ALPHARETTA, Ga., Nov. 6, 2008 (GLOBE NEWSWIRE) -- Exide Technologies (Nasdaq:XIDE) (www.exide.com), a global leader in stored electrical energy solutions, announced today its financial results for its fiscal 2009 second quarter, which ended September 30, 2008.
Highlights of Fiscal 2009 Second Quarter and Year-to-Date Results:
* Second quarter Adjusted EBITDA improved 36% to $68.2 million; resulting in Adjusted EBITDA of $139.3 million year-to-date, a 57% improvement; * Generated free cash flow of $45.9 million and $90.7 million in the three and six month periods ended September 30, 2008, respectively, as compared with free cash flow burn of ($40.8) million and ($107.6) million in the comparable periods of fiscal 2008; and * Adjusted earnings (loss) per share for the fiscal 2009 second quarter is $0.24 versus ($0.05) in the second quarter of fiscal 2008.
Second Quarter Consolidated Results
Fiscal 2009 second quarter consolidated net sales increased 6% to $914.2 million as compared to net sales of $861.9 million in the fiscal 2008 second quarter. The fiscal 2009 second quarter net sales were positively impacted by favorable foreign currency translation of $39.9 million or 4.4%. Favorable pricing in all divisions served to offset volume softness.
Consolidated net loss for the fiscal 2009 second quarter was $10.2 million or ($0.14) per share compared to a net loss for the fiscal 2008 second quarter of $14.8 million or ($0.24) per share. The net losses for these comparable periods are impacted by the following items:
1. The results of the fiscal 2009 second quarter include currency
remeasurement losses, net of tax, in the amount of $17.9 million
or ($0.24) per share, while the results of the fiscal 2008 second
quarter include currency remeasurement income of $8.9 million,
net of tax, or $0.14 per share.
2. Both periods include unrealized gains from revaluation of our
warrants liability with the current period impact being $9.2
million or $0.12 per share as compared with $1.5 million or $0.02
per share in the prior year period.
3. The fiscal 2009 second quarter's results include restructuring
charges of $9.2 million, net of tax, or ($0.12) per share. These
charges are principally the result of an accelerated reduction in
force program in Europe and Australia. This amount compares with
net of tax restructuring charges in the second quarter of the
prior year in the amount of $2.5 million or ($0.04) per share.
4. The Company's tax provision and resulting effective tax rate
continue to be impacted by losses in tax jurisdictions in which
the Company has recorded valuation allowances and therefore does
not record a tax benefit. The current quarter's provision was
negatively impacted by $10.5 million or ($0.14) per share due to
valuation allowance increases. This compares with a $2.1 million
or ($0.03) per share valuation allowance increase in the prior
year period. The prior year quarter also included a non-cash tax
charge of $16.7 million or ($0.27) per share resulting from an
adjustment to the Company's net deferred tax asset in Germany to
recognize the impact of a lower corporate tax rate.
Excluding the impact of the above-described, non-operational items, adjusted net income for the fiscal 2009 second quarter was $18.5 million, or $0.24 per share. This compares with adjusted net loss for the comparable prior year period of $3.1 million or ($0.05) per share. A reconciliation of net loss and net loss per share to non-GAAP adjusted net income or loss and adjusted net income or loss per share is provided at the end of this release.
Consolidated Adjusted EBITDA for the fiscal 2009 second quarter was $68.2 million as compared with Adjusted EBITDA of $50.0 million in the prior year quarter. This improvement was driven by gross profit, which increased $31.6 million to $161.9 million, or 17.7% of net sales in the current year fiscal second quarter, compared to $130.3 million, or 15.1% of net sales in the prior year period. The improvement in gross profit is the result of continued focus on cost efficiencies, positive net pricing actions as well as a $5.9 million favorable impact of foreign currency translation, partially offset by rising non-lead commodity costs. Gordon A. Ulsh, President and Chief Executive Officer said, "We remain focused on improving operational efficiencies and driving down costs and are pleased with the progress made in improving gross profit this quarter. We believe the actions and initiatives implemented in the past several quarters to improve productivity and reduce costs have positioned us well to face the current macro-economic headwinds."
