EXHIBIT 99.1
AVX Corporation Announces Preliminary Second Quarter Results
GREENVILLE, S.C. – October 29, 2014 -- AVX Corporation (NYSE: AVX) today reported preliminary unaudited results for the second quarter ended September 30, 2014.
Chairman and Chief Executive Officer, John Gilbertson, stated, “During the quarter, the business performed well. The company continued to control costs and manage margins. Operating profit increased $18.8 million over the same quarter last year with comparable sales. We have seen increased design activity from many hand held device and hybrid electric vehicle manufacturers as the need to extend battery life for sophisticated electronics continues. We anticipate an increase in electronic applications in many markets during the next year.”
For the quarter ended September 30, 2014, net sales were $365.4 million and net income was $44.6 million, or $0.27 per diluted share, compared to net sales of $375.8 million and net income of $28.8 million, or $0.17 per diluted share, for the quarter ended September 30, 2013.
For the six months ended September 30, 2014, net sales were $716.0 million and net income was $85.4 million or $0.51 per diluted share, compared to net sales of $745.2 million and net income of $56.5 million, or $0.33 per diluted share, for the six months ended September 30, 2013.
Chief Financial Officer, Kurt Cummings, stated, “We continued to generate positive cash flows from operations as a result of higher net income and focus on accounts receivable collections and inventory levels. In order to enhance shareholder value, the Board of Directors recently increased the quarterly dividend to $0.105 per common share, representing a $0.42 annual dividend rate. The Company’s financial position remains strong with cash, cash equivalents and short and long-term investments in securities of $978.3 million and no debt at September 30, 2014.”
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 and Subsidiaries
Consolidated Condensed Statements of Operations
(unaudited)
(in thousands, except per share data)
| | | | | | | | | | | |
| | | | | | | | | | | |
| | Three Months Ended | | | Six Months Ended |
| | September 30, | | | September 30, |
| 2013 | | 2014 | | 2013 | | 2014 |
Net sales | $ | 375,785 | | $ | 365,405 | | $ | 745,163 | | $ | 715,994 |
Cost of sales | | 304,260 | | | 277,632 | | | 605,367 | | | 543,044 |
Gross profit | | 71,525 | | | 87,773 | | | 139,796 | | | 172,950 |
Selling, general & admin. expense | | 30,160 | | | 27,634 | | | 59,196 | | | 57,258 |
Profit from operations | | 41,365 | | | 60,139 | | | 80,600 | | | 115,692 |
Other income, net | | 397 | | | 557 | | | 1,245 | | | 1,275 |
Income before income taxes | | 41,762 | | | 60,696 | | | 81,845 | | | 116,967 |
Provision for taxes | | 12,946 | | | 16,075 | | | 25,372 | | | 31,575 |
Net income | $ | 28,816 | | $ | 44,621 | | $ | 56,473 | | $ | 85,392 |
| | | | | | | | | | | |
Basic income per share | $ | 0.17 | | $ | 0.27 | | $ | 0.33 | | $ | 0.51 |
Diluted income per share | $ | 0.17 | | $ | 0.27 | | $ | 0.33 | | $ | 0.51 |
| | | | | | | | | | | |
Weighted average common shares outstanding: | | | | | | | | | | | |
Basic | | 168,587 | | | 168,031 | | | 168,617 | | | 168,093 |
Diluted | | 168,737 | | | 168,294 | | | 168,824 | | | 168,343 |
AVX Corporation and Subsidiaries
Consolidated Condensed Balance Sheets
(unaudited)
(in thousands)
| | | | | | |
| | | | | | |
| | March 31, | | September 30, |
| | 2014 | | 2014 |
Assets | | | | | | |
Cash and cash equivalents | | $ | 460,674 | | $ | 312,181 |
Short-term investments in securities | | | 413,615 | | | 512,422 |
Accounts receivable, net | | | 208,445 | | | 201,961 |
Inventories | | | 550,518 | | | 523,228 |
Other current assets | | | 135,471 | | | 188,174 |
Total current assets | | | 1,768,723 | | | 1,737,966 |
Long-term investments in securities | | | 25,000 | | | 153,742 |
Property, plant and equipment, net | | | 235,725 | | | 216,083 |
Goodwill and other intangibles | | | 280,786 | | | 278,212 |
Other assets | | | 74,754 | | | 26,090 |
| | | | | | |
TOTAL ASSETS | | $ | 2,384,988 | | $ | 2,412,093 |
| | | | | | |
Liabilities and Stockholders' Equity | | | | | | |
Accounts payable | | $ | 94,634 | | $ | 95,736 |
Income taxes payable and accrued expenses | | | 67,300 | | | 199,074 |
Total current liabilities | | | 161,934 | | | 294,810 |
Other liabilities | | | 175,369 | | | 47,884 |
| | | | | | |
TOTAL LIABILITIES | | | 337,303 | | | 342,694 |
| | | | | | |
TOTAL STOCKHOLDERS' EQUITY | | | 2,047,685 | | | 2,069,399 |
| | | | | | |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | | $ | 2,384,988 | | $ | 2,412,093 |
| | | | | | |
This Press Release contains "forward-looking" information within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including statements regarding industry prospects and future results of operations or financial position, made in this Press Release are forward-looking. The forward-looking information may include, among other information, statements concerning our outlook for fiscal year 2015, overall volume and pricing trends, cost reduction and acquisition strategies and their anticipated results, expectations for research and development, and capital expenditures. There may also be other statements of expectations, beliefs, future plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts. Forward-looking statements reflect management's expectations and are inherently uncertain. The forward-looking information and statements in this Press Release are subject to risks and uncertainties, including those discussed in our Annual Report on Form 10-K for fiscal year ended March 31, 2014, that could cause actual results to differ materially from those expressed in or implied by the information or statements herein. Forward-looking statements should be read in context with, and with the understanding of, the various other disclosures concerning the Company and its business made elsewhere in this Press Release as well as other public reports filed by the Company with the SEC. You should not place undue reliance on any forward-looking statements as a prediction of actual results or developments.
Any forward-looking statements by the Company are intended to speak as of the date thereof. We do not intend to update or revise any forward-looking statement contained in this Press Release to reflect new events or circumstances unless and to the extent required by applicable law. All forward-looking statements contained in this Press Release constitute "forward-looking statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934 and, to the extent it may be applicable by way of incorporation of statements contained in this Press Release by reference or otherwise, Section 27A of the United States Securities Act of 1933, each of which establishes a safe-harbor from private actions for forward-looking statements as defined in those statutes.
Contact:
AVX Corporation, Greenville
Kurt Cummings
864-967-9303
finance@avx.com
