KEMET Exceeds Previously Announced Fourth Quarter Forecast
On a U.S. GAAP basis, net income was $0.3 million, or $0.00 per diluted share, for the fourth quarter of fiscal year 2010, compared to net income of $2.4 million, or $0.03 per diluted share, for the same quarter last year (which included a curtailment gain of $30.8 million) and compared to net loss of $1.8 million, or $(0.02) per share, for the prior fiscal quarter ended December 31, 2009.
Non-GAAP adjusted net income was $8.8 million or $0.06 per diluted share for the current fiscal quarter, compared to an adjusted net loss of $20.1 million, or $(0.24) per share, for the same quarter last year and compared to an adjusted net income of $4.0 million, or $0.03 per diluted share for the prior fiscal quarter ended December 31, 2009. Adjusted EBITDA for the current quarter was $25.4 million, compared to the company's forecast of $22.0 to $25.0 million that was released on April 8, 2010.
"We continued to make great progress operationally again this quarter by increasing our gross margins and generating substantial cash from operations," said Per Loof, CEO. "Our efforts to refinance our balance sheet were completed recently, moving our debt maturities substantially into the future. The operating results and improved cash flows, combined with our repositioned debt structure, are allowing us to proceed on schedule with the restructuring of our European business. During the course of this restructuring effort, the company expects to spend approximately $35 million to $40 million to reposition our European manufacturing base. Our expectation is an improvement in our European operating results by approximately $10 million in fiscal year 2011 compared to fiscal year 2010, and to improve approximately $42 million in fiscal year 2012 vs. fiscal year 2010. In total, we expect this business that has been contributing an average negative ($6.0) million adjusted EBITDA per quarter during fiscal year 2010, to contribute approximately a positive $6.0 million adjusted EBITDA per quarter in the period beginning April 2012."
The current fiscal quarter includes $6.6 million of restructuring charges primarily associated with workforce reductions of $5.4 million and $1.2 million related to the relocation of equipment. The current fiscal quarter also includes a gain on sales and disposals of assets of $1.5 million related to proceeds from the sale of wet tantalum assets to Vishay Intertechnology Inc., which were released from escrow.
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