KEMET Reports Preliminary Fourth Quarter and Fiscal Year 2017 Results

 
  • Net sales for the quarter up 5.0% to $197.5 million compared to the prior quarter ended December 31, 2016
  • Gross margin for fiscal year 2017 of 24.6% compared to 22.2% for the prior fiscal year 2016
  • Cash Balance at March 31, 2017 of $109.8 million up $44.8 million compared to prior year March 31, 2016

GREENVILLE, S.C., May 10, 2017 (GLOBE NEWSWIRE) -- KEMET Corporation (the “Company”) (NYSE:KEM), a leading global supplier of electronic components, today reported preliminary results for the fourth quarter and fiscal year ended March 31, 2017.

Net sales of $197.5 million for the quarter ended March 31, 2017 increased 5.0% from net sales of $188.0 million for the prior quarter ended December 31, 2016, and increased 7.4% compared to net sales of $183.9 million for the quarter ended March 31, 2016.  For the fiscal year ended March 31, 2017 net sales were $757.8 million, up 3.1% compared to $734.8 million for the fiscal year ended March 31, 2016.

U.S. GAAP net income, including the equity income from NEC TOKIN, for the quarter ended March 31, 2017 was $52.9 million, or $0.93 per diluted share, compared to a net loss for the quarter ended March 31, 2016 of $15.2 million or $0.33 loss per basic and diluted share. U.S. GAAP net income, including the equity income from NEC TOKIN, for the fiscal year ended March 31, 2017 was $48.0 million, or $0.87 per diluted share compared to a net loss of $53.6 million, or $1.17 loss per basic and diluted share for the fiscal year ended March 31, 2016.

Non-U.S. GAAP Adjusted net income for the quarter ended March 31, 2017 was $7.8 million or $0.14 per diluted share, compared to a non-U.S. GAAP Adjusted net income of $1.8 million or $0.04 per diluted share for the quarter ended March 31, 2016. For the fiscal year ended March 31, 2017, non-U.S. GAAP Adjusted net income was $23.9 million, or $0.43 per diluted share compared to non-U.S. GAAP Adjusted net income of $8.9 million, or $0.17 per diluted share for the fiscal year ended March 31, 2016.

“It was another milestone for KEMET with the fifth quarter of sequential growth and cash generation exceeding our forecast,” stated Per Loof KEMET’s Chief Executive Officer.  “While many doubted our ability to bring the TOKIN acquisition to closure it was an exciting quarter and now a start to our next fiscal year with a transaction that is unique, transformational, and deleveraging to the balance sheet.  The work now begins to bring more value to our shareholders through this combination,” continued Loof.

Net income (loss) for the fiscal quarters and years ended March 31, 2017 and 2016 include various items affecting comparability as denoted in the U.S. GAAP to Non-U.S. GAAP reconciliation table included hereafter.

About KEMET

The Company’s common stock is listed on the NYSE under the ticker symbol “KEM” (NYSE: KEM).  At the Investor Relations section of our web site at http://www.kemet.com/IR, users may subscribe to KEMET news releases and find additional information about our Company.  KEMET applies world class service and quality to deliver industry leading, high performance capacitance solutions to its customers around the world and offers the world’s most complete line of surface mount and through-hole capacitor technologies across tantalum, ceramic, film, aluminum, electrolytic, and paper dielectrics. Additional information about KEMET can be found at http://www.kemet.com.

QUIET PERIOD

Beginning July 1, 2017, we will observe a quiet period during which the information provided in this news release and annual report on Form 10-K will no longer constitute our 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 management. The quiet period will extend until the day when our next quarterly earnings release is published.

CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS

Certain statements included herein contain forward-looking statements within the meaning of federal securities laws about the Company’s financial condition and results of operations that are based on management’s current expectations, estimates and projections about the markets, in which the Company operates, as well as management’s beliefs and assumptions. Words such as “expects,” “anticipates,” “believes,” “estimates,” variations of such words and other similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in, or implied by, such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s judgment only as of the date hereof. The Company undertakes no obligation to update publicly any of these forward-looking statements to reflect new information, future events or otherwise.

