Exide Technologies Reports Fiscal 2013 Third Quarter Results

Exide Technologies Reports Fiscal 2013 Third Quarter Results

MILTON, Ga., Feb. 6, 2013 (GLOBE NEWSWIRE) -- Exide Technologies (Nasdaq:XIDE)
(www.exide.com), a global leader in stored electrical energy solutions,
announced today its fiscal 2013 third quarter and year to date financial
results for the periods ended December 31, 2012.

Consolidated Results

Fiscal 2013 third quarter consolidated net sales were $804.9 million as
compared to net sales of $784.1 million in the fiscal 2012 third quarter. Net
sales in the fiscal 2013 period were negatively impacted by foreign currency
translation of $10.2 million and lead related pricing of $16.3 million.
Excluding the negative impact of foreign currency translation and lead-related
pricing, net sales increased 6% primarily due to increased sales in the motive
power and network power channels of both Industrial Energy segments as well as
higher unit sales in the aftermarket channel in Transportation Europe.

Gross profit for the third quarter of $120.1 million, declined by $6.4 million
when compared with the prior year period. Continued higher spent battery
acquisition costs in the Americas combined with lower margins from third party
lead sales negatively impacted gross margin by approximately $11 million.
Improvement in spent battery acquisition costs in the U.S. began in November
2012. This trend has continued into the early part of the fiscal fourth
quarter which should benefit both Americas businesses if the trend continues.

Fiscal 2013 third quarter operating income, excluding $15.8 million for
restructuring and impairment charges, was $20.5 million compared to $30.3
million, excluding $2.1 million for restructuring and impairment charges, in
the prior year third quarter. The decrease is primarily due to lower gross
profits discussed above. Current period restructuring charges were $5.2
million related to the closure of the Bristol, Tennessee flooded battery
manufacturing facility, the idling of lead recycling operations in Reading,
Pennsylvania and the closure of GNB India. Impairment charges of $10.6 million
are principally related to asset write-downs for the closure of GNB India and
the sale of the Australasia transportation business that was completed on
February 4, 2013.

Net loss for the fiscal 2013 third quarter was $15.4 million or $0.20 per
share as compared to the prior year period net income of $68.2 million or
$0.84 per share. Fiscal 2012 third quarter net income included the non-cash
reversal of the tax valuation allowance in France for $76.7 million partially
offset by a $13.4 million charge to settle a tax audit in Spain.

Fiscal 2013 Nine Month Consolidated Results

Net sales for the first nine months of fiscal 2013 were $2.2 billion as
compared with $2.3 billion for the prior fiscal year period. Net sales in the
fiscal 2013 period were negatively impacted by lead related price decreases of
$65.0 million and unfavorable foreign currency translation of approximately
$97.7 million.

Fiscal 2013 operating income, excluding $16.4 million for restructuring and
impairment charges, was $29.0 million versus $66.7 million, excluding $3.7
million for restructuring and impairment charges, for the fiscal 2012 period.
The decline is primarily the impact of higher spent battery costs coupled with
lower LME based escalator pricing. Higher spent battery acquisition costs
combined with lower third party lead margins in the Americas impacted results
by approximately $44 million.

The Company reported a net loss for the nine months ended December 31, 2012 of
$135.8 million or $1.76 per share as compared to net income of $59.4 million
or $0.72 per share in the nine months ended December 31, 2011. The fiscal 2013
net loss includes a non-cash tax valuation allowance charge in the U.S. of
$86.7 million or $1.12 per share. The fiscal 2012 net income and per share
amount were positively impacted by the non-cash reversal of the tax valuation
allowance in France partially offset by a charge to settle a tax audit in
Spain, aggregating $63.3 million or $0.82 per share.

As of December 31, 2012, the Company had cash and cash equivalents of $80.0
million and $81.7 million of availability under its revolving bank credit
facility. This compares to cash and cash equivalents of $155.4 million and
$152.8 million of availability under the revolving bank credit facility at
March 31, 2012. The Company reported a free cash flow usage of $109 million
for the nine months ended December 31, 2012 as compared to a usage of $73
million for the comparable prior year period. The Company currently expects to
generate free cash flow in the range of $30 million in the fourth quarter,
less than previously stated. Jim Bolch, President and Chief Executive Officer,
said, "Lower operating income as well as the higher cost of spent batteries in
the first nine months of fiscal 2013, when compared to the prior year period,
was the main driver for the increase use of cash."

