PENDLETON, Ind., May 6, 2015 /PRNewswire/ -- Remy International, Inc. (NASDAQ:REMY), a leading worldwide manufacturer, remanufacturer, and distributor of starter motors and alternators, multi-line products and hybrid electric motors, today announced its financial results for the first quarter ended March 31, 2015. Remy also announced a 10% increase in its quarterly dividend to $0.11 per share payable on May 29, 2015 to stockholders of record on May 18, 2015.

Jay Pittas, Remy International, Inc. President and CEO commented, "We performed well in a tough environment with strong currency headwinds and macro-economic conditions. We are excited by the continued share gains in our original equipment products and encouraged by the favorable commercial vehicle build forecasts for the remainder of the year. In addition, we continued to increase our OE revenue backlog, which provides a clear line of sight into earnings growth over the next few years." Pittas continued, "We are committed to improving long term shareholder value as demonstrated by our increased dividend and previously announced stock repurchase program."



     Financial
     Results    Three months ended March 31,
     ---------

                                             2015                           2014
                                             ----                           ----

    Net
     sales                                        $303.4 million $306.0  million

    Net
     income                                        $16.6 million   $4.9  million

     Diluted
     earnings
     per
     share                                         $0.52          $0.16

    Net
     cash
     provided
     by
     (used
     in)
     operating
     activities                                    $12.2 million $(9.4) million

    Cash
     earnings
     per
     share                                         $0.40          $0.62

     Adjusted
     EBITDA                                        $25.6 million  $35.9  million

First Quarter Highlights


    --  Net sales of $303.4 million for the first quarter of 2015 compared to
        $306.0 million for the first quarter of 2014. Excluding the year over
        year impact of fluctuations in foreign exchange, net sales would have
        grown 1%.
    --  Adjusted EBITDA of $25.6 million for the first quarter of 2015 compared
        to $35.9 million for the first quarter of 2014. The decrease of $10.3
        million in Adjusted EBITDA is primarily driven by an $8.5 million
        decrease in volume and mix of products and $2.2 million of negative
        foreign currency impact in first quarter of 2015 compared to the first
        quarter of 2014. The $8.5 million decrease in volume and mix was
        primarily driven by the termination of a large aftermarket contract and
        the roll-off of legacy business with a large automotive original
        equipment manufacturer ("OEM").
    --  Cash earnings per share were 40 cents this quarter compared with 62
        cents in the prior year. Of the decline in cash earnings per share, 19
        cents can be attributed to the impact of foreign currency, the
        aftermarket contract termination and the roll-off of legacy business
        with a large automotive OEM.
    --  Awarded $23 million of 2018 net new business, including an award for our
        next generation start-stop technology.
    --  Received a major award for axles from a large aftermarket retailer.
    --  Generated $12.2 million cash from operations and improved working
        capital turns by 4%.
    --  On March 1, 2015, we acquired substantially all of the assets of Maval
        Manufacturing, Inc. ("Maval"), a manufacturer, remanufacturer, and
        distributor of steering systems, components, and specialty products to
        the automotive service, original equipment power sports, and off-road
        specialty vehicle markets.
    --  On April 30, 2015, the Board of Directors declared a quarterly dividend
        of $0.11 per share payable on May 29, 2015 to stockholders of record as
        of May 18, 2015.

Full Year 2015 Guidance

As Remy is now a fully independent public company, it will now be providing annual guidance for key financial metrics. The company's full-year 2015 financial guidance is as follows:



                                                             2015
                                                             ----

    Net sales                             $1,130 - $1,200 million

    Adjusted EBITDA                           $125 - $132 million

    Cash earnings per share                         $1.95 - $2.20

About Remy International, Inc.

Founded by the Remy brothers in 1896, Remy International, Inc. (NASDAQ: REMY) is a leading global manufacturer, remanufacturer, and distributor of alternators, starter motors, and electric traction motors for the automotive and commercial vehicle industry, marketed under the Remy® and Delco Remy® brands. The company also provides multi-line products through its subsidiaries. Headquartered in Pendleton, Indiana, with operations across five continents and ten countries, Remy is a trusted partner to original equipment manufacturers and aftermarket organizations worldwide, delivering creative solutions for today's vehicle challenges. For more information visit remyinc.com.

