UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
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Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. |
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For the period ended December 31, 2004. |
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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)
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DELAWARE |
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57-0923789 |
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(State
or other jurisdiction of |
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(IRS
Employer |
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 Rule 12b-2 of the Exchange Act). ý Yes o No
Common Stock Outstanding at: January 31, 2005
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Title of Each Class |
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Number of Shares Outstanding |
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Common Stock, $.01 Par Value |
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86,536,530 |
Part I - FINANCIAL INFORMATION
ITEM 1 - Financial Statements
KEMET CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
(Dollars in thousands except per share data)
(Unaudited)
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December 31, 2004 |
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March 31, 2004 |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
23,546 |
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$ |
183,528 |
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Short-term investments |
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45,003 |
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3,172 |
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Accounts receivable |
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57,093 |
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57,303 |
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Inventories: |
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Raw materials and supplies |
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60,942 |
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59,751 |
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Work in process |
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39,887 |
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41,250 |
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Finished goods |
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47,515 |
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28,015 |
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Total inventories |
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148,344 |
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129,016 |
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Prepaid expenses and other current assets |
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9,951 |
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6,979 |
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Deferred income taxes |
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12,201 |
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29,046 |
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Total current assets |
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296,138 |
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409,044 |
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Property and equipment, net |
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388,028 |
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421,835 |
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Property held for sale |
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2,326 |
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2,326 |
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Investments in U.S. government marketable securities |
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158,016 |
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84,584 |
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Investments in affiliates |
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1,085 |
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3,610 |
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Goodwill |
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30,471 |
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30,471 |
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Intangible assets, net |
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13,763 |
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14,617 |
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Other assets |
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3,630 |
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3,321 |
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Total assets |
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$ |
893,457 |
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$ |
969,808 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable, trade |
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$ |
37,123 |
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$ |
38,268 |
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Accrued expenses |
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36,938 |
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41,182 |
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Income taxes payable |
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18,338 |
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15,863 |
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Total current liabilities |
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92,399 |
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95,313 |
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Long-term debt |
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100,000 |
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100,000 |
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Postretirement benefits and other non-current obligations |
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49,576 |
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61,623 |
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Deferred income taxes |
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11,356 |
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28,394 |
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Total liabilities |
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253,331 |
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285,330 |
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Stockholders’ equity: |
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Common stock, par value $.01, authorized 300,000,000 shares, issued 88,009,727 and 87,953,720 shares at December 31, 2004 and March 31, 2004, respectively |
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880 |
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879 |
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Additional paid-in capital |
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317,828 |
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317,497 |
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Retained earnings |
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346,762 |
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394,940 |
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Accumulated other comprehensive income (loss) |
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1,895 |
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(1,457 |
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Treasury stock, at cost (1,477,735 and 1,485,455 shares at December 31, 2004 and March 31, 2004, respectively) |
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(27,239 |
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(27,381 |
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Total stockholders’ equity |
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640,126 |
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684,478 |
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Commitments and contingencies |
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Total liabilities and stockholders’ equity |
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$ |
893,457 |
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$ |
969,808 |
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See accompanying notes to the consolidated financial statements.
2
KEMET
CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operations
(Dollars in thousands except per share data)
(Unaudited)
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Three months ended |
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Nine months ended |
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2004 |
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2003 |
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2004 |
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2003 |
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Net sales |
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$ |
95,503 |
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$ |
111,335 |
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$ |
323,908 |
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$ |
316,781 |
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Operating costs and expenses: |
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Cost of goods sold |
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95,813 |
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103,605 |
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298,711 |
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312,104 |
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Loss (gain) on long-term supply contract |
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— |
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— |
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(11,139 |
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12,355 |
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Selling, general and administrative |
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12,004 |
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11,919 |
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37,944 |
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38,494 |
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Research and development |
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7,488 |
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6,297 |
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20,422 |
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18,167 |
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Pension settlement charges |
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— |
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— |
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218 |
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— |
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Restructuring and impairment charges |
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18,352 |
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8,788 |
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22,551 |
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37,629 |
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Total operating costs and expenses |
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133,657 |
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130,609 |
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368,707 |
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418,749 |
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Operating loss |
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(38,154 |
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(19,274 |
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(44,799 |
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(101,968 |
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Other (income) and expense: |
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Interest income |
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(1,511 |
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(1,068 |
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(4,876 |
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