Segment Information for the Three and Nine Months Ended December 31, 2012

Transportation Segments

Net sales of the Company's combined Transportation segments in the fiscal 2013
third quarter was $513.8 million as compared to $503.6 million in the same
period of fiscal 2012. Net sales were unfavorably impacted by foreign currency
translation in the amount of $5.6 million. Price decreases resulting from lead
escalator agreements negatively impacted total Transportation net sales by
approximately $8.8 million in the fiscal 2013 third quarter. Fiscal 2013 third
quarter aftermarket unit volume increased approximately 11% as compared to the
prior year third quarter, while units sold to original equipment ("OE")
customers decreased less than 1% quarter-over-quarter.

Fiscal 2013 third quarter operating income, excluding restructuring and
impairment charges, was $11.5 million as compared to operating income of $22.5
million, excluding restructuring and impairment charges, in the prior year
third quarter. The decline in the current quarter compared to the prior year
period is primarily the result of continued high spent battery costs in the
Americas. Transportation Europe & ROW ("ROW") was impacted by the inability to
obtain pricing to offset higher product costs and a mix shift to lower margin
products.

Net sales for the first nine months of fiscal 2013 were $1.35 billion as
compared to $1.42 billion for the same period of fiscal 2012 primarily due to
price decreases as a result of lower average lead prices and unfavorable
currency translation, partially offset by higher unit volumes.

Operating income, excluding restructuring and impairment charges, was $5.5
million for the nine months ended December 31, 2012 compared to operating
income of $37.6 million, excluding restructuring and impairment charges, in
the same period of the prior year. Transportation Americas operating loss,
excluding restructuring and impairment charges, for the current year period
was $12.1 million, which was negatively impacted by lower fixed cost
absorption and higher commodity costs. Transportation Europe & ROW operating
income, excluding restructuring and impairment charges, for the first nine
months of fiscal 2013 was $17.6 million and was impacted by competitive
pricing in the aftermarket channel and increased shift to lower margin
products.

For the first nine months of fiscal 2013, Transportation Americas produced
approximately 246 thousand tons of lead in our North American recycling
operation, down about 4% from the prior year period. The Company sold 10% of
this lead production in the open market and 12% under tolling arrangements
during the first nine months of fiscal 2013. This compares to 11% and 16% in
the open market and under tolling arrangements, respectively, in the prior
year comparable period. Third-party lead sales for the first nine months of
fiscal 2013 were down approximately $25.3 million or about 24% as compared to
the prior year period.The Company continues its strategy to exit the business
of third-party lead sales with the now closed Frisco, Texas recycling facility
and the scheduled idling of lead recycling operations at the Reading,
Pennsylvania facility in March 2013.

Industrial Energy Segments

Fiscal 2013 third quarter total net sales for the Company's combined
Industrial Energy segments increased to $291.0 million as compared to $280.5
million in the comparable fiscal 2012 period. Net sales were unfavorably
impacted by foreign currency translation of $4.6 million. Price decreases
resulting from lead escalator agreements negatively impacted net sales by $7.6
million in the fiscal 2013 third quarter as compared to the net sales reported
in the same period of fiscal 2012.

Fiscal 2013 third quarter operating income, excluding restructuring and
impairment charges, was $16.7 million compared to $17.4 million, excluding
restructuring and impairment charges, in the prior year period. Higher cost of
spent batteries combined with lower LME lead pricing weighed on the Americas
results which was partially offset by higher unit sales in both motive and
network power and improved pricing to recover lead costs in Industrial Energy
Europe & ROW.

Net sales for the first nine months of fiscal 2013 were $862.7 million as
compared to $881.8 million for the same period of fiscal 2012. The decrease
was due to price decreases related to lower average lead prices, and
unfavorable foreign currency translation.

Operating income, excluding restructuring and impairment charges, was $45.0
million for the nine months ended December 31, 2012 compared to $51.9 million,
excluding restructuring and impairment charges, in the same period of the
prior year. Industrial Energy Americas operating income, excluding
restructuring and impairment charges, was $21.2 million as compared to $32.5
million, excluding restructuring and impairment charges, in the prior year
period. The decrease in operating income for the Americas is primarily due to
compressed margins as a result of higher lead input costs and lower LME lead
pricing, as well as start-up related costs in the Company's Columbus, Georgia
facility. The impact of higher spent battery acquisition costs was
approximately $14.1 million. Industrial Energy Europe & ROW operating income,
excluding restructuring and impairment charges, improved approximately 23% to
$23.8 million in the fiscal 2013 period as compared to the prior year period.
The increase is due to higher unit sales in both motive and network power,
lower selling and administrative expenses, partially offset by higher
commodity costs.