Conference Call

Remy will host a call with investors and analysts to discuss first quarter 2015 results on Thursday, May 7, 2015 beginning at 9:00 a.m. Eastern Time. A live webcast of the conference call will be available on the Remy Investor Relations website at http://www.remyinc.com.

To join the conference via phone, participants should dial (800) 230-1096. Outside the United States, participants should dial (612) 288-0340. (No participant code is required.) Please dial in ten minutes prior to the start of the call. The title of the call is Remy International 1st Quarter Conference Call.

A replay of the conference call will be available from May 7 through May 21, 2015 by dialing (800) 475-6701 and entering the access code 356011. Outside the United States, parties should dial (320) 365-3844 and enter the same access code.

Use of Non-U.S. GAAP Financial Information

Accounting principles generally accepted in the United States (U.S. GAAP) is the standard framework of guidelines for financial accounting. U.S. GAAP includes the standards, conventions, and rules accountants follow in recording and summarizing transactions and in the preparation of financial statements. In addition to reporting financial results in accordance with U.S. GAAP, Remy has provided adjusted EBITDA, cash earnings and cash earnings per share, and adjusted operating income, non-U.S. GAAP financial measures, which are frequently used by management, analysts, investors and other interested parties. Management believes that the non-U.S. GAAP financial measures presented provide a useful measure of Remy's financial performance since they exclude certain items which do not reflect ongoing operations. A reconciliation of U.S. GAAP net income to adjusted EBITDA, U.S. GAAP Operating income to Adjusted operating income , and adjusted EBITDA to cash earnings and cash earnings per share is provided herein. Adjusted EBITDA is defined by the Company as net income before (i) interest expense-net, (ii) income tax expense, (iii) depreciation and amortization, (iv) stock-based compensation expense, (v) restructuring, other charges and other impairment charges, (vi) certain purchase accounting finished goods inventory step-up costs, (vii) litigation settlements and related legal fees, (viii) Transaction related fees, and (ix) other adjustments. In the fourth quarter 2014, we updated our definition to include litigation settlements and related legal fees, as well as, Transaction related fees. All periods presented conform to this definition. Cash earnings is defined as adjusted EBITDA less cash paid for (i) income taxes, (ii) interest expense and (iii) capital expenditures. We define adjusted operating income as operating income before (i) purchase accounting related charges, (ii) restructuring and other charges, (iii) litigation settlements and related legal fees, (iv) Transaction related fees, and (v) other adjustments. Adjusted EBITDA, cash earnings, and adjusted operating income as defined by the Company may differ from non-U.S. GAAP measures used by other companies and is not a measurement under U.S. GAAP. There are limitations inherent in non-U.S. GAAP financial measures in that they exclude a variety of charges and credits that are required to be included in a U.S. GAAP presentation, and therefore do not present the full measure of the Company's recorded costs against its revenue. Accordingly, in analyzing Remy's future financial performance, non-U.S. GAAP results presented should be considered together with U.S. GAAP results, rather than as an alternative to U.S. GAAP basis financial measures. Reconciliations of non-U.S. GAAP measures to related U.S. GAAP measures are presented in the financial schedules which accompany this release.

Forward Looking Statements

This press release contains forward-looking statements. Forward-looking statements provide our current expectations or forecasts of future events. Forward-looking statements include statements about our expectations, beliefs, plans, objectives, intentions, assumptions and other statements that are not historical facts. Such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from anticipated results. We undertake no obligation to publicly revise any forward-looking statement to reflect circumstances or events to reflect the new information, future events, or otherwise. The risks and uncertainties which forward-looking statements are subject to include, but are not limited to, future financial results and liquidity, development of new products and services, the effect of competitive products or pricing, the effect of commodity and raw material prices, the impact of supply chain cost management initiatives, restructuring risks, customs duty claims, litigation uncertainties and warranty claims, conditions in the automotive industry, foreign currency fluctuations, costs related to re-sourcing and outsourcing products, the effect of economic conditions, and other risks identified in the "Special note regarding forward-looking statements", "Risk Factors" and other sections of the Company's previously filed most recent Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q and other filings with the U.S. Securities and Exchange Commission. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect the Company. We disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events and/or otherwise, except as may be required by law.

