1
EXHIBIT 99
UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
DELCO REMY INTERNATIONAL, INC. AND SUBSIDIARIES
(in thousands, except for per share data)
For the Twelve Month Period
Ended December 31
----------------------------
1999 1998
------------ ------------
Net sales $ 1,022,585 $ 860,802
Cost of goods sold 804,016 696,315
------------ ------------
Gross profit 218,569 164,487
Selling, general and administrative expenses 111,970 90,364
Amortization of goodwill and intangibles 5,827 3,829
Non-recurring charge -- 26,515
------------ ------------
Operating income 100,772 43,779
Other expense:
Non-operating expense (147) (428)
Interest expense (47,470) (40,272)
------------ ------------
Income before income taxes, minority interest in income
of subsidiaries and income from unconsolidated joint ventures 53,155 3,079
Income taxes 20,199 1,201
Minority interest in income of subsidiaries (5,487) (2,816)
Income from unconsolidated joint ventures 3,694 4,330
------------ ------------
Net income $ 31,163 $ 3,392
============ ============
Basic earnings per share $ 1.30 $ 0.14
============ ============
Diluted earnings per share $ 1.20 $ 0.13
============ ============
Average shares outstanding - basic 24,016,159 23,578,112
============ ============
Average shares outstanding - diluted 25,949,408 25,943,941
============ ============
Results for the twelve month period ended December 31, 1998, excluding the
effect of the strike by General Motors in the second and third quarters and the
non-recurring charge in the third quarter, were as follows:
Net sales $ 883,109
Gross profit 173,076
Income before tax 38,183
Net income 24,805
Basic earnings per share 1.05
Diluted earnings per share 0.96
2
UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
DELCO REMY INTERNATIONAL, INC. AND SUBSIDIARIES
(in thousands, except for per share data)
For the Three Month
Period Ended
----------------------------
3/31/00 6/30/00
------------ ------------
Net sales $ 276,115 $ 283,537
Cost of goods sold 210,866 219,837
------------ ------------
Gross profit 65,249 63,700
Selling, general and administrative expenses 32,273 33,483
Amortization of goodwill and intangibles 1,445 1,531
Non-recurring charge -- 35,222
------------ ------------
Operating income (loss) 31,531 (6,536)
Other expense:
Non-operating expense (387) (29)
Interest expense (11,103) (13,178)
------------ ------------
Income (loss) before income taxes (benefit), minority
interest in income of subsidiaries and loss from
unconsolidated joint ventures 20,041 (19,743)
Income taxes (benefit) 7,415 (7,305)
Minority interest in income of subsidiaries (1,717) (1,327)
Loss from unconsolidated joint ventures (28) (428)
------------ ------------
Net income (loss) $ 10,881 $ (14,193)
============ ============
Basic earnings (loss) per share $ 0.45 $ (0.59)
============ ============
Diluted earnings (loss) per share $ 0.42 $ (0.59)
============ ============
Average shares outstanding - basic 24,223,913 24,240,713
============ ============
Average shares outstanding - diluted 25,982,391 24,240,713
============ ============
Results for the three month period ended June 30, 2000, excluding the
non-recurring charge, were as follows:
Operating income $ 28,686
Income before tax 15,479
Net income 7,997
Basic earnings per share 0.33
Diluted earnings per share 0.31
Average shares outstanding - basic 24,240,713
Average shares outstanding - diluted 26,002,967
3
UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
DELCO REMY INTERNATIONAL, INC. AND SUBSIDIARIES
(in thousands, except for per share data)
For the Three Month Period Ended
------------------------------------------------------------
3/31/99 6/30/99 9/30/99 12/31/99
------------------------------------------------------------
Net sales $ 243,907 $ 251,625 $ 261,127 $ 265,926
Cost of goods sold 188,174 199,354 206,137 210,351
------------ ------------ ------------ ------------
Gross profit 55,733 52,271 54,990 55,575
Selling, general and administrative expenses 26,105 27,240 29,132 29,493
Amortization of goodwill and intangibles 1,294 1,241 1,560 1,732
------------ ------------ ------------ ------------
Operating income 28,334 23,790 24,298 24,350
Other expense:
