x
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934.
|
o
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934.
|
Delaware
|
95-4486486
|
(State
or Other Jurisdiction of
Incorporation or Organization)
|
(I.R.S.
Employer Identification
No.)
|
1400
Opus Place - Suite 600, Downers Grove, IL
|
60515
|
(Address
of Principal Executive Offices)
|
(Zip
Code)
|
Page Number
|
||
PART
I.
|
Financial
Information
|
|
Item
1.
|
Financial
Statements:
|
|
PART
II.
|
Other
Information
|
|
CONSOLIDATED
BALANCE SHEETS
|
|||||||
(In
thousands, except share and per share data)
|
|||||||
June
30,
|
December
31,
|
||||||
2009
|
2008
|
||||||
Assets
|
(Unaudited)
|
||||||
Current
Assets:
|
|||||||
Cash
and cash equivalents
|
$ | 99,017 | $ | 17,188 | |||
Short-term
investments
|
3,731 | 446 | |||||
Accounts
receivable, net
|
82,658 | 72,897 | |||||
Inventories
|
59,429 | 63,334 | |||||
Prepaid
and other assets
|
3,477 | 4,508 | |||||
Refundable
income taxes
|
1,071 | 2,509 | |||||
Deferred
income taxes
|
9,091 | 8,943 | |||||
Assets
of discontinued operations
|
47 | 52 | |||||
Total
current assets
|
258,521 | 169,877 | |||||
Property,
plant and equipment, net
|
48,401 | 52,728 | |||||
Debt
issuance costs, net
|
271 | 350 | |||||
Goodwill
|
16,238 | 53,229 | |||||
Deferred
income taxes
|
2,191 | - | |||||
Long-term
investments
|
1,389 | 4,680 | |||||
Other
assets
|
1,208 | 1,478 | |||||
Total
assets
|
$ | 328,219 | $ | 282,342 | |||
Liabilities
and Stockholders' Equity
|
|||||||
Current
Liabilities:
|
|||||||
Accounts
payable
|
$ | 27,302 | $ | 29,221 | |||
Accrued
expenses
|
23,126 | 25,863 | |||||
Income
taxes payable
|
1,322 | 4,290 | |||||
Deferred
compensation
|
3,849 | 564 | |||||
Liabilities
of discontinued operations
|
64 | 453 | |||||
Total
current liabilities
|
55,663 | 60,391 | |||||
Amount
drawn on credit facility
|
70,000 | - | |||||
Deferred
compensation, less current portion
|
1,585 | 4,870 | |||||
Other
long-term liabilities
|
2,159 | 2,659 | |||||
Liabilities
related to uncertain tax positions
|
505 | 1,637 | |||||
Deferred
income taxes
|
- | 8,083 | |||||
Stockholders'
Equity:
|
|||||||
Preferred
stock, $.01 par value; shares authorized - 2,000,000; none
issued
|
- | - | |||||
Common
stock, $.01 par value; shares authorized - 30,000,000;
|
|||||||
Issued
(including shares held in treasury) - 27,761,291
and 27,639,527
|
|||||||
as
of June 30, 2009 and December 31, 2008, respectively
|
278 | 276 | |||||
Additional
paid-in capital
|
239,115 | 236,994 | |||||
Retained
earnings
|
90,795 | 100,167 | |||||
Accumulated
other comprehensive income (loss)
|
354 | (969 | ) | ||||
Common
stock held in treasury, at cost - 7,905,197 and 7,868,354
shares
|
|||||||
as
of June 30, 2009 and December 31, 2008, respectively
|
(132,235 | ) | (131,766 | ) | |||
Total
stockholders' equity
|
198,307 | 204,702 | |||||
Total
liabilities and stockholders' equity
|
$ | 328,219 | $ | 282,342 | |||
See
accompanying notes.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|||||||||||||||
(In
thousands, except per share data)
|
|||||||||||||||
For
the three months ended June 30,
|
For
the six months ended June 30,
|
||||||||||||||
2009
|
