Magnetek Announces Fourth Quarter And Fiscal Year 2012 Results

Magnetek, Inc. (NASDAQ: MAG):

Q4 Highlights
  • Q4 net sales of $29.7 million increased slightly over the prior year quarter, but were higher 11% sequentially over Q3 fiscal 2012 sales, due to higher sales of material handling solutions.
  • Q4 adjusted EBITDA (see attached reconciliation) increased to $4.7 million, or 15.8% of sales, from $4.4 million, or 14.9% of sales, for the same period last year.
  • Cash balances increased by $1.6 million during the fourth quarter to nearly $29 million as of December 30, 2012.

Fiscal Year 2012 Highlights
  • FY 2012 sales totaled $114.3 million, a decrease of 3% from the same period last year, as sales declines in renewable energy markets were largely offset by increased sales in material handling markets.
  • Adjusted EBITDA (see attached reconciliation) increased to $17.9 million, or 15.7% of sales, from $15.5 million, or 13.2% of sales, for the same period last year.
  • Full year cash flow prior to pension contributions was $19.7 million in fiscal 2012.

Magnetek, Inc. (“Magnetek” or “the Company”) (NASDAQ: MAG) today reported the results of its fourth quarter and 2012 fiscal year, ended December 30, 2012.

Fourth Quarter Results

In the fourth quarter of fiscal 2012, Magnetek recorded revenue of $29.7 million, a nominal increase from the same period last year, but a sequential increase of 11% from the third quarter of fiscal 2012. The increase in sales from the prior year quarter reflects sales growth of products for material handling applications, largely offset by lower sales of products with mining and renewable energy applications.

Current year fourth quarter operating income was impacted by non-cash impairment charges of $1.2 million related to the Company’s renewable energy fixed assets, as well as higher pension expense. However, the Company’s continuing operations remained firmly profitable, with after-tax income of $0.8 million, or $.25 on a per share basis.

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