Factors that may cause actual outcomes and results to differ materially from those expressed in, or implied by, these forward-looking statements include, but are not necessarily limited to, the following: (i) adverse economic conditions could impact our ability to realize operating plans if the demand for our products declines, and such conditions could adversely affect our liquidity and ability to continue to operate and cause a write down of long-lived assets or goodwill; (ii) an increase in the cost or a decrease in the availability of our principal or single-sourced purchased raw materials; (iii) changes in the competitive environment; (iv) uncertainty of the timing of customer product qualifications in heavily regulated industries; (v) economic, political, or regulatory changes in the countries in which we operate; (vi) difficulties, delays or unexpected costs in completing the restructuring plans; (vii) acquisitions and other strategic transactions expose us to a variety of risks; (viii) acquisition of TOKIN may not achieve all of the anticipated results; (ix) our business could be negatively impacted by increased regulatory scrutiny and litigation; (x) difficulties associated with retaining, attracting and training effective employees and management; (xi) the need to develop innovative products to maintain customer relationships and offset potential price erosion in older products; (xii) exposure to claims alleging product defects; (xiii) the impact of laws and regulations that apply to our business, including those relating to environmental matters; (xiv) the impact of international laws relating to trade, export controls and foreign corrupt practices; (xv) changes impacting international trade and corporate tax provisions related to the global manufacturing and sales of our products may have an adverse effect on our financial condition and results of operations; (xvi) volatility of financial and credit markets affecting our access to capital; (xvii) the need to reduce the total costs of our products to remain competitive; (xviii) potential limitation on the use of net operating losses to offset possible future taxable income; (xix) restrictions in our debt agreements that limit our flexibility in operating our business; (xx) disruption to our information technology systems to function properly or control unauthorized access to our systems may cause business disruptions; (xxi) additional exercise of the warrant by K Equity, LLC which could potentially result in the existence of a significant stockholder who could seek to influence our corporate decisions; and (xxii) fluctuation in distributor sales could adversely affect our results of operations.


KEMET CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operations
(Amounts in thousands, except per share data)
(Unaudited)
 
  Quarters Ended March 31,   Fiscal Year Ended
  2017   2016   2017   2016
Net sales $ 197,519     $ 183,926     $ 757,791     $ 734,823  
Operating costs and expenses:              
Cost of sales 147,680     141,913     571,679     571,543  
Selling, general and administrative expenses 29,317     25,790     107,868     101,446  
Research and development 6,522     6,395     27,629     24,955  
Restructuring charges 1,087     617     5,404     4,178  
Write down of long-lived assets 4,086         10,279      
Net (gain) loss on sales and disposals of assets 85     608     392     375  
Total operating costs and expenses 188,777     175,323     723,251     702,497  
Operating income (loss) 8,742     8,603     34,540     32,326  
Other (income) expense:              
Interest income (10 )   (4 )   (24 )   (14 )
Interest expense 10,004     9,929     39,755     39,605  
Change in value of NEC TOKIN options (14,200 )       (10,700 )   26,300  
Other income (expense), net 1,556     147     (5,127 )   (2,348 )
Income (loss) before income taxes and equity income (loss) from NEC TOKIN 11,392     (1,469 )   10,636     (31,217 )
Income tax expense (benefit) (150 )   2,056     4,290     6,006  
Income (loss) before equity income (loss) from NEC TOKIN 11,542     (3,525 )   6,346     (37,223 )
Equity income (loss) from NEC TOKIN 41,372     (11,648 )   41,643     (16,406 )
Net income (loss) $ 52,914     $ (15,173 )   $ 47,989     $ (53,629 )
               
Net income (loss) per basic share $ 1.13     $ (0.33 )   $ 1.03     $ (1.17 )
               
Net income (loss) per diluted share $ 0.93     $ (0.33 )   $ 0.87     $ (1.17 )
               
Weighted-average shares outstanding:              
Basic 46,803     46,160     46,552     46,004  
Diluted 57,130     46,160     55,389     46,004  


KEMET CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
(Amounts in thousands, except per share data)
(Unaudited)
 
