Exide Technologies Reports Unaudited Preliminary Fiscal 2013 Results PR Newswire MILTON, Ga., June 10, 2013 MILTON, Ga., June 10, 2013 /PRNewswire/ --Exide Technologies (NASDAQ: XIDE, www.exide.com), a global leader in stored electrical energy solutions, announced today its unaudited preliminary fiscal 2013 fourth quarter and full year financial results. In addition earlier today the Company filed a voluntary petition for reorganization pursuant to U.S. federal restructuring laws. The petition was filed in the District of Delaware. The Company is currently completing its financial statement close process for deferred income taxes and other areas for the fiscal year ended March 31, 2013 in connection with filing of its Annual Report on Form 10-K expected to be filed on June 14, 2013. Also, the estimates for net sales, Adjusted EBITDA as well as the consolidated financial statements accompanying this release are preliminary and have not been audited and could be subject to change upon completion of the audit of the Company's consolidated financial statements. Q4 Fiscal 2013 The Company expects to report preliminary net sales of $762 million for the fourth quarter as compared to net sales of $783 million in the prior year fourth quarter. Net sales in the fiscal 2013 period were positively impacted by foreign currency translation of approximately $3 million. Excluding the impact of foreign currency translation, expected net sales decreased 3.1%, primarily due to lower OEM unit sales in the Company's global transportation business and lower third party lead sales. Fiscal 2013 fourth quarter preliminary Adjusted EBITDA is expected to be $12 million as compared to $45 million in the prior year fourth quarter. The decrease is primarily due to lower third-party lead margins in the Americas, combined with higher commodity costs and manufacturing inefficiencies due to lower production and certain plant related operational issues in Europe and the Americas. Full Year Fiscal 2013 Fiscal 2013 preliminary net sales are expected to be $3.0 billion as compared with $3.1 billion for the prior fiscal year period. Net sales in fiscal 2013 were negatively impacted by lead related price decreases of approximately $78 million and unfavorable foreign currency translation of approximately $94 million, partially offset by higher unit sales in many of the Company's markets. The Company expects to report fiscal 2013 preliminary Adjusted EBITDA of $104 million versus $179 million in the prior fiscal year. The decline is primarily the result of higher spent battery costs coupled with lower LME based escalator pricing, higher commodity costs, and manufacturing inefficiencies. Higher spent battery acquisition costs combined with lower third party lead margins in the Americas impacted results by approximately $58 million. Non-GAAP Financial Measure The Company uses Adjusted EBITDA as a key measure of its operational financial performance. This measure is a key indicator of the Company's operational performance and excludes the impact of the Company's restructuring actions. Adjusted EBITDA is defined as operating income before depreciation, amortization, non-cash stock compensation, restructuring charges, impairment charges and non-cash gains or losses on asset sales. Please refer to the reconciliations of operating income to Adjusted EBITDA below. 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 consolidated financial statements prepared in accordance with GAAP. 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 the Company, including its financial results, are available at www.exide.com. 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)preliminary financial results, 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, and (d)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. 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 ability of the Company to develop, prosecute, confirm and consummate the Chapter 11 plan of reorganization, (ii) the potential adverse impact of the Chapter 11 filing on the Company's liquidity and operations and the risks associated with operating businesses under Chapter 11 protection, (iii) the ability of the Company to comply with the terms of the DIP financing facility, (iv) the Company's ability to obtain additional financing, (v) the Company's ability to retain key management and employees, (vi) customer response to the Chapter 11 filing, (vii) the risk factors or uncertainties listed from time to time in the Company's filings with the