2008
|
2009
|
2008
|
||||||||||||
(Unaudited)
|
(Unaudited)
|
||||||||||||||
Net
sales:
|
|||||||||||||||
Services
|
$ | 84,887 | $ | 86,512 | $ | 162,203 | $ | 171,269 | |||||||
Products
|
33,576 | 49,110 | 69,736 | 93,895 | |||||||||||
Total
net sales
|
118,463 | 135,622 | 231,939 | 265,164 | |||||||||||
Cost
of sales:
|
|||||||||||||||
Services
|
60,479 | 66,493 | 115,786 | 127,626 | |||||||||||
Products
|
28,285 | 40,072 | 58,923 | 76,221 | |||||||||||
Products
- exit, disposal, certain severance and other charges
|
566 | - | 946 | - | |||||||||||
Total
cost of sales
|
89,330 | 106,565 | 175,655 | 203,847 | |||||||||||
Gross
profit
|
29,133 | 29,057 | 56,284 | 61,317 | |||||||||||
Selling,
general and administrative expense
|
12,440 | 14,409 | 25,191 | 27,779 | |||||||||||
Amortization
of intangible assets
|
20 | 36 | 50 | 87 | |||||||||||
Impairment
of goodwill
|
36,991 | - | 36,991 | - | |||||||||||
Exit,
disposal, certain severance and other charges
|
1,561 | 152 | 4,343 | 1,118 | |||||||||||
Operating
income (loss)
|
(21,879 | ) | 14,460 | (10,291 | ) | 32,333 | |||||||||
Interest
income
|
67 | 106 | 130 | 406 | |||||||||||
Other
income (expense), net
|
(2 | ) | 28 | 9 | 99 | ||||||||||
Interest
expense
|
(349 | ) | (247 | ) | (607 | ) | (375 | ) | |||||||
Income
(loss) from continuing operations before income taxes
|
(22,163 | ) | 14,347 | (10,759 | ) | 32,463 | |||||||||
Income
tax (benefit) expense
|
(5,565 | ) | 5,387 | (1,345 | ) | 12,418 | |||||||||
Income
(loss) from continuing operations
|
(16,598 | ) | 8,960 | (9,414 | ) | 20,045 | |||||||||
Gain
(loss) from discontinued operations, net of income taxes
|
42 | 34 | 42 | (2,478 | ) | ||||||||||
Net
income (loss)
|
$ | (16,556 | ) | $ | 8,994 | $ | (9,372 | ) | $ | 17,567 | |||||
Per
common share - basic:
|
|||||||||||||||
Income
(loss) from continuing operations
|
$ | (0.85 | ) | $ | 0.43 | $ | (0.48 | ) | $ | 0.94 | |||||
Gain
(loss) from discontinued operations
|
$ | - | $ | - | $ | - | $ | (0.12 | ) | ||||||
Net
income (loss)
|
$ | (0.84 | ) | $ | 0.43 | $ | (0.48 | ) | $ | 0.82 | |||||
Weighted
average number of common shares
|
|||||||||||||||
outstanding
|
19,631 | 21,002 | 19,588 | 21,422 | |||||||||||
Per
common share - diluted:
|
|||||||||||||||
Income
(loss) from continuing operations
|
$ | (0.85 | ) | $ | 0.42 | $ | (0.48 | ) | $ | 0.93 | |||||
Gain
(loss) from discontinued operations
|
$ | - | $ | - | $ | - | $ | (0.11 | ) | ||||||
Net
income (loss)
|
$ | (0.84 | ) | $ | 0.42 | $ | (0.48 | ) | $ | 0.81 | |||||
Weighted
average number of common and
|
|||||||||||||||
common
equivalent shares outstanding
|
19,631 | 21,187 | 19,588 | 21,645 | |||||||||||
See
accompanying notes.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|||||||
(In
thousands)
|
|||||||
For
the six months ended June 30,
|
|||||||
2009
|
2008
|
||||||
(Unaudited)
|
|||||||
Operating
Activities:
|
|||||||
Net
income (loss)
|
$ | (9,372 | ) | $ | 17,567 | ||
Adjustments
to reconcile net income (loss) to net cash provided by (used
in)
|
|||||||
operating
activities - continuing operations:
|
|||||||
Net
(gain) loss from discontinued operations
|
(42 | ) | 2,478 | ||||
