AVX Corporation Announces Fourth Quarter and Full Year Results
MYRTLE BEACH, S.C. -- (BUSINESS WIRE) -- April 30, 2003 --
AVX Corporation (NYSE: AVX) reported that net sales were $261.2 million in the fourth quarter ended March 31, 2003 and $1,134.1 million for the fiscal year ended March 31, 2003. Chief Executive Officer and President, John Gilbertson, stated, "Sales were down over the previous quarter due to seasonal demand changes and continued pricing pressure."
Before special charges of $2.9 million in cost of sales related to the completion of restructuring activities that were initiated during fiscal 2002, the net loss for the quarter ended March 31, 2003 was $11.1 million, or $0.06 per share. After special charges, the net loss for the quarter ended March 31, 2003 was $14.0 million, or $0.08 per share. The net loss for the fiscal year ended March 31, 2003 was $12.4 million, or $0.07 per share.
Mr. Gilbertson went on to state, "AVX's net cash position improved further during the quarter. AVX now has $715.5 million of cash and securities investments, and only $3.4 million of debt. Inventories throughout the sales channel appear to be at reasonable levels, and our customers continue to order based on near-term requirements that limit our visibility for the next quarter. Indications are that revenues should improve in the June quarter."
"In order to offset the negative effects of continued selling price pressure and marginal volume increases, we expect to take additional steps throughout this fiscal year to reorganize and streamline our operations and reduce operating costs."
AVX, headquartered in Myrtle Beach, 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.avxcorp.com
AVX CORPORATION
Consolidated Condensed Statements of Income
(unaudited)
(in thousands, except per share data)
| Three Months Ended | | Twelve Months Ended |
| March 31 | | March 31 |
| 2002 | 2003 | | 2002 | 2003 |
Net sales | $ 275,085 | $ 261,182 | | $ 1,249,980 | $1,134,111 |
Cost of sales | 259,488 | 252,342 | | 1,146,662 | 1,067,939 |
Gross profit | 15,597 | 8,840 | | 103,318 | 66,172 |
Selling, general & admin. expense | 21,476 | 22,105 | | 103,741 | 92,041 |
Restructuring expense | - | - | | 24,646 | - |
Profit (loss) from operations | (5,879) | (13,265) | | (25,069) | (25,869) |
Other income | 2,796 | 3,715 | | 18,063 | 15,431 |
Income (loss) before income taxes | (3,083) | (9,550) | | (7,006) | (10,438) |
Provision (benefit) for taxes | (1,000) | 4,498 | | 226 | 2,000 |
Net income (loss) | $ (2,083) | $ (14,048) | | $ (7,232) | $ (12,438) |
| ======== | ======== | | ======== | ======== |
Basic income (loss) per share | ($0.01) | ($0.08) | | ($0.04) | ($0.07) |
Diluted income (loss) per share | ($0.01) | ($0.08) | | ($0.04) | ($0.07) |
| | | | | |
Weighted average common | | | | | |
shares outstanding: | | | | | |
Basic | 174,549 | 173,904 | | 174,684 | 174,325 |
Diluted | 174,549 | 173,904 | | 174,684 | 174,325 |
The Company has adopted Financial Accounting Standard No. 142 "Goodwill and Other Intangible Assets", which had the effect of eliminating the amortization of goodwill beginning with the Company's current fiscal year. Had such standard been in effect for the fourth quarter of fiscal 2002, the net loss would have decreased by $1.4 million or $0.01 diluted income per share and $5.6 million or $0.03 diluted income per share for the three and twelve month periods ended March 31, 2002, respectively.
Results for the fourth quarter ended March 31, 2003 include special charges of $2.9 million in cost of sales related to the completion of restructuring activities that were initiated during fiscal 2002.
Results for the quarter ended March 31, 2002 include a $2.7 million benefit in cost of sales as a result of changes in estimates to special charges, recorded earlier in the fiscal year.
AVX CORPORATION
Consolidated Condensed Balance Sheets
(unaudited)
(in thousands)
| | March 31, | | March 31, |
| | 2002 | | 2003 |
Assets | | | |
Cash and cash equivalents | $ 601,910 | | $ 504,866 |
Accounts receivable, net | 129,213 | | 128,019 |
Inventories | 354,618 | | 358,739 |
Other current assets | 65,127 | | 86,333 |
| Total current assets | 1,150,868 | | 1,077,957 |
Long-term investments in securities | 79,627 | | 210,631 |
Property, plant and equipment, net | 382,571 | | 327,700 |
Other assets | 78,533 | | 84,225 |
| | | | |
| TOTAL ASSETS | $ 1,691,599 | | $ 1,700,513 |
| | ========= | | ========= |
Liabilities and Stockholders' Equity | | | |
Short-term bank debt | $ 3,927 | | $ 3,422 |
Current maturities of long-term debt | 11,406 | | - |
Accounts payable and accrued expenses | 179,344 | | 182,135 |
| Total current liabilities | 194,677 | | 185,557 |
Other liabilities | 20,887 | | 51,800 |
| | | | |
| TOTAL LIABILITIES | 215,564 | | 237,357 |
| | | | |
| TOTAL STOCKHOLDERS' EQUITY | 1,476,035 | | 1,463,156 |
| | | | |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,691,599 | | $ 1,700,513 |
| | ========= | | ========= |
AVX's cash position, including long-term investments in securities, improved $34.0 million during fiscal 2003 to $715.5 million at March 31, 2003 compared to $681.5 million at March 31, 2002. The Company's debt declined $11.9 million during the year to $3.4 million at March 31, 2003 compared to $15.3 million at March 31, 2002.
In the fourth quarter ended March 31, 2003 the Company recorded a non-cash charge to equity of $18.7 million (net of tax benefits of $11.2 million), related to its pension plans, primarily as a result of declines in the equity markets during the fiscal year. The plans continue to meet the requirements of governmental funding rules and do not require a cash contribution at this time.
Certain statements contained above may be "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Risk factors relating to such statements are described in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2002. Actual events, results, and/or timing may differ from the events, results, and/or timing as projected, estimated, or described above.
Contact:
AVX Corporation, Myrtle Beach
Kurt Cummings,
843/946-0691
finance@avxus.com
