AVX Corporation Announces Preliminary Second Quarter Results

Category:

Monday, October 28, 2019 11:21 am EDT

Dateline:

FOUNTAIN INN, S.C.

Public Company Information:

NYSE:
AVX

FOUNTAIN INN, S.C.--(BUSINESS WIRE)--AVX Corporation (NYSE: AVX) today reported preliminary unaudited results for the second quarter ended September 30, 2019.

Chief Executive Officer and President, John Sarvis, stated, “We completed the second quarter of our fiscal year with net sales of $377.3 million, down 6.1% compared to the previous quarter and down 17.3% from the same quarter last year reflecting extended inventory levels in the supply chain for commodity products and a weaker global market for electronic components. Our global distribution channel activity declined again this quarter as inventories remained extended. Overall orders in the industry also declined again this quarter, reflecting the higher channel inventories and weaker global demand. Our gross profit of $79.5 million, or 21.1%, reflects solid operating performance in tighter market conditions. The economic environment remains suppressed, and uncertainties with respect to international relations and trade regulations continue to put pressure on the global economy. However, we continue to be optimistic that the evolution of new electronic devices and content will create strong demand for our components and interconnect, sensing and control devices and provide growth opportunities in the long-term.”

For the three and six month periods ended September 30, 2019, net sales were $377.3 million and $779.1 million, respectively, compared to $456.3 million and $910.4 million, respectively, for the same period last year. The decrease in net sales for the three and six month periods ended September 30, 2019 are reflective of a weaker electronic commodities market and extended inventory levels in the distribution channel.

Operating profit for the quarter ended September 30, 2019 was $37.4 million compared to $85.6 million for the same period last year. Operating profit for the six month period ended September 30, 2019 was $96.2 million compared to $153.7 million for the same period last year.

Net income for the quarter ended September 30, 2019 was $33.5 million, or $0.20 per diluted share, compared to net income for the quarter ended September 30, 2018 of $72.1 million, or $0.43 per diluted share.

Net income for the six month period ended September 30, 2019 was $88.1 million, or $0.52 per diluted share, compared to net income of $128 million, or $0.76 per diluted share, for the six month period ended September 30, 2018.

Chief Financial Officer, Michael Hufnagel, stated, “Our financial position remains strong with cash, cash equivalents and short-term investments in securities of approximately $744.5 million and no debt as of September 30, 2019. Our financial position allows flexibility for investments in acquisitions, materials, equipment and people to support the long-term growth of the Company. We continued to use our resources to provide value to our stockholders during the quarter by paying $19.4 million in dividends to stockholders.”

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

 

 

Six Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2018

 

 

2019

 

 

2018

 

 

2019

 

Net sales

 

$

456,328

 

 

$

377,286

 

 

$

910,444

 

 

$

779,055

 

Cost of sales

 

 

329,852

 

 

 

297,747

 

 

 

675,635

 

 

 

598,871

 

Gross profit

 

 

126,476

 

 

 

79,539

 

 

 

234,809

 

 

 

180,184

 

Selling, general & admin. expense

 

 

40,839

 

 

 

42,093

 

 

 

81,154

 

 

 

84,025

 

Profit from operations

 

 

85,637

 

 

 

37,446

 

 

 

153,655

 

 

 

96,159

 

Other income, net

 

 

3,295

 

 

 

3,626

 

 

 

6,047

 

 

 

8,122

 

Income before income taxes

 

 

88,932

 

 

 

41,072

 

 

 

159,702

 

 

 

104,281

 

Provision for taxes

 

 

16,863

 

 

 

7,616

 

 

 

31,670

 

 

 

16,148

 

Net income

 

$

72,069

 

 

$

33,456

 

 

$

128,032

 

 

$

88,133

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic income per share

 

$

0.43

 

 

$

0.20

 

 

$

0.76

 

 

$

0.52

 

Diluted income per share

 

$

0.43

 

 

$

0.20

 

 

$

0.76

 

 

$

0.52

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

168,749

 

 

 

169,090

 

 

 

168,621

 

 

 

169,056

 

Diluted

 

 

169,472

 

 

 

169,376

 

 

 

169,217

 

 

 

169,409

 

 
 
 

AVX CORPORATION
Consolidated Condensed Balance Sheets
(unaudited)
(in thousands)

 

 

 

March 31,

 

 

September 30,

 

 

 

2019

 

 

2019

 

Assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

378,456

 

 

$

396,827

 

Short-term investments in securities

 

 

434,754

 

 

 

347,648

 

Accounts receivable, net

 

 

257,491

 

 

 

235,937

 

Inventories

 

 

631,688

 

 

 

680,099

 

Other current assets

 

 

81,338

 

 

 

84,165

 

Total current assets

 

 

1,783,727

 

 

 

1,744,676

 

Property, plant and equipment, net

 

 

455,757

 

 

 

488,689

 

Goodwill and other intangibles

 

 

435,619

 

 

 

439,428

 

Other assets

 

 

138,175

 

 

 

174,867

 

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

$

2,813,278

 

 

$

2,847,660

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

 

 

Accounts payable

 

$

96,631

 

 

$

83,828

 

Income taxes payable and accrued expenses

 

 

216,554

 

 

 

218,044

 

Total current liabilities

 

 

313,185

 

 

 

301,872

 

Other liabilities

 

 

115,913

 

 

 

123,435

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES

 

 

429,098

 

 

 

425,307

 

 

 

 

 

 

 

 

 

 

TOTAL STOCKHOLDERS' EQUITY

 

 

2,384,180

 

 

 

2,422,353

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 

$

2,813,278

 

 

$

2,847,660

 

 
 
 
 

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, 2019. 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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Contact:

AVX Corporation, Fountain Inn
Michael Hufnagel
864-967-9351
investor.relations@avx.com