Impairment
of goodwill
|
36,991 | - | |||||
Writedown
of other assets
|
422 | - | |||||
Depreciation
and amortization
|
7,025 | 7,348 | |||||
Noncash
stock-based compensation
|
2,481 | 2,253 | |||||
Amortization
of debt issuance costs
|
79 | 79 | |||||
Adjustments
to provision for losses on accounts receivable
|
106 | 8 | |||||
Loss
(gain) on sale of equipment
|
4 | (18 | ) | ||||
Deferred
income taxes
|
(10,473 | ) | 1,458 | ||||
Changes
in operating assets and liabilities,
|
|||||||
net
of businesses discontinued/sold:
|
|||||||
Accounts
receivable
|
(9,591 | ) | (20,965 | ) | |||
Inventories
|
4,301 | (10,127 | ) | ||||
Prepaid
and other assets
|
1,693 | (351 | ) | ||||
Accounts
payable and accrued expenses
|
(8,861 | ) | (9,307 | ) | |||
Net
cash provided by (used) in operating activities - continuing
operations
|
14,763 | (9,577 | ) | ||||
Net
cash provided by (used) in operating activities - discontinued
operations
|
(320 | ) | 574 | ||||
Investing
Activities:
|
|||||||
Purchases
of property, plant and equipment
|
(2,826 | ) | (7,998 | ) | |||
Purchases
of available-for-sale securities
|
(337 | ) | (2,088 | ) | |||
Proceeds
from sales of available-for-sale securities
|
379 | - | |||||
Proceeds
from sale of equipment
|
7 | 22 | |||||
Net
cash used in investing activities - continuing operations
|
(2,777 | ) | (10,064 | ) | |||
Net
cash provided by investing activities - discontinued
operations
|
- | 2,537 | |||||
Financing
Activities:
|
|||||||
Borrowings
on revolving credit facility, net
|
70,000 | 6,300 | |||||
Net
change in book overdraft
|
- | 2,340 | |||||
Proceeds
from exercise of stock options
|
25 | 205 | |||||
Tax
benefit from stock-based award transactions
|
1 | 24 | |||||
Repurchases
of common stock for treasury
|
(469 | ) | (25,253 | ) | |||
Net
cash provided by (used in) financing activities
|
69,557 | (16,384 | ) | ||||
Effect
of exchange rate changes on cash and cash equivalents
|
606 | (12 | ) | ||||
Increase
(decrease) in cash and cash equivalents
|
81,829 | (32,926 | ) | ||||
Cash
and cash equivalents at beginning of period
|
17,188 | 40,149 | |||||
Cash
and cash equivalents at end of period
|
$ | 99,017 | $ | 7,223 | |||
Cash
paid during the period for:
|
|||||||
Interest
|
$ | 491 | $ | 314 | |||
Income
taxes, net
|
11,838 | 11,531 | |||||
See
accompanying notes.
|
Note
1.
|
Basis
of Presentation
|
Note
2.
|
Fair
Value Measurements
|
Note
3.
|
Short-Term
Investments
|
Note
4.
|
Inventories
|
June
30, 2009
|
December
31, 2008
|
||||
Raw
materials, including core inventories
|
$ | 55,384 | $ | 57,621 | |
Work-in-process
|
822 | 760 | |||
Finished
goods
|
3,223 | 4,953 | |||
$ | 59,429 | $ | 63,334 |
Note
5.
|
Property,
Plant and Equipment
|
June
30, 2009
|
December
31, 2008
|
||||||
Property,
plant and
equipment
|
$ | 142,027 | $ | 148,864 | |||
Accumulated
depreciation
|
(93,626 | ) | (96,136 | ) | |||
$ | 48,401 | $ | 52,728 |
Note
6.
|
Goodwill
|
Logistics
|
Drivetrain
|
Consolidated
|
||||||||
Balance
at December 31, 2008
|
$ | 16,238 | $ | 36,991 | $ | 53,229 | ||||
Impairment
|
− | (36,991 | ) | (36,991 | ) | |||||
Balance
at June 30, 2009
|
$ | 16,238 | $ | − | $ | 16,238 |
Note
7.
