Methode Electronics, Inc. Reports Third Quarter Fiscal Year 2004 Results.Business Editors CHICAGO--(BUSINESS WIRE)--March 4, 2004 Methode Electronics, Inc. (Nasdaq:METH), a global manufacturer of electronic component and subsystem A unit or device that is part of a larger system. For example, a disk subsystem is a part of a computer system. A bus is a part of the computer. A subsystem usually refers to hardware, but it may be used to describe software. devices, today announced operating results for the fiscal 2004 third quarter ended January January: see month. 31, 2004. Methode achieved fiscal 2004 third quarter net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight of $86.7 million and, excluding expenses related to the elimination of its dual class stock structure and a facility closing, net income of $4.5 million, or $0.12 per share. This compares with net sales of $92.1 million and net income of $4.5 million, or $0.12 per share, in the third quarter of fiscal year 2003. Methode took an after tax charge of $3.1 million, or $0.08 per share, in the third quarter of this fiscal year. This includes a charge of $1.3 million, with no tax benefit, for severance pay Severance Pay Compensation that an employer gives to someone who is about to lose their job. Notes: Severance pay is not always paid to employees. It depends on the situation in which the employee is losing their job and whether legislation requires severance to be paid. , lease and other related costs of products sold for the closing of its Ireland Ireland, Irish Eire (âr`ə) [to it are related the poetic Erin and perhaps the Latin Hibernia], island, 32,598 sq mi (84,429 sq km), second largest of the British Isles. facility, as well as a pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta selling, general and administrative charge of $2.6 million, or $1.8 million after tax, for expenses related to the elimination of its dual class stock structure, primarily dealing with the unsolicited un·so·lic·it·ed adj. Not looked for or requested; unsought: an unsolicited manuscript; unsolicited opinions. unsolicited Adjective tender offer for its Class B shares. After recording this charge, Methode reported net income of $1.4 million, or $0.04 per share, for the third quarter of fiscal year 2004. Customer paid tooling sales in this year's third quarter were $3.8 million compared to $7.9 million in the year ago period. Excluding the customer paid tooling, product sales were $82.9 million in this year's third quarter compared to $84.2 million in the same quarter last year. In the first nine months of fiscal 2004, net sales were $259.2 million compared to $268.9 million from the same period last year. Excluding the fiscal year 2004 third quarter charges, nine month net income was $15.2 million, or $0.42 per share, compared to $15.2 million, or $0.42 per share, in the same period of fiscal 2003. Including the fiscal 2004 third quarter charges, net income was $12.1 million, or $0.34 per share, in the first three quarters of this fiscal year, compared to $15.2 million, or $0.42 per share, reported in the first three quarters of fiscal 2003. For the first nine months of fiscal 2004, tooling sales were $7.6 million compared to $15.8 million in the first nine-month period of fiscal 2003. Excluding tooling, product sales for the first nine months of fiscal 2004 were $251.6 million compared to $253.1 million in the same period last year. Methode's cash position at the end of the 2004 fiscal third quarter, after $8.0 million was paid to shareholders to eliminate the Class B stock, was $60.5 million. Fiscal 2004 third quarter foreign exchanges losses were $0.6 million, compared to $1.0 million in fiscal 2003. Fiscal 2004 nine-month foreign exchange losses were $1.1 million compared to $2.2 million in fiscal 2003. On January 8, 2004, Methode completed the elimination of its dual stock structure with overwhelming approval from its shareholders. Methode's common stock now trades under the symbol METH on the Nasdaq National Market. Commenting on the quarter, Donald Donald (Domnall, Domhnall, Dumhnuil, Dónall) is an anglicized version of a Scottish or Irish Gaelic personal name, containing the elements dumno "world" and val "rule", viz. "ruler of the world". Compare Dumnorix. W. Duda The Magyar duda—Hungarian duda—(also known as tömlösíp and börduda) is the traditional bagpipe of Hungary. It is an example of a group of bagpipes called Medio-Carparthian bagpipes. , President of Methode Electronics, stated, "Our financial results were in line with our expectations and guidance. Our traditional North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. automotive manufacturing customers continue to experience slower production schedules bringing our revenues slightly below last years third quarter mark. However, our Automotive Safety Technology unit and the automotive group in 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). continue to demonstrate strong sequential and
year-over-year growth."Mr. Duda went on to say, "As part of our strategy to diversify diversify To acquire a variety of assets that do not tend to change in value at the same time. To diversify a securities portfolio is to purchase different types of securities in different companies in unrelated industries. our customer base we continue to seek new opportunities with Japanese Japanese (jăp'ənēz`), language of uncertain origin that is spoken by more than 125 million people, most of whom live in Japan. There are also many speakers of Japanese in the Ryukyu Islands, Korea, Taiwan, parts of the United States, and OEMs. As a result of this effort our automotive controls unit was awarded Methode's first product with Honda honda a quick release metal eyelet for the end of a lariat. When the restrained animal is no longer required it is not necessary to slacken off the loop and pull it over the head—a very great advantage when working with wild cattle or unbroken horses. 