Selling, general and administrative expenses for the fiscal 2009 second quarter increased to $123.2 million versus the prior year period of $107.9 million. Approximately $4.5 million of the increase resulted from foreign currency translation. The remainder of the increase was driven by increased spending on targeted marketing efforts, the hiring of additional commercial resources in our Industrial Energy Americas division, our increased focus on engineering and R&D and an increase in the Company's provision for bad debts resulting from the bankruptcy filing of a certain transportation aftermarket customer in Europe.
Net interest expense decreased 13% or $2.9 million to $18.4 million in the fiscal 2009 second quarter as compared to $21.3 million in the fiscal 2008 second quarter as a result of the favorable impact of lower interest rates and lower average net debt. At September 30, 2008, net debt decreased 10% to $522.3 million from $580.6 million at June 30, 2008.
Fiscal 2009 Six Month Consolidated Results
The Company reported a net loss for the six months ended September 30, 2008 of $20.5 million or ($0.27) per share as compared to a net loss of $50.5 million or ($0.82) per share in the prior year period. Adjusted net income for the six months ended September 30, 2008 was $31.5 million or $0.42 per share. This compares to an adjusted net loss of $7.0 million or ($0.11) per share for the prior year six month period. A reconciliation of net loss and net loss per share to non-GAAP adjusted net income or loss and adjusted net income or loss per share is provided at the end of this release.
Net sales for the first six months of fiscal 2009 aggregated $1.89 billion as compared with $1.62 billion for the prior year period. Excluding the effect of favorable foreign currency translation, net sales increased 9% over the prior year period. EBIT for the first six months of fiscal 2009 was $44.0 million compared to an EBIT of $15.0 million in the prior year period. This improvement is the result of increased operational efficiencies. Adjusted EBITDA for the six months ended September 30, 2008 increased 57% to $139.3 million versus $89.0 million in the comparable prior year period. Excluding the effect of foreign currency translation, Adjusted EBITDA improved 51%, again, due to increased operational efficiencies.
As of September 30, 2008, the Company had cash and cash equivalents of $170.0 million and $146.7 million availability under its bank revolving loan facility. This compares to cash and cash equivalents of $90.5 million and $136.4 million availability under the revolving loan facility at March 31, 2008. Free cash flow was a positive $90.7 million for the six months ended September 30, 2008 as compared to a free cash flow burn of ($107.6) million for the same period of fiscal 2008. This increase is due to the increase in Adjusted EBITDA and improved working capital, offset by an increase in capital expenditures.
Segment Information for the Three and Six Months Ended September 30
Transportation Segments
Net sales of the Company's combined Transportation segments increased by 5.4% to $561.0 million in the fiscal 2009 second quarter from $532.3 million in the comparable fiscal 2008 period. Excluding the favorable impact of $18.4 million in foreign currency translation, net sales in the fiscal 2009 second quarter grew by $10.3 million or 2% over the prior year period due to favorable pricing actions on slightly lower overall unit volumes in both Transportation segments. Net sales for the first six months of fiscal 2009 increased $147.1 million to $1.14 billion as compared to $996.1 million for the same period of fiscal 2008.
Adjusted EBITDA for the combined Transportation segments was $36.2 million in the fiscal 2009 second quarter versus $42.2 million in the comparable fiscal 2008 period. Adjusted EBITDA for Transportation Americas improved in the current quarter over the prior year period primarily as the result of favorable pricing actions, partially offset by lower unit volumes. Transportation Europe and Rest of World Adjusted EBITDA declined in the 2009 fiscal second quarter when compared to the prior year primarily due to lower unit volumes and higher raw material costs. Adjusted EBITDA for the first six months of fiscal 2009 was $77.4 million versus $73.5 million for the comparable fiscal 2008 period.
Industrial Energy Segments
Fiscal 2009 second quarter total net sales for the Company's Industrial Energy segments were $353.2 million up from $329.6 million in the comparable fiscal 2008 period, a 7% increase. This increase is primarily due to favorable currency translation of $21.4 million over the prior year period. Net sales were also impacted by favorable pricing actions in both the network and motive power markets worldwide. Net sales for the first six months of fiscal 2009 were $742.2 million compared to $628.3 million for the same period of fiscal 2008.
