-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, KcLtWYLCqL9Qh986qf3/U5RuI1McgFvJeg4m52cL6mD+rbuHzgqqaXvLZn3UeYVO foEjMwA+qoM3IwCtaQo5RA== 0001104659-08-006959.txt : 20080204 0001104659-08-006959.hdr.sgml : 20080204 20080204172611 ACCESSION NUMBER: 0001104659-08-006959 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20080129 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20080204 DATE AS OF CHANGE: 20080204 FILER: COMPANY DATA: COMPANY CONFORMED NAME: KEMET CORP CENTRAL INDEX KEY: 0000887730 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRONIC COMPONENTS & ACCESSORIES [3670] IRS NUMBER: 570923789 STATE OF INCORPORATION: DE FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-15491 FILM NUMBER: 08573345 BUSINESS ADDRESS: STREET 1: 2835 KEMET WAY STREET 2: 2835 KEMET WAY CITY: SIMPSONVILLE STATE: SC ZIP: 29681 BUSINESS PHONE: 8039636300 MAIL ADDRESS: STREET 1: P O BOX 5928 STREET 2: P.O. BOX 5928 CITY: GREENVILLE STATE: SC ZIP: 29606 8-K 1 a08-4508_28k.htm 8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): January 29, 2008

 

 

KEMET Corporation

(Exact name of registrant as specified in its charter)

 

 

 

 

Delaware

 

0-20289

 

57-0923789

(State or other jurisdiction

 

(Commission File Number)

 

(IRS Employer Identification No.)

of incorporation)

 

 

 

 

 

2835 KEMET Way, Simpsonville, SC

 

29681

(Address of principal executive offices)

 

(Zip Code)

 

 

 

 

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

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

o            Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o            Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o            Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o            Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 



 

Item 2.02 Results of Operations and Financial Condition

 

On January 29, 2008, KEMET Corporation (the “Company”) issued a News Release announcing the consolidated results for the three and nine-month periods ended December 31, 2007.

 

Following the Company’s announcement of its results for the three and nine-month periods ended December 31, 2007, the Company became aware that certain adjustments may need to be made in the final results for these periods.  While the Company is still in the process of finalizing its Consolidated U.S. GAAP Balance Sheets and its Consolidated U.S. GAAP Statements of Operations, the Company believes that its final net income determined on a U.S. GAAP basis may need to be adjusted downward.  The Company is not able to determine the magnitude of the anticipated adjustment at this time.  This adjustment is related to the closing of the financial statements for the recently acquired operations of Arcotronics Italia S.p.A.   The Company expects to file its Quarterly Report on Form 10-Q for the three and nine-month periods ended December 31, 2007, on February 14, 2008, which will contain the Company’s results for these periods.

 

A copy of this News Release in furnished as Exhibit 99-1 to this Form 8-K.

 

 

Item 9.01 Financial Statements and Exhibits

 

(a.)                               Not Applicable

 

(b.)                              Not Applicable

 

(c.)                               Not Applicable

 

(d.)                              Exhibits

 

 

99-1                         News Release, dated January 29, 2008 issued by the Company

 

2



 

Signature

 

Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

Date: February 4, 2008

 

KEMET Corporation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

/s/ David E. Gable

 

 

 

 

 

 

 

David E. Gable

 

 

 

 

 

 

 

Executive Vice President and

 

 

 

 

 

 

 

Chief Financial Officer

 

 

 

3


 

 

 

EX-99.1 2 a08-4508_2ex99d1.htm EX-99.1

 

 

News Release

 

Exhibit 99-1

 

 

KEMET Reports Results of 3rd Quarter Operations

 

·      Net Sales were $228.5 million for the quarter, up 38.1% over the prior year and up 15.9% over last quarter

 

·      Net Income on a pro forma basis was $5.5 million or $.07 per share

 

·      Unfavorable mix resulting from growth in Asian markets reduced net income in spite of top line growth.

 

·                  Aggressive cost actions, including a 7% reduction of global headcount will, when fully implemented, save approximately $34 million annually.

 

Greenville, South Carolina (January 29, 2008) - KEMET Corporation (NYSE:KEM) today reported that net sales for the quarter ended December 31, 2007, were $228.5 million which is a 38.1% increase over the same quarter last year and 15.9% higher than the prior quarter. Net income before special charges was $5.5 million, or $0.07 per share, compared to a net income last quarter of $10.6 million, or $0.13 per share, and net income of $12.3 million, or $0.15 per share, for the same quarter last year.  On a U.S. GAAP basis, net loss was $(6.3) million, or $(0.07) per share, for the current quarter compared to net income of $4.0 million for the prior quarter and net income of $5.3 million for the same quarter last year.  KEMET also reports results before special charges because the results offer an alternative depiction of normal operations.  Comparisons to prior periods are as follows:

 

 

 

Quarter Ended

 

 

 

Dec 2007

 

Sep 2007

 

Dec 2006

 

