Symmetry Medical Inc. (SMA, Financial) filed Quarterly Report for the period ended 2010-07-03.
Symmetry Medical Inc. has a market cap of $343 million; its shares were traded at around $9.54 with a P/E ratio of 18.7 and P/S ratio of 1. SMA is in the portfolios of John Rogers of ARIEL CAPITAL MANAGEMENT LLC, Paul Tudor Jones of The Tudor Group, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Other (Income) Expense. Interest expense for the three month period ended July 3, 2010 decreased $0.1 million, or 4.2%, to $1.5 million from $1.6 million for the comparable period in 2009. This decrease reflects the reduction in aggregate outstanding indebtedness of $34.2 million, or 27.4% as compared to July 4, 2009. The derivative gain in the second quarter 2010 consists of a gain on interest rate swap valuation of $0.5 million related to our interest rate swap that has not been designated as a hedge as compared to a gain of $0.2 million for the comparable period in 2009. The interest rate swaps are used to convert our variable rate long-term debt to fixed rates. Other income for the three month period ended July 3, 2010 increased $0.1 million from the comparable period in 2009 due to favorable foreign currency exchange rate fluctuations on transactions denominated in foreign currencies.
Facility Closure and Severance Costs. Results of Operations include pre-tax charges of $0.9 million and $0.2 million for the six months ended July 3, 2010 and July 4, 2009, respectively associated with employee cost reduction and efficiency actions and the consolidation of our Auburn, ME facility into other facilities that produce similar products. For the six month period ended July 3, 2010, these costs are comprised of $0.6 million of severance costs and an additional $0.3 million of moving expenses compared to $0.2 million of severance costs for the period ended July 4, 2009. As of July 3, 2010 and January 2, 2010, severance accruals related to these cost reduction and efficiency actions totaled $0.1 and $0.8 million, respectively, and are included in accrued and other liabilities in the condensed consolidated balance sheets. The reduction in the accrual from January 2, 2010 represents payments made during the first half of 2010 of $1.3 million, offset by additional severance costs incurred of $0.6 million. Remaining costs are all expected to be paid during 2010.
Other (Income) Expense. Interest expense for the six month period ended July 3, 2010 decreased $0.3 million, or 9.5%, to $3.1 million from $3.4 million for the comparable period in 2009. This decrease reflects the reduction in aggregate outstanding indebtedness $34.2 million, or 27.4% as compared to July 4, 2009. The derivatives gain for the first half of 2010 consists of a gain on interest rate swap valuation of $0.8 million related to our interest rate swap that has not been designated as a hedge as compared to a gain of $0.6 million for the comparable period in 2009. The interest rate swaps are used to convert our variable rate long-term debt to fixed rates. Other expense for the six month period ended July 3, 2010 increased $0.4 million from the comparable period in 2009, from a gain of $0.3 million to a loss of $0.1 million, due to unfavorable foreign currency exchange rate fluctuations on transactions denominated in foreign currencies.
Financing Activities. Financing activities used $5.5 million of cash in the six month period ended July 3, 2010 compared to $6.8 million for the six month period ended July 4, 2009, due primarily to payments on long-term debt and capital leases of $10.8 million, partially offset by cash received from a new asset-based 24 month term note of $2.7 million at our Sheffield, UK facility and net borrowings on our revolving line of credit of $2.5 million.
As of July 3, 2010, we had an aggregate of $90.8 million of outstanding indebtedness, which consisted of $79.4 million of term loan borrowings outstanding under our Senior Credit Agreement, $4.0 million of borrowings outstanding under our revolving credit facility, $2.4 million of borrowings under our new UK asset-based 24-month term note, $1.9 million of borrowings under our Malaysia short-term credit facility, and $3.1 million of capital lease obligations. We had two outstanding letters of credit as of July 3, 2010 in the amounts of $3.5 million and $0.2 million.
