Aavid Thermal Technologies, Inc. Announces Fourth Quarter Results.Business/Technology Editors CONCORD, N.H.--(BUSINESS WIRE)--Feb. 21, 2001 Aavid Thermal thermal /ther·mal/ (ther´m'l) pertaining to or characterized by heat. ther·mal adj. 1. Of, relating to, using, producing, or caused by heat. 2. Technologies, Inc., the leading provider of thermal management solutions and developer of computational fluid dynamics Computational fluid dynamics The numerical approximation to the solution of mathematical models of fluid flow and heat transfer. Computational fluid dynamics is one of the tools (in addition to experimental and theoretical methods) available to solve software, today announced preliminary operating results for its fourth quarter and fiscal year ended December December: see month. 31, 2000. For the fourth quarter of 2000, the Company's total sales were $68.3 million, or slightly lower than the $69.0 million in sales for the fourth quarter of 1999, which include the results of the Thermalloy division from the October October: see month. 21, 1999 acquisition date. Sales for the Company's software subsidiary, Fluent fluent /flu·ent/ (floo´int) flowing effortlessly; said of speech. , Inc., were $15.5 million, or 14.6 % higher than the $13.5 million in sales reported for the fourth quarter of 1999. Fourth quarter sales for thermal management products totaled $52.8 million, or 4.8% lower than the $55.5 million in sales reported for the fourth quarter of 1999. The Company's adjusted earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. and non-recurring charges (Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become ) for the fourth quarter of 2000 was $9.8 million or 1.2 % higher than the $9.7 million of Adjusted EBITDA for the fourth quarter of 1999, which include the results of the Thermalloy division from the date of acquisition. On a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis that combines the Adjusted EBITDA of Aavid Thermalloy as if the acquisition had occurred on January January: see month. 1, 1999, fourth quarter 2000 Adjusted EBITDA of $9.8 million was 9.9% lower than pro forma adjusted EBITDA of $10.9 million for the fourth quarter of 1999. The Company's sales for the year ended December 31, 2000 increased 37.1% to $293.6 million from approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $214.2 million in 1999. On a pro forma basis, the Company's sales for the year ended December 31, 2000 of $293.6 million were equivalent to the approximately $294.0 million in 1999. Fluent's sales for 2000 were $57.9 million or 17.1% higher than the $49.4 million reported for 1999. Sales for thermal management products for 2000 totaled $235.7 million, representing a 3.7% decrease from the $244.8 million in sales for the same period of 1999 on a pro forma basis including Thermalloy and exclusive of the Intel Special Product. Pro forma Adjusted EBITDA for 2000 totaled $40.6 million, representing a slight increase from the $40.2 million reported for 1999, excluding $0.6 million in Adjusted EBITDA attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the Intel Special Product. The attached financial schedules further describe the business performance as well as the components and nature of Adjusted EBITDA as presented in this release. The Company expects its revenues and EBITDA for the first two quarters of 2001 to be less than fourth quarter 2000 levels due to an inventory correction CORRECTION,punishment. Chastisement by one having authority of a person who has committed some offence, for the purpose of bringing him to legal subjection. 2. It is chiefly exercised in a parental manner, by parents, or those who are placed in loco parentis. resulting from softening softening /sof·ten·ing/ (sof´en-ing) malacia. softening a change of consistency, with loss of firmness or hardness. demand. Company Background Aavid Thermal Technologies, Inc. is a leading provider of thermal management solutions for dissipating potentially damaging heat from digital and industrial electronics. Aavid serves a highly diversified diversified (di·verˑ·s range of markets, principally in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). and the Far East, driven by the company's
operations in two distinct markets: thermal management solutions and
computational fluid dynamics software.
