AVX Corporation Announces Preliminary Third Quarter Results

GREENVILLE, S.C. - January 27, 2015 -- AVX Corporation (NYSE: AVX) today reported preliminary unaudited results for the third quarter ended December 31, 2014. 

Chairman and Chief Executive Officer, John Gilbertson, stated, "The quarter was not as active as last year as revenue was impacted by conservative customer inventory management, a modest holiday season and currency movement. AVX's operations continued to perform well during the quarter as we focused on advanced components with better margin opportunity and implemented stringent cost controls. Gross margin improved to 24.5% in the quarter ended December 31, 2014 compared to 19.6% in the quarter ended December 31, 2013.  We anticipate an increase in electronic applications and increased new product introductions in many markets during the next year." 

For the quarter ended December 31, 2014, net sales were $321.7 million and net income was $39.0 million, or $0.23 per diluted share, compared to net sales of $346.2 million and net income of $31.4 million, or $0.19 per diluted share, for the quarter ended December 31, 2013.

For the nine months ended December 31, 2014, net sales were $1,037.7 million and net income was $124.3 million or $0.74 per diluted share, compared to net sales of $1,091.4 million and net income of $87.9 million, or $0.52 per diluted share, for the nine months ended December 31, 2013. 

Chief Financial Officer, Kurt Cummings, stated, "We continued to generate positive cash flows from operations and use our resources to enhance shareholder value by paying increased dividends totaling $17.6 million in the quarter. With cash, cash equivalents and short and long-term investments in securities of $990.8 million and no debt at December 31, 2014, the Company has the resources to expand operations and invest in our future."

AVX, headquartered in Greenville, 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 and Subsidiaries
Consolidated Condensed Statements of Operations
(unaudited)
(in thousands, except per share data)

                       
                       
    Three Months Ended     Nine Months Ended
  December 31,   December 31,
  2013   2014   2013   2014
Net sales $  346,211   $  321,687   $  1,091,375   $  1,037,681
Cost of sales    278,445      243,010      883,812      786,054
Gross profit    67,766      78,677      207,563      251,627
Selling, general & admin. expense    32,193      28,290      91,389      85,548
Profit from operations    35,573      50,387      116,174      166,079
Other income, net    1,625      2,325      2,869      3,600
Income before income taxes    37,198      52,712      119,043      169,679
Provision for taxes    5,764      13,759      31,136      45,334
Net income $  31,434   $  38,953   $  87,907   $  124,345
                       
Basic income per share $  0.19   $  0.23   $  0.52   $  0.74
Diluted income per share $  0.19   $  0.23   $  0.52   $  0.74
                       
Weighted average common shares outstanding:                      
Basic    168,428      168,164      168,554      168,117
Diluted    168,700      168,442      168,734      168,375

AVX Corporation and Subsidiaries
Consolidated Condensed Balance Sheets
(unaudited)
(in thousands)

             
             
    March 31,   December 31,
    2014   2014
Assets            
Cash and cash equivalents   $ 460,674   $ 330,573
Short-term investments in securities     413,615     510,129
Accounts receivable, net     208,445     183,012
Inventories     550,518     535,944
Other current assets     135,471     182,707
Total current assets     1,768,723     1,742,365
Long-term investments in securities     25,000     150,139
Property, plant and equipment, net     235,725     208,438
Goodwill and other intangibles     280,786     276,925
Other assets     74,754     24,405
             
TOTAL ASSETS   $ 2,384,988   $ 2,402,272
             
Liabilities and Stockholders' Equity            
Accounts payable   $ 94,634   $ 72,064
Income taxes payable and accrued expenses     67,300     200,135
Total current liabilities     161,934     272,199
Other liabilities     175,369     47,116
             
TOTAL LIABILITIES     337,303     319,315
             
TOTAL STOCKHOLDERS' EQUITY     2,047,685     2,082,957
             
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $ 2,384,988   $ 2,402,272
             

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 2015, overall volume and pricing trends, 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, 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. The forward-looking information and statements in this Press Release are subject to risks and uncertainties, including those discussed in our Annual Report on Form 10-K for fiscal year ended March 31, 2014, that could cause actual results to differ materially from those expressed in or implied by the information or statements herein. 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.

Contact:

AVX Corporation, Greenville
Kurt Cummings
864-967-9303
finance@avx.com



This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: AVX Corporation via Globenewswire
HUG#1889686
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