Remy Swings to Q3 LossPosted: Updated:
Pendleton-based Remy International Inc. (Nasdaq: REMY) is reporting an $11.1 million loss for the third quarter, compared to a profit of $10.4 million during the same quarter the previous year. Chief Executive Officer Jay Pittas says the quarter was "active and challenging," including a $32 million settlement to resolve patent disputes dating back to 2008.
October 30, 2014
Pendleton, Ind. -- Remy International, Inc. (NASDAQ: REMY), a leading worldwide manufacturer, remanufacturer, and distributor of starter motors and alternators for light vehicle and commercial vehicle applications, multi-line products and hybrid electric motors, today announced its financial results for the third quarter ended September 30, 2014.
Second Quarter Highlights
Net sales of $287.5 million for the third quarter of 2014, an increase of 9% compared to $262.8 million for the third quarter of 2013.
Adjusted EBITDA of $31.9 million for the third quarter of 2014 compared to $33.9 million for the third quarter of 2013. The decrease of $2.0 million in Adjusted EBITDA is primarily driven by USA Industries, Inc. loss of $1.7 million in the third quarter of 2014 due to inefficiencies as a result of the announced closure of the New York facilities and impact of a flood during the quarter.
On September 8, 2014, we announced entry into agreements for a transaction (the "Transaction") with Fidelity National Financial, Inc. ("FNF"). The Transaction will result in the indirect distribution of all the shares of Remy common stock that are held by FNF to the holders of its Fidelity National Financial Ventures ("FNFV") tracking stock, and the acquisition by Remy of a small company, Fidelity National Technology Imaging, LLC ("FNTI"), from FNF. The Transaction is subject to customary closing conditions, including Remy stockholder approval. The Transaction is expected to close in December 2014 or in the first quarter of 2015.
On September 11, 2014, we announced that we signed a Settlement Agreement and Mutual General Release (the "Agreement") with Tecnomatic, S.p.A. to settle all disputes relating to a 2008 action filed in the U.S. District Court, Southern District of Indiana. In addition, we entered into a cross licensing arrangement of certain patents with Tecnomatic. The value of the patents received from Tecnomatic is approximately $13.9 million. Under the terms of the Agreement and the cross licensing arrangement, we paid to Tecnomatic a $16.0 million cash payment in September 2014 and will pay a $16.0 million cash payment on or before March 15, 2015.
On October 29, 2014, the Board of Directors declared a quarterly dividend of $0.10 per share payable on November 26, 2014 to stockholders of record as of November 12, 2014.
Jay Pittas, Remy International, Inc. President and CEO commented, "The third quarter was certainly an active and challenging period for us with many moving parts. Despite the distractions, sales grew 9%, outpacing the market, with year-over-year increases across all product lines. Long term industry fundamentals remain favorable and support continued growth in vehicle and component sales. Our customer mix and regional diversification combined with our strategic global investments provide a solid foundation for the future."
About Remy International, Inc.
Founded by the Remy Brothers in 1896, Remy International, Inc. is a leading global manufacturer and remanufacturer of alternators, starter motors and electric traction motors. Headquartered in Pendleton, IN, with global operations across five continents and 10 countries, Remy International markets products under the Delco Remy, Remy, World Wide Automotive and USA Industries brands. Known for innovation, efficiency, quality, and best-in-class customer service and support, Remy International's products are integrated by leading industrial, specialty, automotive and heavy-duty OEMs, and aftermarket providers worldwide.
Source: Remy International Inc.