 

 

(In Millions, Except Per Share Data)

 

 

 

 

 

 

 

 

 

Net sales

 

$

228.5

 

$

197.1

 

$

165.5

 

 

 

 

 

 

 

 

 

Before special charges (non-GAAP)

 

 

 

 

 

 

 

Net income

 

$

5.5

 

$

10.6

 

$

12.3

 

Net income per diluted share

 

$

0.07

 

$

0.13

 

$

0.15

 

 

 

 

 

 

 

 

 

After special charges (GAAP)

 

 

 

 

 

 

 

Net income/(loss)

 

$

(6.3

)

$

4.0

 

$

5.3

 

Net income/(loss) per diluted share

 

$

(0.07

)

$

0.05

 

$

0.06

 

 

 

 

 

 

 

 

 

 

“Revenue was up sequentially and year-over-year as a result of our purchase of the Arcotronics business on October 12, 2007,” stated Per Loof, Chief Executive Officer.  “Sales from our two newly acquired businesses of Evox Rifa and Arcotronics came in as planned.  We are now actively proceeding with the integration of these businesses and their customers into KEMET.  Sales from our core business were impacted by fluctuations in end market demand, and the fact that we were not able to make the planned shift in production to higher margin products.  Consistent with our long-term view, we continued to support our customer commitments in Asia even to the short-term detriment of our operating margins.”

 

“The Company’s current book-to-bill remains positive, and we continue to see a healthy backlog. This backlog is the highest I have seen since I joined KEMET almost three years ago, and we therefore believe it is in the Company’s best interests to selectively begin adding capacity.”

 

“The geographic and product mix trends which we saw starting in the September quarter continued to pressure our gross margin performance, even as we enjoyed very high booking levels.  However, a shift in focus to higher margin products is on plan, and should positively impact margins this quarter.”

 



 

“To further address the continued pressure on margins and as a part of our efforts to realize the synergies from our recent acquisitions, yesterday we announced a global reduction in force of approximately 385 employees.  The annualized savings from this action is approximately $16 million at a cost of about $7 million which will be recorded in the March 2008 quarter.  These savings will begin to have a positive impact on our pro forma profitability this quarter.  In addition, we announced last week a further reduction of 420 employees in Europe, and the relocation of these activities to our existing facilities in Batam, Indonesia; Matamoros, Mexico; Kyustendil, Bulgaria; and Suzhou, China.  These consolidations are planned to begin in June 2008, and will result in annualized savings of approximately $18 million once fully implemented.  While we find these actions very difficult, it is necessary in order to remain competitive in our global business environment.”

 

KEMET’s common stock is listed on The New York Stock Exchange under the symbol KEM. At the Investor Relations portion of the Company’s web site at http://www.KEMET.com/IR, users can subscribe to KEMET news releases and can find additional Company information.

 

OUR BUSINESS

The following statements are based on current expectations. These statements may contain forward-looking information, and consequently actual results may differ materially. Current global economic conditions make it particularly difficult at present to predict product demand and other related matters.

 

·      Net sales for the December 2007 quarter were $102.9 million for the Tantalum Business Group, $53.7 million for the Ceramic Business Group and $71.9 million for the Film and Electrolytic Business Group.

 

·      By region, 25.4% of net sales for the December 2007 quarter were to customers in the Americas, 39.7% were to customers in Asia Pacific, and 34.9% were to customers in Europe.

 

·      By channel, 46.0% of net sales for the December 2007 quarter were to distribution customers, 36.7% were to Original Equipment Manufacturing (OEM) customers, and 17.3% were to Electronics Manufacturing Services (EMS) customers. Average selling prices for the December 2007 quarter, adjusted for changes in product mix, were down approximately 2%.

 

·      Cash and cash equivalents decreased $25.3 million to $139.6 million during the three months ended December 2007, from $164.9 million at September 30, 2007. The decrease was due primarily to the purchase of Arcotronics ($29.7 million).  Adjusting for the impact of the Arcotronics purchase, the Company generated positive cash flow of $4.4 million during the December 2007 quarter.

 

·      During the December 2007 quarter, inventories increased $51.4 million to $222.6 million from $171.2 million at September 30, 2007 driven by the inclusion of Arcotronics with inventories at $39.8 million.  Raw materials and supplies increased $16.8 million in the December 2007 quarter, of which $10.6 million was due to Arcotronics, and work in process and finished goods increased $34.6 million including $29.2 million at the new acquisition.

