events to reflect the new information, future events, or otherwise. The risks and uncertainties which forward-looking statements are subject to include, but are not limited to, future financial results and liquidity, development of new products and services, the effect of competitive products or pricing, the effect of commodity and raw material prices, the impact of supply chain cost management initiatives, restructuring risks, customs duty claims, litigation uncertainties and warranty claims, conditions in the automotive industry, foreign currency fluctuations, costs related to re-sourcing and outsourcing products, the effect of economic conditions, and other risks identified in the "Special note regarding forward-looking statements", "Risk Factors" and other sections of the Company S-1/A and other filings with the Securities and Exchange Commission.
A copy of the fourth quarter and full year 2012 Financial Report will be available on the Remy International Website at http://www.remyinc.com under Investor Relations.
Investor Contact: Eric Struik, Vice President of Finance
Adjusted EBITDA and net debt are not a measure of performance defined in accordance with accounting principles generally accepted in the United States (U.S. GAAP). We use adjusted EBITDA and net debt as a supplement to our U.S. GAAP results in evaluating our business. Other companies in our industry define adjusted EBITDA differently from us and, as a result, our measure is not comparable to similarly titled measures used by other companies in our industry.
Adjusted EBITDA is one of the key factors upon which we assess performance. As an analytical tool, adjusted EBITDA assists us in comparing our performance over various reporting periods on a consistent basis because it excludes items that we do not believe reflect our ongoing operating performance.
Adjusted EBITDA should not be considered as an alternative to net income as an indicator of our performance, as an alternative to net cash provided by operating activities as a measure of liquidity, or as an alternative to any other measure prescribed by U.S. GAAP. There are limitations to using non-U.S. GAAP measures such as adjusted EBITDA. Although we believe that adjusted EBITDA may make an evaluation of our operating performance more consistent because it removes items that do not reflect our ongoing operations, adjusted EBITDA excludes certain financial information that some may consider important in evaluating our performance.
The following table sets forth a reconciliation of adjusted EBITDA to its most directly comparable U.S. GAAP measure, net income attributable to common stockholders.
The following table shows the reconciliation of net debt outstanding to our U.S. GAAP balance sheet.
SOURCE Remy International, Inc.
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