|
Warranty
Liability
|
For
the three months ended
June
30,
|
For
the six months ended
June
30,
|
||||||||||||||
2009
|
2008
|
2009
|
2008
|
||||||||||||
Balance
at beginning of period
|
$ | 1,954 | $ | 2,061 | $ | 1,885 | $ | 2,154 | |||||||
Warranties
issued
|
121 | 333 | 261 | 650 | |||||||||||
Claims
paid / settlements
|
(526 | ) | (101 | ) | (573 | ) | (482 | ) | |||||||
Changes
in liability for pre-existing warranties
|
(346 | ) | (393 | ) | (370 | ) | (422 | ) | |||||||
Balance
at end of period
|
$ | 1,203 | $ | 1,900 | $ | 1,203 | $ | 1,900 |
Note
8.
|
Credit
Facility
|
Note
9.
|
Income
Taxes
|
Note
10.
|
Comprehensive
Income (Loss)
|
For
the three months ended
June
30,
|
For
the six months ended
June
30,
|
|||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||
Net
income (loss)
|
$ | (16,556 | ) | $ | 8,994 | $ | (9,372 | ) | $ | 17,567 | ||||
Other
comprehensive income (loss):
|
||||||||||||||
Currency
translation adjustments
|
1,525 | 1 | 1,347 | (14 | ) | |||||||||
Change
in unrealized gain (loss) on available-for-sale securities, net of
income
taxes
|
85 | – | (24 | ) | (77 | ) | ||||||||
$ | (14,946 | ) | $ | 8,995 | $ | (8,049 | ) | $ | 17,476 |
Note
11.
|
Repurchases
of Common Stock
|
Note
12.
|
Stock-Based
Compensation
|
Stock
Options
|
Restricted
Stock(1)
|
||||
Outstanding
at January 1, 2009
|
1,747,022 | 241,526 | |||
Granted
at market price
|
264,373 | 120,097 | |||
Exercised
|
(1,667 | ) | (112,715 | ) | |
Forfeited/expired
|
(5,333 | ) | (4,974 | ) | |
Outstanding
at June 30, 2009
|
2,004,395 | 243,934 |
Note
13.
|
Segment
Information
|
Logistics
|
Drivetrain
|
Consolidated
|
|||||||||
For
the three months ended June
30, 2009:
|
|||||||||||
Net
sales from external customers
|
$ | 84,887 | $ | 33,576 | $ | 118,463 | |||||
Impairment
of goodwill
|
– | 36,991 | 36,991 | ||||||||
Exit,
disposal, certain severance and other charges
|
– | 2,127 | 2,127 | ||||||||
Operating
income (loss)
|
15,660 | (37,539 | ) | (21,879 | ) | ||||||
For
the three months ended June
30, 2008:
|
|||||||||||
Net
sales from external customers
|
$ | 86,512 | $ | 49,110 | $ | 135,622 | |||||
Exit,
disposal, certain severance and other charges
|
152 | – | 152 | ||||||||
Operating
income
|
11,396 | 3,064 | 14,460 | ||||||||
For
the six months ended June
30, 2009:
|
|||||||||||
Net
sales from external customers
|
$ | 162,203 | $ | 69,736 | $ | 231,939 | |||||
Impairment
of goodwill
|
– | 36,991 | 36,991 | ||||||||
Exit,
disposal, certain severance and other charges
|
(5 | ) | 5,294 | 5,289 | |||||||
Operating
income (loss)
|
29,158 | (39,449 | ) | (10,291 | ) | ||||||
For
the six months ended June
30, 2008:
|
|||||||||||
Net
sales from external customers
|
$ | 171,269 | $ | 93,895 | $ | 265,164 | |||||
Exit,
disposal, certain severance and other charges
|
250 | 868 | 1,118 | ||||||||
Operating
income
|
26,709 | 5,624 | 32,333 |
Note
14.
|
Exit,
Disposal, Certain Severance and Other
Charges
|
|
(i)
|
$7,310
for the write-down of raw materials inventory due to the determination of
excess quantities of raw materials on hand as a result of the recent
decline in volume and the consolidation of facilities (classified as cost
of sales – products), including the disposal of $6,598 of
inventory;
|
|
(ii)
|
$1,896
of severance costs primarily for employees being terminated as part of the
closure of the Springfield
facility;
|
|
(iii)
|
$304
of costs related to fixed asset disposals (classified as cost of sales –
products); and
|
|
(iv)
|
$158
of other plant consolidation costs.