Non-GAAP Financial Measure

The Company defines Free Cash Flow as cash from operating activities less cash
from investing activities, both as measured in accordance with U.S. Generally
Accepted Accounting Principles. We believe that Free Cash Flow provides useful
information about the cash generated by our core operations after capital
expenditures and the sale of non-core assets.

The foregoing non-GAAP financial measure should be used in addition to, but
not in isolation or as a substitute for, the analysis provided in the
Company's measures of financial performance prepared in conformity with U.S.
GAAP.The non-GAAP financial measure should be read only in conjunction with
the Company's condensed consolidated financial statements prepared in
accordance with GAAP.

Conference Call

The Company previously announced that it will hold a conference call to
discuss its results on Thursday, February 7, 2013 at 9:00 a.m. Eastern Time.

Conference call details:

Dial-in number for US/Canada:800-706-9117
Dial-in number for international callers:706-679-5918
Conference ID:86782101

A telephonic replay of the conference call is available:
Dates:from 12:00 p.m. ET February 7, 2013 to 11:59 p.m. ET February 21, 2013
Domestic dial-in:855-859-2056 or 800-585-8367
International dial-in:404-537-3406
Passcode:86782101

About Exide Technologies

Exide Technologies, with operations in more than 80 countries, is one of the
world's largest producers and recyclers of lead-acid batteries. The Company's
four global business groups -- Transportation Americas, Transportation Europe
and Rest of World, Industrial Energy Americas and Industrial Energy Europe and
Rest of World -- provide a comprehensive range of stored electrical energy
products and services for industrial and transportation applications.

Transportation markets include original-equipment and aftermarket automotive,
heavy-duty truck, agricultural and marine applications, and new technologies
for hybrid vehicles and automotive applications. Industrial markets include
network power applications such as telecommunications systems, electric
utilities, railroads, photovoltaic (solar-power related) and uninterruptible
power supply (UPS), and motive-power applications including lift trucks,
mining and other commercial vehicles.

Further information about Exide, including its financial results, are
available at www.exide.com.

The Exide Technologies logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=3300

Forward-Looking Statements

Except for historical information, this news release may be deemed to contain
"forward-looking" statements. The Company desires to avail itself of the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995 (the
"Act") and is including this cautionary statement for the express purpose of
availing itself of the protection afforded by the Act.

Examples of forward-looking statements include, but are not limited to
(a)projections of revenues, cost of raw materials, income or loss, earnings
or loss per share, capital expenditures, growth prospects, dividends, the
effect of currency translations, capital structure, and other financial items,
(b)statements of plans and objectives of the Company or its management or
Board of Directors, including the introduction of new products, or estimates
or predictions of actions by customers, suppliers, competitors or regulating
authorities, (c)statements of future economic performance, (d)statements
regarding liquidity and (e)statements of assumptions, such as the prevailing
weather conditions in the Company's market areas, underlying other statements
and statements about the Company or its business, and (f) statements regarding
tax and liquidity impacts from asset sales and restructuring activities.

Factors that could cause actual results to differ materially from these
forward looking statements include, but are not limited to, the following
general factors such as: (i)the fact that lead, a major constituent in most
of the Company's products, experiences significant fluctuations in market
price and is a hazardous material that may give rise to costly environmental
and safety claims, (ii)the Company's ability to implement and fund business
strategies based on current liquidity, (iii)the Company's ability to realize
anticipated efficiencies and avoid additional unanticipated costs related to
its restructuring activities, (iv)the cyclical nature of the industries in
which the Company operates and the impact of current adverse economic
conditions on those industries, (v)unseasonable weather (warm winters and
cool summers) which adversely affects demand for automotive and some
industrial batteries, (vi)the Company's substantial debt and debt service
requirements which may restrict the Company's operational and financial
flexibility, as well as imposing significant interest and financing costs,
(vii)the litigation proceedings to which the Company is subject, the results
of which could have a material adverse effect on the Company and its business,
(viii)the realization of the tax benefits of the Company's net operating loss
carry forwards, which is dependent upon future taxable income,
(ix)competitiveness of the battery markets in the Americas and Europe,
(x)risks involved in foreign operations such as disruption of markets,
changes in import and export laws, currency restrictions, currency exchange
rate fluctuations and possible terrorist attacks against U.S. interests,
(xi)the ability to acquire goods and services and/or fulfill later needs at
budgeted costs, (xii)general economic conditions, (xiii)the Company's
ability to successfully pass along increased material costs to its customers,
(xiv)recently adopted U.S. lead emissions standards and the implementation of
such standards by applicable states, and (xv)those risk factors described in
the Company's fiscal 2012 Form 10-K for the fiscal year ended March 31, 2012.

