Remy International Inc.—a leading worldwide manufacturer, remanufacturer and distributor of starter motors and alternators, multi-line products and hybrid electric motors—has announced its financial results for the first quarter ended March 31, 2015. Remy also announced a 10% increase in its quarterly dividend to $0.11 per share payable on May 29, 2015 to stockholders of record on May 18, 2015.
Jay Pittas, Remy International Inc. President and CEO, comments, "We performed well in a tough environment with strong currency headwinds and macro-economic conditions. We are excited by the continued share gains in our original equipment products and encouraged by the favorable commercial vehicle build forecasts for the remainder of the year. In addition, we continued to increase our OE revenue backlog, which provides a clear line of sight into earnings growth over the next few years. We are committed to improving long-term shareholder value as demonstrated by our increased dividend and previously announced stock repurchase program."
First Quarter Highlights
- Net sales of $303.4 million for the first quarter of 2015 compared to $306.0 million for the first quarter of 2014. Excluding the year-over-year impact of fluctuations in foreign exchange, net sales would have grown 1%.
- Adjusted EBITDA of $25.6 million for the first quarter of 2015 compared to $35.9 million for the first quarter of 2014. The decrease of $10.3 million in Adjusted EBITDA is primarily driven by an $8.5 million decrease in volume and mix of products and $2.2 million of negative foreign currency impact in first quarter of 2015 compared to the first quarter of 2014. The $8.5 million decrease in volume and mix was primarily driven by the termination of a large aftermarket contract and the roll-off of legacy business with a large automotive original equipment manufacturer (OEM).
- Cash earnings per share were 40 cents this quarter compared with 62 cents in the prior year. Of the decline in cash earnings per share, 19 cents can be attributed to the impact of foreign currency, the aftermarket contract termination and the roll-off of legacy business with a large automotive OEM.
- Awarded $23 million of 2018 net new business, including an award for its next generation start-stop technology.
- Received a major award for axles from a large aftermarket retailer.
- Generated $12.2 million cash from operations and improved working capital turns by 4%.
- On March 1, 2015, Remy acquired substantially all of the assets of Maval Manufacturing Inc. (Maval), a manufacturer, remanufacturer and distributor of steering systems, components and specialty products to the automotive service, original equipment power sports and off-road specialty vehicle markets.
- On April 30, 2015, the Board of Directors declared a quarterly dividend of $0.11 per share payable on May 29, 2015 to stockholders of record as of May 18, 2015.