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Viasystems' PCB Segment Reports 18% Increase in Net Sales
February 24, 2010 | Business WireEstimated reading time: 3 minutes
Viasystems Group, Inc., a leading provider of complex multi-layer PCBs and electro-mechanical solutions, today announced consolidated financial results for the fourth quarter ended December 31, 2009.
Highlights:
- Net sales increased 8.5% sequentially, to $131.4 million. This was the second consecutive quarter of overall sales improvement. Bookings were approximately $151.0 million, resulting in a book-to-bill ratio of 1.15.
- Gross margin percentage improved sequentially by 180 basis points to 22.5%.
- Operating income more than doubled sequentially, to $2.5 million.
- Adjusted EBITDA increased to $18.6 million, and Adjusted EBITDA margin percentage increased 140 basis points sequentially to 14.2%.
- Unrestricted cash on December 31, 2009, was $109.0 million.
"The continuing recovery of demand in our markets is encouraging," said David M. Sindelar, Chief Executive Officer of Viasystems. "Having completed the acquisition of Merix Corporation earlier this month, we now have the industry's finest array of high-tech and quick-turn capabilities, which positions Viasystems to bring more value to our combined customer base and to make the most of the market recovery. Our immediate focus is the successful integration of the two businesses and the achievement of the $20 million cost synergies identified from the merger."
Financial Results
The company reported net sales of $131.4 million for the three months ended December 31, 2009, an 8.5% increase compared with the three months ended September 30, 2009 and an 11.1% decrease from net sales during the same period in 2008. The sequential increase is due to stronger demand in the automotive, telecommunications, and computer/datacom end markets.
Adjusted EBITDA for the three months ended December 31, 2009 was $18.6 million, which represents a 20% increase over the third quarter ended September 30, 2009 and a 14% increase compared to the same period in 2008. The favorable year-over-year comparison reflects successful cost reduction efforts during 2009. A reconciliation of Adjusted EBITDA to Operating Income is provided at the end of this news release.
Segment Information
Net sales in the company's PCB segment for the fourth quarter were $100.6 million, or an 18% increase over the third quarter of 2009. This increase is driven primarily by strengthening demand in the automotive and industrial and instrumentation markets, in which PCB segment sales increased 12% and 31%, respectively.
Fourth-quarter sales of the company's Assembly segment were $30.8 million, a decline of $5.1 million compared with the third quarter of 2009. The decline is attributable to lower demand for the company's electro-mechanical solutions products (E-M Solutions) in the Industrial and Instrumentation end-user market.
Cash and Working Capital
Unrestricted cash at December 31, 2009 was $109.0 million, slightly lower than the cash balance of $110.7 million at the end of the third quarter. The company's working capital metrics for the fourth quarter are consistent with its historical trends.
Merger with Merix and Recapitalization
Viasystems completed the purchase of Merix Corporation through a merger on February 16, 2009. In connection with and prior to the merger, Viasystems completed a recapitalization such that the shares of Viasystems common and preferred stock reflected on the balance sheet on December 31, 2009 have been exchanged for Viasystems common shares at exchange ratios described in the Plan of Merger filed with SEC. Shares of Viasystems and cash were also paid in consideration for the common stock and convertible debentures of Merix Corporation pursuant to the Merger Agreement. After the recapitalization and merger, there are approximately 20.0 million shares of Viasystems common stock outstanding and no preferred or other classes of stock. With respect to future periods, the company expects to adopt all the governance and reporting standards applicable to widely held public companies under the NASDAQ Listing Standards.Investor Conference Call
Viasystems will Webcast an investor conference call at 11:00 a.m. Eastern time today, February 24, 2010. The Webcast and supporting presentation will be available at www.viasystems.com on the Investor Relations page. The live conference call will be available by telephone for financial analysts at (877) 640-9867 or (914) 495-8546. A replay will be available on the Web site for an indefinite period. Investors may also access the replay by telephone through Tuesday, March 2, 2010 at (800) 642-1687 or (705) 645-9291 using conference ID code 56031968.
About Viasystems
Viasystems Group, Inc. is a worldwide provider of complex multi-layer, rigid PCBs and electro-mechanical solutions (E-M Solutions). Its PCBs serve as the "electronic backbone" of electronic equipment, and its E-M Solutions products and services integrate PCBs and other components into electronic equipment, including metal enclosures, cabinets, racks and sub-racks, backplanes, cable assemblies and busbars. Viasystems' 13,000 employees in North America and Asia serve more than 800 customers in the automotive, telecommunications, computer and data communications, industrial and instrumentation, and defense and aerospace markets. For additional information, visit www.viasystems.com.