EXHIBIT 99.1
AVX Corporation Announces Preliminary Fourth Quarter and Full Year Results
MYRTLE BEACH, S.C. -- (BUSINESS WIRE) -- April 24, 2008 -- AVX Corporation (NYSE: AVX)
Highlights:
| · | Quarter Revenue up 7.0%, or $26.5 million, over the same period in the prior year. |
| · | Total year Revenue of $1,619.3 million up 8.1%, or $120.8 million, over last fiscal year. |
| · | Quarter Gross Profit improved to 17.5%, an increase over the December quarter. |
| · | Selling prices in the quarter remained stable. |
| · | The company paid Dividends of $27.6 million, or $0.16 per share, during the fiscal year 2008. |
| · | Cash and cash equivalents and short and long-term investments in securities increased $6.3 million to $814.9 million during the quarter. |
Chief Executive Officer and President, John Gilbertson stated, “The year was a solid improvement over last year as we expanded our Advanced Product Group and fully integrated American Technical Ceramics Corp. (“ATC”) into our organization. The Advanced Product Group represented a record 31% of our overall orders this quarter. This acquisition is now contributing to our earnings and we are expecting further improvements as the year progresses with these new product lines.”
Unaudited net sales for the quarter ended March 31, 2008 improved $26.5 million, or 7.0%, over the same quarter last year. Unaudited net sales of $1.6 billion for the fiscal year ended March 31, 2008 improved $120.8 million, or 8.1%, over the fiscal year ended March 31, 2007.
Unaudited net income for the fiscal year was $149.5 million, or $0.87 per share, compared to net income of $153.9 million, or $0.89 per share, in the prior fiscal year. Current year income was negatively impacted by charges related to headcount reductions of $2.4 million, and in-process research and development expense related to the acquisition of $0.4 million.
John Gilbertson went on to state, "Our financial position remains exceptionally strong and we look forward to the upcoming year to further add to this position with improving revenue and income. During the year, we paid off the bank debt of $6.9 million acquired with the ATC acquisition, and paid dividends of $27.6 million to our shareholders. After these cash payouts, cash and cash equivalents and short and long term investment balances were $814.9 million at March 31, 2008.”
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, |
| | | 2007 | | 2008 | | | 2007 | | 2008 |
| Net sales | $ | 379,351 | $ | 405,869 | | $ | 1,498,495 | $ | 1,619,275 |
| Cost of sales | | 308,006 | | 334,826 | | | 1,201,337 | | 1,328,491 |
| Restructuring charges | | - | | - | | | - | | 2,421 |
| Gross profit | | 71,345 | | 71,043 | | | 297,158 | | 288,363 |
| Selling, general & admin. expense | | 29,180 | | 33,360 | | | 116,482 | | 126,848 |
| In-process research and development | | - | | - | | | - | | 390 |
| Profit from operations | | 42,165 | | 37,683 | | | 180,676 | | 161,125 |
| Other income | | 11,185 | | 9,528 | | | 36,890 | | 42,240 |
| Income before income taxes | | 53,350 | | 47,211 | | | 217,566 | | 203,365 |
| Provision for taxes | | 10,330 | | 11,357 | | | 63,701 | | 53,892 |
| Net income | $ | 43,020 | $ | 35,854 | | $ | 153,865 | | 149,473 |
| | | | | | | | | | |
| Basic income per share | $ | 0.25 | $ | 0.21 | | $ | 0.89 | $ | 0.87 |
| Diluted income per share | $ | 0.25 | $ | 0.21 | | $ | 0.89 | $ | 0.87 |
| | | | | | | | | | |
| Weighted average common | | | | | | | | | |
| shares outstanding: | | | | | | | | | |
| Basic | | 171,767 | | 171,111 | | | 172,047 | | 171,487 |
| Diluted | | 172,347 | | 171,422 | | | 172,751 | | 172,065 |
AVX CORPORATION
Consolidated Condensed Balance Sheets
(unaudited)
(in thousands)
| | | | March 31, | | | March 31, |
| | | | 2007 | | | 2008 |
| Assets | | | | | |
| Cash and cash equivalents | $ | 684,382 | | $ | 568,457 |
| Short-term investment in securities | | 145,000 | | | 50,000 |
| Short-term available-for-sale securities | | - | | | 44,790 |
| Accounts receivable, net | | 196,165 | | | 204,170 |
| Inventories | | 330,141 | | | 421,216 |
| Other current assets | | 65,707 | | | 88,936 |
| | Total current assets | | 1,421,395 | | | 1,377,569 |
| Long-term investment in securities | | 139,000 | | | 108,999 |
| Long-term available-for-sale securities | | - | | | 42,666 |
| Property, plant and equipment, net | | 243,873 | | | 316,572 |
| Goodwill and other intangibles | | 71,166 | | | 254,059 |
| Other assets | | 24,102 | | | 9,161 |
| | | | | | | |
| | TOTAL ASSETS | $ | 1,899,536 | | $ | 2,109,026 |
| | | | | | | |
| Liabilities and Stockholders' Equity | | | | | |
| Accounts payable | $ | 126,689 | | $ | 137,152 |
| Income taxes payable and accrued expenses | | 80,671 | | | 73,373 |
| | Total current liabilities | | 207,360 | | | 210,525 |
| Other liabilities | | 56,897 | | | 70,898 |
| | | | | | | |
| | TOTAL LIABILITIES | | 264,257 | | | 281,423 |
| | | | | | | |
| | TOTAL STOCKHOLDERS' EQUITY | | 1,635,279 | | | 1,827,603 |
| | | | | | | |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 1,899,536 | | $ | 2,109,026 |
The Company completed its acquisition of ATC on September 25, 2007 for approximately $231.3 million cash plus related transaction costs. Based on the allocation of the purchase price to the assets acquired and liabilities assumed, the Company recorded approximately $85.1 million of goodwill, $97.4 million of identifiable intangible assets, $31.8 million of fixed assets and $53.7 million of working capital.
Contact:
AVX Corporation, Myrtle Beach
Kurt Cummings,
843-946-0691
finance@avxus.com
