KEMET Reports First Quarter of Fiscal Year 2011 Results
Wednesday 07/28/2010 8:00 AM ET - Pr Newswire
KEMET Corporation (NYSE Amex: KEM) today reported preliminary results for the first fiscal quarter ended June 30, 2010. Net sales for the quarter ended June 30, 2010 were $243.8 million, which is a 62.3% increase over the same quarter last fiscal year and a 14.5% increase over the prior fiscal quarter ended March 31, 2010.
On a U.S. GAAP basis, the net loss was $20.1 million, or $(0.25) per basic and diluted share for the first quarter of fiscal year 2011 compared to net income of $25.1 million or $0.31 per basic and diluted share for the same quarter last year and compared to net income of $0.3 million or $0.00 per basic and diluted share for the prior fiscal quarter ended March 31, 2010. The current fiscal quarter includes a $38.2 million non-cash loss on early extinguishment of debt and $1.8 million of restructuring charges primarily associated with the relocation of equipment. Conversely, the first quarter of fiscal year 2010 included a $38.9 million non-cash gain on early extinguishment of debt.
Non-GAAP Adjusted net income was $22.3 million or $0.28 per basic share and $0.15 per diluted share for the current fiscal quarter compared to an Adjusted net loss of $10.3 million, or $(0.13) per basic and diluted share for the same quarter last year and compared to an Adjusted net income of $8.8 million, or $0.11 per basic share and $0.06 per diluted share for the prior fiscal quarter ended March 31, 2010.
"It was a great quarter as we saw our revenue return to pre-recession levels and our gross margins increase significantly," said Per Loof, KEMET's Chief Executive Officer. "Our efforts to improve operating efficiencies, maintain our cost controls established over the past year, reestablish a strong Balance Sheet, and our ability to meet the strong volume demands of our customers have combined to drive our financial results," continued Loof.
As announced on June 21, 2010, the Company's common stock was approved for listing on the NYSE Amex. Trading commenced on the NYSE Amex on Tuesday, June 22, 2010 under the ticker symbol 'KEM' (NYSE Amex: KEM). At the Investor Relations section of our web site at http://www.KEMET.com/IR
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In this news release, the Company makes reference to certain Non-GAAP financial measures, including "Adjusted net income (loss)", "Adjusted net income (loss) per share" and "Adjusted EBITDA". Management believes that investors may find it useful to review the Company's financial results as adjusted to exclude items as determined by management. "Adjusted net income (loss)" and "Adjusted net income (loss) per share" represent net income/loss and net income/loss per share excluding gain/loss on early extinguishment of debt, ERP integration costs, restructuring charges related primarily to equipment moves and employee severance, gain/loss on sales and disposals of assets, and amortization related to debt issuance costs and debt discount. Management believes that these Non-GAAP financial measures are useful to investors because they provide a supplemental way to understand the underlying operating performance of the Company. Management uses these Non-GAAP financial measures to evaluate operating performance. Non-GAAP financial measures should not be considered as an alternative to net income, operating income or any other performance measures derived in accordance with GAAP.