Intermec Inc. (IN) filed Quarterly Report for the period ended 2009-03-29.
UNOVA Inc. and subsidiaries is an industrial technologies company providing global customers with solutions for improving their efficiency and productivity. The company operates in two primary businesses: Automated Data Systems and Industrial Automation Systems. The Automated Data Systems segment comprises wireless networking and mobile computing products and services and Internet-enabled automated data collection. Intermec Inc. has a market cap of $690.1 million; its shares were traded at around $11.25 with a P/E ratio of 16.9 and P/S ratio of 0.7.
Highlight of Business Operations:In January 2009, we committed to a business restructuring plan intended to reorganize our sales function and to reduce our operating cost structure and improve efficiency. We believe these actions are appropriate strategically and are prudent adjustments in view of the generally weakened global economy and uncertain market conditions expected in the foreseeable future. The total restructuring costs are expected to be approximately $10.2 million, including employee termination costs of approximately $9.4 million and $0.8 million of other periodic transitional costs. We recorded $8.6 million of the restructuring charge in the first quarter of 2009, and we expect the remainder will be recorded in the second quarter of 2009. We anticipate that all of the severance related and periodic transitional costs will be cash expenditures. Our remaining future expected costs are $1.0 million for employee termination and $0.6 million for other costs. We expect to achieve an annual labor-related savings of approximately $14.0 million to $16.0 million upon completion of this restructuring plan.
In April 2009, we committed to a business restructuring plan including a reduction of our work force. We believe these actions are appropriate strategically and are prudent adjustments in view of the generally weakened global economy and uncertain market conditions expected in the foreseeable future. The total restructuring costs are expected to be in a range of $15.0 to $17.0 million, including employee termination costs of approximately $12.5 to $13.5 million and $2.5 to $3.5 million of other periodic transitional costs. We expect to record approximately $9.0 to $10.0 million in the second quarter of 2009, and the remainder in the rest of 2009. We anticipate that all of the severance related and periodic transitional costs will be cash expenditures.
Our principal sources of liquidity are cash flows generated from operations and our cash, cash equivalents and short-term investments balances, which, at fair value, were $216.1 million and $221.5 million at March 29, 2009, and December 31, 2008, respectively. Operating activities for the first quarter of 2009 provided lower cash flows compared to the first quarter of 2008 due to a net loss of $10.4 million and cash payment of approximately $4.3 million for restructuring activities. Cash used in investing activities for the first quarter of 2009 was $1.6 million. This was related to capital expenditures of $2.4 million and capitalized patent legal fees of $1.1 million, offset by proceeds from sale of property of $1.9 million. Cash used in financing activities for the first quarter of 2009 was $0.2 million, related primarily to the tax effect on stock based payment arrangement.
Under our 2007 Revolving Credit Facility ('Revolving Facility"), we have a maximum amount available of $50.0 million. As of March 29, 2009, net of outstanding letters of credit and limitations on minimum availability, we had borrowing capacity of $47.6 million under the Revolving Facility. We made no borrowings under the Revolving Facility during the first quarter of 2009 and, as of March 29, 2009, no borrowings were outstanding. As of March 29, 2009, we were in compliance with the covenants of the Revolving Facility.
Read the The complete ReportIN is in the portfolios of Richard Aster Jr of Meridian Fund, PRIMECAP Management.