The Company cautions each reader of this news release to carefully consider
those factors set forth above. Such factors have, in some instances, affected
and in the future could affect the ability of the Company to achieve its
projected results and may cause actual results to differ materially from those
expressed herein.

Financial tables follow

                                                              
                                                              
EXIDE TECHNOLOGIES AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per-share data)
                                                              
                                                              
                         For the Three Months Ended For the Nine Months Ended
                         December 31,  December 31, December 31, December 31,
                          2012          2011         2012         2011
Net sales                 $804,879    $784,051   $2,210,009 $2,302,099
Cost of sales             684,809      657,540     1,892,025   1,940,325
Gross profit             120,070      126,511     317,984     361,774
Selling and               99,568       96,182      288,968     295,058
administrative expenses
Restructuring and         15,776       2,145       16,400      3,722
impairments, net
Operating income         4,726        28,184      12,616      62,994
Other (income) expense,   (2,001)      3,403       (903)       9,273
net
Interest expense, net     18,366       17,194      49,692      52,929
(Loss) income before     (11,639)     7,587       (36,173)    792
income taxes
Income tax provision      3,644        (60,313)    99,343      (57,685)
(benefit)
Net (loss) income        (15,283)     67,900      (135,516)   58,477
Net income (loss)
attributable to           160          (315)       300         (958)
noncontrolling interests
Net (loss) income
attributable toExide     $(15,443)   $68,215    $(135,816) $59,435
Technologies
(Loss) earnings per share                                      
Basic                    $(0.20)     $0.88      $(1.76)    $0.77
Diluted                  $(0.20)     $0.84      $(1.76)    $0.72
Weighted average shares                                        
Basic                    77,344       77,738      77,234      77,628
Diluted                  77,344       81,610      77,234      82,198

                                                              
                                                              
EXIDE TECHNOLOGIES AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands, except per-share data)
                                                              
                                                              
                                             December 31, 2012 March31,2012
ASSETS                                                         
Current assets:                                                
Cash and cash equivalents                    $80,015         $155,368
Accounts receivable, net                     553,804          500,375
Inventories                                  548,459          479,467
Prepaid expenses and other current assets    25,976           21,840
Deferred income taxes                        10,368           30,804
Total current assets                         1,218,622        1,187,854
Property, plant and equipment, net            633,022          622,975
Other assets:                                                  
Goodwill and intangibles, net                150,783          164,039
Deferred income taxes                        97,753           174,601
Other noncurrent assets                      46,502           45,517
                                             295,038          384,157
Total assets                                  $2,146,682      $2,194,986
LIABILITIES AND STOCKHOLDERS' EQUITY                           
Current liabilities:                                           
Short-term borrowings                        $61,056         $20,014
Current maturities of long-term debt         59,151           3,787
Accounts payable                             440,830          390,549
Accrued expenses                             293,887          276,809
Total current liabilities                    854,924          691,159
Long-term debt                                690,215          752,930
Noncurrent retirement obligations             223,748          236,312
Deferred income taxes                         14,671           17,158
Other noncurrent liabilities                  95,846           95,075
Total liabilities                            1,879,404        1,792,634
                                                              
STOCKHOLDERS' EQUITY                                           
Preferred stock, $0.01 par value, 1,000
shares authorized, 0 shares issued and        —                —
outstanding
Common stock, $0.01 par value, 200,000 shares
authorized, 79,298 and 78,351 shares issued   793              783
and outstanding
Additional paid-in capital                    1,136,544        1,133,417
Accumulated deficit                           (851,729)        (715,913)
Accumulated other comprehensive loss          (19,200)         (16,493)
Total stockholders' equity attributable to   266,408          401,794
Exide Technologies
Noncontrolling interests                      870              558
Total stockholders' equity                   267,278          402,352
Total liabilities and stockholders' equity    $2,146,682      $2,194,986