  March 31, 2017   March 31, 2016
ASSETS      
Current assets:      
Cash and cash equivalents $ 109,774     $ 65,004  
Accounts receivable, net 92,526     93,168  
Inventories, net 147,955     168,879  
Prepaid expenses and other 28,759     25,496  
Total current assets 379,014     352,547  
Property plant and equipment net of accumulated depreciation of $821,276 and $815,338 as of March 31, 2017 and March 31, 2016, respectively 209,311     241,839  
Goodwill 40,294     40,294  
Intangible assets, net 29,781     33,301  
Investment in NEC TOKIN 63,416     20,334  
Deferred income taxes 8,593     8,397  
Other assets 4,119     3,068  
Total assets $ 734,528     $ 699,780  
LIABILITIES AND STOCKHOLDERS’ EQUITY      
Current liabilities:      
Current portion of long-term debt $ 2,000     $ 2,000  
Accounts payable 69,674     70,981  
Accrued expenses 57,752     50,320  
Income taxes payable 715     453  
Total current liabilities 130,141     123,754  
Long-term debt, less current portion 386,211     385,833  
Other non-current obligations 60,131     74,892  
Deferred income taxes 3,370     2,820  
Stockholders’ equity:      
Preferred stock, par value $0.01, authorized 10,000 shares, none issued      
Common stock, par value $0.01, authorized 175,000 shares, issued 46,689 and 46,508 shares at March 31, 2017 and 2016, respectively 467     465  
Additional paid-in capital 447,671     452,821  
Retained deficit (251,651 )   (299,510 )
Accumulated other comprehensive income (41,812 )   (31,425 )
Treasury stock, at cost (611 shares at March 31, 2016)     (9,870 )
Total stockholders’ equity 154,675     112,481  
Total liabilities and stockholders’ equity $ 734,528     $ 699,780  



KEMET CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(Amounts in thousands)
(Unaudited)
 
    Fiscal Years Ended March 31,
    2017   2016
Net income (loss)   $ 47,989     $ (53,629 )
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:        
Depreciation and amortization   37,338     39,016  
Non-cash debt and financing costs   761     859  
Equity income (loss) from NEC TOKIN   (41,643 )   16,406  
Change in value of NEC TOKIN options   (10,700 )   26,300  
Net (gain) loss on sales and disposals of assets   392     375  
Stock-based compensation expense   4,720     4,774  
Pension and other post-retirement benefits   2,543     3,013  
Deferred income tax expense (benefit)   (19 )   495  
Write down of long-lived assets   10,279      
Write down of receivables   64     24  
Other, net   (327 )   306  
Changes in assets and liabilities:        
Accounts receivable   (12 )   (2,346 )
Inventories   16,805     3,338  
Prepaid expenses and other current assets   (1,769 )   13,588  
Accounts payable   6,170     (5,982 )
Accrued income taxes   144     (382 )
Other operating liabilities   (1,068 )   (13,790 )
Net cash provided by (used in) operating activities   71,667     32,365  
Investing activities:        
Capital expenditures   (25,617 )   (20,469 )
Acquisitions, net of cash received       (2,892 )
Change in restricted cash       1,802  
Proceeds from sale of assets   19     971  
Net cash provided by (used in) investing activities   (25,598 )   (20,588 )
Financing activities:        
Proceeds from revolving line of credit   12,000     10,000  
Payments of revolving line of credit   (12,000 )   (9,600 )
Deferred acquisition payments       (3,000 )
Proceeds from issuance of debt   2,314      
Payments of long-term debt   (2,428 )   (481 )
Proceeds from exercise of stock options   1,133      
Purchase of treasury stock   (1,144 )   (722 )
Net cash provided by (used in) financing activities   (125 )   (3,803 )
Net increase (decrease) in cash and cash equivalents   45,944     7,974  
Effect of foreign currency fluctuations on cash   (1,174 )   668  
Cash and cash equivalents at beginning of fiscal period   65,004     56,362  
Cash and cash equivalents at end of fiscal period   $ 109,774     $ 65,004  


Non-U.S. GAAP Financial Measures

In this news release, the Company makes reference to certain Non-U.S. GAAP financial measures, including "Adjusted gross margin", "Adjusted operating income", “Adjusted net income (loss)”, “Adjusted net income (loss) per share” and “Adjusted EBITDA”.  Management believes that investors may find it useful to review the Company’s financial results as adjusted to exclude items as determined by management.

Adjusted Gross Margin

Adjusted gross margin represents net sales less cost of sales excluding adjustments which are outlined in the quantitative reconciliation provided below.  Management uses Adjusted gross margin to facilitate our analysis and understanding of our business operations by excluding the items outlined in the quantitative reconciliation provided below which might otherwise make comparisons of our ongoing business with prior periods more difficult and obscure trends in ongoing operations.