|
|
(i)
|
$2,143
of costs to transfer production lines to its Oklahoma City facility and
exit the Springfield facility, including $380 of costs classified as cost
of sales – products; and
|
|
(ii)
|
$1,024
of severance costs for employees being terminated as part of the closure
of the Springfield facility.
|
|
(i)
|
$1,771
of costs to exit the Springfield facility and transfer production lines to
its Oklahoma City facility, including $566 of costs classified as cost of
sales – products; and
|
|
(ii)
|
$356
of severance costs for employees being terminated as part of the closure
of the Springfield facility.
|
Termination
Benefits
|
Exit/Other
Costs
|
Loss
on
Write-Down
of
Assets
|
Total
|
||||||||||||
Total
amount of expense incurred to date and expected to be
incurred
|
$ | 3,276 | $ | 3,342 | $ | 8,344 | $ | 14,962 | |||||||
Reserve
as of December 31, 2008
|
$ | 1,478 | $ | 30 | $ | 1,016 | $ | 2,524 | |||||||
Provision
|
1,380 | 3,184 | 730 | 5,294 | |||||||||||
Payments
|
(1,968 | ) | (2,843 | ) | − | (4,811 | ) | ||||||||
Asset
write-offs
|
− | − | (730 | ) | (730 | ) | |||||||||
Currency
translation adjustment
|
− | − | 112 | 112 | |||||||||||
Reserve
as of June 30, 2009
|
$ | 890 | $ | 371 | $ | 1,128 | $ | 2,389 |
Note
15.
|
Discontinued
Operations
|
For
the three months ended June 30,
|
For
the six months ended June 30,
|
||||||||||||||
2009
|
2008
|
2009
|
2008
|
||||||||||||
NuVinci:
|
|||||||||||||||
Loss
from sale and exit
|
$ | − | $ | (163 | ) | $ | − | $ | (1,891 | ) | |||||
Operating
loss
|
− | (38 | ) | − | (2,401 | ) | |||||||||
Loss
before income taxes
|
− | (201 | ) | − | (4,292 | ) | |||||||||
Income
tax benefit
|
− | 207 | − | 1,801 | |||||||||||
Loss
from NuVinci project, net of income taxes
|
− | 6 | − | (2,491 | ) | ||||||||||
Independent
Aftermarket:
|
|||||||||||||||
Income
before income taxes
|
66 | 45 | 66 | 21 | |||||||||||
Income
tax expense
|
(24 | ) | (17 | ) | (24 | ) | (8 | ) | |||||||
Gain
from Independent Aftermarket, net of income taxes
|
42 | 28 | 42 | 13 | |||||||||||
Gain
(loss) from discontinued operations, net of income taxes
|
$ | 42 | $ | 34 | $ | 42 | $ | (2,478 | ) |
June
30, 2009
|
December
31, 2008
|
||||
Assets:
|
|||||
NuVinci:
|
|||||
Accounts
receivable
|
$ | 47 | $ | 52 | |
Total
assets of discontinued operations
|
$ | 47 | $ | 52 | |
Liabilities:
|
|||||
NuVinci:
|
|||||
Current
liabilities
|
$ | 64 | $ | 363 | |
Independent
Aftermarket:
|
|||||
Current
liabilities
|
− | 90 | |||
Total
liabilities of discontinued operations
|
$ | 64 | $ | 453 |
Note
16.
|
Earnings
Per Share
|
For
the three months ended June 30,
|
For
the six months ended June 30,
|
||||||||||||
2009
|
2008
|
2009
|
2008
|
||||||||||
Numerator:
|
|||||||||||||
Income
(loss) from continuing operations
|
$ | (16,598 | ) | $ | 8,960 | $ | (9,414 | ) | $ | 20,045 | |||
Denominator:
|
|||||||||||||
Weighted-average
common shares outstanding
|
19,631,057 | 21,002,308 | 19,587,619 | 21,422,372 | |||||||||
Common
stock equivalents
|
− | 185,011 | − | 222,292 | |||||||||
Denominator
for diluted earnings per common share
|
19,631,057 | 21,187,319 | 19,587,619 | 21,644,664 | |||||||||
Per
common share -
basic
|
$ | (0.85 | ) | $ | 0.43 | $ | (0.48 | ) | $ | 0.94 | |||
Per
common share -
diluted
|
$ | (0.85 | ) | $ | 0.42 | $ | (0.48 | ) | $ | 0.93 |
Note
17.
