EX-99.2 2 b60654avexv99w2.htm EX-99.2 PRESS RELEASE DATED 04-26-2006 exv99w2
 

Exhibit 99.2
(LOGO AAVID)
Corporate Headquarters — One Eagle Square, Suite 509, Concord, NH 03301
Telephone (603) 224-1117             Fax (603) 224-6673
Contact: Brian A. Byrne
FOR IMMEDIATE RELEASE
Aavid Thermal Technologies, Inc. Announces First Quarter Results
CONCORD, NH—April 26, 2006—Aavid Thermal Technologies, Inc.(the “Company” or “Aavid”), a leading developer of computational fluid dynamics software and provider of thermal management solutions, today announced preliminary and unaudited operating results for its first quarter ended March 31, 2006. For the first quarter of 2006, the Company’s total sales were $70.8 million, or 16.8% higher than the $60.6 million in sales for the first quarter of 2005. Sales for the Company’s software subsidiary, Fluent, Inc. (“Fluent”), were $33.3 million, or 11.7 % higher than the $29.8 million in sales reported for the first quarter of 2005. First quarter sales for the Company’s thermal management products operation (“Aavid Thermalloy”) totaled $37.5 million, or 21.9% higher than the $30.8 million in sales reported for the first quarter of 2005.
     The Company’s operating income for the first quarter of 2006 was $10.2 million, or 20.2 % higher than the $8.5 million of operating income for the first quarter of 2005. Fluent’s operating income was $10.1 million in the first quarter of 2006, or 24.7% higher than the $8.1 million of operating income reported for the first quarter of 2005. Aavid Thermalloy’s first quarter operating income was $0.7 million, compared to operating income of $0.4 million reported for the first quarter of 2005. Aavid Thermalloy’s operating income in the first quarter in 2006 included approximately $1.2 million of restructuring charges associated with the reduction of manufacturing activities in the U.K. and Canada.
     Dr. Bharatan Patel, CEO of ATTI, commented that “Aavid Thermalloy continues to grow and strengthen its position as a leading global supplier of thermal management products for electronics, and I am pleased with the progress it is making.” Further, Dr. Patel, who founded Fluent, remarked that “Fluent has grown in revenues and profitability quarter over quarter for more than ten years, and the prospects for continued growth remain strong.”

 


 

     Company depreciation and amortization, including amortization of deferred financing fees and bond discount, for the first quarter of 2006 was $2.3 million, a decrease of $0.2 million from the $2.5 million of depreciation and amortization for the first quarter of 2005. Depreciation and amortization for Fluent was $0.8 million in the first quarter of 2006 which compares with $0.7 million in the first quarter of 2005. Depreciation and amortization for Aavid Thermalloy was $1.0 million in the first quarter of 2006 which compares with $1.4 million reported in the comparable period of 2005. The attached financial schedules further describe the business performance presented in this release.
     On February 15, 2006, Aavid Thermal Technologies, Inc. (“ATTI”) entered into a definitive merger agreement (the “Merger Agreement”) with ANSYS, Inc. (“ANSYS”), ANSYS XL, LLC (“Merger LLC”), a wholly-owned subsidiary of ANSYS, BEN I, Inc., a wholly-owned subsidiary of Merger LLC, HINES II, Inc., a wholly-owned subsidiary of Merger LLC, Heat Holdings Corp. (“Holding”), TROY III, Inc., a wholly-owned subsidiary of ATTI, Fluent Inc. (“Fluent”, and together with Holding and ATTI, the “Selling Companies”), and, for certain limited purposes described therein, Willis Stein & Partners II, L.P., Willis Stein & Partners III, L.P., Willis Stein & Partners Dutch, L.P., Willis Stein & Partners Dutch III-A, L.P., Willis Stein & Partners Dutch III-B, L.P., and Willis Stein & Partners III-C, L.P., and Willis Stein & Partners II, L.P., as Stockholders’ Representative. Pursuant to the Merger Agreement and through a series of mergers, ANSYS shall acquire directly or indirectly all of the outstanding stock of Holding, ATTI and Fluent. Following the mergers, each of Holding, ATTI and Fluent shall be indirect subsidiaries of ANSYS.
     Pursuant to the terms of the Merger Agreement, ANSYS will issue 6,000,000 shares of its common stock and pay approximately $300 million in net cash, subject to certain adjustments at closing, to acquire the Selling Companies. The transaction is valued at approximately $565 million based on the $44.11 per share closing price of ANSYS’ common stock on February 15, 2006.

