ALPHARETTA, Ga., June 11, 2007 (PRIME NEWSWIRE) -- Exide Technologies (Nasdaq:XIDE) (www.exide.com), a global leader in stored electrical-energy solutions, announced that on June 11, 2007 it filed its Annual Report on Form 10-K for the fiscal year ended March 31, 2007.
Quarter
Net sales for the fourth fiscal quarter were $806.6 million compared to $730.6 million in the comparable prior year period. Foreign currency exchange rates favorably impacted net sales by approximately $39 million. Excluding the impact of currency, net sales increased in the current year quarter by $37 million on stronger volume in the Company's global Industrial Energy segments, and improved pricing in all of its businesses. This was offset to a degree by soft volume in the Company's Transportation Europe/ROW Segment, due to an unusually mild winter in Europe.
The net loss for the fourth quarter of fiscal 2007 amounted to $21.6 million or ($0.35) a share compared with a net loss in the fiscal 2006 fourth quarter of $76.3 million or ($2.98) a share. The reduced net loss in the current year quarter reflects continuing operational improvements and favorable pricing adjustments, which were partially offset by a $4.0 million increase in interest costs due to higher debt levels and higher interest rates. Additionally, last year's fourth quarter was negatively impacted by the recording of a $24 million (net of tax) expense relating to the settlement of an historic fine levied by the U.S. Attorney for the Southern District of Illinois.
Fiscal Year 2007
For the full fiscal year, the Company reported a $119.9 million increase in net sales to $2.94 billion, of which $87.7 million was due to favorable foreign exchange rates, principally resulting from a stronger Euro. Excluding foreign exchange, net sales increased by $32.2 million. Gordon Ulsh, President and CEO stated, "We continue to execute on the pricing front to compensate for higher commodity and other costs; and, in accordance with our strategy, we have shed some volume rather than maintaining accounts that do not afford us an adequate return. While this strategy will improve gross profit margins, it contributed to the unit volume deterioration we experienced in our Transportation Segments. We also continue to see softness in capital spending by some of the major telecom players, resulting in lower unit volumes of our Network Power products," Mr. Ulsh said.
The fiscal 2007 net loss was $105.9 million or ($2.39) a share, an improvement from a net loss of $172.7 million or ($6.75) a share in fiscal 2006. Gross profit improved by approximately $66 million to $472.8 million. "This reflects not only our pricing posture, but also continued improvement in our manufacturing and distribution performance as we execute our Take Charge! initiatives," Mr. Ulsh said. The year-over-year net loss improvement was aided by the fiscal 2006 settlement with the U.S. Attorney, an approximately $10 million reduction in the consolidated tax provision and a $1.8 million reduction in reorganization-related expenses. However, those items were offset somewhat by a $20.5 million increase in net interest expense, and a higher loss on sale/impairment of fixed assets resulting principally from the write down of land and buildings held for sale in France.
The lower net losses per share in the quarter and for the full year were favorably impacted by higher weighted average shares outstanding as a result of the Company's $75 million rights offering and $50 million private sale of common stock. Also, prior year net loss per share has been restated to give effect of a stock dividend treatment resulting from this transaction.
The Company also reported positive earnings before interest and taxes ("EBIT") of $4.5 million for the fourth quarter 2007, compared with negative EBIT of $44.7 million in the prior year's fourth quarter. Adjusted EBITDA in the fiscal 2007 fourth quarter was $43.9 million compared with $19.5 million in the comparable prior year period. For the year, Adjusted EBITDA improved 52% to $158.6 million from $104.5 million.
Mr. Ulsh went on to say, "We know we still have much work to do, but it is rewarding to see our efforts to date recognized as evidenced by recent credit rating agency upgrades, a successful refinancing of our senior secured bank credit facility as well as an unqualified audit opinion on our financial statements and internal control environment at and for the year ended March 31, 2007."
The Company, as it has said in the past, uses Adjusted EBITDA as a key measure of its operational financial performance. This measure underlies the Company's operational performance and excludes the nonrecurring impact on 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 aforementioned settlement with the U.S. Attorney. See the reconciliations of net losses to EBIT and Adjusted EBITDA in the attachments to this release.
Conference Call
The Company previously announced that it will hold a conference call to discuss its results on June 12, 2007 at 10:00 a.m. Eastern Time.
Dial-in number for US/Canada: (877) 563-6439
Dial-in number for international callers: (706) 758-9457
Conference ID: 9423131
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 42-volt 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.