Securities and Exchange Commission and with the U.S. Bankruptcy Court in connection with the company's Chapter 11 filing, (viii)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, (ix)the Company's ability to implement and fund business strategies based on current liquidity, (x)the Company's ability to realize anticipated efficiencies and avoid additional unanticipated costs related to its restructuring activities, (xi)the cyclical nature of the industries in which the Company operates and the impact of current adverse economic conditions on those industries, (xii)unseasonable weather (warm winters and cool summers) which adversely affects demand for automotive and some industrial batteries, (xiii)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, (xiv)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, (xv)the realization of the tax benefits of the Company's net operating loss carry forwards, which is dependent upon future taxable income, (xvi)competitiveness of the battery markets in the Americas and Europe, (xvii)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, (xviii)the ability to acquire goods and services and/or fulfill later needs at budgeted costs, (xix)general economic conditions, (xx)the Company's ability to successfully pass along increased material costs to its customers, and (xxi)recently adopted U.S. lead emissions standards and the implementation of such standards by applicable states, and (xxii) 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 herein above set forth. Such factors and statements 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. EXIDE TECHNOLOGIES AND SUBSIDIARIES RECONCILIATION OF PRELIMINARY ADJUSTED EBITDA (Unaudited, in thousands) FOR THE THREE MONTHS ENDED MARCH 31, 2013 Industrial Industrial Transportation Transportation Energy Energy Unallocated Total Americas Europe and ROW Americas Europe and Corporate ROW Operating $ $ $ $ $ $ Income (63,949) 2,431 (8,042) (65,977) (loss) 6,345 (2,762) Restructuring & 52,938 295 701 723 438 55,095 impairments, net Segment (11,011) 2,725 7,046 (2,039) (7,604) (10,883) Income (loss) Depreciation & 7,535 5,073 2,893 4,712 1,100 21,314 amortization Non cash stock - - - - 1,708 1,708 compensation Adjusted $ $ $ $ $ $ EBITDA (3,476) 7,798 2,673 (4,795) 12,139 9,939 FOR THE THREE MONTHS ENDED MARCH 31, 2012 Industrial Industrial Transportation Transportation Energy Energy Unallocated Total Americas Europe and ROW Americas Europe and Corporate ROW Operating $ $ $ $ $ $ Income 9,809 13,497 (10,205) 15,881 (loss) 9,075 (6,294) Restructuring & 421 4,131 96 1,287 1,222 7,157 impairments, net Segment 10,229 17,627 9,171 (5,007) (8,983) 23,038 Income (loss) Depreciation & 7,356 4,020 2,800 5,152 1,036 20,364 amortization Non cash stock - - - - 1,468 1,468 compensation Adjusted $ $ $ $ $ $ EBITDA 17,585 21,648 11,971 144 (6,479) 44,870 FOR THE TWELVE MONTHS ENDED MARCH 31, 2013 Industrial Industrial Transportation Transportation Energy Energy Unallocated Total Americas Europe and ROW Americas Europe and Corporate ROW Operating $ $ $ $ $ $ Income (80,262) 12,172 (29,576) (53,361) (loss) 27,130 17,174 Restructuring & 57,104 8,163 1,136 4,613 479 71,495 impairments, net Segment (23,158) 20,335 28,266 21,787 (29,096) 18,134 Income (loss) Depreciation & 28,465 19,052 10,963 17,386 4,320 80,187 amortization Non cash stock - - - - 5,624 5,624 compensation Adjusted $ $ $ $ $ (19,152) $ EBITDA 5,307 39,387 39,229 39,173 103,944 FOR THE TWELVE MONTHS ENDED MARCH 31, 2012 Industrial Industrial Transportation Transportation Energy Energy Unallocated Total Americas Europe and ROW Americas Europe and Corporate ROW Operating $ $ $ $ $ $ Income 7,145 51,813 41,006 12,134 (33,223) 78,875 (loss) Restructuring & 2,369 4,115 652 2,301 1,442 10,878 impairments, net Segment 9,513 55,928 41,657 14,435 (31,780) 89,753 Income (loss) Depreciation & 28,215 18,590 11,701 21,039 4,807 84,353 amortization Non cash stock - - - - 5,152 5,152 compensation Adjusted $ $ $ $ $ $ EBITDA 37,728 74,518 53,359 35,474 (21,821) 179,258 EXIDE TECHNOLOGIES AND SUBSIDIARIES PRELIMINARY CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited, in thousands except per-share data) For the Fiscal Year Ended March 31, 2013 March 31, 2012 March 31, 2011 Net sales $ $ $ 2,971,698 3,084,650 2,887,516 Cost of sales 2,564,403 2,599,822 2,346,189 Gross profit 407,295 484,828 541,327 Selling and administrative 389,161 395,075 403,268 expenses Restructuring and 71,495 10,878 42,286 impairments, net Operating (loss) income (53,361) 