Non-operating expense -- (15) (109) (23)
Interest expense (12,637) (11,503) (11,519) (11,811)
------------ ------------ ------------ ------------
Income before income taxes, minority interest in income of
subsidiaries and income (loss) from unconsolidated joint ventures 15,697 12,272 12,670 12,516
Income taxes 5,965 4,663 4,815 4,756
Minority interest in income of subsidiaries (806) (1,025) (2,037) (1,619)
Income (loss) from unconsolidated joint ventures 1,741 1,108 852 (7)
------------ ------------ ------------ ------------
Net income $ 10,667 $ 7,692 $ 6,670 $ 6,134
============ ============ ============ ============
Basic earnings per share $ 0.45 $ 0.32 $ 0.28 $ 0.25
============ ============ ============ ============
Diluted earnings per share $ 0.41 $ 0.30 $ 0.26 $ 0.24
============ ============ ============ ============
Average shares outstanding - basic 23,841,713 23,837,171 24,179,113 24,207,113
============ ============ ============ ============
Average shares outstanding - diluted 25,933,119 25,929,875 25,954,790 25,977,257
============ ============ ============ ============
4
UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
DELCO REMY INTERNATIONAL, INC. AND SUBSIDIARIES
(in thousands, except for per share data)
For the Three Month Period Ended
------------------------------------------------------------
3/31/98 6/30/98 9/30/98 12/31/98
------------ ------------ ------------ ------------
Net sales $ 214,881 $ 206,279 $ 211,085 $ 228,557
Cost of goods sold 170,873 168,058 173,151 184,233
------------ ------------ ------------ ------------
Gross profit 44,008 38,221 37,934 44,324
Selling, general and administrative expenses 21,198 23,857 20,379 24,930
Amortization of goodwill and intangibles 894 895 950 1,090
Non-recurring charge -- -- 26,515 --
------------ ------------ ------------ ------------
Operating income (loss) 21,916 13,469 (9,910) 18,304
Other expense:
Non-operating expense -- -- (428) --
Interest expense (9,453) (9,863) (10,109) (10,847)
------------ ------------ ------------ ------------
Income (loss) before income taxes (benefit), minority
interest in income of subsidiaries and income from
unconsolidated joint ventures 12,463 3,606 (20,447) 7,457
Income taxes (benefit) 4,861 1,406 (7,974) 2,908
Minority interest in income of subsidiaries (607) (667) (789) (753)
Income from unconsolidated joint ventures 1,050 1,674 517 1,089
------------ ------------ ------------ ------------
Net income (loss) $ 8,045 $ 3,207 $ (12,745) $ 4,885
============ ============ ============ ============
Basic earnings (loss) per share $ 0.34 $ 0.14 $ (0.54) $ 0.21
============ ============ ============ ============
Diluted earnings (loss) per share $ 0.31 $ 0.12 $ (0.54) $ 0.19
============ ============ ============ ============
Average shares outstanding - basic 23,323,433 23,440,910 23,780,722 23,766,113
============ ============ ============ ============
Average shares outstanding - diluted 25,872,600 26,042,394 23,780,722 25,896,044
============ ============ ============ ============
Results for the three month periods ended June 30, 1998 and September 30, 1998,
excluding the effect of the strike by General Motors in the second and third
quarters and the non-recurring charge in the third quarter, were as follows:
6/30/98 9/30/98
------------ ------------
Net sales $ 214,934 $ 224,737
Gross profit 41,810 42,934
Income before tax 7,195 11,068
Net income 5,396 6,479
Basic earnings per share 0.23 0.27
Diluted earnings per share 0.21 0.25
Average shares outstanding - basic 23,440,910 23,780,722
Average shares outstanding - diluted 26,042,394 25,963,457
5
UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEETS
DELCO REMY INTERNATIONAL, INC. AND SUBSIDIARIES
(in thousands)
December 31
June 30 -----------------------------------
2000 1999 1998 1997
--------- --------- --------- ---------
ASSETS:
Cash and cash equivalents $ 16,120 $ 11,362 $ 8,900 $ 5,803
Trade accounts receivable, net 175,063 166,563 139,616 124,868
Other receivables 20,354 15,291 14,321 5,755
Inventories 271,905 244,771 228,681 187,518
Deferred income taxes 15,323 14,997 22,198 20,421
Other current assets 7,266 3,076 7,749 7,212
--------- --------- --------- ---------
