EXHIBIT 99.1
AVX Corporation Announces Preliminary Fourth Quarter and Full Fiscal Year Results
GREENVILLE, S.C. -- (BUSINESS WIRE) -- April 26, 2010-- AVX Corporation (NYSE: AVX) AVX today reported preliminary unaudited results for the fourth quarter and full fiscal year ended March 31, 2010.
Highlights:
| · | Net Sales for the March 2010 quarter were $367.4 million (up 10% from the prior quarter and up 35% from the same period a year ago), and $1,305 million for the full fiscal year ended in March. |
| · | Gross Profit margin increased to 22.6% in the current quarter from 13.9% in the same quarter last year and improved from the prior quarter excluding special items. |
| · | Non-GAAP net income of $48 million, or $0.28 per share, for the March 2010 quarter. |
| · | Dividends of $6.8 million, or $0.04 per share, were paid during the quarter. |
| · | Cash and investments in securities of $913.8 million and no debt at March 31, 2010. |
Chief Executive Officer and President, John Gilbertson, stated, “We are pleased to close our fiscal year with strong fourth quarter results reflecting sequential growth in both net sales and income for the fourth consecutive quarter. For the quarter ended March 31, 2010, net sales increased $32.5 million, or 10%, to $367.4 million compared to the previous quarter. Gross profit as a percentage of sales increased to 22.6% compared to 13.9% in the same quarter last year. We are seeing continued strength across a broad cross section of market segments.”
On a U.S. GAAP basis, unaudited net income (including special charges and gains) for the quarter was $46.5 million, or $0.27 per share. Non-GAAP net income (excluding special charges and gains) was $48 million, or $0.28 per share, for the quarter ended March 31, 2010.
John Gilbertson went on to state, “Our continuing focus on higher value products and lowering our operating cost base enabled us to further expand margins and generate strong cash flow. While global economic conditions improve, we have seen both an improvement in demand levels as well as inventory replenishment in most markets. We are seeing our customers book longer term orders, indicating their confidence in the continuing strength in the economy. Our actions during the past two years to enhance our competitive advantages and build sustained financial strength have created a solid base for future performance improvement. A continuing strength in the world wide economy will add more revenue and further enhance leverage from these restructuring actions that the management team has taken. ”
For the fiscal year ended March 31, 2010, net sales were $1,305 million. On a U.S. GAAP basis, unaudited net income (including special charges and gains) for the year was $142.8 million, or $0.84 per share, compared to net income of $80.8 million, or $0.47 per share, for the fiscal year ended March 31, 2009.
The Company incurred $2.4 million and $6.9 million of pre-tax restructuring charges related to global actions to realign production capabilities and reduce personnel costs for the fourth quarter and fiscal year ended March 31, 2010, respectively.
GAAP to Non-GAAP Reconciliation (unaudited) (in thousands, except per share data) | | Three Months Ended March 31, | | | Twelve Months Ended March 31, | |
| | | 2009 | | | 2010 | | | 2009 | | | 2010 | |
| Including special charges and gains (GAAP) | | | | | | | | | | | | |
| Net Sales | | $ | 271,827 | | | $ | 367,445 | | | $ | 1,389,613 | | | $ | 1,304,966 | |
| | | | | | | | | | | | | | | | | |
| Net income (loss) | | $ | (1,814 | ) | | $ | 46,500 | | | $ | 80,846 | | | $ | 142,849 | |
| Diluted income (loss) per share | | $ | (0.01 | ) | | $ | 0.27 | | | $ | 0.47 | | | $ | 0.84 | |
| | | | | | | | | | | | | | | | | |
| Excluding special charges and gains (Non-GAAP) | | | | | | | | | | | | | | | | |
| Special charges (after-tax) | | | | | | | | | | | | | | | | |
| Restructuring | | $ | 8,749 | | | $ | 1,938 | | | $ | 15,460 | | | $ | 5,534 | |
| Environmental | | | 11,375 | | | | - | | | | 11,375 | | | | - | |
| Vendor settlement | | | - | | | | - | | | | - | | | | (3,600 | ) |
| Other operating income | | | - | | | | (395 | ) | | | (2,532 | ) | | | (3,365 | ) |
| Available-for-Sale securities impairment | | | 390 | | | | - | | | | 3,078 | | | | 264 | |
| Net income | | $ | 18,700 | | | $ | 48,043 | | | $ | 108,227 | | | $ | 141,682 | |
| Diluted income per share | | $ | 0.11 | | | $ | 0.28 | | | $ | 0.63 | | | $ | 0.83 | |
See discussion of GAAP/Non-GAAP presentation below.
Chief Financial Officer, Kurt Cummings, stated, “Our management team continues to manage operating costs and improve profitability. We have assisted our customers to increase production during the economic recovery as a result of the Company’s ability to invest in people, equipment and materials. Our financial position is solid with cash and cash equivalents and short and long-term investments in securities of $913.8 million and no debt at March 31, 2010. During the quarter, the Company paid $6.8 million of dividends to stockholders.”
In order to better understand the Company’s short-term and long-term financial trends, investors may find it helpful to consider results excluding special charges and gains related to the sale of corporate assets, a vendor settlement, operations’ restructuring and environmental charges and the write down of certain available-for-sale securities due to an other-than-temporary impairment. The resulting non-GAAP financial measure provides additional information to investors regarding the underlying business trends and performance of the Company’s ongoing operations and may be of assistance for period-over-period comparisons of such operations. Management considers the exclusion of such charges as part of its evaluation of the operating performance of the Company. Investors should consider the non-GAAP measure as a supplement to, and not as a substitute for, financial performance measures prepared in accordance with GAAP. In addition, the non-GAAP financial measure may not be similar to non-GAAP information presented by other companies. Detail of the Company’s non-GAAP measure is provided in the table above.