Total Adjusted EBITDA for the Industrial Energy segments in the fiscal 2009 second quarter increased $22.8 million to $39.6 million versus $16.8 million in the fiscal 2008 second quarter. This increase is primarily due to effective pricing in all markets combined with increased unit volumes in the network power market. Adjusted EBITDA for the first six months of fiscal 2009 was $76.0 million versus $33.7 million in the prior year period. Mr. Ulsh stated, "Both the fiscal 2009 second quarter and year-to-date improvement in Adjusted EBITDA are the result of continued effective pricing as lead has declined as well as our ongoing efforts to improve our efficiencies and cost position through Take Charge! and restructuring initiatives."
Non-GAAP Financial Measures
The Company uses Adjusted EBITDA as a key measure of its operational financial performance. This measure is the key indicator of the Company's operational performance and excludes the nonrecurring impact of the Company's current restructuring actions. Adjusted EBITDA is defined as earnings before interest, taxes, depreciation, amortization and restructuring charges. Our Adjusted EBITDA definition also adjusts reported earnings for the effect of non-cash currency remeasurement gains or losses, the non-cash gain or loss from revaluation of the Company's warrants liability, impairment charges and non-cash gains or losses on asset sales as well as a specific exclusion for the loss on early extinguishment of debt recorded in the fiscal 2008 first quarter. Please refer to the reconciliations of net loss to EBIT and Adjusted EBITDA in the attachments to this release.
The Company calculates Adjusted Earnings Per Share by excluding from net income (loss) per share certain items, such as non-cash tax valuation allowances, reorganization items related to the Company's bankruptcy proceedings and the non-cash gain or loss from revaluation of the Company's warrants liability. The Company also excludes the impact of restructuring charges incurred to improve its relative cost position when compared with the competition. Further, non-cash currency remeasurement gains and losses have been excluded as these are the result of financing as opposed to operating decisions. The Company believes that these measures are useful to investors and management because they allow investors to evaluate the Company's performance for different periods on a more comparable basis by excluding these nonrecurring items that the Company believes are not indicative of, or may obscure trends useful in evaluating, the Company's continuing operations. This supplemental presentation should not be construed as an inference that the Company's future results will be unaffected by similar adjustments to net income (loss) per share determined in accordance with GAAP.
The Company also defines Free Cash Flow as cash from operating activities and cash from investing activities, both as measured in accordance with Generally Accepted Accounting Principles. We believe that Free Cash Flow provides useful information about the cash generated by our core operations after capital expenditures and the sale of non-core assets.
All of the foregoing non-GAAP financial measures should be used in addition to, but not in isolation or as a substitute for, the analysis provided in the Company's measures of financial performance prepared in conformity with U.S. GAAP. The non-GAAP financial measures should be read only in conjunction with the Company's condensed consolidated financial statements prepared in accordance with GAAP.
Conference Call
The Company previously announced that it will hold a conference call to discuss its results on November 7, 2008 at 10:00 a.m. Eastern Time.
Conference call details:
Dial-in number for US/Canada: 877-296-1542 Dial-in number for
international callers: 706-679-5918
Conference ID: 67739550
A telephonic replay of the conference call is available:
Dates: from 1:00 p.m. ET November 7, 2008 to
11:59 p.m. ET November 21, 2008
Domestic dial-in: 800-642-1687
International dial-in: 706-645-9291
Passcode: 67739550
Exide Technologies Investor Day
The Company will host the meeting at its automotive battery manufacturing facility in Bristol, Tennessee on Tuesday, November 18, 2008. Exide management will discuss its operational performance followed by a tour of the facility. Please contact Carol Knies at 678-566-9316 or email carol.knies@exide.com if interested in attending the Analyst Day event.
About Exide Technologies
Exide Technologies, with operations in more than 80 countries, is one of the world's largest producers and recyclers of lead-acid batteries. The Company's four global business groups -- Transportation Americas, Transportation Europe and Rest of World, Industrial Energy Americas and Industrial Energy Europe and Rest of World -- provide a comprehensive range of stored electrical energy products and services for industrial and transportation applications.
