KEMET CORP - 10-Q Quarterly Report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)

 
  ý

  Quarterly Report Pursuant to Section 13 or 15(d) of the
  Securities Exchange Act of 1934.

  For
  the period ended June 30, 2003.

  o

  Transition Report Pursuant to Section 13 or 15(d) of the
  Securities Exchange Act of 1934.

Commission File Number: 0-20289

KEMET CORPORATION

Exact name of registrant as specified in its charter

 
  DELAWARE

  57-0923789

  (State
  or other jurisdiction of incorporation or organization)

  (IRS
  Employer Identification No.)

  2835 KEMET WAY, SIMPSONVILLE, SOUTH CAROLINA 29681

  (Address
  of principal executive offices, zip code)

  864-963-6300

  (Registrant’s
  telephone number, including area code)

Former name, former address and former fiscal year, if changed since last report: N/A

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

YES ý NO o

Indicate by check mark whether the registrant is an accelerated filer (as defined in Exchange Act Rule 12b-2). ý Yes o No

Common Stock Outstanding at: July 31, 2003

 
  Title of
  Each Class

  Number of
  Shares Outstanding

  Common
  Stock, $.01 Par Value

  86,381,177

Part I - FINANCIAL INFORMATION

ITEM 1 - Financial Statements

KEMET CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

(Dollars in thousands except per share data)

	June 30, 2003			March 31, 2003
ASSETS
Current assets:
Cash and cash equivalents	$	291,498		$	263,585
Short term investments	5,198			—
Accounts receivable	50,013			45,418
Inventories:
Raw materials and supplies	80,981			91,333
Work in process	47,797			43,404
Finished goods	39,210			49,337

Total inventories	167,988			184,074
Income tax refund receivable	—			24,640
Prepaid expenses and other current assets	8,299			6,120
Deferred income taxes	22,103			23,947

Total current assets	545,099			547,784
Property and equipment, net	469,996			485,166
Intangible assets, net	43,460			41,560
Other assets	26,789			26,500

Total assets	$	1,085,344		$	1,101,010


LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable, trade	$	23,407		$	49,171
Accrued expenses	30,303			35,078
Income taxes payable	23,739			—

Total current liabilities	77,449			84,249
Long-term debt	100,000			100,000
Other non-current obligations	57,617			57,617
Deferred income taxes	58,158			65,869

Total liabilities	293,224			307,735

Stockholders’ equity:
Common stock, par value $.01, authorized 300,000,000 shares, issued 87,921,563 and 87,870,731 shares at June 30, 2003, and March 31, 2003, respectively	879			879
Additional paid-in capital	317,981			318,545
Retained earnings	503,344			506,915
Accumulated other comprehensive loss	(1,574		)	(2,996		)
Treasury stock, at cost (1,546,735 and 1,631,265 shares at June 30, 2003, and March 31, 2003, respectively)	(28,510		)	(30,068		)

Total stockholders’ equity	792,120			793,275

Commitments and contingencies

Total liabilities and stockholders’ equity	$	1,085,344		$	1,101,010

See accompanying notes to consolidated financial statements.

KEMET CORPORATION AND SUBSIDIARIES

Consolidated Statements of Operations

(Dollars in thousands except per share data)

	Three months ended June 30,
	2003			2002

Net sales	$	105,362		$	124,045

Operating costs and expenses:
Cost of goods sold	96,289			100,953
Selling, general and administrative expenses	13,546			13,856
Research and development	5,963			6,780

Total operating costs and expenses	115,798			121,589

Operating income (loss)	(10,436		)	2,456

Other (income) and expense:
Interest income	(760		)	(938		)
Interest expense	1,572			1,547
Other income	(1,384		)	(3,338		)

Earnings (loss) before income taxes	(9,864		)	5,185

Income tax expense (benefit)	(6,293		)	1,763

Net earnings (loss)	$	(3,571	)	$	3,422

Net earnings (loss) per share:
Basic	$	(0.04	)	$	0.04
Diluted	$	(0.04	)	$	0.04

Weighted-average shares outstanding:

ý	Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

	For the period ended June 30, 2003.

o	Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

DELAWARE		57-0923789
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification No.)

2835 KEMET WAY, SIMPSONVILLE, SOUTH CAROLINA 29681
(Address of principal executive offices, zip code)

864-963-6300
(Registrant’s telephone number, including area code)

Title of Each Class		Number of Shares Outstanding
Common Stock, $.01 Par Value		86,381,177