AVX, headquartered in Greenville, 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, | |
| | | 2009 | | | 2010 | | | 2009 | | | 2010 | |
| Net sales | | $ | 271,827 | | | $ | 367,445 | | | $ | 1,389,613 | | | $ | 1,304,966 | |
| Cost of sales | | | 225,382 | | | | 282,583 | | | | 1,158,196 | | | | 1,027,368 | |
| Vendor settlement | | | - | | | | - | | | | - | | | | (5,000 | ) |
| Restructuring charges | | | 8,757 | | | | 1,636 | | | | 15,123 | | | | 4,397 | |
| Gross profit | | | 37,688 | | | | 83,226 | | | | 216,294 | | | | 278,201 | |
| Selling, general & admin. expense | | | 26,169 | | | | 26,226 | | | | 121,897 | | | | 108,515 | |
| Environmental charge | | | 18,200 | | | | - | | | | 18,200 | | | | - | |
| Restructuring charges | | | 1,784 | | | | 787 | | | | 3,504 | | | | 2,521 | |
| Other operating (income)/expense | | | - | | | | (549 | ) | | | (4,051 | ) | | | (3,519 | ) |
| Profit (loss) from operations | | | (8,465 | ) | | | 56,762 | | | | 76,744 | | | | 170,684 | |
| Other income | | | 2,838 | | | | 646 | | | | 20,395 | | | | 5,673 | |
| Income (loss) before income taxes | | | (5,627 | ) | | | 57,408 | | | | 97,139 | | | | 176,357 | |
| Provision (benefit) for taxes | | | (3,813 | ) | | | 10,908 | | | | 16,293 | | | | 33,508 | |
| Net income (loss) | | $ | (1,814 | ) | | $ | 46,500 | | | $ | 80,846 | | | $ | 142,849 | |
| | | | | | | | | | | | | | | | | |
| Basic income (loss) per share | | $ | (0.01 | ) | | $ | 0.27 | | | $ | 0.47 | | | $ | 0.84 | |
| Diluted income (loss) per share | | $ | (0.01 | ) | | $ | 0.27 | | | $ | 0.47 | | | $ | 0.84 | |
| | | | | | | | | | | | | | | | | |
| Weighted average common | | | | | | | | | | | | | | | | |
| shares outstanding: | | | | | | | | | | | | | | | | |
| Basic | | | 170,403 | | | | 170,135 | | | | 170,616 | | | | 170,247 | |
| Diluted | | | 170,403 | | | | 170,348 | | | | 170,689 | | | | 170,274 | |
Results for the quarter ended March 31, 2010 include pre-tax restructuring charges of $2.4 million and a gain on the sale of corporate assets of $0.5 million.
Results for the twelve months ended March 31, 2010 include pre-tax restructuring charges of $6.9 million and a gain of $5 million related to a vendor settlement. In addition, results for the fiscal year included a gain on the sale of corporate assets of $3.5 million included in other operating income and impairment charges of $0.4 million in other income related to the decline in value of available-for-sale securities.
Results for the fiscal year ended March 31, 2009 include pre-tax restructuring charges of $18.6 million, an environmental charge of $18.2 million related to the anticipated performance of certain environmental remediation actions at an abandoned building once used by a predecessor of the Company in New Bedford, Massachusetts and impairment charges of $4.2 million in other income related to the decline in value of available-for-sale securities. In addition, results for the fiscal year ended March 31, 2009 reflect a gain on the sale of corporate assets of $4.1 million included in other operating income.
AVX CORPORATION
Consolidated Condensed Balance Sheets
(unaudited)
(in thousands)
| | | March 31, | | | March 31, | |
| | | 2009 | | | 2010 | |
| Assets | | | | | | |
| Cash and cash equivalents | | $ | 522,709 | | | $ | 638,683 | |
| Short-term investments in securities | | | - | | | | 40,000 | |
| Available-for-sale securities | | | 24,014 | | | | 9,767 | |
| Accounts receivable, net | | | 143,715 | | | | 195,593 | |
| Inventories | | | 365,003 | | | | 357,105 | |
| Other current assets | | | 77,063 | | | | 71,435 | |
| Total current assets | | | 1,132,504 | | | | 1,312,583 | |
| Long-term investments in securities | | | 199,192 | | | | 219,992 | |
| Long-term available-for-sale securities | | | 16,565 | | | | 5,340 | |
| Property, plant and equipment, net | | | 263,387 | | | | 247,031 | |
| Goodwill and other intangibles | | | 252,849 | | | | 249,412 | |
| Other assets | | | 8,032 | | | | 10,496 | |
| | | | | | | | | |
| TOTAL ASSETS | | $ | 1,872,529 | | | $ | 2,044,854 | |
| | | | | | | | | |
| Liabilities and Stockholders' Equity | | | | | | | | |
| Accounts payable | | $ | 63,975 | | | $ | 104,421 | |
| Income taxes payable and accrued expenses | | | 85,427 | | | | 91,286 | |
| Total current liabilities | | | 149,402 | | | | 195,707 | |
| Other liabilities | | | 53,374 | | | | 42,723 | |
| | | | | | | | | |
| TOTAL LIABILITIES | | | 202,776 | | | | 238,430 | |
| | | | | | | | | |
| TOTAL STOCKHOLDERS' EQUITY | | | 1,669,753 | | | | 1,806,424 | |
| | | | | | | | | |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | | $ | 1,872,529 | | | $ | 2,044,854 | |
Contact:
AVX Corporation, Greenville, SC
Kurt Cummings
864-967-9303
finance@avxus.com