Transportation markets include original-equipment and aftermarket automotive, heavy-duty truck, agricultural and marine applications, and new technologies for hybrid vehicles and automotive applications. Industrial markets include network power applications such as telecommunications systems, electric utilities, railroads, photovoltaic (solar-power related) and uninterruptible power supply (UPS), and motive-power applications including lift trucks, mining and other commercial vehicles.
Further information about Exide, including its financial results, are available at www.exide.com.
Forward-Looking Statements
Except for historical information, this press release may be deemed to contain "forward-looking" statements. The Company desires to avail itself of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 (the "Act") and is including this cautionary statement for the express purpose of availing itself of the protection afforded by the Act. The Company undertakes no obligation to publicly update or revise any forward-looking statement in this or any prior forward-looking statements whether as a result of new information, future developments or otherwise.
Examples of forward-looking statements include, but are not limited to, (a) projections of revenues, cost of raw materials, income or loss, earnings or loss per share, capital expenditures, growth prospects, dividends, the effect of currency translations, capital structure and other financial items, (b) statements of plans and objectives of the Company or its management or Board of Directors, including the introduction of new products, or estimates or predictions of actions by customers, suppliers, competitors or regulating authorities, (c) statements of future economic performance and (d) statements of assumptions, such as the prevailing weather conditions in the Company's market areas, underlying other statements and statements about the Company or its business.
Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following general factors such as: (i) the Company's ability to implement and fund based on current liquidity business strategies and restructuring plans, (ii) unseasonable weather (warm winters and cool summers) which adversely affects demand for automotive and some industrial batteries, (iii) the Company's substantial debt and debt service requirements which may restrict the Company's operational and financial flexibility, as well as imposing significant interest and financing costs, (iv) the litigation proceedings to which the Company is subject, the results of which could have a material adverse effect on the Company and its business, (v) the realization of the tax benefits of the Company's net operating loss carry forwards, which is dependent upon future taxable income, (vi) the fact that lead, a major constituent in most of the Company's products, experiences significant fluctuations in market price and is a hazardous material that may give rise to costly environmental and safety claims, (vii) competitiveness of the battery markets in North America and Europe, (viii) risks involved in foreign operations such as disruption of markets, changes in import and export laws, currency restrictions, currency exchange rate fluctuations and possible terrorist attacks against U.S. interests, (ix) general economic conditions, (x) the ability to acquire goods and services and/or fulfill labor needs at budgeted costs, (xi) the Company's reliance on a single supplier for its polyethylene battery separators, (xii) the Company's ability to successfully pass along increased material costs to its customers, (xiii) the loss of one or more of the Company's major customers for its industrial and transportation products; (xiv) recently adopted U.S. lead emissions standards and the implementation of such standards by applicable states; and (xv) the ability of the Company's customers to pay for products and services in light of liquidity constraints resulting from global economic conditions and restrictive credit markets.
Therefore, the Company cautions each reader of this press release carefully to consider those factors set forth above and those factors described in the Company's Form 10-K filed on June 9, 2008 and its Form 10-Q filed on November 6, 2008, because such factors have, in some instances, affected and in the future could affect, the ability of the Company to achieve its projected results and may cause actual results to differ materially from those expressed herein.