A copy of the first quarter 2015 Form 10-Q will be available on the Remy International Website at: http://www.remyinc.com under "Investor Relations".

Investor Contact:

Investor Relations
ir@remyinc.com
(765) 778-6602


                  Remy International, Inc.

         Index of consolidated financial information


    Consolidated balance sheets as of
     March 31, 2015 (unaudited) and
     December 31, 2014                    A-2
                                          ---

    Consolidated statements of
     operations (unaudited) for the
     three months ended March 31, 2015
     and March 31, 2014                   A-3
                                          ---

    Consolidated statements of cash
     flows (unaudited) for the three
     months ended March 31, 2015 and
     March 31, 2014                       A-4
                                          ---

    Reconciliation of non-U.S. GAAP
     financial measures (unaudited)
     for the three months ended March
     31, 2015 and March 31, 2014          A-5
                                          ---

The accompanying unaudited consolidated financial information and reconciliation schedules should be read in conjunction with the Remy International, Inc. Annual Report on Form 10-K for the year ended December 31, 2014 and Quarterly Report on Form 10-Q for the period ended March 31, 2015, each of which were filed with the United States Securities and Exchange Commission.

A-1




                                                                                                     Remy International, Inc.

                                                                                                    Consolidated balance sheets


                                                                                                                                  March 31,            December 31,

    (In thousands, except share information)                                                                                           2015                  2014
    ---------------------------------------                                                                                            ----                  ----

    Assets:                                                                                                                     (unaudited)

    Current assets:

    Cash and cash equivalents                                                                                                                  $87,309                 $84,885

    Trade accounts receivable (less allowances of $2,000 and $1,519)                                                                232,486                 210,356

    Other receivables                                                                                                                13,758                  16,692

    Inventories                                                                                                                     186,005                 164,143

    Deferred income taxes                                                                                                            33,069                  42,308

    Prepaid expenses and other current assets                                                                                        15,673                  11,865
                                                                                                                                     ------                  ------

    Total current assets                                                                                                            568,300                 530,249


    Property, plant and equipment                                                                                                   228,203                 226,073

    Less accumulated depreciation and amortization                                                                                 (66,989)               (61,615)
                                                                                                                                    -------                 -------

    Property, plant and equipment, net                                                                                              161,214                 164,458


    Deferred financing costs, net of amortization                                                                                     1,418                   1,471

    Goodwill                                                                                                                        263,491                 259,586

    Intangibles, net                                                                                                                290,604                 298,023

    Other noncurrent assets                                                                                                          47,599                  65,309
                                                                                                                                     ------                  ------

    Total assets                                                                                                                            $1,332,626              $1,319,096
                                                                                                                                            ==========              ==========


    Liabilities and Equity:

    Current liabilities:

    Short-term debt                                                                                                                             $4,810                  $7,761

    Current maturities of long-term debt                                                                                              3,500                   3,509

    Accounts payable                                                                                                                186,326                 177,333

    Accrued interest                                                                                                                    105                      94

    Accrued restructuring                                                                                                               277                     331

    Other current liabilities and accrued expenses                                                                                  109,010                 128,509
                                                                                                                                    -------                 -------

    Total current liabilities                                                                                                       304,028                 317,537


    Long-term debt, net of current maturities                                                                                       322,994                 298,295

    Postretirement benefits other than pensions                                                                                       1,422                   1,484

    Accrued pension benefits                                                                                                         33,597                  34,267

    Deferred income taxes                                                                                                            51,986                  54,783

    Other noncurrent liabilities                                                                                                     27,123                  26,483


    Equity:

    Remy International, Inc. stockholders' equity:

    Common stock, Par value of $0.0001; 32,236,050 shares outstanding at March 31, 2015, and 32,201,086 shares outstanding at
     December 31, 2014                                                                                                                    3                       3

    Treasury stock, at cost; 160,063 treasury shares at March 31, 2015, and no treasury shares at December 31, 2014                 (1,097)                      -

    Additional paid-in capital                                                                                                      597,101                 595,627

    Retained earnings                                                                                                                13,457                       -

    Accumulated other comprehensive loss                                                                                           (17,988)                (9,383)
                                                                                                                                    -------                  ------

    Total Remy International, Inc. stockholders' equity                                                                             591,476                 586,247

    Total liabilities and equity                                                                                                            $1,332,626              $1,319,096
                                                                                                                                            ==========              ==========

A-2




                          Remy International, Inc.