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. for a 2006 model year vehicle. It is an entry into a new major OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and for Methode and we are proud of our team and their commitment to obtain this business." Methode is reaffirming its net sales forecast for its fiscal year ending April 30, 2004, between $350 million and $360 million. The Company's prior earnings per share guidance was between $0.60 and $0.65. As a result of the costs associated with the elimination of its dual class structure, the unsolicited tender for its Class B shares, the closing of its Ireland facility and the pending close of its UK manufacturing facility in the fourth quarter, the Company is revising earnings per share guidance for its fiscal year ending April 30, 2004, between $0.48 and $0.53. As previously announced, the Company will conduct a conference call led by its President, Donald W. Duda, and Vice President, Corporate Finance, Douglas Douglas, city, Isle of Man Douglas, city (1991 pop. 19,950), capital of the Isle of Man, Great Britain. It is a popular resort, connected by rail to Ramsey and Port Erin, on the Irish Sea. Tourism is the chief industry. A. Koman, on March 4, 2004 at 10:00 a.m. Central Time. You may participate on the conference call by dialing 800-901-5231 passcode: Methode. Methode also invites you to listen to the webcast of this call by visiting the Company's website at http://www.methode.com and entering the "Investor Relations Investor relations The process by which the corporation communicates with its investors. " page and then clicking on the "Webcast" icon. A replay of the call will be available for seven days, by dialing 888-286-8010 passcode: 26241460. The replay will also be available on the Company's website. About Methode Electronics Methode Electronics, Inc. is a global manufacturer of electronic component and subsystem devices. Methode designs, manufactures and markets devices employing electrical, electronic, wireless, sensing and optical technologies. Methode's components are found in the primary end markets of the automotive, communications (including information processing information processing: see data processing. information processing Acquisition, recording, organization, retrieval, display, and dissemination of information. Today the term usually refers to computer-based operations. and storage, networking equipment, wireless and terrestrial Dealing with the earth. See terrestrial link. voice/data systems), aerospace, rail and other transportation industries; and the consumer and industrial equipment markets. Further information can be found at Methode's website http://www.methode.com. 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. Certain statements in this press release dated March 4, 2004, containing information on Methode's third quarter reporting period for fiscal 2004, and offering guidance for its full year reporting period for fiscal 2004, are forward-looking statements that are subject to certain risks and uncertainties. The Company's results will be subject to many of the same risks that apply to the automotive, computer and telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. industries, such as general economic conditions, interest rates, consumer spending Consumer demand or consumption is also known as personal consumption expenditure. It is the largest part of aggregate demand or effective demand at the macroeconomic level. patterns and technological change. Other factors, which may result in materially different results for future periods, include market growth; operating costs operating costs npl → gastos mpl operacionales ; currency exchange rates and devaluations; delays in development, production and marketing of new products; and other factors set forth from time to time in the Company's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and other reports filed with the Securities and Exchange Commission. The forward-looking statements in this press release are subject to the 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. protection provided under the securities law.
Methode Electronics, Inc.
Financial Highlights
(In thousands, except per share data, unaudited)
Three Months Ended
January 31,
2004 2003
----------- -----------
Net sales $86,698 $92,061
Other income 636 359
Cost of products sold 69,594 75,079
Selling and administrative expenses 14,721 10,025
Income from operations 3,019 7,316
Interest, net 144 290
Other, net (554) (998)
Income before income taxes 2,609 6,608
Income taxes 1,235 2,150
Net income 1,374 4,458
Basic and Diluted Earnings per Common Share $0.04 $0.12
Average Number of Common Shares outstanding:
Basic 35,700 36,178
Diluted 36,045 36,421
Nine Months Ended
January 31,
2004 2003
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Net sales $259,158 $268,925
Other income 1,986 790
Cost of products sold 205,979 213,976
Selling and administrative expenses 36,153 31,870
Income from operations 19,012 23,869
Interest, net 383 864
Other, net (1,094) (2,216)
Income before income taxes 18,301 22,517
Income taxes 6,180 7,300
Net income 12,121 15,217
Basic and Diluted Earnings per Common Share $0.34 $0.42
Average Number of Common Shares outstanding:
Basic 35,865 36,162
Diluted 36,163 36,407
Methode Electronics, Inc.
Financial Highlights
(In thousands)
January 31, April 30,
2004 2003
----------- -----------
(Unaudited)
Cash $ 60,543 $ 64,261
Accounts receivable - net 58,768 58,246
Inventories 33,289 31,936
Other current assets 12,244 20,720
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Total Current Assets 164,844 175,163
Property, plant and equipment - net 86,591 82,902
Goodwill - net 18,657 18,077
Intangible assets - net 23,486 25,458
Other assets 13,647 13,874
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Total Assets $307,225 $315,474
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Accounts and notes payable $ 23,271 $ 24,515
Other current liabilities 30,278 24,801
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Total current liabilities 53,549 49,316
Other liabilities 8,197 11,153
Shareholders' equity 245,479 255,005
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Total Liabilities and Shareholders' Equity $307,225 $315,474
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