EXIDE TECHNOLOGIES AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per-share data)
For the Three For the Six
Months Ended Months Ended
------------------ ----------------------
September 30, September 30,
2008 2007 2008 2007
-------- -------- ---------- ----------
NET SALES $914,174 $861,942 $1,885,449 $1,624,329
COST OF SALES 752,290 731,594 1,554,085 1,375,313
-------- -------- ---------- ----------
Gross profit 161,884 130,348 331,364 249,016
-------- -------- ---------- ----------
EXPENSES:
Selling, marketing and
advertising 79,670 68,299 158,526 136,633
General and administrative 43,488 39,617 90,659 83,266
Restructuring 9,655 2,550 11,878 4,682
Other expense (income), net 16,692 (10,520) 24,515 (14,061)
Interest expense, net 18,401 21,271 37,626 42,623
Loss on early
extinguishment of debt -- -- -- 21,342
-------- -------- ---------- ----------
167,906 121,217 323,204 274,485
-------- -------- ---------- ----------
Income (loss) before
reorganization items,
income taxes, and minority
interest (6,022) 9,131 8,160 (25,469)
REORGANIZATION ITEMS, NET 472 769 935 1,211
INCOME TAX PROVISION 3,408 22,696 26,878 22,913
MINORITY INTEREST 334 495 894 918
-------- -------- ---------- ----------
Net loss $(10,236) $(14,829) $ (20,547) $ (50,511)
======== ======== ========== ==========
NET LOSS PER SHARE
-------- -------- ---------- ----------
Basic and Diluted $ (0.14) $ (0.24) $ (0.27) $ (0.82)
======== ======== ========== ==========
WEIGHTED AVERAGE SHARES
-------- -------- ---------- ----------
Basic and Diluted 75,455 61,717 75,416 61,496
======== ======== ========== ==========
EXIDE TECHNOLOGIES AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands, except per-share data)
Sept. 30, March 31,
2008 2008
----------- -----------
ASSETS
Current assets:
Cash and cash equivalents $ 169,899 $ 90,547
Receivables, net of allowance for
doubtful accounts of $32,378 and
$33,630 601,504 782,944
Inventories 534,504 583,593
Prepaid expenses and other 18,067 17,829
Deferred financing costs, net 5,014 5,215
Deferred income taxes 37,280 36,853
----------- -----------
Total current assets 1,366,268 1,516,981
----------- -----------
Property, plant and equipment, net 593,391 649,526
----------- -----------
Other assets:
Other intangibles, net 186,896 206,283
Investments in affiliates 4,652 6,523
Deferred financing costs, net 14,899 18,071
Deferred income taxes 41,969 51,238
Other 46,345 42,774
----------- -----------
294,761 324,889
----------- -----------
Total assets $ 2,254,420 $ 2,491,396
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term borrowings $ 18,836 $ 22,719
Current maturities of long-term debt 9,056 9,875
Accounts payable 386,095 468,240
Accrued expenses 302,380 333,092
Warrants liability 8,743 8,272
----------- -----------
Total current liabilities 725,110 842,198
Long-term debt 664,322 683,601
Noncurrent retirement obligations 180,700 212,438
Deferred income taxes 44,253 44,407
Other noncurrent liabilities 137,085 145,642
----------- -----------
Total liabilities 1,751,470 1,928,286
----------- -----------
Commitments and contingencies
Minority interest 17,542 18,772
----------- -----------
STOCKHOLDERS' EQUITY
Preferred stock, $0.01 par value, 1,000
shares authorized, 0 shares issued and
outstanding -- --
Common stock, $0.01 par value, 200,000
shares authorized, 75,426 and 75,278
shares issued and outstanding 754 753
Additional paid-in capital 1,107,688 1,104,939
Accumulated deficit (738,209) (717,662)
Accumulated other comprehensive income 115,175 156,308
----------- -----------
Total stockholders' equity 485,408 544,338
----------- -----------