The Company believes that Adjusted gross margin is useful to investors because it provides a supplemental way to understand the underlying operating performance of the Company.  Adjusted gross margin should not be considered as an alternative to gross margin or any other performance measure derived in accordance with U.S. GAAP.

The following table provides a reconciliation from U.S. GAAP Gross margin to Non-U.S. GAAP Adjusted gross margin (amounts in thousands):

  Quarters Ended   Fiscal Years Ended
  March 31,
2017
  December 31,
2016
  March 31,
2016
  March 31,
2017
  March 31,
2016
      (Unaudited)        
Net sales $ 197,519     $ 188,029     $ 183,926     $ 757,791     $ 734,823  
Cost of sales 147,680     140,692     141,913     571,679     571,543  
Gross Margin (U.S. GAAP) 49,839     47,337     42,013     186,112     163,280  
Gross margin as a % of net sales 25.2 %   25.2 %   22.8 %   24.6 %   22.2 %
Non-U.S. GAAP-adjustments:                                      
Plant shut-down costs         141         372  
Plant start-up costs         319     427     861  
Stock-based compensation expense 391     308     278     1,384     1,418  
Adjusted gross margin (non-GAAP) $ 50,230     $ 47,645     $ 42,751     $ 187,923     $ 165,931  
Adjusted gross margin as a % of net sales 25.4 %   25.3 %   23.2 %   24.8 %   22.6 %

Adjusted Operating Income (Loss)

Adjusted operating income represents operating income (loss), excluding adjustments which are outlined in the quantitative reconciliation provided below. We use Adjusted operating income to facilitate our analysis and understanding of our business operations by excluding the items outlined in the quantitative reconciliation provided below which might otherwise make comparisons of our ongoing business with prior periods more difficult and obscure trends in ongoing operations. The Company believe that Adjusted operating income (loss) is useful to investors because it provides a supplemental way to understand our underlying operating performance and allows investors to monitor and understand changes in our ability to generate income from ongoing business operations. Adjusted operating income (loss) should not be considered as an alternative to operating income (loss) or any other performance measure derived in accordance with U.S. GAAP.

Adjusted operating income (loss) is calculated as follows (amounts in thousands):

    Quarters Ended   Fiscal Year Ended
    March 31,
2017
  December 31,
2016
  March 31,
2016
  March 31,
2017
  March 31,
2016
    (Unaudited)
Operating income (loss) (U.S. GAAP)   $ 8,742     $ 13,850     $ 8,603     $ 34,540     $ 32,326  
Adjustments:                    
ERP integration costs/IT transition costs   1,760     1,734     859     7,045     5,677  
Stock-based compensation expense   1,249     1,139     1,013     4,720     4,774  
Restructuring charges   1,087     (369 )   617     5,404     4,178  
Legal expenses related to antitrust class actions   406     293     482     2,640     3,041  
NEC TOKIN investment related expenses   497     204     265     1,101     900  
Plant start-up costs           319     427     861  
Net (gain) loss on sales and disposals of assets   85     132     608     392     375  
Plant shut-down costs           141         372  
Pension plan adjustment                   312  
Write down of long-lived assets   4,086             10,279      
Adjusted operating income (loss) (non-GAAP)   $ 17,912     $ 16,983     $ 12,907     $ 66,548     $ 52,816  

Adjusted Net Income (Loss) and Adjusted Net Income (Loss) Per Share

“Adjusted net income (loss)” and “Adjusted net income (loss) per share” represent net income (loss) and net income (loss) per share excluding adjustments which are outlined in the quantitative reconciliation provided below.  Management believes that these Non-U.S. GAAP financial measures are useful to investors because they provide a supplemental way to understand the underlying operating performance of the Company and allows investors to monitor and understand changes in our ability to generate income from ongoing business operations. Management uses these Non-U.S. GAAP financial measures to evaluate operating performance by excluding the items outlined in the quantitative reconciliation provided below which might otherwise
make comparisons of our ongoing business with prior periods more difficult and obscure trends in ongoing operations. Non-U.S. GAAP financial measures should not be considered as an alternative to net income, operating income or any other performance measures derived in accordance with U.S. GAAP.