                                                           
                                                           
EXIDE TECHNOLOGIES AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)
                                                           
                                                           
                                          For the Nine Months Ended
                                          December 31, 2012 December 31, 2011
Cash Flows From Operating Activities:                       
Net (loss) income                         $(135,516)      $58,477
Adjustments to reconcile net (loss)
income to net cash used in operating                        
activities
Depreciation and amortization             58,873           63,990
Net loss on asset sales / impairments     9,534            1,618
Deferred income taxes                     93,523           (78,340)
Provision for doubtful accounts           948              986
Non-cash stock compensation               3,916            3,684
Amortization of deferred financing costs  3,202            3,233
Currency remeasurement (gain) loss        (1,616)          12,949
Changes in assets and liabilities                           
Receivables                               (44,221)         (10,804)
Inventories                               (70,861)         (32,200)
Other current assets                      (6,619)          1,219
Payables                                  52,814           (24,326)
Accrued expenses                          9,645            (886)
Other noncurrent liabilities              (10,214)         (11,447)
Other, net                                (1,582)          10,159
Net cash used in operating activities     (38,174)         (1,688)
Cash Flows From Investing Activities:                       
Capital expenditures                      (74,838)         (71,931)
Proceeds from asset sales                 4,359            563
Net cash used in investing activities     (70,479)         (71,368)
Cash Flows From Financing Activities:                       
Increase in short-term borrowings         41,137           13,722
(Decrease) increase in other debt         (6,810)          5,439
Other                                     (779)            (486)
Net cash provided by financing activities 33,548           18,675
Effect of exchange rate changes on cash    (248)            (4,314)
and cash equivalents
Net decrease in cash and cash equivalents  (75,353)         (58,695)
Cash and cash equivalents, beginning of    155,368          161,363
period
Cash and cash equivalents, end of period   $80,015         $102,668
                                                           
Supplemental Disclosures of Cash Flow                       
Information:
Cash paid during the period                                
Interest                                  $35,423         $37,357
Income taxes (net of refunds)             $7,350          $21,698

                                                              
                                                              
EXIDE TECHNOLOGIES AND SUBSIDIARIES
CONDENSED CONSOLIDATED SELECTED SEGMENT FINANCIAL INFORMATION
(Unaudited, in thousands)
                                                              
                         For the Three Months Ended For the Nine Months Ended
                         December 31,  December 31, December 31, December 31,
                          2012          2011         2012         2011
                                                              
Net sales                                                      
Transportation Americas  $231,183    $234,487   $659,362   $676,521
Transportation Europe&  282,653      269,104     687,916     743,802
ROW
Industrial Energy        85,533       75,973      271,084     255,512
Americas
Industrial Energy        205,510      204,487     591,647     626,264
Europe& ROW
                         $804,879    $784,051   $2,210,009 $2,302,099
Operating income (loss)                                        
Transportation Americas  $2,864      $3,021     $(12,148)  $(716)
Transportation Europe&  8,611        19,451      17,609      38,300
ROW
Industrial Energy        7,703        11,578      21,220      32,486
Americas
Industrial Energy        9,039        5,777       23,827      19,442
Europe& ROW
Unallocated corporate    (7,715)      (9,498)     (21,492)    (22,796)
expenses
                         20,502       30,329      29,016      66,716
Less: restructuring and  15,776       2,145       16,400      3,722
impairments, net
Total operating income   $4,726      $28,184    $12,616    $62,994

                                                      
                                                      
EXIDE TECHNOLOGIES AND SUBSIDIARIES
COMPUTATION OF FREE CASH FLOW
(Unaudited, in millions)
                                                      
                                     FOR THE NINE MONTHS ENDED
                                     December 31, 2012 December 31, 2011
                                                      
Net cash used in operating activities $(38.2)         $(1.7)
                                                      
Net cash used in investing activities (70.5)           (71.4)
                                                      
Free Cash Flow                        $(108.7)        $(73.1)

CONTACT: MEDIA CONTACT:
         Susan Jaramillo
         Vice President, Corporate Communications
         203/699-9133 phone
         susan.jaramillo@exide.com
        
         INVESTOR CONTACT:
         Carol Knies
         Senior Director, Investor Relations
         Exide Technologies
         678/566-9316 phone
         carol.knies@exide.com

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