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AVX Corporation Announces Preliminary First Quarter Results

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AVX Corporation (NYSE:AVX) today reported preliminary unaudited results
for the first quarter ended June 30, 2018.

Chief Executive Officer and President, John Sarvis, stated, "We
completed the first quarter of our fiscal year with net sales of $454.1
million, reflecting an increase over both the previous quarter and the
same quarter in the prior year. Overall orders in the industry remained
strong, reflecting a continuing robust demand for our passive
components, antennas, sensors and interconnect solutions. Our gross
profit of $108.3 million, or 23.9 percent, reflects solid operating
performance and improved pricing in the market. Our various distribution
channels continue to experience favorable trends and we are maintaining
a positive outlook for succeeding quarters. Our operational efficiency
programs continue to positively impact our manufacturing cost. 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 during the remainder of the fiscal year."

For the quarter ended June 30, 2018, net sales were $454.1 million
compared to net sales of $331.4 million for the same period last year,
reflecting increased sales of $97.8 million in our Interconnect, Sensing
and Control segment attributable to our acquisition of the AB Electronic
sensing and control business and $31.9 million in our Electronic
Components segment attributable to our acquisition of Ethertronics. The
increased sales were partially offset by the loss of KED sales which
were $17.2 million for the quarter ended June 30, 2018 as compared to
$76.7 million for the same period last year.

Operating profit for the three month period ended June 30, 2018 was
$68.0 million compared to $42.4 million for the three month period ended
June 30, 2017.

Net income for the quarter ended June 30, 2018 was $56.0 million, or
$0.33 per diluted share compared to net income for the quarter ended
June 30, 2017 of $31.5 million, or $0.19 per diluted share.

During the quarter, AVX completed its purchase of KUMATEC
Sondermaschinenbau & Kunststoffverarbeitung GmbH ("Kumatec") for $12.3
million in cash, net of cash acquired and debt assumed. Kumatec
develops, constructs and manufactures automation equipment and plastic
components.

Chief Financial Officer, Michael Hufnagel, stated, "We are continuing
our long-term strategy 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 June
30, 2018, we had cash, cash equivalents and short-term investments in
securities of approximately $846.2 million and no debt. We continued to
use our resources to provide value to our stockholders during the
quarter by paying $19.4 million in dividends to stockholders, using $0.8
million to repurchase shares of AVX stock on the open market, and
spending $12.3 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.

 

AVX CORPORATION

Consolidated Condensed Statements of Income

(unaudited)

(in thousands, except per share data)

 
    Three Months Ended
June 30,
2017     2018
Net sales $ 331,354 $ 454,116
Cost of sales   257,508   345,783
Gross profit 73,846 108,333
Selling, general & admin. expense   31,415   40,316
Profit from operations 42,431 68,017
Other income, net   1,913   2,753
Income before income taxes 44,344 70,770
Provision for taxes   12,860   14,807
Net income $ 31,484 $ 55,963
 
Basic income per share $ 0.19 $ 0.33
Diluted income per share $ 0.19 $ 0.33
 
Weighted average common shares outstanding:
Basic 168,071 168,492
Diluted 168,632 168,964
 
 

AVX CORPORATION

Consolidated Condensed Balance Sheets

(unaudited)

(in thousands)

 
    March 31,     June 30,
2018 2018
Assets
Cash and cash equivalents $ 547,415 $ 457,935
Short-term investments in securities 279,787 388,217
Accounts receivable, net 284,514 271,377
Inventories 516,777 513,909
Other current assets   73,231   76,628
Total current assets 1,701,724 1,708,066
Property, plant and equipment, net 418,286 422,719
Goodwill and other intangibles 444,910 452,608
Other assets   107,846   105,925
 
TOTAL ASSETS $ 2,672,766 $ 2,689,318
 

Liabilities and Stockholders' Equity

Accounts payable $ 116,046 $ 97,046
Income taxes payable and accrued expenses   178,517   217,062
Total current liabilities 294,563 314,108
Other liabilities   134,760   134,136
 
TOTAL LIABILITIES 429,323 448,244
 

TOTAL STOCKHOLDERS' EQUITY

  2,243,443   2,241,074
 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$ 2,672,766 $ 2,689,318
 

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
2019, 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,
2018. 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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