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Aeroflex Announces Fourth Quarter and Full Year Fiscal 2011 Results
Dépèche transmise le 18 août 2011 par Business Wire
Aeroflex Announces Fourth Quarter and Full Year Fiscal 2011 Results
PLAINVIEW, N.Y.--(BUSINESS WIRE)--Aeroflex Holding Corp. ("Aeroflex") (NYSE: ARX), a leading global provider of microelectronic components and test and measurement equipment, today announced its financial results for the fourth quarter and full year of fiscal 2011.
“Our annual performance was exceptional despite the disappointment with our ATS business in the fourth quarter”
Net sales increased 4.7% from the fourth quarter of fiscal 2010 to a new quarterly record of $198.7 million. Sales from the AMS segment were strong, offsetting the weakness in the ATS business from products that did not ship. Non-GAAP operating income increased 11.2% from the fourth quarter of fiscal 2010 to $53.2 million, also a new quarterly record. Adjusted EBITDA also reached a new quarterly record of $57.9 million, a 10.5% increase from the fourth quarter of fiscal 2010.
Net sales, Non-GAAP operating income and Adjusted EBITDA also reached full fiscal year records as sales increased 11.4% to $729.4 million, Non-GAAP operating income increased 11.9% to $164.8 million and Adjusted EBITDA increased 10.6% to $183.7 million.
“Our annual performance was exceptional despite the disappointment with our ATS business in the fourth quarter,” said Len Borow, Chief Executive Officer. “We achieved double digit growth in sales, Non-GAAP operating income and Adjusted EBITDA in fiscal 2011. Fourth quarter gross margins were extremely strong and contributed to a 120 basis point improvement to 53.9% for the full year of fiscal 2011. This quarter, in a key growth market, we received the first significant order from a major global manufacturer of wireless infrastructure equipment for next generation LTE(A) products. This order demonstrates our ability to continue to innovate and develop key products that are essential for us to continue our market leadership into LTE(A). As we prepare to enter a challenging year due to the uncertainty in the U.S. Government budget and the world economy, we have rededicated ourselves to maintaining market leadership positions, building upon our product portfolio and strengthening our partnerships with customers.”
The following tables present selected financial information for the three and twelve months ended June 30, 2011 and 2010 prepared in accordance with generally accepted accounting principles (“GAAP”) and on a basis other than GAAP (“Non-GAAP”). The full fiscal year 2011 Non-GAAP effective tax rate based on Aeroflex’s geographic mix of Non-GAAP pre-tax income is 31%. This rate was applied to Aeroflex’s Non-GAAP pre-tax income for the three and twelve month periods ended June 30, 2011 and 2010. A reconciliation between GAAP and Non-GAAP amounts is presented at the end of this press release.
| Selected GAAP Results | |||||||||||||||||||||||||||||
| (In thousands, except per share data) | |||||||||||||||||||||||||||||
| Three Months | Year | ||||||||||||||||||||||||||||
| Ended June 30, | Ended June 30, | ||||||||||||||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | ||||||||||||||||||||||||||
| Net sales | $ | 198,685 | $ | 189,758 | $ | 729,414 | $ | 655,048 | |||||||||||||||||||||
| Gross profit | 111,076 | 100,954 | 392,100 | 342,985 | |||||||||||||||||||||||||
| Gross margin | 55.9 | % | 53.2 | % | 53.8 | % | 52.4 | % | |||||||||||||||||||||
| Operating income | 30,031 | 28,796 | 52,715 | 67,974 | |||||||||||||||||||||||||
| Net income (loss) | $ | (21,575 | ) | $ | 16,032 | $ | (34,668 | ) | $ | (12,269 | ) | ||||||||||||||||||
| Net income (loss) per common share - basic | $ | (0.25 | ) | $ | 0.25 | $ | (0.45 | ) | $ | (0.19 | ) | ||||||||||||||||||
| Weighted average number of common shares | |||||||||||||||||||||||||||||
| outstanding - basic | 84,789 | 65,000 | 77,153 | 65,000 | |||||||||||||||||||||||||
| Selected Non-GAAP Results | |||||||||||||||||||||||||||||
| (In thousands, except per share data) | |||||||||||||||||||||||||||||