The following table provides reconciliation from U.S. GAAP net income (loss) to Non-U.S. GAAP adjusted net income (loss):

U.S.GAAP to Non-U.S.GAAP Reconciliation

    Quarters Ended   Fiscal Year Ended
    March 31,
2017
  December 31,
2016
  March 31,
2016
  March 31,
2017
  March 31,
2016
    (Unaudited, Amounts in thousands, except per share data)
U.S. GAAP                    
Net sales   $ 197,519     $ 188,029     $ 183,926     $ 757,791     $ 734,823  
Net income (loss)   $ 52,914     $ 12,278     $ (15,173 )   $ 47,989     $ (53,629 )
                     
Net income (loss) per basic share   $ 1.13     $ 0.26     $ (0.33 )   $ 1.03     $ (1.17 )
Net income (loss) per diluted share   $ 0.93     $ 0.22     $ (0.33 )   $ 0.87     $ (1.17 )
Non-U.S. GAAP                    
Net income (loss) (U.S. GAAP)   52,914     12,278     (15,173 )   47,989     (53,629 )
Adjustments:                    
Change in value of NEC TOKIN options   (14,200 )   (6,900 )       (10,700 )   26,300  
Equity (gain) loss from NEC TOKIN   (41,372 )   133     11,648     (41,643 )   16,406  
Restructuring charges   1,087     (369 )   617     5,404     4,178  
ERP integration costs/IT transition costs   1,760     1,734     859     7,045     5,677  
Stock-based compensation   1,249     1,139     1,013     4,720     4,774  
Legal expenses related to antitrust class actions   406     293     482     2,640     3,041  
Net foreign exchange (gain) loss   1,507     (2,621 )   122     (3,758 )   (3,036 )
NEC TOKIN investment related expenses   497     204     265     1,101     900  
Income tax effect of pension curtailment           155         875  
Plant start-up costs           319     427     861  
Amortization included in interest expense   200     183     210     761     859  
(Gain) loss on sales and disposals of assets   85     132     608     392     375  
Plant shut-down costs           141         372  
Pension plan adjustment                   312  
Income tax effect of non-GAAP adjustments (1)   (374 )   (396 )   546     (741 )   652  
Write down of long-lived assets   4,086             10,279      
Adjusted net income (loss) (non-GAAP)   $ 7,845     $ 5,810     $ 1,812     $ 23,916     $ 8,917  
Adjusted net income (loss) per basic share (non-GAAP)   $ 0.17     $ 0.13     $ 0.04     $ 0.51     $ 0.19  
Adjusted net income (loss) per diluted share (non-GAAP)   $ 0.14     $ 0.11     $ 0.04     $ 0.43     $ 0.17  
Weighted average shares outstanding:                    
Basic   46,803     46,606     46,160     46,552     46,004  
Diluted (2)   57,130     55,296     50,056     55,389     51,436  

(1)  The income tax effect of the excluded items is calculated by applying the applicable jurisdictional income tax rate, considering the deferred tax valuation for each applicable jurisdiction.
(2)  Used to calculate adjusted net income (loss) per diluted share.

Adjusted EBITDA

Adjusted EBITDA represents net income (loss) before net interest expense, income tax expense, and depreciation and amortization expense, adjusted to exclude certain item which are outlined in the quantitative reconciliation provided below.  We use Adjusted EBITDA to monitor and evaluate our operating performance and to facilitate internal and external comparisons of the historical operating performance of our business.  We present Adjusted EBITDA as a supplemental measure of our performance and ability to service debt.  We also present Adjusted EBITDA because we believe such measure is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry.

We believe Adjusted EBITDA is an appropriate supplemental measure of debt service capacity, because cash expenditures on interest are, by definition, available to pay interest, and tax expense is inversely correlated to interest expense because tax expense goes down as deductible interest expense goes up; depreciation and amortization are non-cash charges. The other adjustments to arrive at Adjusted EBITDA are excluded in order to better reflect our continuing operations.

In evaluating Adjusted EBITDA, you should be aware that in the future we may incur expenses similar to the adjustments noted below.  Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by these types of adjustments.  Adjusted EBITDA is not a measurement of our financial performance under U.S. GAAP and should not be considered as an alternative to net income, operating income or any other performance measures derived in accordance with U.S. GAAP or as an alternative to cash flow from operating activities as a measure of our liquidity.