The Exide Technologies logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=3300
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) the substantial management time and financial and other resources needed for the Company's consolidation and rationalization of acquired entities, (ix) 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, (x) the Company's exposure to fluctuations in interest rates on its variable debt, (xi) the Company's ability to maintain and generate liquidity to meet its operating needs, (xii) general economic conditions, (xiii) the ability to acquire goods and services and/or fulfill labor needs at budgeted costs, (xiv) the Company's reliance on a single supplier for its polyethylene battery separators, (xv) the Company's ability to successfully pass along increased material costs to its customers, (xvi) the Company's ability to comply with the provisions of Section 404 of the Sarbanes-Oxley Act of 2002, and (xvii) the Company's significant pension obligations over the next several years.
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 11, 2007, 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
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS AND TWELVE MONTHS ENDED MARCH 31, 2007 AND 2006
(In thousands, except per share data)
For the Three Months Ended For the Fiscal Year Ended
------------------------ ------------------------
March 31, March 31, March 31, March 31,
2007 2006 2007 2006
----------- ----------- ----------- -----------
NET SALES $ 806,553 $ 730,617 $ 2,939,785 $ 2,819,876
COST OF SALES 678,562 648,728 2,467,009 2,413,045
----------- ----------- ----------- -----------
Gross profit 127,991 81,889 472,776 406,831
----------- ----------- ----------- -----------
EXPENSES:
Selling,
marketing and
advertising 68,627 66,111 270,413 271,059
General and
administrative 48,478 61,646 173,128 190,993
Restructuring 2,261 5,663 24,483 21,714
Other (income)
expense, net 3,188 (9,097) 9,636 3,684
Interest
expense, net 22,278 18,301 90,020 69,464
----------- ----------- ----------- -----------
144,832 142,624 567,680 556,914
----------- ----------- ----------- -----------
Loss before
reorganization
items,
income taxes,
minority
interest (16,841) (60,735) (94,904) (150,083)
REORGANIZATION
ITEMS, NET 526 1,760 4,310 6,158
INCOME TAX
PROVISION
(BENEFIT) 3,859 13,390 5,783 15,962
MINORITY
INTEREST 404 457 882 529
----------- ----------- ----------- -----------
Net income
(loss) (21,630) (76,342) (105,879) (172,732)
=========== =========== =========== ===========
NET INCOME
(LOSS) PER
SHARE
----------- ----------- ----------- -----------
Basic and
Diluted $ (0.35) $ (2.98) $ (2.39) $ (6.75)
=========== =========== =========== ===========
WEIGHTED
AVERAGE
SHARES
----------- ----------- ----------- -----------
Basic and
Diluted 61,403 25,576 44,358 25,576
=========== =========== =========== ===========
EXIDE TECHNOLOGIES AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AS OF MARCH 31, 2007 AND MARCH 31, 2006
(In thousands, except per share data)
March 31, March 31,
2007 2006
ASSETS
Current assets:
Cash and cash equivalents $ 76,211 $ 32,161
Receivables, net of allowance for
doubtful accounts of $28,624
and $21,637 639,115 617,677
Inventories 411,554 414,943
Prepaid expenses and other 20,224 30,804
Deferred financing costs, net 3,411 3,169
Deferred income taxes 19,030 11,066
----------- -----------
Total current assets 1,169,545 1,109,820
----------- -----------
Property, plant and equipment, net 649,015 685,842
----------- -----------
Other assets:
Other intangibles, net 191,762 186,820
Investments in affiliates 5,282 4,783
Deferred financing costs, net 12,908 15,196
Deferred income taxes 67,006 56,358
Other 24,706 24,090
----------- -----------
301,664 287,247
----------- -----------
Total assets $ 2,120,224 $ 2,082,909
