- No goodwill and other asset write-off expenses in the Fiscal 2010 period compared with $61.7 million in write-offs in the Fiscal 2009 period.
- Lower restructuring expenses of $0.5 million in the Fiscal 2010 period compared with $10.3 million in the Fiscal 2009 period.
- A favorable tax benefit of $8.8 million in the Fiscal 2010 period compared to income tax expense of $14.0 million in the Fiscal 2009 period.
- Favorable changes in reserve estimates of approximately $3.0 million, the majority affecting cost of products sold, which have been calculated in a consistent manner each reporting period, and were reduced due to business growth, effective inventory management, favorable fringe benefit and product assurance experience.
- Net sales improved 1.3 percent attributable to stronger sales in the Company's European and Asian markets, partially offset by lower sales attributable to the planned exit of legacy automotive products, and no sales to Delphi compared to $7.9 million of sales to Delphi.
- Gross margins (including other income) as a percentage of sales increased to 18.9 percent from 10.0 percent.
- Fourth-quarter Fiscal 2010 income/(loss) before income taxes increased to $4.7 million from a loss of $37.8 million.
- Net sales increased 17.9 percent attributable to solid growth at TouchSensor and Hetronic.
- Gross margins (including other income) as a percentage of sales increased to 35.4 percent from 21.5 percent.
- Fourth-quarter Fiscal 2010 income/(loss) before income taxes increased to $5.1 million from a loss of $32.1 million.
- Net sales improved 3.0 percent.
- Gross margins (including other income) as a percentage of sales increased to 33.0 percent from 1.0 percent.
- Fourth-quarter Fiscal 2010 income/(loss) before income taxes increased to $1.1 million from a loss of $1.6 million.
- Net sales decreased 18.2 percent, negatively impacted by lower sales to Delphi of 65.8 percent, planned lower legacy automotive products sales of $13.8 million, or 93.2 percent, and the softening of the global economic environment.
- Gross margins (including other income) as a percentage of sales improved to 18.3 percent from 16.5 percent largely attributable to restructuring and consolidation efforts in previous periods partially offset by inefficiencies caused by extended automotive customer plant shut downs. Gross margins (including other income) as a percentage of sales also benefitted from $1.7 million relating to a one-time reversal of pricing contingencies.
- Fiscal 2010 income/(loss) before income taxes increased to $11.2 million from a loss of $24.0 million.
- Net sales decreased 5.3 percent due to sales declines in North America and Asia primarily due to the restructuring of the Interconnect segment's legacy businesses during the first quarter of Fiscal 2010, but favorably impacted by the Hetronic acquisition in September 2008.
- Gross margins (including other income) as a percentage of sales increased to 28.7 percent from 24.0 percent also due mainly to restructuring and consolidation efforts in previous periods.
- Fiscal 2010 income/(loss) before income taxes increased to $10.3 million from a loss of $60.7 million.
- Net sales decreased 5.4 percent, driven mainly by lower demand for flexible cabling and heat sink products in the U.S.
- Gross margins (including other income) as a percentage of sales increased to 26.0 percent from 12.9 percent also attributable mainly to restructuring and consolidation efforts in previous periods.
- Fiscal 2010 income/(loss) before income taxes increased to $3.4 million from a loss of $5.7 million.
Methode Electronics, Inc.
