FOUNTAIN INN, S.C.--(BUSINESS WIRE)--AVX Corporation (NYSE: AVX) today reported preliminary unaudited results for the fourth quarter and fiscal year ended March 31, 2018.
Chief Executive Officer and President, John Sarvis, stated, “We completed the fourth quarter of our fiscal year with net sales of $446.6 million, reflecting an increase over both the previous quarter and the same quarter in the prior year. These results include sales of $102.8 million in our Interconnect, Sensing and Control segment and $12.7 million in our Electronic Components segment attributable to our acquisitions of the AB Electronic sensing and control business and Ethertronics, respectively. Market conditions continued to be strong, resulting in healthy product demand in most of the markets we serve.”
During the quarter, AVX completed its purchase of Ethertronics, Inc. (“Ethertronics”), a privately held manufacturer of passive and active antenna systems, for $128.2 million in cash, net of cash and debt acquired, subject to customary post-closing adjustments. Ethertronics is a leader in advanced antenna system technology and manufactures antenna products for wireless applications such as mobile phones, Wi-Fi, defense, aerospace, medical, and Internet of Things (“IoT”). The addition of Ethertronics is an opportunity for AVX to expand its extensive electronic product offering into the rapidly expanding IoT wireless connectivity space.
Also during the quarter, AVX announced an agreement to acquire KUMATEC Sondermaschinenbau & Kunststoffverarbeitung GmbH (“Kumatec”), a limited liability company under German law, which includes a 50% interest in KUMATEC Hydrogen GmbH Co. KG, a limited liability partnership under German law (the “Partnership”). Kumatec develops, constructs and manufactures automation equipment and plastic components. The purpose of the Partnership is the development, marketing and supply of hydrogen fuel generation and delivery solutions and other related services.
Mr. Sarvis stated, “Despite the loss of the Kyocera resale product going forward, the additions of the S&C business and Ethertronics, and the expected acquisition of Kumatec will provide new growth and exciting business opportunities for AVX as we move into our next fiscal year and beyond.”
For the quarter and fiscal year ended March 31, 2018, net sales were $446.6 million and $1,562.5 million, respectively, compared to net sales of $329.6 million and $1,312.6 million, respectively, for the same periods last year, reflecting the increased sales from our acquisitions mentioned above in addition to healthy global market conditions for our components and interconnect devices.
Profit from operations for the three and twelve month periods ended March 31, 2018 were $47.3 million and $179.8 million, respectively, compared to operating profits of $45.1 million and $163.6 million for the three and twelve month periods ended March 31, 2017, respectively. Profit from operations for the twelve month period ended March 31, 2017 reflects a charge of $3.6 million related to estimated environmental remediation costs resulting from legacy environmental issues at an inactive property. Additionally, profit from operations for the three and twelve month periods ended March 31, 2017 include charges of $6.8 million and $34.9 million, respectively, related to previously disclosed intellectual property damages awards resulting from litigation with respect to patent infringement cases. These charges were partially offset by increased sales prices related to the affected products of $6.1 million and $21.4 million for the three and twelve month periods ended March 31, 2017. Profit for the three and twelve month periods ended March 31, 2018 reflects a favorable accrual adjustment of $1.5 million related to an ongoing patent infringement case.
Net income for the quarter ended March 31, 2018 was $31.8 million, or $0.19 per diluted share compared to net income for the quarter ended March 31, 2017 of $33.9 million, or $0.20 per diluted share.
Net income for the fiscal year ended March 31, 2018 was $4.9 million, or $0.03 per diluted share, reflecting estimated one-time tax charges of approximately $129.4 million related to the U.S. tax reform law signed in December 2017 and an enacted income tax rate reduction in France. Net income was $125.8 million, or $0.75 per diluted share, for the fiscal year ended March 31, 2017.
Chief Financial Officer, Kurt Cummings, stated, “Our continuing long-term strategy is to maintain our financial position in order to allow flexibility for investments in acquisitions, materials, equipment and people to support the long-term growth of the Company. As of March 31, 2018, we had cash, cash equivalents and short-term investments in securities of approximately $829.6 million and no debt. We continued to use our resources to provide value to our stockholders during the fiscal year by paying $75.7 million in dividends to stockholders and spending $290.3 million for acquisitions.”
AVX, headquartered in Fountain Inn, South Carolina, is a leading manufacturer and supplier of a broad line of passive electronic components and related products.
Please visit our website at www.avx.com.
Consolidated Condensed Statements of Income
(in thousands, except per share data)
|Three Months Ended||Twelve Months Ended|
|March 31,||March 31,|
|Cost of sales||255,876||360,992||1,027,906||1,243,612|
|Selling, general & admin. expense||28,624||39,854||117,598||140,528|
|Legal and environmental charges||-||(1,500)||3,600||(1,500)|
|Profit from operations||45,078||47,286||163,557||179,834|
|Other income, net||2,193||4,091||11,392||12,479|
|Income before income taxes||47,271||51,377||174,949||192,313|
|Provision for taxes||13,414||19,557||49,164||187,403|
|Basic income per share||$||0.20||$||0.19||$||0.75||$||0.03|
|Diluted income per share||$||0.20||$||0.19||$||0.75||$||0.03|
|Weighted average common shares outstanding:|
Consolidated Condensed Balance Sheets
|March 31,||March 31,|
|Cash and cash equivalents||$||578,634||$||549,767|
|Short-term investments in securities||528,748||279,787|
|Accounts receivable, net||186,804||284,514|
|Other current assets||68,090||70,879|
|Total current assets||1,836,404||1,701,724|
|Property, plant and equipment, net||239,951||423,225|
|Goodwill and other intangibles||266,701||441,997|
|Liabilities and Stockholders' Equity|
|Income taxes payable and accrued expenses||135,626||178,517|
|Total current liabilities||216,067||294,563|
|TOTAL STOCKHOLDERS' EQUITY||2,216,479||2,242,488|
|TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY||$||2,477,413||$||2,670,608|
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