| Three Months | Year | ||||||||||||||||||||||||||||
| Ended June 30, | Ended June 30, | ||||||||||||||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | ||||||||||||||||||||||||||
| Net sales | $ | 198,773 | $ | 189,788 | $ | 729,571 | $ | 655,173 | |||||||||||||||||||||
| Gross profit | 111,154 | 101,555 | 393,366 | 345,020 | |||||||||||||||||||||||||
| Gross margin | 55.9 | % | 53.5 | % | 53.9 | % | 52.7 | % | |||||||||||||||||||||
| Operating income | 53,205 | 47,857 | 164,844 | 147,323 | |||||||||||||||||||||||||
| Net income | $ | 29,900 | $ | 19,461 | $ | 71,283 | $ | 47,444 | |||||||||||||||||||||
| Net income per common share - basic | $ | 0.35 | $ | 0.30 | $ | 0.92 | $ | 0.73 | |||||||||||||||||||||
| Weighted average number of common shares | |||||||||||||||||||||||||||||
| outstanding - basic | 84,789 | 65,000 | 77,153 | 65,000 | |||||||||||||||||||||||||
| Adjusted EBITDA | $ | 57,860 | $ | 52,351 | $ | 183,698 | $ | 166,130 | |||||||||||||||||||||
Business Outlook
For the full fiscal year ending June 30, 2012, Aeroflex expects net sales to be between $790 million and $830 million, Adjusted EBITDA to be between $187 million and $203 million, and Non-GAAP net income per share to be between $1.09 and $1.22. For the fiscal first quarter ending September 30, 2011, Aeroflex expects net sales to be between $160 million and $165 million, Adjusted EBITDA to be between $24 million and $27 million, and Non-GAAP net income per share to be between $0.09 and $0.11. The range of expected Non-GAAP net income per share was calculated using a Non-GAAP effective tax rate of 31%.
Non-GAAP Presentation
This press release contains Non-GAAP financial measures that are not in accordance with, or an alternative for, measures prepared in accordance with generally accepted accounting principles and may be different from Non-GAAP measures used by other companies. In addition, these Non-GAAP measures: (i) are not based on any comprehensive set of accounting rules or principles; and (ii) have limitations in that they do not reflect all of the amounts associated with Aeroflex's results of operations as determined in accordance with GAAP. As such, these measures should only be used to evaluate Aeroflex's results of operations in conjunction with the corresponding GAAP measures.
Aeroflex believes that the presentation of Non-GAAP financial measures, when shown in conjunction with the corresponding GAAP measures, provides useful supplemental information to investors and management regarding financial and business trends relating to its financial condition and results of operations because they exclude certain non-cash charges or items that management does not believe are reflective of its ongoing operating results when assessing the performance of its business.
Aeroflex believes that these Non-GAAP financial measures also facilitate the comparison by management and investors of results between periods and among its peer companies. However, its peer companies may calculate similar Non-GAAP financial measures differently than Aeroflex, limiting the information’s usefulness as comparative measures.
Webcast and Conference Call Information
Aeroflex will host a live webcast and conference call at 8:15 a.m. eastern standard time on Thursday, August 18th during which management will discuss the financial results. To participate in the live webcast, please visit the events page of the website located at http://ir.aeroflex.com. Please plan to join five to ten minutes before the start of the webcast to facilitate a timely connection. If you are unable to participate and would like to hear a replay of the call, an audio replay of the webcast will be available on the Aeroflex website for approximately 90 days or can be accessed telephonically for domestic callers at (888) 286-8010 or internationally at (617) 801-6888 with pass code 65308436.
About Aeroflex
Aeroflex Holding Corp. is a leading global provider of microelectronic components and test and measurement equipment used by companies in the space, avionics, defense, commercial wireless communications, medical and other markets.