|
Contingencies
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
|
·
|
benefits
from our on-going lean and continuous improvement program and other cost
reduction initiatives; and
|
|
·
|
the
launch and ramp-up of new business in our Logistics
segment;
|
|
·
|
reduced
demand for remanufactured transmissions due to a variety of factors
including (i) a reduction in the size of in-warranty vehicle fleets for
Honda and Ford due to declining new car sales, (ii) improved quality of
new OEM transmissions, and (iii) macro-economic factors believed to have
resulted in a reduction in the number of miles driven and the deferral of
repairs;
|
|
·
|
lower
sales to TomTom in 2009 following the ramp-up of new service offerings and
an increase in inventory in their distribution channels in the second
quarter of 2008; and
|
|
·
|
scheduled
price concessions to certain customers, primarily in our Logistics
segment, granted in connection with previous contract
renewals.
|
|
·
|
reduced
demand for remanufactured transmissions due to a variety of factors
including (i) a reduction in the size of in-warranty vehicle fleets for
Honda and Ford due to declining new car sales, (ii) improved quality of
new OEM transmissions, and (iii) macro-economic factors believed to have
resulted in a reduction in the number of miles driven and the deferral of
repairs;
|
|
·
|
lower
sales to TomTom in 2009 following the ramp-up of new service offerings and
an increase in inventory in their distribution channels in the second
quarter of 2008;
|
|
·
|
nominal
sales in 2009 for two Logistics segment programs that were substantially
completed in 2008; and
|
|
·
|
scheduled
price concessions to certain customers, primarily in our Logistics
segment, granted in connection with previous contract
renewals;
|
For
the Three Months Ended June 30,
|
|||||||||||
2009
|
2008
|
||||||||||
Net
sales
|
$ | 84.9 | 100.0 | % | $ | 86.5 | 100.0 | % | |||
Segment
profit
|
$ | 15.7 | 18.5 | % | $ | 11.4 | 13.2 | % |
|
·
|
lower
sales to TomTom in 2009 following the ramp-up of new service offerings and
an increase in inventory in their distribution channels in the second
quarter of 2008;
|
|
·
|
nominal
sales in 2009 for two programs that were substantially completed in 2008;
and
|
|
·
|
scheduled
price concessions granted to certain customers in connection with previous
contract renewals;
|
For
the Three Months Ended June 30,
|
||||||||||||
2009
|
2008
|
|||||||||||
Net
sales
|
$ | 33.6 | 100.0 | % | $ | 49.1 | 100.0 | % | ||||
Impairment
of goodwill
|
$ | 37.0 | 110.1 | % | $ | − | − | |||||
Exit,
disposal, certain severance and other charges
|
$ | 2.1 | 6.3 | % | $ | − | − | |||||
Segment
profit (loss)
|
$ | (37.5 | ) | − | $ | 3.1 | 6.3 | % |
|
·
|
reduced
demand for remanufactured transmissions due to a variety of factors
including (i) a reduction in the size of in-warranty vehicle fleets for
Honda and Ford due to declining new car sales, (ii) improved quality of
new OEM transmissions, and (iii) macro-economic factors believed to have
resulted in a reduction in the number of miles driven and the deferral of
repairs;
|
|
·
|
nominal
sales in 2009 for two Logistics segment programs that were substantially
completed in 2008;
|
|
·
|
lower
sales to TomTom in 2009, due to comparative changes in the level of retail
inventories and to the launch and ramp-up of new services in the first
half of 2008; and
|
|
·
|
scheduled
price concessions to certain customers, primarily in our Logistics
segment, granted in connection with previous contract
renewals;
|
|
·
|
the
launch and ramp-up of new business in our Logistics segment;
and
|
|
·
|
benefits
from our on-going lean and continuous improvement program and other cost
reduction initiatives.
