Viasystems Group, Inc. (NASDAQ:VIAS), a leading provider of complex multi-layer printed circuit boards and electro-mechanical solutions, today announced results for the second quarter ended June 30, 2012.
- Viasystems completed its acquisition of DDi Corp. (“DDi”) at the close of business on May 31, 2012.
- Net sales were $296.9 million in the quarter ended June 30, 2012, a year-over-year increase of 9.6%, and a sequential increase over the immediately preceding quarter of 13.3%.
- Giving pro forma effect to the acquisition of DDi, combined net sales were $341.0 million in the quarter ended June 30, 2012. Pro forma growth of net sales was 1.2% year-over-year and 3.0% sequentially.
- Operating income in the quarter ended June 30, 2012 was $8.7 million, or 2.9% of net sales, and operating income includes special charges for i) $8.2 million of costs incurred directly in connection with the acquisition of DDi, ii) $3.9 million of costs related to purchase accounting, and iii) $1.8 million of restructuring costs in connection with the previously announced closures of two factories in China. Excluding the effects of the special charges, operating income would have been $22.6 million, or 7.6% of net sales.
- Adjusted EBITDA in the quarter ended June 30, 2012 was $44.7 million or 15.0% of net sales, compared with $34.3 million or 12.7% of net sales in the quarter ended June 30, 2011, and compared with $33.1 million or 12.6% of net sales in the immediately preceding quarter ended March 31, 2012.
- U.S. GAAP loss per basic and diluted share was $(1.67) for the quarter ended June 30, 2012, on approximately 20 million average shares outstanding.
- Adjusted EPS was $0.75 for the quarter, excluding certain non-cash and special income and expense items. Adjusted EPS for the quarters ended June 30, 2011 and March 31, 2012, was $0.31 and $0.32, respectively.
“Our second quarter of 2012 may be defined by two significant events that were accretive to our results, the acquisition of DDi and the refinancing of our senior secured notes,” stated David M. Sindelar, Chief Executive Officer of Viasystems. “We reduced our borrowing rate on our senior secured notes from 12% to 7.875%. In addition, the combination should provide us with $10 million of cost savings on an annualized basis. As a result, the DDi transaction was not only a strong strategic fit, further diversifying our revenue base and providing meaningful cross-selling opportunities, but this transaction, combined with the refinancing will be significantly accretive to our operating results on a go forward basis. As importantly, if you look beyond the effects of those two transactions, you will see that our team delivered a solid quarter operationally.”