                    Consolidated statements of operations

                                 (Unaudited)


                                                     Three months ended
                                                              March 31,
                                                              ---------

    (In thousands,
     except per
     share
     amounts)                       2015                           2014
    --------------


    Net sales                               $303,411                      $306,005

    Cost of goods
     sold                        241,409                          259,654
                                 -------                          -------

    Gross profit                  62,002                           46,351

    Selling,
     general, and
     administrative
     expenses                     33,420                           32,931

    Restructuring
     and other
     charges                          73                              314
                                     ---                              ---

    Operating
     income                       28,509                           13,106

    Interest
     expense-net                   5,011                            5,254

    Income before
     income taxes                 23,498                            7,852

    Income tax
     expense                       6,928                            2,908

    Net income                    16,570                            4,944
                                  ======                            =====


    Basic earnings
     per share:

    Earnings per
     share                                     $0.52                         $0.16

    Weighted
     average
     shares
     outstanding                  31,844                           31,652
                                  ======                           ======

    Diluted
     earnings per
     share:

    Earnings per
     share                                     $0.52                         $0.16
                                               =====                         =====

    Weighted
     average
     shares
     outstanding                  31,946                           31,823
                                  ======                           ======

    Dividends
     declared per
     common share                              $0.10                         $0.10
                                               =====                         =====

A-3




                                     Remy International, Inc.

                              Consolidated statements of cash flows

                                           (Unaudited)


                                            Three months ended March 31,
                                            ----------------------------

    (In
     thousands)                         2015                         2014
    -----------                         ----                         ----

    Cash flows from operating
     activities:

    Net
     income                                     $16,570                              $4,944

    Adjustments to reconcile
     net income to cash
     provided by (used in)
     operating activities:

     Depreciation
     and
     amortization                     17,037                                 18,057

    Stock-
     based
     compensation                      1,316                                  1,219

    Deferred
     income
     taxes                             5,744                                (2,238)

    Accrued
     pension
     and
     postretirement
     benefits,
     net                               (539)                               (1,109)

     Restructuring
     and
     other
     charges                              73                                    314

    Cash
     payments
     for
     restructuring
     charges                           (127)                               (1,056)

    Other                                757                                    187

    Changes in operating
     assets and liabilities,
     net of restructuring
     charges:

    Accounts
     receivable                     (15,539)                              (38,409)

    Inventories                     (11,746)                               (5,449)

    Accounts
     payable                           6,455                                 19,582

    Other
     current
     assets
     and
     liabilities,
     net                            (25,028)                               (3,277)

    Other
     noncurrent
     assets
     and
     liabilities,
     net                              17,258                                (2,204)
                                      ------                                 ------

    Net cash
     provided
     by
     (used
     in)
     operating
     activities                       12,231                                (9,439)


    Cash flows from investing
     activities:

     Purchases
     of
     property,
     plant
     and
     equipment                       (5,382)                               (6,513)

    Net
     proceeds
     on sale
     of
     assets                               10                                     39

     Acquisition
     of
     Maval
     Manufacturing,
     Inc.                           (22,000)                                     -

     Acquisition
     of USA
     Industries,
     Inc.,
     net of
     cash
     acquired
     of $109                               -                              (40,391)
                                         ---                               -------

    Net cash
     used in
     investing
     activities                     (27,372)                              (46,865)


    Cash flows from financing
     activities:

    Change
     in
     short-
     term
     debt                            (2,915)                                 2,934

    Proceeds
     from
     borrowings
     on
     Asset-
     Based
     Revolving
     Credit
     Facility                         79,250                                      -

    Payments
     made on
     Asset-
     Based
     Revolving
     Credit
     Facility                       (53,700)                                     -