 


 

Company Background
     Aavid is a leading developer and marketer of computational fluid dynamics (“CFD”) software and a global provider of thermal management solutions for electronic products. Each of these businesses has an established reputation for high product quality, service excellence and engineering innovation in its market. CFD software is used in complex computer-generated modeling of fluid flows, heat and mass transfer and chemical reactions. Fluent’s CFD software is used in a variety of industries, including the automotive, aerospace, chemical processing, power generation, material processing, electronics and HVAC industries.
     Aavid Thermalloy designs, manufactures and distributes on a worldwide basis thermal management products that dissipate unwanted heat, which can degrade system performance and reliability, from microprocessors and industrial electronics products.
     Overall, the Company services a highly diversified base of national and international customers including OEMs, distributors, and contract manufacturers through a highly integrated network of software, development, manufacturing, sales and distribution locations throughout North America, Europe, and the Far East.
     Additional information on Aavid is available on the World Wide Web at http://www.aatt.com.
“Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995
     The matters discussed in this release contain forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) and information relating to the Company that is based on the beliefs of the management of the Company, as well as assumptions made by and information currently available to the management of the Company. The words “estimate,” “project,” “believe,” “anticipate,” “intend,” “expect,” and similar expressions are intended to identify forward-looking statements. Such statements reflect the current views of the Company with respect to future events, and are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements. The Company does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Summary Financial Statements Attached

 


 

Aavid Thermal Technologies, Inc.
Summary Financial Statements
Quarter and Year Ended March 31, 2006
Consolidated Statements of Operations
                 
    Quarter Ended     Quarter Ended  
    March 31, 2006     March 31, 2005  
(in thousands)   (Unaudited)     (Unaudited)  
 
Net sales
  $ 70,779     $ 60,578  
 
               
Cost of goods sold
    35,082       29,174  
 
           
 
               
Gross profit
    35,697       31,404  
 
               
S,G&A expenses
    19,466       18,541  
Restructuring charges
    1,183        
Research and development
    4,894       4,412  
 
           
 
               
Operating income
    10,154       8,451  
 
               
Interest expense, net
    (4,561 )     (4,578 )
Other (expense) income, net
    (22 )     (367 )
 
           
 
               
Income before taxes
    5,571       3,506  
 
               
Income tax expense
    (3,611 )     (1,764 )
 
           
 
               
Net income
  $ 1,960     $ 1,742  
 
           

 


 

Consolidated Condensed Balance Sheets
                 
    March 31,     December 31,  
    2006     2005  
(in thousands)   (Unaudited)     (Historical)  
ASSETS
               
 
               
Cash
  $ 37,611     $ 40,968  
Accounts receivable
    55,883       53,972  
Inventory
    14,393       13,132  
Property, plant and equipment
    25,739       25,669  
Goodwill, net
    39,433       39,433  
Other assets
    12,601       11,278  
 
           
 
               
Total assets
  $ 185,660     $ 184,452  
 
           
 
               
LIABILITIES, MINORITY INTEREST AND STOCKHOLDERS’ DEFICIT
               
 
               
Accounts payable
    24,473       26,292  
Accrued expenses
    22,356       30,079  
Bank debt and capital leases
    12,520       12,704  
12 3/4% senior subordinated notes
    122,938       122,687  
Deferred revenue
    51,082       44,858  
Accrued taxes
    10,597       8,345  
Deferred taxes
    141       187  
 
           
 
               
Total liabilities
    244,107       245,152  
 
               
Minority interest in consolidated subsidiaries
    585       585  
 
               
Preferred stock
           
Common stock
           
Warrants
    3,764       3,764  
Additional paid in capital
    188,007       188,007  
Cumulative translation Adjustment
    (2,283 )     (2,576 )
Accumulated Deficit
    (248,520 )     (250,480 )
 
           
 
               
Total stockholders’ deficit
    (59,032 )     (61,285 )
 
               
Total liabilities, minority interest and stockholders’ deficit
  $ 185,660     $ 184,452  
 
           

 


 

Consolidated Condensed Statements of Cash Flows
                 
    Quarter Ended     Quarter Ended  
    Mar 31,     Mar 31,  
    2006     2005  
(in thousands)   (Unaudited)     (Historical)  
 
Net Income
  $ 1,960     $ 1,742  
 
               
Depreciation
    1,585       1,768  
Amortization and accretion
    670       715  
Accounts receivable
    (1,483 )     3,047  
Inventories
    (1,147 )     928  
Accounts payable
    (2,028 )     (2,562 )
Deferred revenue
    5,924       3,717  
Accrued expenses and other current liabilities
    (9,078 )     (8,333 )
Other operating cash flows
    1,709       (103 )
 
           
 
               
Total cash flows from operations
    (1,888 )     919  
 
           
 
               
Purchase of property, plant and equipment
    (1,153 )     (901 )
Proceeds from sale of property
    36       29  
 
           
 
               
Total cash flows from investing activities
    (1,117 )     (872 )
 
           
 
               
Advances (repayments) under line of credit
    (113 )     452  
Advances under other debt obligations
          547  
Repayments other debt obligations
    (493 )     (642 )
 
           
 
               
Cash flows from financing activities
    (606 )     357  
 
           
 
               
Foreign exchange effect
    254       (381 )
 
               
Net increase (decrease) in cash
    (3,357 )     23  
Cash at beginning of year
    40,968       28,312  
 
           
Cash at end of year
  $ 37,611     $ 28,335