 

 

 

Fiscal Year Ended

 

Fiscal Quarter Ended

 

 

 

Mar 2005

 

Mar 2006

 

Mar 2007

 

Mar 2007

 

Jun 2007

 

Sep 2007

 

Dec 2007

 

 

 

(In Millions)

 

Raw materials and supplies

 

$

47.5

 

$

45.7

 

$

54.6

 

$

54.6

 

$

76.5

 

$

73.0

 

$

89.8

 

Work in process and finished goods

 

86.4

 

79.4

 

99.3

 

99.3

 

107.6

 

98.2

 

132.8

 

Total inventory

 

$

133.9

 

$

125.1

 

$

153.9

 

$

153.9

 

$

184.1

 

$

171.2

 

$

222.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

·      Capital expenditures for the December 2007 quarter were $11.9 million.  Depreciation and amortization expense in the quarter was $14.2 million. The Company anticipates capital expenditures for fiscal year 2008 of $50 to $55 million, including $7 million of capital expenditures at our new Film and Electrolytic Business Group facilities.  The Company anticipates depreciation and amortization expense for fiscal year 2008 of approximately $54.8 million.

 

 

 

Fiscal Year Ended

 

Fiscal Quarter Ended

 

 

 

Mar 2005

 

Mar 2006

 

Mar 2007

 

Mar 2007

 

Jun 2007

 

Sep 2007

 

Dec 2007

 

 

 

(In Millions)

 

 

Additions to property, plant and equipment

 

$

39.6

 

$

22.8

 

$

36.9

 

$

10.5

 

$

9.1

 

$

15.8

 

$

11.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

·      SG&A expense for the quarter increased $7.9 million to $28.1 million primarily as a result of $6.2 million in expense at Arcotronics.

 

·                  The level of R&D costs reflects the Company’s continuing efforts to be the “The Capacitance Company.”

 

2



 

 

 

Fiscal Year Ended

 

Fiscal Quarter Ended

 

 

 

Mar 2005

 

Mar 2006

 

Mar 2007

 

Mar 2007

 

Jun 2007

 

Sep 2007

 

Dec 2007

 

 

 

(In Millions)

 

Selling, General & Administrative

 

$

51.7

 

$

49.7

 

$

89.4

 

$

23.1

 

$

21.8

 

$

20.2

 

$

28.1

 

Research & Development

 

$

26.6

 

$

26.0

 

$

33.4

 

$

9.4

 

$

9.1

 

$

8.2

 

$

8.6

 

 

·      Unusual tax expense for the quarter included $2.0 million resulting from changes in Mexican tax law and $3.2 million for asset disposals.  Each of these items was non-cash.

 

·      Other special charges for the quarter were primarily related to manufacturing moves to low-cost regions of Mexico and China, and reductions in force actions in Portugal and Germany, to reduce our costs and further capitalize on Lean Manufacturing initiatives.

 

Summary of special charges in the December 2007 quarter:

 

 

 

Fiscal Quarter

 

 

 

Ended

 

 

 

December 2007

 

 

 

(In Millions)

 

 

 

 

 

Manufacturing relocations to Mexico and China

 

$

1.2

 

Reduction in workforce in Portugal and Germany

 

1.7

 

Business acquisition integration costs

 

1.8

 

Writedown of South Carolina manufacturing facility

 

0.9

 

Writedown of Germany manufacturing assets

 

0.9

 

Special charges

 

$

6.5

 

 

 

 

QUIET PERIOD

Beginning April 1, 2008, KEMET will observe a Quiet Period during which the information provided in this news release and the Company’s quarterly report on Form 10-Q will no longer constitute the Company’s current expectations. During the Quiet Period, this information should be considered to be historical, applying prior to the Quiet Period only and not subject to update by the Company. The Quiet Period will extend until the day when KEMET’s next quarterly earnings release is published.

 

This release contains certain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. We intend that these forward-looking statements be subject to the safe harbor created by that provision. These forward-looking statements involve risks and uncertainties and include, but are not limited to, statements regarding future events and our plans, goals, and objectives. Our actual results may differ materially from these statements. These risks, trends, and uncertainties, which in some instances are beyond our control, include: risks associated with the cyclical nature of the electronics industry, the requirement to continue to reduce the cost of our products, the competitiveness of our industry, an increase in the cost of our raw materials, the location of several of our plants in international locations, and the possible loss of key employees. Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. Therefore, we can give no assurance that the results contemplated in these forward-looking statements will be realized. The inclusion of this forward-looking information should not be regarded as a representation by our Company or any person that the future events, plans, or expectations contemplated by our Company will be achieved. Furthermore, past performance in operations and share price is not necessarily predictive of future performance.