Forward-looking Statements
All statements other than statements of historical fact included in this press release regarding Aeroflex’s business strategy and plans and objectives of its management for future operations are forward-looking statements. When used in this press release, words such as “anticipate,” “believe,” “estimate,” “expect,” “intend” and similar expressions, as they relate to Aeroflex or its management, identify forward-looking statements. Such forward-looking statements are based on the current beliefs of Aeroflex’s management, as well as assumptions made by and information currently available to its management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors, including but not limited to, adverse developments in the global economy; changes in government spending; dependence on growth in customers’ businesses; the ability to remain competitive in the markets Aeroflex serves; the inability to continue to develop, manufacture and market innovative, customized products and services that meet customer requirements for performance and reliability; any failure of suppliers to provide raw materials and/or properly functioning component parts; the termination of key contracts, including technology license agreements, or loss of key customers; the inability to protect intellectual property; the failure to comply with regulations such as International Traffic in Arms Regulations and any changes in regulations; the failure to realize anticipated benefits from completed acquisitions, divestitures or restructurings, or the possibility that such acquisitions, divestitures or restructurings could adversely affect Aeroflex; the loss of key employees; exposure to foreign currency exchange rate risks; and terrorist acts or acts of war. Such statements reflect the current views of management with respect to the future and are subject to these and other risks, uncertainties and assumptions. Aeroflex does not undertake any obligation to update such forward-looking statements. Any projections in this release are based on limited information currently available to Aeroflex, which is subject to change. Although any such projections and the factors influencing them will likely change, Aeroflex will not necessarily update the information, since Aeroflex will only provide guidance at certain points during the year.
| Aeroflex Holding Corp. and Subsidiaries | ||||||||||||
| Consolidated Balance Sheets | ||||||||||||
| (In thousands, except share and per share data ) | ||||||||||||
| June 30, | ||||||||||||
|
Assets |
2011 | 2010 | ||||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | $ | 66,278 | $ | 100,663 | ||||||||
| Accounts receivable, less allowance for doubtful | ||||||||||||
| accounts of $1,210 and $1,821 | 168,141 | 141,595 | ||||||||||
| Inventories | 186,370 | 126,568 | ||||||||||
| Deferred income taxes | 51,855 | 28,018 | ||||||||||
| Prepaid expenses and other current assets | 10,044 | 10,983 | ||||||||||
| Total current assets | 482,688 | 407,827 | ||||||||||
| Property, plant and equipment, net of accumulated | ||||||||||||
| depreciation of $82,581 and $60,755 | 105,162 | 101,662 | ||||||||||
| Non-current marketable securities, net | - | 9,769 | ||||||||||
| Deferred financing costs, net | 15,289 | 20,983 | ||||||||||
| Other assets | 29,000 | 21,818 | ||||||||||
| Intangible assets with definite lives, net | 183,614 | 238,313 | ||||||||||
| Intangible assets with indefinite lives | 114,730 | 109,894 | ||||||||||
| Goodwill | 465,443 | 445,874 | ||||||||||
| Total assets | $ | 1,395,926 | $ | 1,356,140 | ||||||||
|
Liabilities and Stockholders' Equity |
||||||||||||
| Current liabilities: | ||||||||||||
| Current portion of long-term debt | $ | 7,635 | $ | 21,817 | ||||||||
| Accounts payable | 48,737 | 28,803 | ||||||||||
| Advance payments by customers and deferred revenue | 25,859 | 30,741 | ||||||||||
| Income taxes payable | 8,371 | 4,615 | ||||||||||
| Accrued payroll expenses | 22,063 | 23,082 | ||||||||||
| Accrued expenses and other current liabilities | 45,772 | 58,817 | ||||||||||
| Total current liabilities | 158,437 | 167,875 | ||||||||||
| Long-term debt | 717,750 | 880,030 | ||||||||||
| Deferred income taxes | 117,150 | 138,849 | ||||||||||
| Defined benefit plan obligations | 5,539 | 5,763 | ||||||||||
| Other long-term liabilities | 13,526 | 12,639 | ||||||||||
| Total liabilities | 1,012,402 | 1,205,156 | ||||||||||
| Stockholders' equity: | ||||||||||||
| Preferred stock, par value $.01 per share; 50,000,000 shares | ||||||||||||
| authorized, no shares issued and outstanding | - | - | ||||||||||
| Common stock, par value $.01 per share; 300,000,000 shares | ||||||||||||
| authorized; 84,789,180 and 65,000,000 shares issued | ||||||||||||
| and outstanding | 848 | 650 | ||||||||||
| Additional paid-in capital | 644,262 | 398,291 | ||||||||||
| Accumulated other comprehensive income (loss) | (32,536 | ) | (53,575 | ) | ||||||||
| Accumulated deficit | (229,050 | ) | (194,382 | ) | ||||||||
| Total stockholders' equity | 383,524 | 150,984 | ||||||||||
| Total liabilities and stockholders' equity | $ | 1,395,926 | $ | 1,356,140 | ||||||||
