KEMET Corp.
has reported preliminary results for the fourth fiscal quarter ended March 31,
2010. Net sales for the quarter were $213.0 million, a 56.6%
increase over the
same quarter last fiscal year and a 6.5% increase over the prior fiscal
quarter
ended December 31, 2009.
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.
Visit
www.kemet.com
for more information.
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