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AVX Corporation Announces Preliminary Fourth Quarter and Fiscal Year Results

FOUNTAIN INN, S.C.--(BUSINESS WIRE)--

AVX Corporation (AVX) today reported preliminary unaudited results for the fourth quarter and fiscal year ended March 31, 2019.

Chief Executive Officer and President, John Sarvis, stated, “We completed our fiscal year with net sales of $1,791.8 million, reflecting a 14.7 percent increase over the previous year. Our gross profit of $482.9 million, or 27.0 percent gross profit margin reflects solid operating performance, positively influenced by our operational efficiency programs, as well as improved pricing in the market when compared to the prior fiscal year. We continue to focus on providing our customers with the value added electronic components and interconnect, sensing and control devices they require in today’s sophisticated electronic products as well as our continued commitment to cost control in our operations. We are making necessary investments in manufacturing plant expansion and product line increases to support our customers’ growing requirements. We continue to be optimistic that demand for our electronic components and interconnect, sensing and control devices will remain strong during the next fiscal year.”

For the quarter and fiscal year ended March 31, 2019, net sales were $439.0 million and $1,791.8 million, respectively, compared to net sales of $446.6 million and $1,562.5 million, respectively, for the same periods last year. The increase in net sales for the fiscal year ended March 31, 2019 reflect sales of $354.7 million, in our Interconnect, Sensing and Control segment attributable to our acquisition of the AB Electronics sensing and control business and $113.3 million in our Electronic Components segment attributable to our acquisition of Ethertronics, Inc. The increased sales were partially offset by the loss of Kyocera resale product sales which were $19.0 million for the fiscal year ended March 31, 2019, as compared to $296.3 million for the fiscal year ended March 31, 2018.

Operating profits for the quarter and fiscal year ended March 31, 2019 were $76.5 million and $319.7 million, respectively, compared to operating profits of $47.3 million and $179.8 million for the three and twelve month periods ended March 31, 2018, respectively.

Net income for the quarter ended March 31, 2019 was $69.5 million, or $0.41 per diluted share compared to net income for the quarter ended March 31, 2018 of $31.8 million, or $0.19 per diluted share.

Net income for the fiscal year ended March 31, 2019 was $271.8 million, or $1.61 per diluted share. Net income for the fiscal year ended March 31, 2018 was $4.9 million, or $0.03 per diluted share, reflecting one-time tax charges of approximately $129.4 million related to the U.S. tax reform law signed in December 2017 and an enacted income tax rate reduction in France.

Chief Financial Officer, Michael Hufnagel, stated, "Our continuing long-term strategy is to maintain our financial position in order to allow flexibility for investments in acquisitions, materials, equipment and people to support the long-term growth of the Company. As of March 31, 2019, we had cash, cash equivalents and short-term investments in securities of approximately $813.2 million and no debt. We continued to use our resources to provide value to our stockholders during the fiscal year by paying $77.6 million in dividends."

AVX, headquartered in Fountain Inn, South Carolina, is a leading manufacturer and supplier of a broad line of passive electronic components and related products.

Please visit our website at www.avx.com.

     

AVX CORPORATION

Consolidated Condensed Statements of Income

(unaudited)

(in thousands, except per share data)

 
Three Months Ended Twelve Months Ended
March 31, March 31,
2018 2019 2018 2019
Net sales $ 446,632 $ 438,951 $ 1,562,474 $ 1,791,790
Cost of sales   360,992   317,031   1,243,612   1,308,907
Gross profit 85,640 121,920 318,862 482,883
Selling, general & admin. expense 39,854 45,463 140,528 168,804
Legal and environmental charges   (1,500)   -   (1,500)   (5,589)
Profit from operations 47,286 76,457 179,834 319,668
Other income, net   4,091   6,523   12,479   13,575
Income before income taxes 51,377 82,980 192,313 333,243
Provision for taxes   19,557   13,496   187,403   61,430
Net income $ 31,820 $ 69,484 $ 4,910 $ 271,813
 