Total current assets 506,031 456,060 421,465 351,577
Property and equipment 294,946 276,118 226,966 180,967
Less accumulated depreciation (93,262) (71,306) (57,194) (41,342)
--------- --------- --------- ---------
Property and equipment, net 201,684 204,812 169,772 139,625
Deferred financing costs 9,579 10,459 12,219 15,218
Goodwill (less accumulated amortization) 166,896 135,380 133,826 109,504
Net assets held for disposal 60 130 14,477 25,188
Other assets 11,713 9,916 19,158 8,595
--------- --------- --------- ---------
Total assets $ 895,963 $ 816,757 $ 770,917 $ 649,707
========= ========= ========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Accounts payable $ 136,981 $ 132,423 $ 103,702 $ 93,684
Accrued interest payable 10,509 8,528 7,658 7,128
Accrued non-recurring charges 28,176 5,149 26,447 35,289
Other liabilities and accrued expenses 33,683 41,121 32,911 32,000
Current debt 5,502 5,566 3,352 545
--------- --------- --------- ---------
Total current liabilities 214,851 192,787 174,070 168,646
Deferred income taxes 3,104 4,569 1,761 2,555
Long-term debt, less current portion 510,729 447,475 464,159 360,559
Post-retirement benefits other than pensions 24,179 22,696 18,090 14,452
Accrued pension benefits 184 2,586 4,874 5,760
Other non-current liabilities 4,418 3,936 5,430 7,827
Minority interest in subsidiaries 25,192 22,952 11,723 8,855
Common stock:
Class A Shares 182 182 182 182
Class B Shares 63 63 63 63
Paid-in capital 104,176 104,176 106,360 98,612
Retained earnings (deficit) 18,368 21,680 (9,483) (12,875)
Accumulated other comprehensive loss (9,129) (5,895) (4,437) (2,798)
Stock purchase plan (354) (450) (1,875) (2,131)
--------- --------- --------- ---------
Total stockholders' equity 113,306 119,756 90,810 81,053
--------- --------- --------- ---------
Total liabilities and stockholders' equity $ 895,963 $ 816,757 $ 770,917 $ 649,707
========= ========= ========= =========
6
UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF CASH FLOWS
DELCO REMY INTERNATIONAL, INC. AND SUBSIDIARIES
(in thousands)
For the Six For the Twelve Month Period
Month Period Ended December 31
Ended ---------------------------
June 30, 2000 1999 1998
------------- --------- ---------
OPERATING ACTIVITIES:
Net income $ (3,312) $ 31,163 $ 3,392
Adjustments to reconcile net income to net
cash provided by (used in) operating activities:
Depreciation 14,198 22,475 13,016
Amortization 2,976 5,827 3,829
Minority interest in income of subsidiaries 3,044 5,487 2,816
Income from unconsolidated joint ventures 456 (3,694) (4,330)
Deferred income taxes (1,791) 7,201 115
Post-retirement benefits other than pensions 1,483 4,606 3,638
Accrued pension benefits (2,402) (2,288) (886)
Non-cash interest expense 882 1,761 1,415
Changes in operating assets and liabilities, net
of acquisitions:
Accounts receivable 14,992 (10,636) (2,408)
Inventories (12,209) (9,102) (22,816)
Accounts payable 1,041 15,783 1,054
Other current assets and liabilities (20,598) 11,231 (27,216)
Non-recurring charges 35,222 -- 26,515
Cash payments for non-recurring charges (5,675) (6,955) (24,412)
Other non-current assets and liabilities, net (5,033) 7,084 (1,436)
--------- --------- ---------
Net cash provided by (used in) operating activities 23,274 79,943 (27,714)
--------- --------- ---------
INVESTING ACTIVITIES:
Acquisitions, net of cash acquired (61,913) (15,325) (44,890)
Purchases of property and equipment (15,402) (35,344) (24,836)
--------- --------- ---------
Net cash used in investing activities (77,315) (50,669) (69,726)
--------- --------- ---------
FINANCING ACTIVITIES:
Net borrowings (repayments)under revolving line of credit and other 59,999 (26,261) 101,024
Distributions to minority interests (1,200) -- --
--------- --------- ---------
Net cash provided by (used in) financing activities 58,799 (26,261) 101,024
--------- --------- ---------
Effect of exchange rate changes on cash -- (551) (487)
--------- --------- ---------
Net increase in cash and equivalents 4,758 2,462 3,097
Cash and equivalents at beginning of period 11,362 8,900 5,803
--------- --------- ---------
Cash and equivalents at end of period $ 16,120 $ 11,362 $ 8,900
========= ========= =========