 

3



 

KEMET CORPORATION AND SUBSIDIARIES

CONSOLIDATED U.S. GAAP STATEMENTS OF OPERATIONS

(Dollars in Thousands Except Per Share Data)

Unaudited

 

 

 

Three months ended

 

Nine months ended

 

 

 

December 31,

 

December 31,

 

 

 

2007

 

2006

 

2007

 

2006

 

 

 

 

 

 

 

 

 

 

 

Income Statement Data:

 

 

 

 

 

 

 

 

 

Net sales

 

$

228,477

 

$

165,519

 

$

608,725

 

$

501,637

 

Cost of goods sold

 

187,040

 

127,542

 

489,979

 

392,699

 

Selling, general and administrative expenses

 

28,096

 

21,207

 

70,114

 

66,373

 

Research and development

 

8,648

 

8,745

 

25,888

 

23,967

 

Restructuring charges

 

4,682

 

1,824

 

13,217

 

9,914

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

11

 

6,201

 

9,527

 

8,684

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

3,799

 

2,334

 

8,484

 

5,064

 

Interest income

 

(1,859

)

(2,359

)

(5,076

)

(3,922

)

Other (income)/expense

 

(1,388

)

183

 

(2,905

)

(820

)

Income tax expense

 

5,721

 

710

 

4,144

 

1,594

 

Minority interest

 

 

 

100

 

 

 

 

 

 

 

 

 

 

 

 

Net income/(loss)

 

$

(6,262

)

$

5,333

 

$

4,780

 

$

6,768

 

 

 

 

 

 

 

 

 

 

 

Income/(Loss) Per Share Data:

 

 

 

 

 

 

 

 

 

Net income/(loss) per share:

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.07

)

$

0.06

 

$

0.06

 

$

0.08

 

Diluted

 

$

(0.07

)

$

0.06

 

$

0.06

 

$

0.08

 

 

 

 

 

 

 

 

 

 

 

Weighted-average shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

83,984,668

 

84,831,102

 

83,942,502

 

86,281,801

 

Diluted

 

83,984,668

 

84,919,235

 

84,163,133

 

86,436,140

 

 

 

 

 

 

 

 

 

 

 

 

4



 

KEMET CORPORATION AND SUBSIDIARIES

PRO FORMA RECONCILIATION OF RESULTS BEFORE SPECIAL CHARGES TO GAAP RESULTS

(Dollars in Thousands, Except Per Share Data)

Unaudited

 

 

 

Three months ended December 31, 2007

 

 

 

Before

 

 

 

 

 

 

 

 

 

Special

 

Special

 

See

 

GAAP

 

 

 

Charges

 

Charges

 

Note

 

Results

 

Net sales

 

$

228,477

 

$

 

 

 

$

228,477

 

Cost of goods sold

 

187,040

 

 

 

 

 

187,040

 

Selling, general and administrative expenses

 

26,287

 

1,809

 

(1)

 

28,069

 

Research and development

 

8,648

 

 

 

 

 

8,648

 

Restructuring charges

 

 

4,682

 

(2)

 

4,682

 

 

 

 

 

 

 

 

 

 

 

Operating income/(loss)

 

6,502

 

(6,491

)

 

 

11

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

3,799

 

 

 

 

 

3,799

 

Interest income

 

(1,859

)

 

 

 

 

(1,859

)

Other (income)/expense

 

(1,388

)

 

 

 

 

(1,388

)

Income tax (benefit)/expense

 

477

 

5,244

 

(3)

 

5,721

 

Minority interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income/(loss)

 

$

5,473

 

$

(11,735

)

 

 

$

(6,262

)

 

 

 

 

 

 

 

 

 

 

Income/(Loss) Per Share Data:

 

 

 

 

 

 

 

 

 

Net income/(loss) per share:

 

 

 

 

 

 

 

 

 

Basic

 

$

0.07

 

$

(0.14

)

 

 

$

(0.07

)

Diluted

 

$

0.07

 

$

(0.14

)

 

 

$

(0.07

)

 

 

 

 

 

 

 

 

 

 

Weighted-average shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

83,984,668

 

83,984,668

 

 

 

83,984,668

 

Diluted

 

84,173,767

 

83,984,668

 

 

 

84,173,767

 

 


Notes:

 

 

 

 

 

 

 

 

 

(1) - Business acquisition integration costs were $1.8 million for the quarter ended December 31, 2007.

 

 

 

 

 

 

 

 

 

 

 

 

 

(2) - Restructuring costs were $4.7 million as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Manufacturing relocation to Mexico and China

 

$

1.2

 

 

 

 

 

 

 

Reduction in workforce in Portugal and Germany

 

1.7

 

 

 

 

 

 

 

Writedown of South Carolina manufacturing facility

 

0.9

 

 

 

 

 

 

 

Writedown of Germany manufacturing facility

 

0.9

 

 

 

 

 

 

 

Total restructuring charges

 

$

4.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3) - Unusual tax expense of $4.4 million as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mexican tax law change

 

$

2.0

 

 

 

 

 

 

 

Asset Disposals

 

3.2

 

 

 

 

 

 

 

Total unusual tax expense

 

$

5.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5



 

KEMET CORPORATION AND SUBSIDIARIES

PRO FORMA RECONCILIATION OF RESULTS BEFORE SPECIAL CHARGES TO GAAP RESULTS

(Dollars in Thousands, Except Per Share Data)

Unaudited

 

 

 

Nine months ended December 31, 2007

 

 

 

Before

 

 

 

 

 

 

 

 

 

Special

 

Special

 