Total liabilities and stockholders'
equity $ 2,254,420 $ 2,491,396
=========== ===========
EXIDE TECHNOLOGIES AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)
For the
Six Months Ended
----------------------
Sept. 30, Sept. 30,
2008 2007
--------- ---------
Cash Flows From Operating Activities:
Net loss $ (20,547) $ (50,511)
Adjustments to reconcile net loss to net
cash provided by (used in)
operating activities -
Depreciation and amortization 51,295 50,713
Unrealized loss (gain) on warrants 471 (1,192)
Net loss on asset sales / impairments 1,135 103
Deferred income taxes 7,606 11,798
Provision for doubtful accounts 3,641 2,715
Non-cash stock compensation 2,506 2,719
Reorganization items, net 935 1,211
Minority interest 894 918
Amortization of deferred financing costs 2,612 2,270
Loss on early extinguishment of debt -- 21,342
Currency loss (gain) 25,884 (12,117)
Changes in assets and liabilities --
Receivables 108,960 (20,529)
Inventories 9,599 (129,202)
Prepaid expenses and other (1,248) 2,629
Payables (53,098) 48,847
Accrued expenses (7,756) 5,401
Noncurrent liabilities (17,759) (26,266)
Other, net (4,546) 1,875
--------- ---------
Net cash provided by (used in)
operating activities 110,584 (87,276)
--------- ---------
Cash Flows From Investing Activities:
Capital expenditures (36,154) (23,986)
Proceeds from sales of assets 16,265 3,658
--------- ---------
Net cash used in investing activities (19,889) (20,328)
--------- ---------
Cash Flows From Financing Activities:
(Decrease) increase in
short-term borrowings (1,937) 4,432
(Decrease) increase in borrowings under
Senior Secured Credit Facility (1,662) 94,387
(Decrease) increase in other debt (3,183) 3,784
Financing costs and other -- (31,649)
Net proceeds from rights offering and
common stock issuance 244 49,528
--------- ---------
Net cash (used in) provided by
financing activities (6,538) 120,482
--------- ---------
Effect of Exchange Rate Changes on Cash
and Cash Equivalents (4,805) 2,517
--------- ---------
Net Increase In Cash and Cash Equivalents 79,352 15,395
Cash and Cash Equivalents, Beginning
of Period 90,547 76,211
--------- ---------
Cash and Cash Equivalents, End of Period $ 169,899 $ 91,606
========= =========
Supplemental Disclosures of Cash
Flow Information:
Cash paid during the period -
Interest $ 33,502 $ 34,806
Income taxes (net of refunds) 4,797 8,173
Supplemental Disclosures of Non-Cash
Financing Activities:
Receivable from rights offering -- 41,400
EXIDE TECHNOLOGIES AND SUBSIDIARIES
ADJUSTED EBITDA RECONCILIATION BY SEGMENT
(in millions)
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2008
Transportation Industrial Energy
-------------- -----------------
Europe Europe
------ ------
Americas and ROW Americas and ROW Other TOTAL
-------- ------- -------- ------- ----- -----
Net income (loss) $23.8 ($6.6) $12.9 $10.6 ($50.9) ($10.2)
Interest
expense, net -- -- -- -- 18.4 18.4
Income tax
provision -- -- -- -- 3.4 3.4
--------------------------------------------------
EBIT 23.8 (6.6) 12.9 10.6 (29.1) 11.6
Depreciation
and
amortization 7.7 7.1 2.2 6.5 1.9 25.4
Reorganization
items, net -- -- -- -- 0.5 0.5
Restructuring 0.4 2.3 0.1 6.7 0.2 9.7
Currency
remeasurement
loss (gain) 0.9 0.3 (0.3) -- 26.8 27.7
Minority
interest -- -- -- -- 0.3 0.3
Unrealized gain
on revaluation
of warrants -- -- -- -- (9.2) (9.2)
Loss on
sale/impairment
of assets -- 0.1 0.7 0.2 -- 1.0
Other,
principally
non cash stock
compensation
expense -- 0.2 (0.1) 0.1 1.0 1.2
--------------------------------------------------
Adjusted EBITDA $32.8 $ 3.4 $15.5 $24.1 $(7.6) $68.2
==================================================