Our Adjusted EBITDA measure has limitations as an analytical tool, and should not be considered in isolation or as a substitute for analysis of our results as reported under U.S. GAAP.  Some of these limitations are:

  • it does not reflect our cash expenditures, future requirements for capital expenditures or contractual commitments;
  • it does not reflect changes in, or cash requirements for, our working capital needs;
  • it does not reflect the significant interest expense or the cash requirements necessary to service interest or principal payment on our debt;
  • although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and our Adjusted EBITDA measure does not reflect any cash requirements for such replacements;
  • it is not adjusted for all non-cash income or expense items that are reflected in our statements of cash flows;
  • it does not reflect the impact of earnings or charges resulting from matters we consider not to be indicative of our ongoing operations;
  • it does not reflect limitations on or costs related to transferring earnings from our subsidiaries to us; and
  • other companies in our industry may calculate this measure differently than we do, limiting its usefulness as a comparative measure.

Because of these limitations, Adjusted EBITDA should not be considered as a measure of discretionary cash available to us to invest in the growth of our business or as a measure of cash that will be available to us to meet our obligations.  You should compensate for these limitations by relying primarily on our U.S. GAAP results and using Adjusted EBITDA only supplementally.

The following table provides a reconciliation from U.S. GAAP net income (loss) to Adjusted EBITDA (amounts in thousands):

  Fiscal Year 2017
  Q1 Q2 Q3 Q4 Total
Net income (loss) (U.S. GAAP) $ (12,205 ) $ (4,998 ) $ 12,278   $ 52,914   $ 47,989  
           
Adjustments:          
Income tax expense (benefit) 1,800   830   1,810   (150 ) 4,290  
Interest expense, net 9,920   9,904   9,913   9,994   39,731  
Depreciation and amortization 9,436   9,440   9,095   9,367   37,338  
Change in value of NEC TOKIN options 12,000   (1,600 ) (6,900 ) (14,200 ) (10,700 )
Equity (gain) loss from NEC TOKIN (223 ) (181 ) 133   (41,372 ) (41,643 )
ERP integration costs/IT transition costs 1,768   1,783   1,734   1,760   7,045  
Stock-based compensation 1,228   1,104   1,139   1,249   4,720  
Restructuring charges 688   3,998   (369 ) 1,087   5,404  
Legal expenses related to antitrust class actions 1,175   766   293   406   2,640  
Net foreign exchange (gain) loss (1,920 ) (724 ) (2,621 ) 1,507   (3,758 )
NEC TOKIN investment-related expenses 206   194   204   497   1,101  
Plant start-up costs 308   119       427  
(Gain) loss on sales and disposals of assets 91   84   132   85   392  
Write down of long lived assets   6,193     4,086   10,279  
Adjusted EBITDA (non-GAAP) $ 24,272   $ 26,912   $ 26,841   $ 27,230   $ 105,255  
           
  Fiscal Year 2016
  Q1 Q2 Q3 Q4 Total
Net income (loss) (U.S. GAAP) $ (37,050 ) $ 7,194   $ (8,600 ) $ (15,173 ) $ (53,629 )
           
Adjustments:          
Income tax expense (benefit) (248 ) 1,438   2,760   2,056   6,006  
Interest expense, net 10,010   9,808   9,848   9,925   39,591  
Depreciation and amortization 9,917   9,265   9,674   10,160   39,016  
Change in value of NEC TOKIN options 29,200   (2,200 ) (700 )   26,300  
Equity (gain) loss from NEC TOKIN (1,585 ) (162 ) 6,505   11,648   16,406  
ERP integration costs/IT transition costs 4,369   282   167   859   5,677  
Stock-based compensation 1,279   1,328   1,154   1,013   4,774  
Restructuring charges 1,824   23   1,714   617   4,178  
Legal expenses related to antitrust class actions 718   541   1,300   482   3,041  
Net foreign exchange (gain) loss 1,049   (3,171 ) (1,036 ) 122   (3,036 )
NEC TOKIN investment-related expenses 224   186   225   265   900  
Plant start-up costs 195   187   160   319   861  
(Gain) loss on sales and disposals of assets (58 ) (304 ) 129   608   375  
Plant shut-down costs     231   141   372  
Pension plan adjustment 312         312  
Adjusted EBITDA (non-GAAP) $ 20,156   $ 24,415   $ 23,531   $ 23,042   $ 91,144  

 

Contact:
William M. Lowe, Jr.
Executive Vice President and
Chief Financial Officer
williamlowe@kemet.com
864-963-6484

Richard J. Vatinelle
Vice President and
Treasurer
richardvatinelle@kemet.com
954-766-2800

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