AVX Corporation Announces Preliminary Fourth Quarter and Full Year Results
MYRTLE BEACH, S.C. -- (BUSINESS WIRE) -- April 25, 2007 -- AVX Corporation (NYSE: AVX)
Fiscal Quarter highlights:
| · | Revenue up 12.1%, or $41 million from the prior year to $379 million. |
| · | Operating profit up $5.7 million to $42.2 million. |
| · | Earnings per share of $0.25, up from $0.17 last year. |
| · | Dividends of $6.4 million, or $0.0375 per share, paid during the fourth quarter of fiscal 2007. |
| · | Cash and cash equivalents and short and long-term investments in securities increased $26.7 million to $968.4 million. |
Chief Executive Officer and President, John Gilbertson stated, "Sales this quarter increased over the December quarter, and we had an excellent 2007 fiscal year as sales improved 12.4% over the prior year. This was our highest annual sales level since the tech boom in 2001, reflecting the strong end-market demand experienced by our customers and new product development. In addition, profitability and cash flow continued to improve.”
Unaudited net sales improved $41.0 million, or 12.1%, to $379.4 million for the quarter ended March 31, 2007 compared to net sales of $338.4 million for the quarter ended March 31, 2006. Operating profit for the quarter improved $5.7 million to $42.2 million compared to $36.5 million in the prior year. Profit from operations for the quarter ended March 31, 2007 was negatively impacted by $1.5 million, or $0.01 per diluted share, for charges related to headcount reductions of $1.0 million and a casualty loss of $0.5 million.
The provision for taxes was favorably impacted in the quarter ended March 31, 2007 by a reduction of $3.4 million, or $0.02 per diluted share, of deferred tax liabilities. The reduction resulted from certain of the Company’s foreign branch losses taken as deductions for U.S. income tax purposes no longer being subject to U.S. income tax recapture regulations.
Unaudited net income for the quarter improved $12.9 million, or 43.0%, to $43.0 million, or $0.25 per diluted share, compared to net income of $30.1 million, or $0.17 per diluted share, for the quarter ended March 31, 2006.
Cash and cash equivalents and short and long-term investments in securities increased $26.7 million during the March quarter and totaled $968.4 million at March 31, 2007. During the quarter, $6.4 million of dividends to stockholders were paid, and $3.9 million was used to purchase AVX shares on the market, now held as treasury stock.
Fiscal Year highlights:
| · | Revenue up 12.4%, or $165.3 million to $1.5 billion. |
| · | Gross profit margin of 19.8% of sales, up from 15.5% in the prior year. |
| · | Earnings per share of $0.89, up from $0.47 last year. |
| · | Dividends of $25.8 million, or $0.15 per share, paid during fiscal 2007. |
| · | Cash and cash equivalents and short and long-term investments in securities increased $169.1 million to $968.4 million. |
Unaudited net sales improved $165.3 million, or 12.4%, to $1.5 billion for the fiscal year ended March 31, 2007 compared to net sales of $1.3 billion for the fiscal year ended March 31, 2006. Operating profit for the year improved $84.5 million to $180.7 million compared to $96.2 million in the prior year as a result of higher sales, a favorable mix of value added component and connector sales, reduced operating costs and enhanced production capabilities in lower cost regions. Profit from operations for the current year was negatively impacted by $1.5 million, or $0.01 per diluted share, for charges related to headcount reductions of $1.0 million and a casualty loss of $0.5 million.
Unaudited net income for the full fiscal year improved $72.1 million, or 88.2%, to $153.9 million, or $0.89 per diluted share, compared to net income of $81.8 million, or $0.47 per diluted share, for the fiscal year ended March 31, 2006.
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.avx.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 |
| | | 2006 | | 2007 | | | 2006 | | 2007 |
| Net sales | $ | 338,395 | $ | 379,351 | | $ | 1,333,208 | $ | 1,498,495 |
| Cost of sales | | 272,435 | | 308,006 | | | 1,125,917 | | 1,201,337 |
| Gross profit | | 65,960 | | 71,345 | | | 207,291 | | 297,158 |
| Selling, general & admin. expense | | 29,494 | | 29,180 | | | 111,110 | | 116,482 |
| Profit from operations | | 36,466 | | 42,165 | | | 96,181 | | 180,676 |
| Other income | | 6,635 | | 11,185 | | | 23,439 | | 36,890 |
| Income before income taxes | | 43,101 | | 53,350 | | | 119,620 | | 217,566 |
| Provision for taxes | | 13,018 | | 10,330 | | | 37,868 | | 63,701 |
| Net income | $ | 30,083 | $ | 43,020 | | $ | 81,752 | $ | 153,865 |
| | | | | | | | | | |
| Basic income per share | $ | 0.17 | $ | 0.25 | | $ | 0.47 | $ | 0.89 |
| Diluted income per share | $ | 0.17 | $ | 0.25 | | $ | 0.47 | $ | 0.89 |
| | | | | | | | | | |
| Weighted average common | | | | | | | | | |
| shares outstanding: | | | | | | | | | |
| Basic | | 172,262 | | 171,767 | | | 172,532 | | 172,047 |
| Diluted | | 173,152 | | 172,347 | | | 173,053 | | 172,751 |
The Company recorded restructuring charges of $1,037, included in cost of sales related to headcount reductions and a $500 casualty loss included in selling, general and administrative expense related to a minor fire in one of the Company’s material storage facilities during the quarter ended March 31, 2007. In addition, the results for the quarter ended March 31, 2007 reflect a favorable income tax adjustment of $3,361 resulting from certain of the Company’s foreign branch losses taken as deductions for U.S. income tax purposes no longer being subject to U.S. income tax recapture regulations.
AVX CORPORATION
Consolidated Condensed Balance Sheets
(unaudited)
(in thousands)
| | | | March 31, | | | March 31, |
| | | | 2006 | | | 2007 |
| Assets | | | | | |
| Cash and cash equivalents | $ | 505,326 | | $ | 684,382 |
| Short-term investments in securities | | 158,995 | | | 145,000 |
| Accounts receivable, net | | 177,448 | | | 196,165 |
| Inventories | | 307,653 | | | 330,141 |
| Other current assets | | 54,350 | | | 61,199 |
| | Total current assets | | 1,203,772 | | | 1,416,887 |
| Long-term investments in securities | | 135,004 | | | 139,000 |
| Property, plant and equipment, net | | 232,950 | | | 243,873 |
| Other assets | | 103,482 | | | 102,823 |
| | | | | | | |
| | TOTAL ASSETS | $ | 1,675,208 | | $ | 1,902,583 |
| | | | | | | |
| Liabilities and Stockholders' Equity | | | | | |
| Accounts payable | $ | 105,011 | | $ | 126,689 |
| Income taxes payable and accrued expenses | | 66,019 | | | 86,212 |
| | Total current liabilities | | 171,030 | | | 212,901 |
| Other liabilities | | 56,069 | | | 54,403 |
| | | | | | | |
| | TOTAL LIABILITIES | | 227,099 | | | 267,304 |
| | | | | | | |
| | TOTAL STOCKHOLDERS' EQUITY | | 1,448,109 | | | 1,635,279 |
| | | | | | | |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 1,675,208 | | $ | 1,902,583 |
Certain of the statements 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 documents AVX Corporation files with the Securities and Exchange Commission, including, but not limited to its Form 10-Ks, Form 10-Qs and Form 8-Ks. 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