See

 

GAAP

 

 

 

Charges

 

Charges

 

Note

 

Results

 

Net sales

 

$

608,725

 

$

 

 

 

$

608,725

 

Cost of goods sold

 

489,979

 

 

 

 

 

$

489,979

 

Selling, general and administrative expenses

 

67,550

 

2,564

 

(1)

 

$

70,114

 

Research and development

 

25,888

 

 

 

 

 

$

25,888

 

Restructuring charges

 

 

13,217

 

(2)

 

$

13,217

 

 

 

 

 

 

 

 

 

 

 

Operating income/(loss)

 

25,308

 

(15,781

)

 

 

9,527

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

8,484

 

 

 

 

 

8,484

 

Interest income

 

(5,076

)

 

 

 

 

(5,076

)

Other (income)/expense

 

(2,905

)

 

 

 

 

(2,905

)

Income tax expense

 

1,375

 

2,769

 

(3)

 

4,144

 

Minority interest

 

100

 

 

 

 

 

100

 

 

 

 

 

 

 

 

 

 

 

Net income/(loss) .

 

$

23,330

 

$

(18,550

)

 

 

$

4,780

 

 

 

 

 

 

 

 

 

 

 

Income/(Loss) Per Share Data:

 

 

 

 

 

 

 

 

 

Net income/(loss) per share:

 

 

 

 

 

 

 

 

 

Basic

 

$

0.28

 

$

(0.22

)

 

 

$

0.06

 

Diluted

 

$

0.28

 

$

(0.22

)

 

 

$

0.06

 

 

 

 

 

 

 

 

 

 

 

Weighted-average shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

83,942,502

 

83,942,502

 

 

 

83,942,502

 

Diluted

 

84,163,133

 

83,942,502

 

 

 

84,163,133

 

 

 

 

 

 

 

 

 

 

 

 


Notes:

 

 

 

 

 

 

 

 

 

(1) - Business acquisition integration costs were $2.6 million for the nine months ended December 31, 2007.

 

 

 

 

 

 

 

 

 

 

 

 

 

(2) - Restructuring costs were $13.2 million as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Manufacturing relocations to Mexico and China

 

$

5.2

 

 

 

 

 

 

 

Reduction in workforce in Portugal, Germany and the U.S.

 

6.2

 

 

 

 

 

 

 

Writedown of South Carolina manufacturing facility

 

0.9

 

 

 

 

 

 

 

Writedown of Germany manufacturing assets

 

0.9

 

 

 

 

 

 

 

Total restructuring charges

 

$

13.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(3) - Unusual tax expense of $2.8 million as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Texas tax law change

 

$

(2.5

)

 

 

 

 

 

 

Mexican tax law change

 

2.1

 

 

 

 

 

 

 

Asset disposals

 

3.2

 

 

 

 

 

 

 

Total unusual tax expense

 

$

2.8

 

 

 

 

 

 

 

 

6



 

KEMET CORPORATION AND SUBSIDIARIES

CONSOLIDATED U.S. GAAP BALANCE SHEETS

(Dollars in Thousands)

Unaudited

 

 

 

December 31, 2007

 

March 31, 2007

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

139,621

 

$

212,202

 

Accounts receivable, net

 

192,970

 

108,830

 

Inventories

 

222,597

 

153,868

 

Prepaid expenses and other current assets

 

8,107

 

6,816

 

Deferred income taxes

 

3,016

 

5,181

 

Total current assets

 

566,311

 

486,897

 

Property, plant and equipment, net

 

462,183

 

349,174

 

Property held for sale

 

3,411

 

3,647

 

Long-term investments in marketable securities

 

 

45,767

 

Investments in affiliates

 

322

 

119

 

Goodwill

 

163,546

 

36,552

 

Intangible assets, net

 

32,285

 

14,260

 

Other assets

 

22,096

 

7,110

 

 

 

 

 

 

 

Total assets

 

$

1,250,154

 

$

943,526

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

Current portion of long-term debt

 

$

98,623

 

$

20,000

 

Accounts payable, trade

 

133,952

 

70,799

 

Accrued expenses

 

68,507

 

49,777

 

Income taxes payable

 

1,378

 

7,225

 

Total current liabilities

 

302,460

 

147,801

 

Long-term debt

 

300,580

 

238,744

 

Other non-current obligations

 

72,815

 

19,587

 

Deferred income taxes

 

1,648

 

1,636

 

Total liabilities

 

677,503

 

407,768

 

 

 

 

 

 

 

Common stock

 

882

 

882

 

Additional paid-in capital

 

324,437

 

321,059

 

Retained earnings

 

236,591

 

228,118

 

Accumulated other comprehensive income 

 

53,714

 

30,418

 

Treasury stock, at cost

 

(42,973

)

(44,719

)

Total stockholders’ equity

 

572,651

 

535,758

 

 

 

 

 

 

 

Total liabilities and stockholders’ equity

 