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term borrowings $ 13,951 $ 11,375
Current maturities of
long-term debt 3,996 5,643
Accounts payable 360,278 360,538
Accrued expenses 299,157 298,631
Warrants liability 5,297 2,063
----------- -----------
Total current liabilities 682,679 678,250
Long-term debt 666,507 683,986
Noncurrent retirement obligations 263,290 333,248
Deferred income tax liability 41,232 33,590
Other noncurrent liabilities 121,433 116,430
----------- -----------
Total liabilities 1,775,141 1,845,504
----------- -----------
Commitments and contingencies -- --
Minority interest 14,560 12,666
----------- -----------
STOCKHOLDERS' EQUITY
Preferred stock, $0.01 par value,
1,000 shares authorized, 0 shares
issued and outstanding -- --
Common stock, $0.01 par value,
100,000 and 61,500 shares authorized,
60,676 and 24,546 shares issued
and outstanding 607 245
Additional paid-in capital 1,008,481 888,647
Accumulated deficit (745,534) (639,655)
Accumulated other comprehensive
income (loss) 66,969 (24,498)
----------- -----------
Total stockholders' equity 330,523 224,739
----------- -----------
Total liabilities and
stockholders' equity $ 2,120,224 $ 2,082,909
=========== ===========
EXIDE TECHNOLOGIES AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASHFLOWS
FOR THE TWELVE MONTHS ENDED MARCH 31, 2007 AND 2006
(In thousands)
For the Fiscal Year Ended
March 31, March 31,
2007 2006
----------- ----------
Cash Flows From Operating Activities:
Net income (loss) $ (105,879) $ (172,732)
Adjustments to reconcile net income
(loss) to net cash (used in) provided
by operating activities-
Depreciation and amortization 121,016 122,429
Unrealized loss (gain) on Warrants 3,234 (9,125)
Net loss on asset sales 18,622 8,044
Gain on Insurance Recoveries -- (4,791)
Deferred income taxes (6,350) (36)
Provision for doubtful accounts 9,096 4,116
Non cash stock compensation 2,449 501
Reorganization items, net 4,310 6,158
Insurance Proceeds -- 11,144
Minority interest 882 529
Amortization of deferred financing
costs 3,476 2,048
Changes in assets and liabilities excluding
effects of Fresh Start accounting and
acquisitions and divestitures-
Receivables 14,635 34,022
Inventories 30,568 (34,703)
Prepaid expenses and other 13,614 (8,997)
Payables (25,389) 33,958
Accrued expenses (16,149) (68,907)
Noncurrent liabilities (53,258) 27,500
Other, net (13,700) 4,994
----------- -----------
Net cash provided by (used in)
operating activities 1,177 (44,348)
----------- -----------
Cash Flows From Investing Activities:
Capital expenditures (51,932) (58,133)
Proceeds from sales of assets 4,485 25,316
----------- -----------
Net cash used in investing activities (47,447) (32,817)
----------- -----------
Cash Flows From Financing Activities:
Increase (decrease) in short-term
borrowings 1,123 10,347
Borrowings under Senior Secured Credit
Facility -- 46,250
Repayments under Senior Secured Credit
Facility (27,948) (17,224)
Capital contributions 117,747 --
Settlement of foreign currency swap -- (12,084)
Increase/Decrease in other debt (2,504) 15,667
Financing costs and other (832) (8,310)
----------- -----------
Net cash provided by financing
activities 87,586 34,646
----------- -----------
Effect of Exchange Rate Changes on Cash
and Cash Equivalents 2,734 (2,016)
----------- -----------
Net Increase (Decrease) In Cash and Cash
Equivalents 44,050 (44,535)
Cash and Cash Equivalents, Beginning of
Period 32,161 76,696
----------- -----------
Cash and Cash Equivalents, End of Period $ 76,211 $ 32,161
=========== ===========
EXIDE TECHNOLOGIES AND SUBSIDIARIES
ADJUSTED EBITDA RECONCILIATION BY SEGMENT
FOR THE THREE MONTHS ENDED MARCH 31, 2007
(in millions)
Transportation Industrial Energy
Europe Europe
Americas and ROW Americas and ROW Other TOTAL
------- ------- ------- ------- ------ -----