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Symmetry Medical Inc. has a market cap of $343 million; its shares were traded at around $9.54 with a P/E ratio of 18.7 and P/S ratio of 1. SMA is in the portfolios of John Rogers of ARIEL CAPITAL MANAGEMENT LLC, Paul Tudor Jones of The Tudor Group, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Facility Closure and Severance Costs. Results of Operations include pre-tax charges of $0.3 million and $0.1 million for the three months ended July 3, 2010 and July 4, 2009, respectively, associated with employee cost reduction and efficiency actions and the consolidation of our Auburn, ME facility into other facilities that produce similar products. For the three month period ended July 3, 2010, these costs are comprised of $0.2 million of severance costs and an additional $0.1 million of moving expenses compared to $0.1 million of severance costs for the period ended July 4, 2009. Costs charged to operations in the second quarter of 2010 were paid during second quarter. Included in accrued and other liabilities in the consolidated balance sheet as of July 3, 2010 is $0.1 million of severance costs incurred during fiscal 2009 that have not yet been paid. These costs are all expected to be paid during 2010.Other (Income) Expense. Interest expense for the three month period ended July 3, 2010 decreased $0.1 million, or 4.2%, to $1.5 million from $1.6 million for the comparable period in 2009. This decrease reflects the reduction in aggregate outstanding indebtedness of $34.2 million, or 27.4% as compared to July 4, 2009. The derivative gain in the second quarter 2010 consists of a gain on interest rate swap valuation of $0.5 million related to our interest rate swap that has not been designated as a hedge as compared to a gain of $0.2 million for the comparable period in 2009. The interest rate swaps are used to convert our variable rate long-term debt to fixed rates. Other income for the three month period ended July 3, 2010 increased $0.1 million from the comparable period in 2009 due to favorable foreign currency exchange rate fluctuations on transactions denominated in foreign currencies.
Facility Closure and Severance Costs. Results of Operations include pre-tax charges of $0.9 million and $0.2 million for the six months ended July 3, 2010 and July 4, 2009, respectively associated with employee cost reduction and efficiency actions and the consolidation of our Auburn, ME facility into other facilities that produce similar products. For the six month period ended July 3, 2010, these costs are comprised of $0.6 million of severance costs and an additional $0.3 million of moving expenses compared to $0.2 million of severance costs for the period ended July 4, 2009. As of July 3, 2010 and January 2, 2010, severance accruals related to these cost reduction and efficiency actions totaled $0.1 and $0.8 million, respectively, and are included in accrued and other liabilities in the condensed consolidated balance sheets. The reduction in the accrual from January 2, 2010 represents payments made during the first half of 2010 of $1.3 million, offset by additional severance costs incurred of $0.6 million. Remaining costs are all expected to be paid during 2010.
Other (Income) Expense. Interest expense for the six month period ended July 3, 2010 decreased $0.3 million, or 9.5%, to $3.1 million from $3.4 million for the comparable period in 2009. This decrease reflects the reduction in aggregate outstanding indebtedness $34.2 million, or 27.4% as compared to July 4, 2009. The derivatives gain for the first half of 2010 consists of a gain on interest rate swap valuation of $0.8 million related to our interest rate swap that has not been designated as a hedge as compared to a gain of $0.6 million for the comparable period in 2009. The interest rate swaps are used to convert our variable rate long-term debt to fixed rates. Other expense for the six month period ended July 3, 2010 increased $0.4 million from the comparable period in 2009, from a gain of $0.3 million to a loss of $0.1 million, due to unfavorable foreign currency exchange rate fluctuations on transactions denominated in foreign currencies.
Financing Activities. Financing activities used $5.5 million of cash in the six month period ended July 3, 2010 compared to $6.8 million for the six month period ended July 4, 2009, due primarily to payments on long-term debt and capital leases of $10.8 million, partially offset by cash received from a new asset-based 24 month term note of $2.7 million at our Sheffield, UK facility and net borrowings on our revolving line of credit of $2.5 million.
As of July 3, 2010, we had an aggregate of $90.8 million of outstanding indebtedness, which consisted of $79.4 million of term loan borrowings outstanding under our Senior Credit Agreement, $4.0 million of borrowings outstanding under our revolving credit facility, $2.4 million of borrowings under our new UK asset-based 24-month term note, $1.9 million of borrowings under our Malaysia short-term credit facility, and $3.1 million of capital lease obligations. We had two outstanding letters of credit as of July 3, 2010 in the amounts of $3.5 million and $0.2 million.
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