Basic income per share $ 0.19 $ 0.41 $ 0.03 $ 1.61
Diluted income per share $ 0.19 $ 0.41 $ 0.03 $ 1.61
 
Weighted average common shares outstanding:
Basic 168,404 168,817 168,262 168,713
Diluted 169,133 169,519 168,925 169,322
   

AVX CORPORATION

Consolidated Condensed Balance Sheets

(unaudited)

(in thousands)

 
March 31, March 31,
2018 2019
Assets
Cash and cash equivalents $

547,415

$ 378,456
Short-term investments in securities 279,787 434,754
Accounts receivable, net 284,514 257,490
Inventories 516,777 631,688
Other current assets   73,231   71,444
Total current assets 1,701,724 1,773,832
Property, plant and equipment, net 418,286 455,757
Goodwill and other intangibles 444,910 435,618
Other assets   107,846   137,206
 
TOTAL ASSETS $ 2,672,766 $ 2,802,413
 
Liabilities and Stockholders' Equity
Accounts payable $ 116,046 $ 96,631
Income taxes payable and accrued expenses   178,517   206,335
Total current liabilities 294,563 302,966
Other liabilities   134,760   115,340
 
TOTAL LIABILITIES 429,323 418,306
 
TOTAL STOCKHOLDERS' EQUITY   2,243,443   2,384,107
 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $

2,672,766

$ 2,802,413
 

This Press Release contains "forward-looking" information within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including statements regarding industry prospects and future results of operations or financial position, made in this Press Release are forward-looking. The forward-looking information may include, among other information, statements concerning our outlook for fiscal year 2020, overall volume and pricing trends, potential for future growth, cost reduction and acquisition strategies and their anticipated results, expectations for research and development, and capital expenditures. There may also be other statements of expectations, beliefs, outlook, future plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts. Forward-looking statements reflect management's expectations and are inherently uncertain. Our expectations and assumptions are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that such forward-looking statements will materialize or prove to be correct as forward-looking statements are inherently subject to known and unknown risks, uncertainties and other factors which may cause actual future results, performance or achievements to differ materially from the future results, performance or achievements expressed in or implied by such forward-looking statements. Because these forward-looking statements involve risks and uncertainties, actual results could differ materially from those expressed or implied by the forward-looking statements for a variety of reasons, including without limitation, changes in the global economy or the economy of any locality in which we conduct business; changes in general industry and market conditions or regional growth or declines; loss of business from increased competition; higher raw material costs or raw material shortages; changes in consumer and customer preferences for end products; customer losses; changes in regulatory conditions; unfavorable fluctuations in currencies or interest rates among the various jurisdictions in which we operate; market acceptance of our new products; possible adverse results of pending or future litigation or infringement claims; our ability to realize expected synergies from acquired businesses; our ability to protect our intellectual property rights; negative impacts of environmental investigations or other governmental investigations and associated litigation; tax assessments by governmental authorities and changes in our effective tax rate; dependence on and relationships with customers and suppliers; and other risks and uncertainties discussed in our Annual Report on Form 10-K for fiscal year ended March 31, 2018. Forward-looking statements should be read in context with, and with the understanding of, the various other disclosures concerning the Company and its business made elsewhere in this Press Release as well as other public reports filed by the Company with the SEC. You should not place undue reliance on any forward-looking statements as a prediction of actual results or developments.

Any forward-looking statements by the Company are intended to speak as of the date thereof. We do not intend to update or revise any forward-looking statement contained in this Press Release to reflect new events or circumstances unless and to the extent required by applicable law. All forward-looking statements contained in this Press Release constitute "forward-looking statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934 and, to the extent it may be applicable by way of incorporation of statements contained in this Press Release by reference or otherwise, Section 27A of the United States Securities Act of 1933, each of which establishes a safe-harbor from private actions for forward-looking statements as defined in those statutes.

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