78,875 95,773 Other expense, net 4,180 6,320 2,220 Interest expense, net 65,635 71,804 62,410 Loss on early extinguishment — — 10,827 of debt (Loss) income before income (123,176) 751 20,316 taxes Income tax provision 99,915 (55,203) (6,496) (benefit) Net (loss) income (223,091) 55,954 26,812 Net income (loss) attributable to 308 (785) 369 noncontrolling interests Net (loss) income attributable to Exide Technologies $ $ $ (223,399) 56,739 26,443 (Loss) earnings per share Basic $ $ $ (2.89) 0.73 0.34 Diluted $ $ $ (2.89) 0.69 0.33 Weighted average shares Basic 77,270 77,667 76,678 Diluted 77,270 82,081 81,309 EXIDE TECHNOLOGIES AND SUBSIDIARIES PRELIMINARY CONSOLIDATED BALANCE SHEETS (Unaudited, in thousands) March 31, 2013 March 31, 2012 ASSETS Current assets: Cash and cash equivalents $ 104,289 $ 155,368 Accounts receivable, net 504,795 500,375 Inventories 488,221 479,467 Prepaid expenses and other current 33,316 21,840 assets Deferred income taxes 11,470 30,804 Total current assets 1,142,091 1,187,854 Property, plant and equipment, net 558,115 622,975 Other assets: Goodwill and intangibles, net 145,310 164,039 Deferred income taxes 107,865 174,601 Other noncurrent assets 51,049 45,517 304,224 384,157 Total assets $ 2,004,430 $ 2,194,986 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Short-term borrowings $ 22,017 $ 20,014 Current maturities of long-term debt 60,131 3,787 Accounts payable 435,736 390,549 Accrued expenses 281,432 276,809 Deferred income taxes 8,721 — Total current liabilities 808,037 691,159 Long-term debt 693,864 752,930 Noncurrent retirement obligations 233,404 236,312 Deferred income taxes 17,171 17,158 Other noncurrent liabilities 98,022 95,075 Total liabilities 1,850,498 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, 79,253 and 78,351 793 783 shares issued and outstanding Additional paid-in capital 1,139,030 1,133,417 Accumulated deficit (939,312) (715,913) Accumulated other comprehensive loss (47,439) (16,493) Total stockholders' equity 153,072 401,794 attributable to Exide Technologies Noncontrolling interests 860 558 Total stockholders' equity 153,932 402,352 Total liabilities and stockholders' $ 2,004,430 $ 2,194,986 equity EXIDE TECHNOLOGIES AND SUBSIDIARIES PRELIMINARY CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited, in thousands) For the Fiscal Year Ended March 31, 2013 March 31, 2012 March 31, 2011 Cash flows from operating activities: Net (loss) income $ $ $ (223,091) 55,954 26,812 Adjustments to reconcile net (loss) income to net cash provided by operating activities- Depreciation and amortization 80,187 84,353 84,067 Unrealized gain on warrants — (68) (268) Impairments, net 60,144 3,773 9,055 Deferred income taxes 93,178 (77,913) (11,383) Provision for doubtful 1,284 1,529 (759) accounts Non-cash stock compensation 5,624 5,152 6,567 Amortization of deferred 4,266 4,289 4,798 financing costs Loss on early extinguishment — — 10,827 of debt Currency remeasurement loss 2,883 10,036 (2,373) (gain) Changes in assets and liabilities— Receivables (1,655) (9,899) (2,094) Inventories (33,644) 20,025 (83,369) Other current assets (2,144) 866 (4,360) Payables 57,375 (9,099) 66,925 Accrued expenses 12,812 13,131 (4,383) Other noncurrent liabilities (26,193) (25,236) (21,302) Other, net (3,009) 14,875 1,230 Net cash provided by 28,017 91,768 79,990 operating activities Cash flows from investing activities: Capital expenditures (101,501) (109,836) (88,589) Insurance Proceeds 3,290 — — Proceeds from asset sales 18,965 635 16,793 Net cash used in (79,246) (109,201) (71,796) investing activities Cash flows from financing activities: Increase in short-term 2,965 12,408 1,820 borrowings Decrease in borrowings under — — (285,423) Senior Secured Credit Facility (Decrease) increase in other (1,505) 5,409 (291,695) debt Issuance of Senior Secured — — 675,000 Notes Financing costs — — (23,093) Debt redemption premium — — (3,865) Acquisition of noncontrolling — (544) (15,145) interests/other Net cash provided by 1,460 17,273 57,599 financing activities Effect of exchange rate changes on cash and cash (1,310) (5,835) 6,012 equivalents Net (decrease) increase in (51,079) (5,995) 71,805 cash and cash equivalents Cash and cash equivalents, 155,368 161,363 89,558 beginning of period Cash and cash equivalents, end $ $ $ of period 104,289 155,368 161,363 SOURCE Exide Technologies Website: http://www.exide.com
Exide Technologies Reports Unaudited Preliminary Fiscal 2013 Results
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