Net income
(loss) $15.0 $1.1 $3.4 $2.1 ($43.2) ($21.6)
Interest
expense,
net -- -- -- -- 22.3 22.3
Income tax
provision
(benefit) -- -- -- -- 3.8 3.8
---------------------------------------------------
EBIT 15.0 1.1 3.4 2.1 (17.1) 4.5
Depreciation
and
amortization 9.3 8.3 3.1 9.0 1.2 30.9
Take Charge -- -- -- 0.9 -- 0.9
Reorganiza-
tion items,
net -- -- -- -- 0.5 0.5
Restructuring
and
impairment,
net 0.6 (0.4) 0.2 1.8 0.1 2.3
Other
restructur-
ing costs
included in
cost of
sales and
general and
administra-
tive
expenses 0.1 -- -- -- 0.2 0.3
Currency
remeasure-
ment loss
(gain) 0.2 (0.1) 0.1 0.1 (1.3) (1.0)
Minority
interest -- -- -- -- 0.4 0.4
Unrealized
gain on
revaluation
of warrants -- -- -- -- 2.6 2.6
Loss (gain)
on sale of
capital
assets 0.1 0.3 0.5 2.3 (1.3) 1.9
Other,
principally
non-cash
stock
compensation
expense 0.1 0.2 -- (0.4) 0.7 0.6
---------------------------------------------------
Adjusted
EBITDA 25.4 9.4 7.3 15.8 (14.0) 43.9
===================================================
EXIDE TECHNOLOGIES AND SUBSIDIARIES
ADJUSTED EBITDA RECONCILIATION BY SEGMENT
FOR THE TWELVE MONTHS ENDED MARCH 31, 2007
(in millions)
Transportation Industrial Energy
Europe Europe
Americas and ROW Americas and ROW Other TOTAL
------- ------- ------- ------- ------ -----
Net income
(loss) $ 33.1 ($ 20.4) $ 22.0 $ 8.3 ($148.9) ($105.9)
Interest
expense,
net -- -- -- -- 90.0 90.0
Income tax
provision
(benefit) -- -- -- -- 5.8 5.8
----------------------------------------------------
EBIT 33.1 (20.4) 22.0 8.3 (53.1) (10.1)
Depreciation
and
amortization 30.7 32.9 10.1 36.0 11.4 121.1
Take Charge 1.0 0.3 -- 3.5 0.1 4.9
Reorganiza-
tion items,
net -- -- -- -- 4.3 4.3
Restructuring
and
impairment,
net 8.6 7.5 0.7 7.3 0.4 24.5
Other
restructur-
ing costs
included in
cost of
sales and
general and
administra-
tive
expenses 0.5 -- -- -- -- 0.5
Currency
remeasure-
ment loss
(gain) 0.7 (0.1) 0.2 -- (12.4) (11.6)
Minority
interest -- -- -- -- 0.9 0.9
Unrealized
gain on
revaluation
of warrants -- -- -- -- 3.2 3.2
Loss (gain)
on sale of
capital
assets 7.2 9.8 0.5 2.3 (1.2) 18.6
Other,
principally
non-cash
stock
compensation
expense -- 0.1 -- (0.2) 2.4 2.3
----------------------------------------------------
Adjusted
EBITDA 81.8 30.1 33.5 57.2 (44.0) 158.6
====================================================
EXIDE TECHNOLOGIES AND SUBSIDIARIES
COMPARATIVE FY07 Q4 NET SALES AND ADJUSTED EBITDA BY SEGMENT
---------------- -----------------
Transportation Industrial Energy
---------------- -----------------
Europe Europe
and and Unallocated
Americas ROW Americas ROW Corporate Consolidated
--------- ------ --------- ------ ----------- ------------
Q4 FY07 (in millions)
-------
Net sales $253.8 $225.9 $70.8 $256.0 -- $806.6
Adjusted
EBITDA $25.4 $9.4 $7.3 $15.8 ($14.0) $43.9
Q4 FY06
-------
Net sales $231.5 $223.8 $67.2 $208.1 -- $730.6
Adjusted
EBITDA(a) ($8.1) $13.0 $6.3 $15.1 ($6.9) $19.5
(a) Includes pro forma effect of the allocation of certain Corporate
costs.
EXIDE TECHNOLOGIES AND SUBSIDIARIES
COMPARATIVE FY07 Q4 YTD NET SALES AND ADJUSTED EBITDA BY SEGMENT
---------------- -----------------
Transportation Industrial Energy
---------------- -----------------
Europe Europe
and and Unallocated
Americas ROW Americas ROW Corporate Consolidated
--------- ------ --------- ------ ----------- ------------
Q4 YTD FY07 (in millions)
-----------
Net sales $930.3 $832.2 $270.5 $906.8 -- $2,939.8
Adjusted
EBITDA $81.8 $30.1 $33.5 $57.2 ($44.0) $158.6
Q4 YTD FY06
-----------
Net sales $913.3 $810.9 $275.0 $820.7 -- $2,819.9
Adjusted
EBITDA(a) $16.6 $38.6 $26.4 $59.3 ($36.4) $104.5
(a) Includes pro forma effect of the allocation of certain Corporate
costs.
The Exide Technologies Adjusted EBITDA Variances graphs are available at http://media.primezone.com/cache/8076/file/4271.html