$

1,250,154

 

$

943,526

 

 

 

 

 

 

 

 

7


GRAPHIC 3 g45082ka01i001.jpg GRAPHIC begin 644 g45082ka01i001.jpg M_]C_X``02D9)1@`!`0$`8`!@``#_VP!#``H'!P@'!@H("`@+"@H+#A@0#@T- M#AT5%A$8(Q\E)"(?(B$F*S7J#A(6&AXB)BI*3E)66EYB9FJ*CI*6FIZBIJK*SM+6VM[BYNL+#Q,7& MQ\C)RM+3U-76U]C9VN'BX^3EYN?HZ>KQ\O/T]?;W^/GZ_\0`'P$``P$!`0$! M`0$!`0````````$"`P0%!@<("0H+_\0`M1$``@$"!`0#!`<%!`0``0)W``$" M`Q$$!2$Q!A)!40=A<1,B,H$(%$*1H;'!"2,S4O`58G+1"A8D-.$E\1<8&1HF M)R@I*C4V-S@Y.D-$149'2$E*4U155E=865IC9&5F9VAI:G-T=79W>'EZ@H.$ MA8:'B(F*DI.4E9:7F)F:HJ.DI::GJ*FJLK.TM;:WN+FZPL/$Q<;'R,G*TM/4 MU=;7V-G:XN/DY>;GZ.GJ\O/T]?;W^/GZ_]H`#`,!``(1`Q$`/P"__P`)#K/_ M`$$[C_OJC_A(=9_Z"=Q_WU6?17T?LX=D>/S2[FA_PD.L_P#03N/^^J/^$AUG M_H)W'_?59]%'LX=D'-+N:'_"0ZS_`-!.X_[ZH_X2'6?^@GSAV0< MTNYH?\)#K/\`T$[C_OJC_A(=9_Z"=Q_WU6?11[.'9!S2[FA_PD.L_P#03N/^ M^J/^$AUG_H)W'_?59]%'LX=D'-+N:'_"0ZS_`-!.X_[ZH_X2'6?^@GSAV0SAV0SAV0SAV0SAV0SAV0SAV0S MAV0SAV0SAV0FRAY6&'E7 MHGL/>LJKI4HWDE]Q<%4F[)FWK_Q*U+3(Y+>VU6>6[Z#YLJGU]ZZ+X8Z?XRU< MQ:YKVNWZV(.Z"V:3_7^Y_P!G^=<]\,/A>^K21Z_K\1^QYW06[CF8_P!YO]G^ M=>Z*JHH50%4#``&`*\6I4YY7M8]*$%%61XU1117T1Y`4444`%%%%`!1110`4 M444`%%%%`!1110`4444`%%%%`!1110`4444`%%%%`!1110`4444`%%%%`!11 M10`4444`%%%%`!1110`4444`%%%%`!1110`4444`%%%%`!1110`4444`%%%% M`!1110`4444`%%%%`!1110`4444`%%%%`!37D2-"\C!449+$\"DGFBMH6FFD M6.-!EF8]!7G?B'Q'/K-Q]GMMR6H.%0=7/J?\*YZ^(C27F;4J3J/R+_B;Q0UV MYT_36)BSAY%ZR'T'M7=?#WX/C%OK'B10VX;DL67\B_\`A5WX7_"U=-6+7=>A M!O"`UO;..(O]IO\`:_E7K%>).E&*BK(155%"J`J@8``P!2T45!1XQ1 M117TQXH4444`%%%%`!1110`4444`%%%%`!1110`4444`%%%%`!1110`4444` M%%%%`!1110`4444`%%%%`!1110`4444`%%%%`!1110`4444`%%%%`!1110`4 M444`%%%%`!1110`4444`%%%%`!1110`4444`%%%%`!1110`4444`%!HHH`X; MQV+Q+R$M(?LKI\B@\9'6MCX+6^C7/BYDU"W\V[2/S+4L?D4CKQZ],5H:]I@U M729K?>,M(^Q:A]LB!\JYR3 M[-WKT&J>JV$>IZ;-:N!EE^1B,[6[$5SXBDJD'W-J-3DE=G1?`[Q'+J&A7&C7 M!+-8$&)V?)*-_"!Z#'ZUZC7RSX(UZ3P?XSM[J<,D:OY5RNW)V$\X'K7U(C!T M5UZ,,BO!/4'4444`>,45Z)_P@NC?]/'_`']_^M1_P@NC?]/'_?W_`.M7N_6H M=F>9["1YW17HG_""Z-_T\?\`?W_ZU'_""Z-_T\?]_?\`ZU'UJ'9A["1YW17H MG_""Z-_T\?\`?W_ZU'_""Z-_T\?]