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AVX Corporation: AVX Corporation Announces Preliminary Second Quarter Results

AVX Corporation Announces Preliminary Second Quarter Results

GREENVILLE, S.C. - October 29, 2013 -- AVX Corporation (AVX) today reported preliminary unaudited results for the second quarter ended September 30, 2013.  

Chairman and Chief Executive Officer, John Gilbertson, stated, "During the quarter, the business performed well increasing both sales and profit. Sales increased over both the previous quarter and the same quarter the previous year. We are optimistic that evolution of new electronic devices and improving market confidence will provide more growth opportunities in the next calendar year." 

Net sales were $375.8 million for the quarter and net income was $28.8 million, or $0.17 per diluted share.

For the six months ended September 30, 2013, net sales were $745.2 million and net income was $56.5 million, or $0.33 per diluted share.

Chief Financial Officer, Kurt Cummings, stated, "We continued to use our resources to enhance shareholder value by paying $14.8 million in dividends to stockholders and spending $2.8 million to repurchase shares of AVX stock on the open market."

AVX, headquartered in Greenville, 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.

Consolidated Condensed Statements of Income
(in thousands, except per share data)

Three Months Ended Six Months Ended
September 30, September 30,
2012 2013 2012 2013
Net sales $ 360,823 $ 375,785 $ 713,977 $ 745,164
Cost of sales 291,898 304,259 576,095 605,367
Gross profit 68,925 71,526 137,882 139,797
Selling, general & admin. expense 29,670 30,160 59,364 59,196
Environmental charge                - - 266,250 -
Profit (loss) from operations 39,255 41,366 (187,732) 80,601
Other income (expense) 1,536 397 3,415 1,244
Income before income taxes 40,791 41,763 (184,317) 81,845
Provision for (benefit from) taxes 12,754 12,946 (75,570) 25,371
Net income (loss) $ 28,037 $ 28,817 $ (108,747) $ 56,474
Basic income (loss) per share $ 0.17 $ 0.17 $ (0.64) $ 0.33
Diluted income (loss) per share $ 0.17 $ 0.17 $ (0.64) $ 0.33
Weighted average common          
shares outstanding:          
      Basic 169,221 168,587 169,374 168,617
      Diluted 169,248 168,737 169,374 168,824

During the quarter ending June 30, 2012, the Company recorded a pre-tax charge of $266,250, or $0.98 per diluted share on an after-tax basis, related to the EPA`s ongoing clean-up of New Bedford Harbor in Massachusetts.  Net income, excluding the environmental charge, was $57,659, or $0.34 per diluted share, for the six months ended September 30, 2012.

GAAP to Non-GAAP Reconciliation
(in thousands, except per share data)

Three Months Ended
September 30,
Six Months Ended
September 30,
2012 2013 2012 2013
Including special charge (GAAP)
   Net sales $ 360,823 $ 375,785 $ 713,977 $ 745,164
   Net income (loss) $ 28,037 $ 28,817 $ (108,747) $ 56,474
   Basic income (loss) per share $ 0.17 $ 0.17 $ (0.64) $ 0.33
   Diluted income (loss) per share $ 0.17 $ 0.17 $ (0.64) $ 0.33
Excluding special charge  (Non-GAAP)
   Special charge (after-tax)
      Environmental charge $ - $ - $ 166,406 $ -
   Net income $ 28,037 $ 28,817 $ 57,659 $ 56,474
Basic income per share $ 0.17 $ 0.17 $ 0.34 $ 0.33
Diluted income per share $ 0.17 $ 0.17 $ 0.34 $ 0.33

In order to better understand the Company`s short-term and long-term financial trends, investors may find it helpful to consider results excluding the environmental charge. The resulting non-GAAP financial measure provides additional information to investors regarding the underlying business trends and performance of the Company`s ongoing operations and may be of assistance for period-over-period comparisons of such operations. Management considers the exclusion of such charges as part of its evaluation of the operating performance of the Company. Investors should consider the non-GAAP measure as a supplement to, and not as a substitute for, financial performance measures prepared in accordance with GAAP. In addition, the non-GAAP financial measure may not be similar to non-GAAP information presented by other companies.  Detail of the Company`s non-GAAP measure is provided in the table above.

Consolidated Condensed Balance Sheets
(in thousands)

   March 31,    September 30,
2013 2013
Cash and cash equivalents $ 486,724 $ 474,027
Short-term investments in securities 560,364 530,356
Accounts receivable, net 202,031 212,992
Inventories 559,074 566,278
Other current assets 137,340 166,832
   Total current assets 1,945,533 1,950,485
Long-term investments in securities 15,576 90,156
Property, plant and equipment, net 258,264 251,396
Goodwill and other intangibles 273,204 271,795
Other assets 109,418 73,106
   TOTAL ASSETS $ 2,601,995 $ 2,636,938
Liabilities and Stockholders` Equity
Accounts payable $ 115,187 $ 112,826
Income taxes payable and accrued expenses 215,690 329,572
   Total current liabilities 330,877 442,398
Other liabilities 298,188 182,917
   TOTAL LIABILITIES 629,065 625,315
   TOTAL STOCKHOLDERS` EQUITY 1,972,930 2,011,623

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 2014, overall volume and pricing trends, 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, 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.  The forward-looking information and statements in this Press Release are subject to risks and uncertainties, including those discussed in our Annual Report on Form 10-K for fiscal year ended March 31, 2013, that could cause actual results to differ materially from those expressed in or implied by the information or statements herein.  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.

AVX Corporation, Greenville
Kurt Cummings

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information contained therein.

Source: AVX Corporation via Thomson Reuters ONE