Financial Highlights
(In thousands, except per share data, unaudited)
Three Months Ended
May 1, May 2,
2010 2009
--------- ---------
Net sales $ 95,738 $ 89,045
Other income 935 759
Cost of products sold 74,094 82,739
Restructuring 443 10,281
Impairment of goodwill and intangible assets - 61,696
Selling and administrative expenses 14,758 12,913
Amortization of intangibles 608 1,524
Income/(loss) from operations 6,770 (79,349)
Interest income, net 30 167
Other income, net 503 746
Income/(loss) before income taxes 7,303 (78,436)
Income tax expense/(benefit) (8,724) 13,994
Net income/(loss) 16,027 (92,430)
Less: Net income/(loss) attributable to
noncontrolling interest (69) 122
Net income/(loss) attributable to Methode
Electronics, Inc. 16,096 (92,552)
Basic and diluted income/(loss) per common share $ 0.44 ($ 2.50)
Basic and diluted 37,003 36,598
Fiscal Year Ended
May 1, May 2,
2010 2009
--------- ---------
Net sales $ 373,136 $ 425,644
Other income 4,510 3,202
Cost of products sold 297,711 356,496
Restructuring 7,770 25,278
Impairment of goodwill and intangible assets - 94,374
Selling and administrative expenses 62,427 57,128
Amortization of intangibles 2,297 6,933
Income/(loss) from operations 7,441 (111,363)
Interest income/(expense), net (139) 1,382
Other income/(expense), net 515 (479)
Income/(loss) before income taxes 7,817 (110,460)
Income tax expense/(benefit) (5,964) 1,680
Net income/(loss) 13,781 (112,140)
Less: Net income attributable to noncontrolling
interest 126 343
Net income/(loss) attributable to Methode
Electronics, Inc. 13,655 (112,483)
Basic and diluted loss per common share $ 0.37 ($ 3.05)
Basic and diluted 36,932 36,879
Methode Electronics, Inc.
Summary Balance Sheet
(In thousands)
May 1, May 2,
2010 2009
----------- -----------
(unaudited)
Cash $ 63,821 $ 54,030
Accounts receivable - net 68,649 60,406
Inventories 29,760 37,244
Other current assets 22,366 26,384
----------- -----------
Total Current Assets 184,596 178,064
Property, plant and equipment - net 61,876 69,917
Goodwill 12,096 11,771
Intangible assets - net 18,811 20,501
Other assets 33,444 25,035
----------- -----------
Total Assets $ 310,823 $ 305,288
=========== ===========
Accounts payable $ 29,743 $ 24,495
Other current liabilities 29,002 29,023
----------- -----------
Total Current Liabilities 58,745 53,518
Other liabilities 12,136 16,869
----------- -----------
Total Methode Electronics, Inc. shareholders'
equity 236,754 231,776
Noncontrolling interest 3,188 3,125
----------- -----------
Total shareholders' equity 239,942 234,901
----------- -----------
Total Liabilities and Shareholders' Equity $ 310,823 $ 305,288
=========== ===========
Methode Electronics, Inc.
Summary Statement of Cash Flows
(In thousands)
Fiscal Year Ended
May 1, May 2,
2010 2009
---------- ----------
Operating Activities:
Net income/(loss) $ 13,781 $ (112,140)
Provision for depreciation 17,112 30,103
Impairment of tangible assets 710 10,313
Impairment of goodwill and intangible assets - 94,374
Amortization of intangible assets 2,297 6,933
Amortization of stock awards and stock options 871 (553)
Changes in operating assets and liabilities (11,539) 6,347
Other 4,134 7,791
---------- ----------
Net Cash Provided by Operating Activities 27,366 43,168
Investing Activities:
Purchases of property, plant and equipment (9,379) (17,064)
Acquisitions of businesses (325) (57,469)
Acquisitions of businesses and technology (530) (1,575)
Proceeds from life insurance policies 2,464 -
Other - (14)
---------- ----------
Net Cash Used in Investing Activities (7,770) (76,122)
Financing Activities:
Repurchase of common stock - (5,252)
Proceeds from exercise of stock options 185 113
Tax benefit from stock options and awards (31) (209)
Dividends (10,414) (9,778)
---------- ----------
Net Cash Used in Financing Activities (10,260) (15,126)
Effect of foreign exchange rate changes on cash 455 (2,195)
---------- ----------
Increase/(Decrease) in Cash and Cash Equivalents 9,791 (50,275)
Cash and Cash Equivalents at Beginning of Period 54,030 104,305
---------- ----------
Cash and Cash Equivalents at End of Period $ 63,821 $ 54,030
========== ==========
Contact Information: For Methode Electronics Inc. - Investor Contacts: Philip Kranz Dresner Corporate Services 312-780-7240 pkranz@dresnerco.com Kristine Walczak Dresner Corporate Services 312-780-7205 kwalczak@dresnerco.com