_?\`ZU'UJ'9A["1YW17HG_""Z-_T\?\` M?W_ZU'_""Z-_T\?]_?\`ZU'UJ'9A["1YW17HG_""Z-_T\?\`?W_ZU'_""Z-_ MT\?]_?\`ZU'UJ'9A["1YW17HG_""Z-_T\?\`?W_ZU'_""Z-_T\?]_?\`ZU'U MJ'9A["1YW17HG_""Z-_T\?\`?W_ZU'_""Z-_T\?]_?\`ZU'UJ'9A["1YW17H MG_""Z-_T\?\`?W_ZU'_""Z-_T\?]_?\`ZU'UJ'9A["1YW17HG_""Z-_T\?\` M?W_ZU'_""Z-_T\?]_?\`ZU'UJ'9A["1YW17HG_""Z-_T\?\`?W_ZU'_""Z-_ MT\?]_?\`ZU'UJ'9A["1YW17HG_""Z-_T\?\`?W_ZU'_""Z-_T\?]_?\`ZU'U MJ'9A["1YW17HG_""Z-_T\?\`?W_ZU'_""Z-_T\?]_?\`ZU'UJ'9A["1YW17H MG_""Z-_T\?\`?W_ZU'_""Z-_T\?]_?\`ZU'UJ'9A["1YW17HG_""Z-_T\?\` M?W_ZU'_""Z-_T\?]_?\`ZU'UJ'9A["1YW17HG_""Z-_T\?\`?W_ZU'_""Z-_ MT\?]_?\`ZU'UJ'9A["1YW17HG_""Z-_T\?\`?W_ZU'_""Z-_T\?]_?\`ZU'U MJ'9A["1YW17HG_""Z-_T\?\`?W_ZU'_""Z-_T\?]_?\`ZU'UJ'9A["1YW17H MG_""Z-_T\?\`?W_ZU'_""Z-_T\?]_?\`ZU'UJ'9A["1YW17HG_""Z-_T\?\` M?W_ZU'_""Z-_T\?]_?\`ZU'UJ'9A["1YW17HG_""Z-_T\?\`?W_ZU'_""Z-_ MT\?]_?\`ZU'UJ'9A["1YW17HG_""Z-_T\?\`?W_ZU'_""Z-_T\?]_?\`ZU'U MJ'9A["1YW17HG_""Z-_T\?\`?W_ZU'_""Z-_T\?]_?\`ZU'UJ'9A["1YW17H MG_""Z-_T\?\`?W_ZU'_""Z-_T\?]_?\`ZU'UJ'9A["1YW17HG_""Z-_T\?\` M?W_ZU'_""Z-_T\?]_?\`ZU'UJ'9A["1YW17HG_""Z-_T\?\`?W_ZU'_""Z-_ MT\?]_?\`ZU'UJ'9A["1YW17HG_""Z-_T\?\`?W_ZU'_""Z-_T\?]_?\`ZU'U MJ'9A["1YW17HG_""Z-_T\?\`?W_ZU'_""Z-_T\?]_?\`ZU'UJ'9A["1YW17H MG_""Z-_T\?\`?W_ZU'_""Z-_T\?]_?\`ZU'UJ'9A["1YW17HG_""Z-_T\?\` M?W_ZU'_""Z-_T\?]_?\`ZU'UJ'9A["1YW17HG_""Z-_T\?\`?W_ZU'_""Z-_ MT\?]_?\`ZU'UJ'9A["1YW17HG_""Z-_T\?\`?W_ZU'_""Z-_T\?]_?\`ZU'U MJ'9A["1YW17HG_""Z-_T\?\`?W_ZU'_""Z-_T\?]_?\`ZU'UJ'9A["1YW17H MG_""Z-_T\?\`?W_ZU'_""Z-_T\?]_?\`ZU'UJ'9A["1YW17HG_""Z-_T\?\` M?W_ZU'_""Z-_T\?]_?\`ZU'UJ'9A["1X!XVTK[/>)J,*X2;A]H^ZWJ3ZFO;_ M`(5^(CX@\%VQF;-Q:?N),ON9L`88_7^E3W_PV\/:E:-;7*7+1L<\2\@^HXJU KX5\#Z/X.-R=*^T?Z3M\SSI-W3.,<>]>17Y>=N/4[J-^6SZ'14445B:G_V3\_ ` end GRAPHIC 4 g45082ka01i002.jpg GRAPHIC begin 644 g45082ka01i002.jpg M_]C_X``02D9)1@`!`0$`8`!@``#_VP!#``H'!P@'!@H("`@+"@H+#A@0#@T- M#AT5%A$8(Q\E)"(?(B$F*S7J#A(6&AXB)BI*3E)66EYB9FJ*CI*6FIZBIJK*SM+6VM[BYNL+#Q,7& MQ\C)RM+3U-76U]C9VN'BX^3EYN?HZ>KQ\O/T]?;W^/GZ_\0`'P$``P$!`0$! M`0$!`0````````$"`P0%!@<("0H+_\0`M1$``@$"!