    Payments
     made on
     long-
     term
     debt,
     including
     capital
     leases                            (874)                                 (844)

    Dividend
     payments
     on
     common
     stock                           (3,305)                               (3,397)

    Purchase
     of
     treasury
     stock                           (1,097)                               (2,504)

    Parent
     company
     net
     investment                            -                                   357

    Other                              1,610                                  1,142
                                       -----                                  -----

    Net cash
     provided
     by
     (used
     in)
     financing
     activities                       18,969                                (2,312)


    Effect
     of
     exchange
     rate
     changes
     on cash
     and
     cash
     equivalents                     (1,404)                                 (441)
                                      ------                                   ----

    Net
     increase
     (decrease)
     in cash
     and
     cash
     equivalents                       2,424                               (59,057)

    Cash and
     cash
     equivalents
     at
     beginning
     of
     period                           84,885                                114,884
                                      ------                                -------

    Cash and
     cash
     equivalents
     at end
     of
     period                                     $87,309                             $55,827
                                                =======                             =======

    Supplemental information:

    Noncash investing and
     financing activities:

     Purchases
     of
     property,
     plant
     and
     equipment
     in
     accounts
     payable                                     $2,773                              $1,634

A-4

Remy International, Inc.
Reconciliation of non-U.S. GAAP financial measures
(Unaudited)

Adjusted EBITDA

Adjusted EBITDA is not a measure of performance defined in accordance with U.S. GAAP. We use adjusted EBITDA as a supplement to our U.S. GAAP results in evaluating our business. Other companies in our industry define adjusted EBITDA differently from us and, as a result, our measure is not comparable to similarly titled measures used by other companies in our industry.

We define adjusted EBITDA as net income before interest expense-net, income tax expense, depreciation and amortization, stock-based compensation expense, restructuring, other charges and other impairment charges, certain purchase accounting finished goods inventory step-up costs and other adjustments as set forth in the reconciliations provided below. In the fourth quarter 2014, we updated our definition to include litigation settlements and related legal fees, as well as, Transaction related fees. All periods presented conform to this definition.

Adjusted EBITDA is one of the key factors upon which we assess performance. As an analytical tool, adjusted EBITDA assists us in comparing our performance over various reporting periods on a consistent basis because it excludes items that we do not believe reflect our ongoing operating performance.

Adjusted EBITDA should not be considered as an alternative to net income as an indicator of our performance, as an alternative to net cash provided by operating activities as a measure of liquidity, or as an alternative to any other measure prescribed by U.S. GAAP. There are limitations to using non-U.S. GAAP measures such as adjusted EBITDA. Although we believe that adjusted EBITDA may make an evaluation of our operating performance more consistent because it removes items that do not reflect our ongoing operations, adjusted EBITDA excludes certain financial information that some may consider important in evaluating our performance. The Company's 2015 guidance was determined using a consistent manner and methodology.

The following table sets forth a reconciliation of adjusted EBITDA to its most directly comparable U.S. GAAP measure, net income.



                                                                     Three months ended
                                                                              March 31,

     (In thousands)                                        2015                     2014
     -------------                                         ----                     ----


    Net income                                                     $16,570                                             $4,944

    Adjustments:

    Interest expense-net                                  5,011                                 5,254

    Income tax expense                                    6,928                                 2,908

    Depreciation and amortization                        17,037                                18,057

    Stock-based compensation
     expense                                              1,316                                 1,219

    Restructuring and other
     charges                                                 73                                   314

    Litigation settlements and
     related legal fees                                       -                                  737

    Purchase accounting finished
     goods inventory step-up                                587                                 2,509

    Other nonrecurring adjustments
     (a)                                               (21,903)                                  (3)
                                                        -------                                   ---

    Total adjustments                                     9,049                                30,995

    Adjusted EBITDA                                                $25,619                                            $35,939
                                                                   =======                                            =======


    (a) Represents the elimination of the $22.0 million net impact of one-time core settlements with customers in 2015 and
     (gain)/loss on sale of fixed assets in both periods.