Thermal management solutions include products and services that solve problems associated with the dissipation Dissipation See also Debauchery. Breitmann, Hans lax indulger. [Am. Lit.: Hans Breitmann’s Ballads] Burley, John wasteful ne’er-do-well. [Br. Lit. of unwanted heat in electronic and electrical components and systems. Computational fluid dynamics (CFD CFD - Computational Fluid Dynamics ) software permits computer modeling and flow analysis of products and processes that would otherwise require time-consuming time-con·sum·ing adj. Taking up much time. time-consuming Adjective taking up a great deal of time Adj. 1. and expensive physical models and the facilities to test them. Ongoing increases in silicon and system integration, higher processing speeds See MHz. and frequencies, smaller form factors, more sophisticated power requirements and other advances in chip technology create excessive heat in microprocessors This is a list of microprocessors. Intel
Miniature electronic circuits produced within and upon a single semiconductor crystal, usually silicon. Integrated circuits range in complexity from simple logic circuits and amplifiers, about 1/20 in. (1. operate efficiently only in a narrow temperature band. The excessive heat generated by these semiconductors not only harms their own performance but also degrades system performance and reliability and can cause system failure. The increasingly wide range of environmental conditions, including temperature extremes, in which electronic systems are expected to operate, exacerbates these negative effects. The use of Aavid's thermal solutions helps maintain device and system performance and reliability and helps avoid premature pre·ma·ture adj. 1. Occurring or developing before the usual or expected time. 2. Born after a gestation period of less than the normal time, especially, in human infants, after a period of less than 37 weeks. component and system failure. Additional information on Aavid Thermal Technologies is available on the World Wide Web at http://www.aatt.com. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement Under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 The matters discussed in this release contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. (as such term is defined in the Private Securities Litigation Reform Act of 1995) and information relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc 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 ReVisions is a 2004 anthology of alternate history short-stories. It is edited by Julie E. Czerneda and Isaac Szpindel. Contents Title Author The Resonance of Light James Alan Gardner Out of China Julie E. to these forward-looking statements to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" or to reflect the occurrence of unanticipated events. Adjusted EBITDA is included because the Company understands that such information is considered to be an additional basis on which to evaluate our ability to pay interest, repay debt and make capital expenditures. Adjusted EBITDA is not intended to represent and should not be considered more meaningful than, or as an alternative to, measures of performance, profitability or liquidity determined in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting .
Aavid Thermal Technologies, Inc.
Summary Financial Statements
Quarter Ending December 31, 2000
Consolidated Statements of Operations
Quarter Quarter Year Year
Ending Ending Ending Ending
Dec 31, Dec 31, Dec 31, Dec 31,
2000 1999 2000 1999
(Unaudited) (Historical)(Pro Forma)(1)(Historical)
(in thousands) (Unaudited) (Unaudited) (Unaudited)
Aavid Thermalloy $ 52,808 $ 55,480 $ 235,735 $ 164,820
Fluent 15,492 13,524 57,891 49,423
Combined net sales 68,300 69,004 293,626 214,243
Cost of goods sold 43,047 47,789 192,497 138,558
Gross profit 25,253 21,215 101,129 75,685
S,G&A expenses 16,389 16,969 66,227 49,727
Write-off of
in-process R&D -- -- 15,000 --
Amortization of
intangibles 7,414 316 30,650 1,613
Research and
development 3,148 2,374 10,687 7,528
Operating
income (loss) (1,698) 1,556 (21,435) 16,817
Interest (expense)
income, net (6,349) (1,372) (23,931) (1,629)
Other (expense) income 95 494 401 218
Income before
taxes (7,952) 678 (44,965) 15,406
Income tax
expense (2,504) (3,611) (8,375) (8,852)
Minority interest
expense (35) 132 (149) 132
Net income $ (10,491) $ (2,801) $ (53,489) $ 6,686
Interest 6,699 1,372 24,890 1,629
Taxes 2,504 3,611 8,375 8,852
Depreciation 3,638 3,920 9,489 8,459
Amortization 7,462 316 30,724 1,613
Write-off in
process R&D -- -- 15,000 --
Other non-cash
charges (2) (10) 406 1,066 406
Non-cash inventory
charge from
purchase accounting
write-up to
fair value (3) -- 2,857 4,532 2,857
Adjusted EBITDA $ 9,802 $ 9,681 $ 40,587 $ 30,502
(1) Pro forma combines the period January 1, 2000 to February 1, 2000
(operations of the predecessor) with the period February 2, 2000
to December 31, 2000 (operations of the Company). Results are
considered pro forma as Aavid Thermal Technologies, Inc.'s
financial statements are presented using a new basis of
accounting subsequent to the Willis Stein merger. Presentation of
periods prior to the Willis Stein merger are referred to as
operations of the predecessor.