`0#!`<%!`0``0)W``$" M`Q$$!2$Q!A)!40=A<1,B,H$(%$*1H;'!"2,S4O`58G+1"A8D-.$E\1<8&1HF M)R@I*C4V-S@Y.D-$149'2$E*4U155E=865IC9&5F9VAI:G-T=79W>'EZ@H.$ MA8:'B(F*DI.4E9:7F)F:HJ.DI::GJ*FJLK.TM;:WN+FZPL/$Q<;'R,G*TM/4 MU=;7V-G:XN/DY>;GZ.GJ\O/T]?;W^/GZ_]H`#`,!``(1`Q$`/P#TWQ=J?]D> M%[^[#8<1%(_]YN!_.O'?!&GKJ'BNS67'DVY-Q*S=`J<\^V<5V?Q=U0+:66E( M_,CF:0#L`,#^9_*N"@T[4(_#-SJT#LEJ\PMI@O5AC=R?3.!^5>CAXVI>IA-^ M]Z'3^.O'[ZLSZ5I$C+9`[9)EX,_L/]G^=:G@7X>B'R]7UR(;Q\T%JXX7T9_? MVK%^%MMIESXBD%[$)+F./S+4-]T$'DX]>F/QKTGQCJ?]D^%;^Z5L2>48X_\` M>;@?SS4U)9XMXCOWUOQ/>729?SI]L0]5'RJ/R`KIA\(M:(!.H6 M0)'3Y^/TKDM%TW4M3U%(M)B:2ZC'FKM8`K@CG)]\5UW]F?$__GXO?_`E/\:Z M)MQM&,DO4A:ZM%_3_"=SX#LM3UV]NK>:2.T:.W$6=16KRVMQ<_ MP0;=Q]2QP!_/\J[_`,>7=[I_@[2-&O[AYKZ<^;?X(EZ?BQ(_.K2:[_9?PX33('Q/J-Q(TA!Y6(8!_,C M'YTW4;#_`(1_P/:Q2KMO=8D$L@/584Y5?Q)!_P#U4HQM-R>[=D-NZL,^'FFC M4?%]J7&8[4&=_3Y>GZD5FZ_?OKGB:[NDRYN)]L0]1G:H_+%=)X5_XDG@/6]< M/RRW'^BP']./Q;_QVN6T33=3U/4%CTB)GNHAYJE6`*X(YR??%:)WG*7;0E[) M'6CX1:T0,ZA8CV^?_"C_`(5#K7_01L?_`!__``H_LSXG_P#/Q>_^!*?XUZ9H M-O>VNAVD.HS/-=B,&9W;)+'DC/MT_"N:I6J05^9,T48OH>(^)O"UUX6G@@N[ MJ"9YU+`19X`XYR/\XJSX;\#ZGXGLI+NTF@ABCD\O,I/S'`)Q@>XH^(.I_P!I M^,+QE;,=MB!/^`]?U)KUGP5IG]D^$[&W9<2-'YLG^\W/]?*I*3NV;J*1\_\`C+5? M[5\5ZAQ_\``=/\*T0`!@#`%;5*_-%1CI8B,+-MGSMI]Y<^'/$$5P05GLI\ M.GK@X8?B,UW?Q5UR&YTW2[2VE#1W(^U$@]5QA?YG\J]`FT+2+B9II]+LY)'. M6=X%)8^YQ1)H6D2A!)I=FXC78@:!3M7T''`JY8B,I*36PE!I-7/%_!WBRW\* M7%SO'Y5U?_"Y(O^@*_P#X$#_XFNZ_X1S0_P#H#V/_ M`(#I_A1_PCFA_P#0'L?_``'3_"E*M2F[N(*,DK)GB?BCQ#+XMUQ+E8#%E%AB MAW;B.?7W)KK_`(DVB:3X0T334P!"^WZD)R?S-=_'H&C12+)'I-DCH0598%!! M]1Q4U[8V-[&#?6L%PD>6'G1A@OKUH>(BG&RT0*#U\SQ3P-H#>(]?B28%K.T` MDFSTQGA?Q/Z9J?XEZF+_`,72P(P,=D@A4#UZG]3C\*]7L9;"QC8V>EBUBE4N M&CB50^!WQ_6F&QT.>XMY&TFT>6ZR^\PH2#C.2<=:PCF=&53FOZ?.WYW-'AII M6/./&Q&C>%="\.@[7$?VBV:JPV>@.8S)H-I$DJEDY`X'YUGVEEI23P3PZ!#"&;,4ZP("#V/'(^M66NX=0M M)%GL/-MB&W"3:P;;[?45A+&89M@V3Z[XEM+5SN-S.&E M/MG*4R@YC=, M''S#K6T\93Q#7(2J,J>Y)1114@%%%%`!1110`4444`%,EC$L3QMT=2I_&BBD MTFK,%H85M\R2BBBO7.,__9 ` end
-----END PRIVACY-ENHANCED MESSAGE-----