|
|
·
|
reduced
demand for remanufactured transmissions due to a variety of factors
including (i) a reduction in the size of in-warranty vehicle fleets for
Honda and Ford due to declining new car sales, (ii) improved quality of
new OEM transmissions, and (iii) macro-economic factors believed to have
resulted in a reduction in the number of miles driven and the deferral of
repairs;
|
|
·
|
lower
sales to TomTom in 2009, due to comparative changes in the level of retail
inventories and to the launch and ramp-up of new services in the first
half of 2008;
|
|
·
|
nominal
sales in 2009 for two Logistics segment programs that were substantially
completed in 2008; and
|
|
·
|
scheduled
price concessions to certain customers, primarily in our Logistics
segment, granted in connection with previous contract
renewals;
|
For
the Six Months Ended June 30,
|
|||||||||||
2009
|
2008
|
||||||||||
Net
sales
|
$ | 162.2 | 100.0 | % | $ | 171.3 | 100.0 | % | |||
Segment
profit
|
$ | 29.2 | 18.0 | % | $ | 26.7 | 15.6 | % |
|
·
|
lower
sales to TomTom in 2009, due to comparative changes in the level of retail
inventories and to the launch and ramp-up of new services in the first
half of 2008;
|
|
·
|
nominal
sales in 2009 for two programs that were substantially completed in 2008;
and
|
|
·
|
scheduled
price concessions granted to certain customers in connection with previous
contract renewals;
|
For
the Six Months Ended June 30,
|
||||||||||||
2009
|
2008
|
|||||||||||
Net
sales
|
$ | 69.7 | 100.0 | % | $ | 93.9 | 100.0 | % | ||||
Impairment
of goodwill
|
$ | 37.0 | 53.1 | % | $ | − | − | |||||
Exit,
disposal, certain severance and other charges
|
$ | 5.3 | 7.6 | % | $ | 0.9 | 1.0 | % | ||||
Segment
profit (loss)
|
$ | (39.5 | ) | − | $ | 5.6 | 6.0 | % |
|
·
|
$9.6
million for accounts receivable primarily as the result of (i) certain
amounts that were paid after the end of the quarter and (ii) the delayed
payment of certain amounts due from customers going through the bankruptcy
process; and
|
|
·
|
$8.9
million for accounts payable and accrued expenses primarily due to (i)
federal and state income tax payments, (ii) the use of $3.1 million in
cash for payments of our 2008 incentive compensation and (iii) changes in
our accounts payable balances;
|
|
·
|
$4.3
million from reduced inventories primarily related to a planned reduction
in inventory in the Logistics segment;
and
|
|
·
|
$1.7
million from prepaid and other
assets.
|
Quantitative
and Qualitative Disclosures About Market
Risk
|
Item
4.
|
Controls
and Procedures
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
Period
|
Total
number
of
Shares
Purchased
|
Average
Price
Paid
per Share
|
Total
Number of Shares Purchased as Part of Publicly Announced Plans or
Programs
|
Maximum
Number
(or
Approximate
Dollar
Value) of Shares that May Yet Be Purchased Under the Plan(1)
|
|||||
April
1-30, 2009
|
– | $ | – | – |
–
|
||||
May
1-31, 2009
|
– | $ | – | – |
–
|
||||
June
1-30, 2009
|
26,424 | $ | 15.09 | 26,424 |
–
|
(1)
|
Excludes
amounts that could be used to repurchase shares acquired under our stock
incentive plans to satisfy withholding tax obligations of employees and
non-employee directors upon the vesting of restricted
stock.
|
Submission
of Matters to a Vote of Security
|
Votes
|
|||
For
|
Against
|
||
Robert
L. Evans
|
11,058,819
|
7,085,712
|
|
Curtland
E. Fields
|
10,978,453
|
7,166,078
|
|
Dr.
Michael J. Hartnett
|
16,798,335
|
1,346,196
|
|
Michael
D. Jordan
|
11,044,990
|
7,099,541
|
|
Todd
R. Peters
|
16,987,464
|
1,157,067
|
|
S.
Lawrence Prendergast
|
16,144,312
|
2,000,219
|
|
Edward
Stewart
|
16,812,065
|
1,332,466
|
For
|
Against
|
Nonvotes
and
Abstentions
|
||
12,662,569
|
4,178,345
|
6,630
|
Exhibits
|
ATC
TECHNOLOGY CORPORATION
|
||
Date: July
28, 2009
|
/s/
Ashoka Achuthan
|
|
Ashoka
Achuthan, Vice President and Chief Financial
Officer
|
·
|
Ashoka Achuthan is
signing in the dual capacities as i) the principal financial officer, and
ii) a duly authorized officer of the
company.
|