A-5

Remy International, Inc.
Reconciliation of non-U.S. GAAP financial measures
(Unaudited)

Cash earnings and cash earnings per share

Management believes cash earnings and cash earnings per share, which are non-U.S. GAAP measures, are useful in evaluating the ongoing operating performance of the Company. We define cash earnings as adjusted EBITDA less cash paid for (i) income taxes, (ii) interest expense and (iii) capital expenditures. Cash earnings per share is defined as cash earnings divided by the weighted average number of diluted shares outstanding for the period. Other companies in our industry define cash earnings and cash earnings per share differently from us and, as a result, our measures are not comparable to similarly titled measures used by other companies in our industry. The Company's 2015 guidance was determined using a consistent manner and methodology.

The following table sets forth a reconciliation of cash earnings per share to its most directly comparable U.S. GAAP measure, diluted earnings per share:


    (In thousands, except per
     share amounts)                                     Three months ended March 31,
    -------------------------                           ----------------------------

                                                           2015                                 2014
                                                           ----                                 ----

    Adjusted EBITDA (a)                                            $25,619                                           $35,939

    Adjustments:

    Cash paid for income taxes                          (2,900)                             (4,900)

    Cash paid for interest expense                      (4,500)                             (4,900)

    Purchases of property, plant
     and equipment                                      (5,382)                             (6,513)

    Total adjustments                                  (12,782)                            (16,313)
                                                        -------                              -------

    Cash earnings                                                  $12,837                                           $19,626
                                                                   =======                                           =======


    Diluted earnings per share:

    Diluted weighted average
     shares outstanding (b)                              31,946                               31,823
                                                         ======                               ======

    Diluted earnings per share                                       $0.52                                             $0.16
                                                                     =====                                             =====

    Diluted cash earnings per
     share                                                           $0.40                                             $0.62
                                                                     =====                                             =====


    (a) See accompanying Non-U.S. GAAP reconciliation schedule of Adjusted EBITDA.

    (b) Weighted average shares outstanding is calculated based on the Old Remy weighted average diluted shares outstanding and
     assuming the additional 272,851 shares issued in respect of the contribution of Imaging were outstanding for the entire
     period under common control, or August 2012 through December 31, 2014.

A-6

Remy International, Inc.
Reconciliation of non-U.S. GAAP financial measures
(Unaudited)

Adjusted operating income

Management believes adjusted operating income, which is a non-U.S. GAAP measure, is a useful in evaluating the ongoing operating performance of the Company. We define adjusted operating income as operating income before (i) purchase accounting related charges, (ii) restructuring and other charges, (iii) litigation settlements and related legal fees, (iv) Transaction related fees, and (v) other adjustments as set forth in the reconciliations provided below. Other companies in our industry define adjusted operating income differently from us and, as a result, our measure is not comparable to similarly titled measures used by other companies in our industry.

The following table sets forth a reconciliation of adjusted operating income to its most directly comparable U.S. GAAP measure, operating income:




    (In thousands)                                     Three months ended March 31,
    -------------                                      ----------------------------

                                                          2015                                 2014
                                                          ----                                 ----

    Operating income                                              $28,509                                           $13,106

    Adjustments:

    Purchase accounting related
     charges (a)                                           623                                2,792

    Restructuring and other
     charges (b)                                            73                                  314

    Litigation settlements and
     related legal fees (c)                                  -                                 737

    Other nonrecurring
     adjustments (d)                                  (21,903)                                 (3)

    Total adjustments                                 (21,207)                               3,840
                                                       -------                                -----

    Adjusted operating income                                      $7,302                                           $16,946
                                                                   ======                                           =======


    (a) Represents the elimination of finished goods inventory step-up and trade name amortization related to the Maval
     acquisition in 2015 and the elimination of finished goods inventory step-up, customer relationships amortization and lease
     intangible amortization related to the USA Industries acquisition in 2014.

    (b) Represents the elimination of restructuring and other charges.

    (c) Represents the elimination of the amount recorded in connection with legal settlements and related legal costs.

    (d) Represents the elimination of the $22.0 million net impact of one-time core settlements with customers in 2015 and
     (gain)/loss on sale of fixed assets in both periods.

A-7

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SOURCE Remy International, Inc.