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2007
Transportation Industrial Energy
-------------- -----------------
Europe Europe
------ ------
Americas and ROW Americas and ROW Other TOTAL
-------- ------- -------- ------- ----- -----
Net income (loss) $17.0 $ 7.6 $ 9.6 ($2.8)($46.2) ($14.8)
Interest
expense, net -- -- -- -- 21.2 21.2
Income tax
provision -- -- -- -- 22.7 22.7
--------------------------------------------------
EBIT 17.0 7.6 9.6 (2.8) (2.3) 29.1
Depreciation and
amortization 7.1 6.5 2.2 6.9 1.6 24.3
Take Charge 0.8 1.0 -- -- (0.1) 1.7
Reorganization
items, net -- -- -- -- 0.8 0.8
Restructuring 0.4 1.6 -- 0.4 0.2 2.6
Currency
remeasurement
loss (gain) 0.2 (0.6) 0.5 -- (9.7) (9.6)
Minority
interest -- -- -- -- 0.5 0.5
Unrealized gain
on revaluation
of warrants -- -- -- -- (1.5) (1.5)
Loss (gain) on
sale/impairment
of assets 0.6 0.2 (0.1) 0.1 (0.1) 0.7
Other,
principally
non cash stock
compensation
expense (0.2) -- -- -- 1.6 1.4
--------------------------------------------------
Adjusted EBITDA $25.9 $16.3 $12.2 $ 4.6 $(9.0) $50.0
==================================================
EXIDE TECHNOLOGIES AND SUBSIDIARIES
ADJUSTED EBITDA RECONCILIATION BY SEGMENT
(in millions)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2008
Transportation Industrial Energy
-------------- ----------------
Europe Europe
Americas and ROW Americas and ROW Other TOTAL
-------- ------ -------- ------ -------- ------
Net income (loss) $ 50.5 ($7.2) $ 26.7 $ 22.4 ($112.9) ($20.5)
Interest expense,
net -- -- -- -- 37.6 37.6
Income tax
provision -- -- -- -- 26.9 26.9
-------------------------------------------------
EBIT 50.5 (7.2) 26.7 22.4 (48.4) 44.0
Depreciation and
amortization 15.3 14.3 4.4 13.5 3.8 51.3
Take Charge -- 0.3 -- -- -- 0.3
Reorganization
items, net -- -- -- -- 1.0 1.0
Restructuring 0.7 3.0 -- 8.0 0.2 11.9
Currency
remeasurement
loss (gain) 0.3 -- (0.2) -- 25.8 25.9
Minority interest -- -- -- -- 0.9 0.9
Unrealized loss
on revaluation
of warrants -- -- -- -- 0.5 0.5
(Gain) loss on
sale/impairment
of assets -- (0.1) 0.7 0.5 -- 1.1
Other,
principally non
cash stock
compensation
expense -- 0.3 (0.1) 0.1 2.1 2.4
-------------------------------------------------
Adjusted EBITDA $ 66.8 $ 10.6 $ 31.5 $ 44.5 $(14.1) $139.3
=================================================
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2007
Transportation Industrial Energy
-------------- ----------------
Europe Europe
Americas and ROW Americas and ROW Other TOTAL
-------- ------ -------- ------ -------- ------
Net income (loss) $33.7 $ 3.9 $15.6 ($4.2) ($99.5) ($50.5)
Interest expense,
net -- -- -- -- 42.6 42.6
Income tax
provision -- -- -- -- 22.9 22.9
--------------------------------------------------
EBIT 33.7 3.9 15.6 (4.2) (34.0) 15.0
Depreciation and
amortization 14.7 13.7 4.5 14.5 3.3 50.7
Loss on early
extinguishment
of debt -- -- -- -- 21.3 21.3
Take Charge 2.2 1.9 -- 1.5 -- 5.6
Reorganization
items, net -- -- -- -- 1.2 1.2
Restructuring 0.9 2.3 (0.1) 1.4 0.2 4.7
Currency
remeasurement
(gain) loss (0.1) (0.5) 1.1 (0.1) (12.5) (12.1)
Minority interest -- -- -- -- 0.9 0.9
Unrealized gain
on revaluation
of warrants -- -- -- -- (1.2) (1.2)
Loss (gain) on
sale/impairment
of assets 0.6 0.1 1.0 (1.5) (0.1) 0.1
Other,
principally non
cash stock
compensation
expense 0.1 -- -- -- 2.7 2.8
--------------------------------------------------
Adjusted EBITDA $52.1 $21.4 $22.1 $11.6 $(18.2) $89.0
==================================================
EXIDE TECHNOLOGIES AND SUBSIDIARIES
COMPARATIVE FY09 Q2 NET SALES AND ADJUSTED EBITDA BY SEGMENT
(in millions)
