Accellent Inc. (the "Company" or "Accellent"), a wholly owned subsidiary
of Accellent Holdings Corp., today announced results for its fiscal
third quarter ended September 30, 2012.
Third Quarter 2012 Financial Results
Net sales were $126.0 million in the third quarter of 2012 compared with
$126.8 million in the third quarter of 2011. Income from continuing
operations was $16.2 million in the third quarter of 2012, compared with
$13.3 million in the third quarter of 2011. Net loss was $6.5 million in
the third quarter of 2012 compared to $4.4 million in the third quarter
Adjusted EBITDA in the third quarter of 2012 was $28.3 million, or 22.4%
of net sales, compared to Adjusted EBITDA of $24.3 million, or 19.2% of
net sales, in the third quarter of 2011.
"Despite on-going revenue challenges, we continued to improve our
business fundamentals that drive sustainable profitable growth. In the
third quarter, despite relatively flat sales, Adjusted EBITDA increased
over 16% year over year. I am optimistic that our actions will continue
to generate positive results" stated Donald Spence, President and CEO of
Nine Months Ended September 30, 2012 Financial Results
Net sales decreased 2.1% to $376.5 million in the first nine months of
2012 compared with $384.5 million in the first nine months of 2011.
Income from continuing operations was $39.8 million in the first nine
months of 2012 compared with $44.5 million in the first nine months of
2011. Net loss was $19.1 million in the first nine months of 2012
compared with a net loss of $11.6 million in the first nine months of
Adjusted EBITDA for the first nine months of 2012 was $76.7 million, or
20.4% of net sales compared to Adjusted EBITDA of $77.1 million, or
20.0% of net sales in the first nine months of 2011.
Reconciliations of non-GAAP financial measures to GAAP financial
measures are provided in the financial information accompanying this
The financial information included in this press release reflect results
from continuing operations for all periods presented and assets to be
held and used. Results of discontinued operations and assets held for
sale are presented separately for all periods presented.
Donald Spence, President and Chief Executive Officer, and Jeremy A.
Friedman, Executive Vice President and Chief Financial Officer, will
discuss our third quarter financial results in a conference call
scheduled for today, November 8, 2012 at 5 p.m. Eastern Standard Time.
The teleconference can be accessed live on the Internet through the
Investor Relations section of the Accellent website at www.accellent.com
or by calling (800) 446-1671 pass code 33716271. Please visit the
website or dial in 10 to 15 minutes prior to the beginning of the call
to download and install any necessary audio software. A replay of the
conference call will be available via www.accellent.com
or by telephone at (888) 843-7419 pass code 33716271 until November 15,
Accellent Holdings Corp., through its wholly owned subsidiary Accellent,
Inc., provides fully integrated outsourced manufacturing and engineering
services to the medical device industry primarily in the cardiology,
endoscopy and orthopedic markets. Accellent has broad capabilities in
precision component fabrication, finished device assembly, complete
supply chain management capabilities and engineering services. These
capabilities enhance customers' speed to market and return on investment
by enabling them to refocus internal resources more efficiently. For
more information, please visit www.accellent.com.
This press release includes "forward looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Act of 1934, as amended. All statements
included herein, other than statements of historical fact, may
constitute forward-looking statements. Although the Company believes
that the expectations reflected in such forward-looking statements are
reasonable, it can give no assurance that such expectations will prove
to be correct. Important factors that could cause actual results to
differ materially from the Company's expectations are disclosed in the
risk factors contained in the Company's Form 10-K for the year ended
December 31, 2011 filed with the Securities and Exchange Commission on
March 29, 2012. All forward-looking statements are expressly qualified
in their entirety by such risk factors.
Accounts receivable, net of allowances of $1,983 and $1,904 as of
December 31, 2011 and September 30, 2012, respectively
Common stock, par value $0.01 per share, 50,000,000 shares
authorized; 1,000 shares issued and outstanding at December
31, 2011 and September 30, 2012, respectively
(1) EBITDA and Adjusted EBITDA presented in this press release are
supplemental measures of our performance that are not required by, or
presented in accordance with, GAAP. EBITDA and Adjusted EBITDA are not
measurements of our financial performance under GAAP and should not be
considered as alternatives to net income (loss) or any other performance
measures derived in accordance with GAAP, or as an alternative to cash
flow from operating activities as a measure of our liquidity.
EBITDA represents net income (loss) before net interest expense,
provision for income taxes and depreciation and amortization. Adjusted
EBITDA represents EBITDA further adjusted to give effect to certain
non-cash items and other adjustments, all of which are defined in the
indentures governing our debt. The adjustments include adjustments for
restructuring charges and related plant closure costs, stock
compensation charges, severance and relocation costs, executive
recruiting costs, currency gains and losses, gains and losses on
derivative instruments, gains and losses resulting from the disposal of
property and equipment, certain non-income based taxes, losses on debt
extinguishment, discontinued operations and management fees.
We believe that the presentation of EBITDA and Adjusted EBITDA is
appropriate to provide as additional information for investors. We
consider it an important supplemental measure of our performance and we
believe that both are frequently used by securities analysts, investors
and other interested parties in the evaluation of high yield issuers.
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