(2) Consists of minority interest expense of $35 for the fourth
quarter, $149 for the year, unfavorable lease accretion income of
$(45 )for the quarter and $(180 )for the year. In addition, the
year includes non-cash charges related to write-offs of
receivables and inventory in Hong Kong and Malaysia of $557 that
occurred in the second quarter due to shut-down and integration
and $540 occurring in the third quarter from a severance accrual
related to a senior executive.
(3) Inventory write-up to fair value that was recorded as part of
purchase accounting is included as additional expense within cost
of sales for the first three months of 2000.
Consolidated Condensed Balance Sheets
Dec 31, Sept 30, Dec 31,
2000 2000 1999
(in thousands) (Unaudited) (Unaudited) (Historical)
ASSETS
Cash $ 23,849 $ 18,901 $ 18,273
Accounts receivable 49,094 51,821 53,583
Inventory 25,179 24,905 30,059
Property, plant and equipment 56,857 56,973 60,955
Goodwill, net 184,130 189,866 50,330
Developed technology and
Assembled workforce 20,811 22,500 --
Other assets 21,569 23,624 15,752
Total assets $ 381,489 $ 388,590 $ 228,952
LIABILITIES, MINORITY
INTEREST AND
STOCKHOLDERS' EQUITY
Accounts payable 18,536 17,416 21,805
Accrued expenses 41,447 37,921 29,353
Revolving line of credit 7,700 7,700 8,182
Term loan 51,000 53,000 80,000
12 3/4% senior
subordinated notes 144,290 144,144 --
Other debt 856 1,771 763
Deferred taxes 6,456 6,506 707
Other liabilities 9,390 7,769 7,765
Total liabilities 279,675 276,227 148,575
Minority interest
in consolidated
subsidiaries 5,770 5,735 809
Preferred stock -- -- --
Common stock -- -- 96
Warrants 4,560 4,560 --
Additional paid in capital 147,187 147,187 58,660
Cumulative translation
adjustment (1,406) (1,495) (1,294)
Retained Earnings (54,297) (43,624) 22,106
Total Stockholder's equity 96,044 106,628 79,568
Total liabilities,
minority Interest
and stockholder's equity $ 381,489 $ 388,590 $ 228,952
Consolidated Condensed Statements of Cash Flows
Three Months Year Ending Year Ending
Ending Dec 31, Dec 31,
Dec 31, 2000 2000 1999
(Unaudited) (Pro Forma) (Historical)
(Unaudited)
(in thousands)
Net Income $ (10,491) $(53,489) $ 6,686
Depreciation and
amortization 11,100 40,213 10,072
In-process R&D -- 15,000 --
Inventory fair
value adjustment -- 5,101 2,857
Interest paid on
Sr. Credit Facility (2,368) (7,886) --
Interest paid on
123/4% senior
subordinated notes -- (9,509) --
Other operating cash flows 12,722 34,606 (3,808)
Total cash flows
from operations 10,963 24,036 15,807
Purchase of property,
plant and equipment (2,851) (11,550) (12,364)
Proceeds from
sale of property -- 1,119 158
Payments for acquisitions -- -- (82,759)
Note receivable -- -- 1,459
Total cash flows
from investing
activities (2,851) (10,431) (93,506)
Issuance of
common stock -- 349 1,799
Advances under
line of credit -- 7,700 8,182
Repayments of
line of credit -- (8,182) (21)
Advances under other
debt obligations -- 54,357 79,201
Repayments other
debt obligations (2,916) (83,362) (13,275)
Payment of
merger expenses -- (17,192) --
Repurchase of
common stock,
options and
warrants -- (261,267) --
Proceeds from
12 3/4% senior
subordinated notes -- 148,312 --
Proceeds from investors -- 152,000 --
Cash flows from
financing activities (2,916) (7,285) 75,886
Foreign exchange effect (250) (746) 59
Net increase (decrease)
in cash 4,946 5,574 (1,754)
Cash at beginning
of period 18,901 18,273 20,027
Cash at end of period $ 23,847 $ 23,847 $ 18,273
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