Transportation Industrial Energy
-------------- -----------------
Europe Europe
and and Unallocated
Americas ROW Americas ROW Corporate Consolidated
-------- ----- -------- ----- --------- ------------
Q2 FY 09
Net
sales $ 315.6 $ 245.4 $ 76.8 $ 276.4 $ -- $ 914.2
Adjusted
EBITDA $ 32.8 $ 3.4 $ 15.5 $ 24.1 $ (7.6) $ 68.2
Q2 FY08
Net
sales $ 275.8 $ 256.6 $ 73.0 $ 256.6 $ -- $ 862.0
Adjusted
EBITDA $ 25.9 $ 16.3 $ 12.2 $ 4.6 $ (9.0) $ 50.0
Transportation Industrial Energy
-------------- -----------------
Europe Europe
and and Unallocated
Americas ROW Americas ROW Corporate Consolidated
-------- ----- -------- ----- --------- ------------
Q2 YTD FY 09
Net
sales $ 622.0 $ 521.2 $ 166.0 $ 576.2 $ -- $1,885.4
Adjusted
EBITDA $ 66.8 $ 10.6 $ 31.5 $ 44.5 $ (14.1) $ 139.3
Q2 YTD FY08
Net
sales $ 526.8 $ 469.3 $ 138.2 $ 490.0 $ -- $1,624.3
Adjusted
EBITDA $ 52.1 $ 21.4 $ 22.1 $ 11.6 $ (18.2) $ 89.0
EXIDE TECHNOLOGIES AND SUBSIDIARIES
COMPUTATION OF FREE CASH FLOW
(in millions)
For the Ended For the
Three Months Ended Six Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2008 2007 2008 2007
-------- -------- -------- --------
Net cash provided by
(used in) operating
activities $ 70.4 $ (27.9) $ 110.6 $ (87.3)
Net cash provided by
(used in) investing
activities (24.5) (12.9) (19.9) (20.3)
-------- -------- -------- --------
Free Cash Flow $ 45.9 $ (40.8) $ 90.7 $ (107.6)
======== ======== ======== ========
EXIDE TECHNOLOGIES AND SUBSIDIARIES
ADJUSTED EARNINGS (LOSS) PER SHARE RECONCILIATION
(in millions, except per share data)
FOR THE THREE MONTHS ENDED
September 30, 2008 September 30, 2007
------------------ -------------------
Dollars Per Share* Dollars Per Share*
------- --------- ------- ----------
Net loss $(10.2) $(0.14) $(14.8) $(0.24)
Increases in valuation
allowances 10.5 0.14 2.1 0.03
Decrease in German income tax
rate -- -- 16.7 0.27
Reorganization items, net 0.3 -- 0.8 0.01
Restructuring 9.2 0.12 2.5 0.04
Currency remeasurement loss
(gain) 17.9 0.24 (8.9) (0.14)
Unrealized gain on revaluation
of warrants (9.2) (0.12) (1.5) (0.02)
----- ----- ----- ------
Non-GAAP Adjusted Net Income
(Loss) / EPS $18.5 $0.24 $(3.1) $(0.05)
===== ===== ===== ======
EXIDE TECHNOLOGIES AND SUBSIDIARIES
ADJUSTED EARNINGS (LOSS) PER SHARE RECONCILIATION
(in millions, except per share data)
FOR THE SIX MONTHS ENDED
September 30, 2008 September 30, 2007
------------------- -------------------
Dollars Per Share* Dollars Per Share*
------- ---------- ------- -----------
Net loss ($20.5) ($0.27) ($50.5) ($0.82)
Increases in valuation
allowance 23.7 0.31 13.1 0.21
Decrease in German income
tax rate -- -- 16.7 0.27
Reorganization items, net 0.6 0.01 1.2 0.02
Restructuring 11.1 0.15 4.6 0.07
Currency remeasurement
loss (gain) 16.1 0.21 (11.4) (0.18)
Unrealized loss (gain) on
revaluation of warrants 0.5 0.01 (1.2) (0.02)
Loss on early extinguishment
of debt -- -- 20.4 0.33
----- ----- ----- ------
Non-GAAP Adjusted Net Income
(Loss) / EPS $31.5 $0.42 $(7.0) ($0.11)
===== ===== ===== ======
* Per share amounts above are based on the Company's GAAP-based
weighted average shares outstanding, which, because of the
Company's net loss, amount to 75.4 million shares for both basic
and diluted EPS. These shares excluded approximately 15.1 million
potentially dilutive shares because their effect would be
antidilutive. The inclusion of those shares in the computation of
Non-GAAP Adjusted EPS would have resulted in an amount of $0.02
and $0.05 per share for the three months ended September 30, 2008
and 2007, respectively, and $0.05 and $0.16 per share for the six
months ended September 30, 2008 and 2007, respectively.